Woodside Energy Group Ltd

NYSE:WDS Stock Report

Market Cap: US$41.8b

Woodside Energy Group Past Earnings Performance

Past criteria checks 2/6

Woodside Energy Group has been growing earnings at an average annual rate of 20.6%, while the Oil and Gas industry saw earnings growing at 8.4% annually. Revenues have been growing at an average rate of 16.5% per year. Woodside Energy Group's return on equity is 6.9%, and it has net margins of 20.9%.

Key information

20.63%

Earnings growth rate

16.16%

EPS growth rate

Oil and Gas Industry Growth33.67%
Revenue growth rate16.50%
Return on equity6.87%
Net Margin20.93%
Next Earnings Update29 Jul 2026

Recent past performance updates

Recent updates

Seeking Alpha • Apr 02

Woodside Energy : Hedges Limit LNG Upside

Summary I rate Woodside Energy (WDS) a buy, driven by higher-for-longer LNG and oil prices amid ongoing Middle East disruptions. WDS's conservative strategy limits near-term upside, with 75% of LNG contracted through 2028 at ~$11/BTU, but spot exposure benefits from elevated prices. My out-of-consensus forecast sees 2026 EBITDA at $11bn and FCF over $4bn, supporting dividends, debt reduction, and potential reinvestment. Valuation offers 60% upside to YE27 on my aggressive scenario, with potential for multiple expansion as WDS gains premium pricing. Read the full article on Seeking Alpha
Seeking Alpha • Feb 14

Woodside Energy: Assets Keep Performing, Time To Get In

Summary Woodside Energy Group offers a compelling buying opportunity with a high 8.31% dividend yield and strong EBITDA margins despite a 30% drop in stock price. WDS's strategic acquisitions and asset swaps, including Tellurian and Driftwood LNG, enhance its market position and long-term revenue potential, particularly in the Asian and U.S. LNG markets. The company's robust historical performance, reliable dividend payouts, and solid asset base make it a dependable investment, especially as LNG demand is projected to double by 2050. Despite market volatility, WDS's focus on long-term contracts and high-quality assets ensures stable EBITDA and dividend reliability, presenting significant upside potential. Read the full article on Seeking Alpha
Seeking Alpha • Nov 19

Woodside Energy's Key Drivers Look Shaky

Summary Woodside Energy's future is uncertain due to potential oversupply in the LNG market and questionable assumptions about fossil fuel demand in emerging Asian markets. Despite strong H1 2024 results, Woodside's focus on fossil fuel expansion and inadequate climate action raises concerns about its long-term viability. The US's dramatic LNG capacity expansion and global competition from Qatar and Australia could lead to supply exceeding demand, impacting Woodside's prospects. Climate issues and the need to reduce greenhouse gas emissions are critical, with Woodside's share price reflecting market skepticism about its oil and gas expansion plans. Read the full article on Seeking Alpha
Seeking Alpha • Aug 28

Woodside Energy: Good H1, Let's See On New Projects Execution

Summary Woodside Energy's H1 2024 earnings showed mixed results, with a 15% drop in EBIT but only a 2% decline in total production volumes. The company is heavily investing in LNG projects like the Scarborough project and expanding into hydrogen and ammonia clean energy markets. Despite high capital expenditure and a challenging macro environment, Woodside is focused on reducing production costs and optimizing marketing strategies. Woodside's strategic shift towards international projects and clean energy aims to balance growth with maintaining an investment-grade credit rating and shareholder returns. Read the full article on Seeking Alpha
Seeking Alpha • Jul 24

Woodside Energy: Expands LNG Leadership With Tellurian Acquisition

Summary Woodside Energy Group is Australia's leading independent E&P with a large LNG business. Woodside recently announced the acquisition of Tellurian, an American LNG developer. The combined entity could be one of the largest LNG producers globally once Driftwood LNG is fully developed. Read the full article on Seeking Alpha
Seeking Alpha • May 06

Woodside Energy: Raising To A Buy On Relative Valuation

Summary Woodside Energy Group is Australia's leading independent E&P with a large LNG business. The company's share price is approaching a long-term support level, which may present a buying opportunity. WDS's recent stock weakness could be due to the stock's stagnant growth profile. However, this is expected to change once the Scarborough LNG project comes online in 2026. Read the full article on Seeking Alpha
Seeking Alpha • Feb 21

Woodside Energy: Many Levers To Pull, And Knobs To Twist For Growth

Summary Woodside Energy Group Ltd stock has not seen much movement despite recent mergers and acquisitions. Analysts have a median price target of $22.45 for Woodside Energy stock, suggesting a potential upside. The company has several potential catalysts, including projects in Senegal, Western Australia, East Timor-Leste, the Gulf of Mexico, and Canada. I rate the company a buy at current levels. Read the full article on Seeking Alpha
Seeking Alpha • Dec 14

Woodside Energy Group: Appealing Dividend, But Some Turnaround Is Needed Here

Summary Woodside Energy Group's stock price has been steadily declining, trading at a low P/E of under 6 and a dividend yield of over 7%. The company is involved in various segments of the hydrocarbon industry, with a robust global portfolio and strong earnings growth. The Asia Pacific region presents a high demand for energy, and WDS is well-positioned to meet these demands, with potential for further investments and approvals. Read the full article on Seeking Alpha
Seeking Alpha • Dec 05

Woodside Energy: Remain Cautious For Now

Summary Woodside Energy Group's 2023 financial performance is expected to be weaker due to lower commodity prices. The company's H1/2023 performance was in line with estimates, but significantly lower than H2/2022. With weak commodity prices, I suggest investors step to the sidelines and await better pricing on WDS shares or an improvement in economic data. Read the full article on Seeking Alpha
Seeking Alpha • Sep 21

Woodside Energy: Scarborough Means Growth Is Secular

Summary Woodside Energy Group has a solid pipeline to support long-term production growth. The commodity situation has improved for them since the H1 and enduring conditions for higher gas and oil prices remain. WDS' dividend is ample and sustainable, and their sequential results are going to look good as we approach the end of the year. Read the full article on Seeking Alpha
Seeking Alpha • Jul 05

Woodside Energy: Downgrade To Hold; Watch Uptrend For Exit

Summary Woodside Energy Group's merger with BHP Group's petroleum assets has resulted in a well-funded LNG giant, with investors enjoying a 24% total return in the past year. Woodside's diversified global portfolio and new production projects are expected to boost production in the coming years, with 2023 production expected to grow 17% YoY. However, lower commodity prices are expected to result in lower revenues, earnings, and dividends for Woodside in 2023, leading to a downgrade to hold. Read the full article on Seeking Alpha
Seeking Alpha • Feb 16

Woodside Energy: Big Time Free Cash Flow And Yield, Technicals Bullish

Summary Investors must consider owning a chunk of non-US stocks as they may be turning the corner on a relative basis. Woodside Energy is one of those low-value foreign energy names with a big yield and ample free cash flow. I like the stock on valuation and see upside potential in its chart, too. Woodside Energy (WDS) sports strong free cash flow, a high yield, and a favorable chart. Like many Energy sector names, its P/E is low while oil and gas prices, while off the highs, are conducive for producers. What’s more ex-USA stocks appear to be turning for the better. BofA even deemed it a new era of foreign equities outpacing USA names. Let’s dig deeper into why WDS stock is a buy. A Whole New World? BofA Global Research According to Bank of America Global Research, Woodside Energy Group is Australia's largest oil & gas company with annual production of c.200 mmboe and is also a top 10 global E&P and supplier of LNG. Woodside's asset portfolio mainly comprises large, low-cost, long-life LNG assets in Australia and high-margin oil production in the US Gulf of Mexico. The $48 billion market cap Oil, Gas & Consumable Fuels industry company within the Energy sector trades at a low 7.6 trailing 12-month GAAP price-to-earnings ratio and pays a high 8.6% dividend yield, according to The Wall Street Journal. Woodside has a strong balance sheet with modest debt compared to its equity, and recent profitability has bolstered its free cash flow yield. Higher oil and LNG prices help the firm along with continuing to keep costs in check. Downside risks stem from energy price volatility and a continued fall in global LNG prices along with any production outages and delays. Woodside has tailwinds from a record Q4 production figure of 51.6 MMboe, though it did miss on revenues in its Q4 report on January 25. On valuation, analysts at BofA see earnings having surged nearly 150% in 2022, but then falling in each of the next two FYs. If we assume $3 of normalized profits and a modest 12 P/E multiple, then shares have a fair value in the mid-$30s. What’s more, the company has a variable dividend payout, but the yield is forecast to be strong even with the downturn in EPS upcoming. What I also like here is Woodside’s low EV/EBITDA ratio, and the high FCF yield should support strong payouts. Overall, it is a buy on valuation to me and the yield is solid so long as energy prices hang around at least $70, and hopefully LNG prices stabilize and inch up again. Woodside Energy: Earnings, Valuation, Dividend Yield Forecasts BofA Global Research Looking ahead, corporate event data provided by Wall Street Horizon show a confirmed H2 2022 earnings date of Sunday, February 26 with a conference call that evening. You can listen live here. The reporting date is later than was first estimated, so there could be some negative news to be reported in the upcoming release. A shareholder meeting could also cause volatility later on April 27. Corporate Event Risk Calendar Wall Street Horizon The Technical Take With a good valuation in my eye, the chart also appears favorable for a potential breakout. Notice in the graph below that shares have long-term resistance near $28, but should that break, then stock could see upside to near $40 based on the chart pattern.
Seeking Alpha • Jan 25

Woodside Energy Group reports Q4 results

Woodside Energy Group press release (NYSE:WDS): Q4 delivered record quarterly production of 51.6 MMboe (561 Mboe/day), up 0.7% from Q3 2022. Delivered sales volume of 52.2 MMboe, down 8.5% from Q3 2022, primarily due to reduced. Revenue of $5.16B (+77.3% Y/Y) misses by $710M. Achieved a portfolio average realised price of $98 per barrel of oil equivalent. Sold 29% of produced LNG at prices linked to gas hub indices (23% full year 2022). Achieved record full-year 2022 production of 157.7 MMboe, outperforming the production guidance of 153 - 157 MMboe due to strong operational performance in the fourth quarter.
Seeking Alpha • Sep 13

Woodside Energy: Financial Gymnastics

Summary Woodside has a 'best-in-class' history of returning 80% of operating earnings as dividends to shareholders. On the other hand, it has committed to sustainability projects which require capital to fund. Its ability to source funding for these investments depend on the success of other significant new projects, which in turn also require substantial capital. We suggest that its capital management challenges put its dividend payout ratio at risk, however, paradoxically may result in an imminent good time to buy. Investment Thesis In a previous era, Woodside (NYSE:WDS) management referred to its juggling of funding requirements for future ambitions as 'financial gymnastics'. In current times, as it progresses towards its next goals, the phrase is perhaps equally appropriate. Whilst we like the company for its generous returns to shareholders, we recognize the company also has to balance this with the social expectations of eliminating carbon emissions. We think that although a company with strong profit-generating prospects, the financial gymnastics required for Woodside to manage these two objectives (shareholder returns and social responsibility) will result in wobbles along the way and create attractive opportunities for a prepared investor to add Woodside to its portfolio. The Company Woodside Energy is an Australian-based energy company primarily focused on LNG production. In late 2021 it announced an agreement to acquire the petroleum business of BHP (BHP) in exchange for newly issued Woodside shares. It completed the merger in June 2022, and under the revised structure, 52% of the company is owned by existing Woodside shareholders and 48% by BHP shareholders. As a producer of hydrocarbon energy, it is understandably scrutinized for its role in a decarbonizing world. In addressing this issue, the company stands its ground on LNG's medium-term importance in the energy transition, whilst committing to longer-term emissions aspirations. It has also promised $5 billion to fund investments in lower-carbon energy by 2030. Woodside's sustainability targets at a glance (Woodside Investor Update 2021) Our stance is that its sustainability commitments appear light - we have an opinion that a perceived culprit of global warming should be more prominent and take stronger leadership in driving a carbon-free future. We sense that Woodside management understands the optics of their stance but has taken a pragmatic approach to ensure it doesn't achieve this at the expense of both near-term and long-term profitability. However, we feel that management has little wiggle room to backtrack and will be expected to meet, if not exceed its stated investment guidance for green technologies. The company has linked its ability to fund renewables initiatives and meet green objectives on the success of its Scarborough project, a significant new gas field with claimed low levels of CO2. With its touted reserves of 1,950MMboe, IRR of 13.5%, payback expectation of 6 years, and lifespan of at least 3 decades it is seen as having great earnings-generating ability. After the confirming of its intention to proceed with the investment, it is readying infrastructure works to get Scarborough operating by 2026. Also imminent in the pipeline is Sangomar, an oil field development in Senegal scheduled for first oil in 2023. It is seen as a stepping stone project to Scarborough, as it will be an additional source of free cash flow and earnings from next year. Together with Scarborough, the capex spend required for these two projects makes up the majority of the $9bn budgeted for spend between H2 2022 and 2024. Valuations Woodside announced first-half 2022 earnings of $1.6bn, which included 1 month of earnings from legacy BHP assets. This equates to an EPS of $1.44 and P/E ratio of just over 8x. We think this is within an investable range, but compared with peers in the materials and energy sector would be considered middle-of-the-pack. Though, considering the low-cost/high-margin business, and the supply-demand dynamics of natural gas, we believe in the long-term prospects of the company. Arguably the most attractive trait of the stock is its recent track record of returning 80% of operating profits to shareholders, which are the highest levels seen of the stocks we've been tracking. Official communication states that the dividend paid will be between 50-80% of operating income, however, the precedence of continued payments at 80% has likely embedded future expectations of payouts at this level. Woodside HY 2022 Results Presentation With legacy BHP assets contributing fully going forwards, H2 2022 aggregate earnings will be expected to exceed H1's, although on a per share basis it will probably appear weaker due to earnings linked to energy prices which have faded in recent months. To this point, we think this tilts a negative bias to stock price potential at current levels. However, we are keenly watching for an alternative scenario where stock prices push lower if a sense prevails that future dividend payouts of 80% earnings are at risk - an event we think is more likely than that is being priced in. We feel that a drop in stock prices could occur as investors may mistakenly view dividend cuts as weakness in the company's overall earning potential. In our opinion, a dividend cut is more likely to be due to short-term cash flow bottlenecks and offset by probable returns at a later date. A negative drop in sentiment without a change to fundamentals (in our opinion), could result in stock prices lower than $20 (A$29) and would represent an enticing entry point. Financial Gymnastics To flip the question as to whether 80% payout will be maintained is to ask whether the 20% earnings retained by the company is sufficient to cover future capex spending requirements. To tie it back to the long-term goals of the company, Woodside needs to ensure sufficient funds for: Sangomar first oil in 2023 Scarborough first cargo in 2026 Green initiatives by 2030 Other development projects To help us better visualize, we mocked up an illustration of the next 6 month's cash flow. A mockup of H2 2022 cash flows. Note that end cash balance (9) needs to be positive. We question whether cash flows are healthy enough for final dividends (8) to remain as 80% of operating earnings. (own analysis) Starting cash: Cash as of July 1 Funding from stake sell-down: Proceeds from the sales (either fully or partially) of Woodside's portfolio New debt financing: Additional borrowings from available undrawn facilities Earnings: P&L for the H2 2022 Other cash flow adjustments: Stripping items such as depreciation from earnings Interim dividend payout: Confirmed to cost $2.1bn Capex spend: Budgeted amount of $3.8bn for H2 2022 Final dividend: Technically a 2023 event. Between 50-80% of H2 2022 earnings (4) End cash: Remaining cash on December 31 What we've drawn out for H2 2022 will need to be repeated for all subsequent periods until 2030, and for each of these periods, the end cash amount must be adequately positive. In turn, to ensure adequately positive cash amounts after a final dividend paid of 80% earnings depends on the status of the critical items preceding it. Funding from Ownership Sale: Management has indicated an intention to sell a stake in the Scarborough project to an interested partner. With the go-ahead received and the project de-risked, there should be more clarity on the fair valuation of the asset and should allow Woodside to monetize the expected future returns at Scarborough in present value equivalent. A stake sell-down has the likely additional benefit that the capex spend burden can be shared with the new partners in the project. Also, we note that any windfall gains from potential sale is technically non-operating profit, and therefore is not destined to form part of BAU dividends. We believe this is management and shareholders' most preferred method to ensure there is enough cash for future capex spend whilst leaving enough to continue returns to shareholders. However, there is recent precedence of a change of heart by management, when the company abandoned sale plans for Sangomar earlier this year. We think a repeat for Scarborough is a possibility, but with tighter financial conditions we feel this time it may result in an adjustment to dividends paid. Whilst we are unsure of what course of action management takes, we feel there is a chance the market could perceive it negatively. Broadly speaking we don't have a preferable scenario: an imminent sale should be done at fair value, and a non-deal would mean the company retains a larger share of the overall project and shareholders would benefit from the increased returns at a later date. We also think that sales of other assets, perhaps some taken on from BHP, may also be considered.

Revenue & Expenses Breakdown

How Woodside Energy Group makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

NYSE:WDS Revenue, expenses and earnings (USD Millions)
DateRevenueEarningsG+A ExpensesR&D Expenses
31 Dec 2512,9842,7186660
30 Sep 2513,3832,8357340
30 Jun 2513,7812,9528010
31 Mar 2513,4803,2637870
31 Dec 2413,1793,5737730
30 Sep 2412,8812,7157260
30 Jun 2412,5821,8576780
31 Mar 2413,2881,7597070
31 Dec 2313,9941,6607360
30 Sep 2316,2014,1298120
30 Jun 2318,4076,5988870
31 Mar 2317,6126,5489920
31 Dec 2216,8176,4981,0970
30 Sep 2213,5434,9028980
30 Jun 2210,2683,3066980
31 Mar 228,6152,6454570
31 Dec 216,9621,9832150
30 Sep 215,5801,1702520
30 Jun 214,1973562880
31 Mar 213,899-1,8362790
31 Dec 203,600-4,0282690
30 Sep 204,060-4,0852290
30 Jun 204,520-4,1431890
31 Mar 204,697-1,9001940
31 Dec 194,8733431980
30 Sep 194,9937931940
30 Jun 195,1121,2421890
31 Mar 195,1761,3032130
31 Dec 185,2401,3642360
30 Sep 184,8631,2322440
30 Jun 184,4861,0992510
31 Mar 184,2311,0842350
31 Dec 173,9751,0692180
30 Sep 173,9951,0542280
30 Jun 174,0141,0392380
31 Mar 174,0459542940
31 Dec 164,0758683490
30 Sep 164,2442783410
30 Jun 164,412-3133330
31 Mar 164,721-1433050
31 Dec 155,030262770
30 Sep 155,7351,0073410
30 Jun 156,4401,9884050

Quality Earnings: WDS has high quality earnings.

Growing Profit Margin: WDS's current net profit margins (20.9%) are lower than last year (27.1%).

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: WDS has become profitable over the past 5 years, growing earnings by 20.6% per year.

Accelerating Growth: WDS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WDS had negative earnings growth (-23.9%) over the past year, making it difficult to compare to the Oil and Gas industry average (6%).

Return on Equity

High ROE: WDS's Return on Equity (6.9%) is considered low.

Return on Assets

Return on Capital Employed

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/12 17:22
End of Day Share Price 2026/06/12 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Woodside Energy Group Ltd is covered by 21 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Dale KoendersBarrenjoey Markets Pty Limited
Stuart HoweBell Potter
NEIL BEVERIDGEBernstein