Woodside Energy Share Discussion Threads

[garycook] 26/3/2024 07:29

WOODSIDE COMPLETES SALE OF 10% SCARBOROUGH INTEREST



Woodside has completed the sale of a 10% non-operating participating interest in the Scarborough Joint Venture to LJ Scarborough Pty Ltd (LNG Japan).[1]



The completion follows Woodside's announcement on 8 August 2023 that it had established a strategic relationship with LNG Japan that involved three elements: equity in the Scarborough Joint Venture; potential LNG offtake; and collaboration on potential opportunities in new energy. The sale proceeds received by Woodside of US$910 million for equity in the Scarborough Joint Venture comprises the purchase price, reimbursed expenditure and escalation.[2]



Woodside CEO Meg O'Neill welcomed completion of the sale.



"LNG Japan's commitment to the Scarborough Joint Venture is a demonstration of the value our customers place on gas as a long-term source of energy as they navigate the energy transition. Completion of the sale to LNG Japan is a significant milestone as we progress toward first LNG cargo from Scarborough targeted in 2026.



"We are also pleased to welcome Japan Organization for Metals and Energy Security's equity investment in LJ Scarborough Pty Ltd. JOGMEC's support reflects the contribution Scarborough gas will make to Japan's energy security."



Woodside holds a 90% interest in the Scarborough Joint Venture and will remain as operator. Following completion of the transaction with JERA announced on 23 February 2024, Woodside's interest will be 74.9% in the Scarborough Joint Venture.[3]



As a result of completion of the sale, applying estimates effective as at 26 March 2024, Woodside's Scarborough field proved (1P) undeveloped reserves reduced by 128.7 MMboe to 1,158.3 MMboe (Woodside share).[4] Proved plus probable (2P) undeveloped reserves reduced by 201.1 MMboe to 1,809.7 MMboe (Woodside share).[5] Woodside's Scarborough field Best Estimate (2C) contingent resources reduced by 2.2 MMboe to 20.2 MMboe (Woodside share).[6],[7]



The attached notes on petroleum reserves and resource estimates form part of this announcement.

[kiwi2007] 06/3/2024 19:27

Weakening oil and gas prices hit Woodside's profits, but it still turned around an 80% pay out ratio for dividends......

....Would you Buy, Hold or Sell the stock on the back of this result?
Rating: HOLD

The dividend yield is supporting the share price where it is.......

[loganair] 02/3/2024 09:08

Simply there is a glut of oil and gas in the world at the moment, especially as the United States are now producing 20mln barrels of oil a day, up from circa 13mln just a couple of years ago.

This glut is likely to continue for at least the next 2 years, especially as world economic growth has dramatically slowed down with Japan, Germany and the UK are all now in recession.

[kiwi2007] 02/3/2024 02:12

I'm afraid forecast yield is 5.3% for 2024 falling back to 4.7% in 2025.

"....Woodside provided preliminary 2024 guidance, including production of 185-195mmboe and capital expenditure of USD 5.0 billion-USD 5.5 billion. We sit at a high end 194 mmboe for the former and the midpoint for the latter. The production target is slightly lower than our prior estimate, and in conjunction with significantly weakened Brent crude futures since our last note, our respective 2024 EPS and DPS forecasts both decline 26% to AUD 1.62 and AUD 1.29.

[garycook] 29/2/2024 00:40

anhar, Still yielding 7%.So not to be sniffed at. Just needs the share price to recover to around £20 level.

[anhar] 28/2/2024 10:36

Final 2023 divi US 60¢, xd 07 March pd 04 April (2022 144¢)

2023 total 140¢ (2022 253¢)

So a cut of 44.7% on the back of net profits down 74%.

As purely an income investor this is disappointing but I'll continue to hold as my strategy is to retain very long term unless a share goes seriously wrong. Like most here I expect, I acquired my WDS shares from the BHP demerger.

[loganair] 08/2/2024 20:55

Australia’s Woodside Energy has ended talks with smaller rival Santos to form a $52 billion global LNG giant, with the bigger company saying it will only pursue a deal that clearly benefits its shareholders, as Scott Murdoch and Lewis Jackson report here.

The talks, first revealed in December, faltered as the two companies couldn’t agree on a valuation, according to two sources with direct knowledge of the matter. Woodside had faced pressure from some of its shareholders not to pay a premium for Santos amid concern that the deal didn’t offer enough synergies to make economic sense.

[kiwi2007] 07/2/2024 20:36

And the Santos deal thankfully called off:

“Woodside has ceased discussions regarding a potential merger with Santos,” Woodside said in a statement to the ASX.
“For every opportunity Woodside assesses, it conducts thorough due diligence, and will only pursue a transaction that is value accretive for its shareholders,” the company added, giving no further details about the decision."

[gateside] 16/1/2024 07:39

Header updated with 2024 result dates

[kiwi2007] 15/12/2023 19:03

No advantage at all to Woodside shareholders in a merger which doesn't appear to have ANY synergies just for the sake of scale.

Woodside's a great business on its own. Santos's assets are inferior - this potential deal makes no sense.

[garycook] 07/12/2023 07:51

Thursday, 7 December 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
RESPONSE TO MEDIA SPECULATION
In response to recent media speculation, Woodside confirms it is in discussions regarding a potential
merger with Santos Ltd.
Discussions remain confidential and incomplete, and there is no certainty that the discussions will
lead to a transaction.
As a global energy company, Woodside continuously assesses a range of opportunities to create and
deliver value for shareholders.
Woodside will continue to update the market in accordance with its continuous disclosure obligations.

[garycook] 16/11/2023 13:58

Me also. Hold BP,DEC,SHEL,and WDS.

[anhar] 16/11/2023 12:44

That's interesting Gary, that they took the trouble to give such a detailed response.

I continue to hold my WDS allocation that I received from the BHP distribution. It does make me a little overweight in oil and gas as I also hold BP. and SHEL which have been in my income port for many years. Despite that I have no intention at present of selling any of my WDS shares.

[garycook] 16/11/2023 00:47

Investor Relations

From:
[e-mail]



Wed, 15 Nov at 11:30

Hi Gary,



Thanks for your email. On slide 25 (Investor Briefing Day 2023 presentation), pricing between this year and last year’s free cash flow has changed. Last year, one scenario was shown which was based on the Brent oil forward price curve (as at 16 November 2022) of $89/bbl in 2023, $82/bbl in 2024, $77/bbl in 2025, $75/bbl in 2026 followed by a long term $70/bbl (real terms 2022) from 2027. On slide 25 of this year’s presentation, three price scenarios (US$50, $70 and $90) were shown. The $70 scenario, from 2024 was based on a US$70/bbl Brent long-term oil price (2022 real terms) with a long term inflation rate of 2.0%.



In addition to the pricing changes, the free cash flow in this year’s Investor Briefing Day presentation included Trion capital expenditure, following the final investment decision in June 2023 and the update to cost and schedule for Sangomar which was announced in July.



In relation to slide 26, Woodside’s dividend policy is to pay a minimum of 50% of net profit after tax (NPAT) excluding non-recurring items, with a target payout ratio of between 50% and 80%. The intent of slide 26 is to demonstrate Woodside’s cash generation at a US$50 and US$70 scenario and highlight that in the light blue shading area, there is capacity available for additional investment, financing or returns to shareholders.



Kind regards

Investor Relations



Woodside Energy

Mia Yellagonga

Karlak, 11 Mount Street

Perth WA 6000

Australia

E:

[e-mail]

www.woodside.com

[garycook] 13/11/2023 11:29

Kiwi2007. I have sent your Post on a possible 3% dividend to WDS HR.If I get a reply I will post it.

[kiwi2007] 13/11/2023 09:22

Worth looking at the analysts questions on the investor briefing:

"When we look at the free cash flow profile on
slide 25 relative to what was presented 12 months ago, 12 months ago you were forecasting US$4 billion of
free cash flow in 2024, and it now looks more like break even and when we look at that terminal free cash
flow level, now at around US$5 billion per annum out in 2027-28 versus more like US$7 billion 12 months
ago, it looks like that free cash flow profile has stepped down materially. On my numbers, it's around $7
billion lower free cash flow over the next four years. " ?????

and

"Just a quick
question if I can on slide 26, the sources and uses of cash. We can squabble about over the shading, but to
make the maths easy, let’s say that underlying dividend at 80% payout ratio there’s about, it looks like,
US$6.5 billion over that five-year period. That equals US$1.3 billion a year. That’s a 3% dividend yield. I
guess when we compare that to the slide you put on page 76 looking back at the prospective 12-month
dividend, you’re up near the top, but 73% is down near the bottom. As a Board, do you think that at $70 oil
paying a 3% dividend is competitive enough"


hxxps://www.woodside.com/docs/default-source/asx-announcements/2023-asx/investor-briefing-day-2023-transcript.pdf?sfvrsn=e6487897_3

Doesn't fill me with enthusiasm.

[kiwi2007] 19/10/2023 03:58

Event analysis
Woodside: Heartening Progress on Development Projects

Our AUD 45 fair value estimate for no-moat Woodside stands. The global top 10 independent hydrocarbon producers reported lower-than-expected third-quarter production and price achievement though we read no long-term implication from the fact. Rather we are heartened by reported progress on development projects.

Shenzi North in the United States achieved its first production in September 2023, ahead of the 2024 target, and the Scarborough/Pluto Train 2 LNG project in Western Australia was 46% complete at the end of the period, versus 38% at the end of June 2023. The Sangomar project in Senegal is 90% finished, while the Trion field development plan has been approved by the Mexican regulator. Progress reinforces confidence in our projection for Woodside to increase group production by around 20% to around 225 million barrels of oil equivalent by 2027. Scarborough/Pluto Train 2 is the most important element in that target, adding over 35mmboe, scheduled for first production in 2026.

A strong operating result from Pluto LNG helped Woodside deliver an 8% increase in third-quarter production to 47.8mmboe, following the completion of maintenance activities. While up, this was still about 5% below our expectations, and offset by a 5% decline in average price achievement to USD 60.20 per boe. We consequently reduce our 2023 EPS and DPS forecasts by 11% and 8% to AUD 2.34 and AUD 1.95, respectively. The dividend equates to a handy 5.3% fully franked yield at the current share price. Woodside narrowed 2023 production guidance to 183-188mmboe from 180-190mmboe. Our new target is 186mmboe, down from the high end of prior guidance.

Woodside shares are more than double AUD 17.50 October 2020 lows, but at around AUD 37 remain materially undervalued in 4-star territory. Cost-effective delivery of Scarborough/Pluto T2 is a key catalyst for price appreciation.

[garycook] 28/9/2023 03:27

Up today in Oz 2.6% at 36.50,or converted 1920p.

[gateside] 27/9/2023 14:56

Not sure why WDS is not moving up in line with BP & Shell

[anhar] 07/9/2023 09:21

Sterling value of US80¢ interim divi announced: 62.849601p

[kiwi2007] 23/4/2023 11:26

."...things appear to be tracking well for Woodside. The company hasn't changed 2023 production guidance of 180 million-190 million barrels of oil equivalent, or mmboe, a 20% increase on 2022 including a full period's contribution from the merged BHP Petroleum assets—we remain at a high-end 190mmboe. Woodside says it is making good progress on all major growth projects in Australia and globally. Scarborough/Pluto Train 2 is now 30% complete, and Sangomar is on path for first oil later this year. In the Gulf of Mexico, Trion aims to be FID ready this year and Mad Dog Phase 2 achieved first production in April 2023. We increase our 2023 EPS forecast by 8% to AUD 2.62. However, our 2024 EPS forecast softens to AUD 1.80 from AUD 1.96, capturing a higher PRRT assumption.."..MorningStar

Forward PE of 18+ in 2024 ???

[kiwi2007] 21/4/2023 00:33

FIRST QUARTER REPORT FOR PERIOD ENDED 31 MARCH 2023

[kiwi2007] 20/4/2023 04:30

Down lately folling a pullback in oil prices - There are also concerns that proposed tax changes in Australia could hit Woodside.

According to PERPLEXITY (AI) "There are proposed changes to the Petroleum Resource Rent Tax (PRRT) in Australia, which could affect Woodside, the country's largest independent natural gas producer. Macquarie analysts estimated that these changes could reduce Woodside's valuation by 2% to 5% "

[gateside] 09/4/2023 20:34

Updated Investor Relations Calendar added to header

[kiwi2007] 16/3/2023 20:23

LNG spot price in Asia has been trending lower since mid-December and ended at $13.50 mmBtu in the week to March 10.

This is down 64% from the northern winter peak of $38 per mmBtu reached in the week to Dec. 16, and also 81% below the record high of $70.50, hit in late August.