Woodside Energy Group (ASX:WDS) Is Up 10.4% After Raising 2025 Production Guidance and Securing New LNG Deals

• Woodside Energy Group recently upgraded its full-year 2025 production guidance to 192–197 million barrels of oil equivalent and reported a 1% quarter-on-quarter production increase, citing strong performances from key assets including Sangomar and Pluto LNG.
• This operational progress was complemented by new long-term LNG supply agreements and significant advancements in major projects like Scarborough and Beaumont New Ammonia, underlining the company's focus on expanding its LNG portfolio and project pipeline.
• To assess the implications of Woodside's raised production targets, we'll reconsider its investment narrative in light of improved operational momentum.

We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Woodside Energy Group Investment Narrative Recap

Woodside Energy Group shareholder confidence often relies on faith in the durability of LNG demand and the company's ability to deliver major projects on time and within budget. The upgraded production guidance for 2025 may support near-term optimism, but it does not fundamentally alter the importance of timely completion and risk management at Scarborough and Louisiana LNG, ongoing execution risks remain key to the story.

Of recent news, the sale of a 10% interest in Louisiana LNG LLC and pipeline control to Williams stands out. This transaction brings in external capital and operational expertise, strengthening near-term project funding but also highlighting Woodside’s reliance on partnerships to manage large capital commitments and build out LNG capacity.

Yet, investors should not overlook that even with operational progress, high expectations around project delivery leave little room for delays or cost overruns, and if those materialize...

Read the full narrative on Woodside Energy Group (it's free!)

Woodside Energy Group's outlook anticipates $14.1 billion in revenue and $2.3 billion in earnings by 2028. This implies a certain annual revenue growth rate (not explicitly stated in the excerpt) and a decrease in earnings of $0.3 billion from current earnings of $2.6 billion.

Uncover how Woodside Energy Group's forecasts yield a A$27.19 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Twenty-three fair value estimates from the Simply Wall St Community range from A$18.93 to A$96.38 per share. Against these diverse viewpoints, execution risk in large growth projects remains a key consideration for any assessment of Woodside's future returns.

Explore 23 other fair value estimates on Woodside Energy Group - why the stock might be worth 22% less than the current price!

Build Your Own Woodside Energy Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Woodside Energy Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Woodside Energy Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Woodside Energy Group's overall financial health at a glance.

Interested In Other Possibilities?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• AI is about to change healthcare. These 33 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• Find companies with promising cash flow potential yet trading below their fair value.
• Explore 27 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com