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Woodside Energy Group Ltd (WDS)
NYSE:WDS
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Woodside Energy Group
(NYSE:WDS)
Select Model
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Rating:74Outperform
Price Target:
$19.50
â–²(34.39% Upside)
Woodside Energy Group's strong financial performance and attractive valuation are key strengths, supported by positive earnings call sentiment. However, technical indicators suggest caution due to overbought conditions, and declining revenues pose a risk.
Positive Factors
Strong Production Levels
Record production levels indicate operational efficiency and capacity to meet market demand, supporting long-term revenue stability.
Cost Reduction Success
Effective cost management enhances profitability, allowing the company to maintain competitive pricing and improve margins over time.
Strategic Investment Decisions
Strategic investments in LNG projects enhance market position and future growth potential, aligning with global energy trends.
Negative Factors
Declining Revenue
A declining revenue trend can limit growth potential and impact the company's ability to invest in new projects or technologies.
Cash Flow Challenges
Reduced cash flow from operations may constrain the company's ability to fund capital expenditures and manage debt, impacting financial flexibility.
Regulatory Delays
Regulatory delays can hinder project timelines and productivity, affecting long-term strategic goals and market competitiveness.
Woodside Energy Group (WDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.34B
Dividend Yield6.85%
Average Volume (3M)936.40K
Price to Earnings (P/E)10.4
Beta (1Y)1.09
Revenue Growth15.31%
EPS Growth58.83%
CountryUS
Employees4,718
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.65
Shares Outstanding1,901,100,100
10 Day Avg. Volume883,574
30 Day Avg. Volume936,397
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.84
Price to Sales (P/S)2.24
P/FCF Ratio31.29
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue2.75
Enterprise Value/Gross Profit7.34
Enterprise Value/Ebitda4.25
Forecast
1Y Price Target
$26.00Price Target Upside79.19% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.72
Revenue Forecast (FY)$11.66B
Woodside Energy Group Business Overview & Revenue Model
Company DescriptionWoodside Energy Group Ltd engages in the exploration, evaluation, development, production, marketing, and sale of hydrocarbons in Oceania, Asia, Canada, Africa, and internationally. The company produces liquefied natural gas, pipeline natural gas, condensate, liquefied petroleum gas, and crude oil. It holds interests in the Greater Browse, Greater Sunrise, Greater Pluto, Greater Exmouth, North West Shelf, Wheatstone, Julimar-Brunello, Canada, Senegal, Greater Scarborough, and Myanmar projects. The company was formerly known as Woodside Petroleum Ltd and changed its name to Woodside Energy Group Ltd in May 2022. Woodside Energy Group Ltd was founded in 1954 and is headquartered in Perth, Australia.
How the Company Makes MoneyWoodside Energy Group generates revenue primarily through the sale of natural gas, LNG, and crude oil. The company earns income by extracting hydrocarbons from its various production sites, processing them, and selling them to both domestic and international customers. Key revenue streams include long-term contracts for LNG supply, spot market sales, and joint venture agreements with other energy companies. Additionally, Woodside benefits from partnerships with global energy firms, which enhance its operational capabilities and market reach. The fluctuating prices of oil and gas on global markets also significantly impact Woodside's earnings, making commodity price trends a critical factor in its revenue model.
Woodside Energy Group Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Positive
The earnings call presented a robust financial performance with strategic investments and operational excellence driving growth and shareholder value. Cost reductions and record production levels were key highlights. However, regulatory delays and unexpected challenges in decommissioning posed concerns. The sentiment is cautiously optimistic with a focus on long-term growth and sustainability.Q2-2025 Updates
Positive Updates
Strong Half-Year Financial Performance
Woodside Energy reported a net profit after tax of more than $1.3 billion, with an EBITDA margin of 70%, despite lower realized prices and inflationary pressures.
Record Production Levels
Achieved half-year production of 548,000 barrels of oil equivalent per day and total production of 99.2 million barrels of oil equivalent, with exceptional performance at Sangomar contributing significantly.
Cost Reduction Success
Reduced unit production costs by 7%, bringing the average to $7.70 per barrel of oil equivalent, which is attributed to increased efficiency and strategic cost control measures.
Strategic Investment Decisions
Final investment decision on Louisiana LNG, positioning Woodside as a global LNG powerhouse, with construction of Train 1 already 22% complete.
Significant Safety Achievements
No high consequence injuries or significant environmental impacts recorded during the half, with 100,000 hours worked without lost time injuries at Northwest Shelf project.
Dividend Policy and Shareholder Returns
Announced a fully franked interim dividend of $0.53 per share, representing a half-year annualized yield of 6.9%, maintaining a payout at the top end of the range.
Negative Updates
Decommissioning Challenges
Unexpected challenges in the removal of equipment at Griffin, Minerva, and Stybarrow fields led to increased costs and delays in decommissioning activities.
Regulatory Delays
Frustration expressed over the lack of final federal approval for the Northwest Shelf extension, impacting productivity and project timelines.
Beaumont Ammonia Project Delay
First ammonia production is delayed to late 2025 due to construction delays, impacting the completion payment timeline.
Company Guidance
During the Woodside Energy Group Limited Half Year Results 2025 Conference Call, CEO Meg O’Neill and CFO Graham Tiver presented robust financial and operational results. The company reported a net profit after tax exceeding $1.3 billion and strong production figures of 548,000 barrels of oil equivalent per day, totaling 99.2 million barrels of oil equivalent. Woodside achieved a 7% reduction in unit production costs, with marketing and trading activities contributing $144 million, representing approximately 8% of total EBIT. The company declared a fully franked interim dividend of $0.53 per share, aligning with the upper end of its payout range. Woodside advanced major projects, including Scarborough, which is 86% complete, and Louisiana LNG, targeting first LNG in 2029 with a construction cost of around $960 per tonne. The company maintained strong safety records with no high consequence injuries, and its balance sheet remains well-positioned with gearing within the target range of 10% to 20%.Woodside Energy Group Financial Statement Overview
Summary
Woodside Energy Group shows strong profitability and a solid equity base, with a high net profit margin and moderate leverage. However, declining revenues and cash flow generation pose risks.Income Statement
Woodside Energy Group's income statement shows mixed performance. The gross profit margin in 2024 was approximately 43.06%, demonstrating strong cost management relative to revenue. However, revenue has declined from $16.8 billion in 2022 to $13.2 billion in 2024, indicating a negative growth trend. The net profit margin improved significantly to 27.11% in 2024, reflecting effective control over expenses and increased profitability. The EBIT figure for 2024 is zero, which is unusual, and the EBITDA margin is high at 71.81%, suggesting robust operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a solid financial structure with a debt-to-equity ratio of approximately 0.33 in 2024, indicating moderate leverage. The equity ratio is 57.78%, showing a strong equity position in total assets. Return on Equity (ROE) improved significantly to 10.10% in 2024, highlighting enhanced profitability. While the company maintains a healthy equity base, the decrease in total assets from 2022 to 2024 suggests some asset divestment or depreciation.80
Positive
Cash Flow
Cash flow analysis shows that operating cash flow decreased to $5.85 billion in 2024 from $8.81 billion in 2022, indicating a potential challenge in cash generation from operations. The free cash flow to net income ratio is relatively low at 0.26, suggesting that a smaller portion of net income is being converted into free cash flow. Despite this, the company has managed its financing activities well, reflected in positive free cash flow in recent years.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.77B | 13.18B | 13.99B | 16.82B | 6.96B | 3.60B |
| Gross Profit | 5.17B | 5.68B | 6.47B | 10.28B | 3.12B | 615.00M |
| EBITDA | 8.91B | 9.50B | 8.70B | 10.41B | 4.12B | -3.32B |
| Net Income | 2.95B | 3.57B | 1.66B | 6.50B | 1.98B | -4.03B |
Balance Sheet | ||||||
| Total Assets | 64.88B | 61.26B | 55.36B | 59.32B | 26.47B | 24.62B |
| Cash, Cash Equivalents and Short-Term Investments | 4.88B | 4.11B | 1.95B | 6.88B | 3.35B | 3.78B |
| Total Debt | 13.55B | 11.62B | 6.50B | 6.77B | 6.80B | 7.49B |
| Total Liabilities | 26.37B | 25.11B | 20.19B | 22.19B | 12.24B | 11.75B |
| Stockholders Equity | 35.64B | 35.40B | 34.40B | 36.34B | 13.44B | 12.07B |
Cash Flow | ||||||
| Free Cash Flow | -1.89B | 945.00M | 854.00M | 5.67B | 1.17B | -96.00M |
| Operating Cash Flow | 6.48B | 5.85B | 6.14B | 8.81B | 3.79B | 1.85B |
| Investing Cash Flow | -6.88B | -5.75B | -5.58B | -2.27B | -2.94B | -2.11B |
| Financing Cash Flow | 3.41B | 2.10B | -5.00B | -3.36B | -1.42B | -203.00M |
Woodside Energy Group Technical Analysis
Positive
14.51
Price Trends
16.23
Negative
15.97
Positive
15.26
Positive
Market Momentum
-0.04
Negative
55.51
Neutral
81.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDS, the sentiment is Positive. The current price of 14.51 is below the 20-day moving average (MA) of 15.55, below the 50-day MA of 16.23, and below the 200-day MA of 15.26, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 81.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WDS.
Woodside Energy Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $23.79B | 8.92 | 18.35% | 2.64% | 11.14% | -21.32% | |
78 Outperform | $123.99B | 14.19 | 15.37% | 3.43% | 8.41% | -16.12% | |
78 Outperform | $60.09B | 11.03 | 18.48% | 3.79% | -5.15% | -19.06% | |
76 Outperform | $31.37B | 17.15 | 8.19% | 1.17% | 64.84% | 219.47% | |
74 Outperform | $30.34B | 10.38 | 8.33% | 6.85% | 15.31% | 58.83% | |
66 Neutral | $43.66B | 32.26 | 5.82% | 2.39% | -2.48% | -65.26% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
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Woodside Energy Group
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Woodside Energy Group Corporate Events
Woodside Energy Issues New Employee Incentive Securities
Dec 16, 2025
On December 16, 2025, Woodside Energy Group announced the issuance of 23,383 unquoted equity securities under an employee incentive scheme. These securities, which were initially granted as Notional Shares to Daniel Kalms, a key management personnel, have been converted to equity securities intended to be received as Woodside shares upon vesting. This move aligns with the company’s executive remuneration arrangements and reflects its strategic approach to employee incentives.
The most recent analyst rating on (WDS) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the WDS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.