Woodside Energy Group Ltd

Woodside reported record 2025 production of 198.8 million barrels of oil equivalent, above full-year guidance, with unit production costs of $7.80/boe and operated LNG reliability of approximately 98% over the past 5 years. Liz Westcott said underlying NPAT was $2.6 billion, free cash flow was $1.9 billion, and the board declared a final dividend of $0.59/share, bringing full-year fully franked dividends to $1.12/share at an 80% payout ratio. Graham Tiver added EBITDA margin was over 70%, gearing was 18.2%, liquidity was $9.3 billion, and cash breakeven averaged less than $34/bbl. For 2026, management highlighted a transition year with a major Pluto turnaround in Q2, Scarborough first cargo still targeted for Q4 2026, decommissioning spend guided at $500 million to $800 million, and no quantitative PRRT guidance provided.

Elizabeth Westcott framed 2025 as proof that Woodside’s strategy is working: maximize base business performance, deliver cash-generative growth projects, and keep capital discipline tight. She emphasized operational excellence, record production, safety performance with no high consequence injuries, and major milestones at Scarborough, Trion, Beaumont New Ammonia, and Louisiana LNG. Her tone was confident but disciplined, repeatedly stressing that 2026 is a big transition year and that execution and value over speed remain the priority.

Graham Tiver focused on financial discipline, noting over $200 million of cost reductions in exploration and new energy, 18 million barrels of 2026 Brent hedges at about $70, and an unchanged capital framework targeting 10% to 20% gearing through the cycle. He said 2025 delivered an EBITDA margin of over 70%, $2.6 billion of underlying NPAT, $1.9 billion of free cash flow, 18.2% gearing, and $9.3 billion of liquidity, while maintaining BBB+ or equivalent ratings. He also highlighted that Woodside’s expected total capex for Louisiana LNG is now $9.9 billion, or less than 60% of total project cost, after partner sell-downs.

Analysts pressed management on the pace of Louisiana LNG sell-downs, whether additional equity sales are a prerequisite for future trains, and whether Woodside might return extra cash via special dividends or buybacks. Management said the sell-down process is going well, that they are targeting up to another 20% HoldCo sell-down, and that they prefer value over speed while preserving flexibility in the capital management framework. Questions also covered Scarborough timing, 2026 production declines, Beaumont New Ammonia contracting, PRRT, and Bass Strait backfill; management said 2026 is a transition year, Scarborough remains on track for Q4 2026, Beaumont’s lower-carbon ammonia demand is still developing, and no quantitative PRRT guide was provided yet.