Woodside Energy, Australia’s leading independent oil and gas producer, announced it expects flat production in 2025, projecting output between 186 million and 196 million barrels of oil equivalent (mmboe).
This aligns with its record production of 193.9 mmboe in 2024, though analysts had anticipated figures at the higher end of the range.
Despite meeting fourth-quarter revenue expectations, softer-than-expected realised prices weighed on investor sentiment, leading to a 2.4% drop in shares to A$25.12, their weakest session since November 26. This underperformed the broader Australian energy sub-index, which fell 0.9%.
Woodside reported fourth-quarter revenue of $3.47 billion, a 3% year-on-year increase but a 6% decline from the previous quarter.
The drop was attributed to lower seasonal demand in Bass Strait, Victoria, and an unplanned shutdown at the Pluto LNG facility in Western Australia.
Citi analyst James Byrne noted that while stronger LNG trading revenue helped offset the impact of softer realised pricing, the overall result was “arguably a miss.”
The company’s average realised pricing for 2024 stood at $64 per barrel of oil equivalent (boe), down 7% from the previous year.
Woodside’s full-year capital expenditure rose 43% to $8.13 billion, including its acquisition of U.S. LNG developer Tellurian.
CEO Meg O’Neill highlighted the strong interest from high-quality partners in Louisiana LNG, reflecting growing capital market support for U.S. LNG opportunities.
“This underscores the potential additional value unlocked by robust marketing capabilities,” O’Neill said. The announcement followed U.S. President Donald Trump lifting a freeze on LNG export permits, bolstering investor confidence in the sector.
Production increased 7% in the fourth quarter, driven by the Sangomar oil project in Senegal. Sangomar also achieved a milestone with its first shipment to the U.S., expanding Woodside’s market presence.
However, the company noted a rise in absolute emissions for 2024 due to the Sangomar project. Despite this, Woodside reaffirmed its commitment to meeting its greenhouse gas reduction targets.
While Woodside’s flat production outlook for 2025 aligns with record 2024 levels, concerns about pricing pressures and emission challenges may continue to weigh on investor sentiment.
However, its strategic investments in LNG expansion and international market penetration position the company to capitalize on future opportunities in a transitioning energy landscape.
