Woodside Energy Group Ltd (formerly Woodside Petroleum Ltd) is an Australian petroleum exploration and production company. Woodside is the operator of oil and gas production in Australia and also Australia's largest independent dedicated oil and gas company.
Woodside Energy Group (ASX: WDS) delivered a strong fourth-quarter update for 2024, achieving record annual production of 193.9 million barrels of oil equivalent (MMboe), up 4% year-on-year from 187.2 MMboe. Despite this milestone, its share price declined 2.49%, underperforming the ASX200’s 0.59% gain over the same period.
Fourth-quarter production reached 51.4 MMboe, a 6.9% increase compared to the prior year, with sales volumes climbing 8.7% to 53.8 MMboe. Quarterly sales revenue rose by 3.4% to $3.47 billion, driven by the exceptional performance of the Sangomar field in Senegal, producing 75,000 barrels per day, and strong contributions from Mad Dog in the Gulf of Mexico. However, the average realised price per barrel of oil equivalent fell by 3.1%, reflecting softer market conditions.
For the full year, Woodside’s sales revenue declined by 6.3% to $13.15 billion, largely due to a 7% drop in average realised prices. Capital expenditure surged 43% to $8.13 billion, as Woodside invested heavily in key growth projects, including the Scarborough Energy Project, which reached 78% completion, and the Beaumont New Ammonia development in Texas.
Looking ahead, Woodside has forecast production for 2025 at 186–196 MMboe, slightly lower than the 2024 output, with capital expenditure guidance set at $4.5 billion to $5 billion. CEO Meg O’Neill emphasised the company’s strategic progress, noting the 20% completion of the Trion project in the Gulf of Mexico and ongoing work to bring the Scarborough project online by 2026.
Additionally, the company is reshaping its portfolio, having completed an asset swap with Chevron to consolidate its focus on LNG operations. Woodside is also advancing its Louisiana LNG project, which has attracted strong interest from potential partners.
Despite challenging market conditions, Woodside’s 12-month gross dividend yield of 10.99% ranks among the highest in the ASX50, reinforcing its appeal to income-focused investors. WDS’s inclusion in the ASX blue chips will next be assessed when the portfolio is rebalanced on February 3rd 2025.