Woodside Energy Group Ltd (NYSE:WDS) is included among the 13 Oil Stocks with Highest Dividends. Woodside Energy Group Strikes Agreement with Western Australia for Higher LNG Exports Founded in Australia, Woodside Energy Group Ltd (NYSE:WDS) engages in the exploration, evaluation, development, production, marketing, and sale of hydrocarbons in the Asia Pacific, Africa, the Americas, and Europe. According to reports on March 17, Woodside Energy Group Ltd (NYSE:WDS) has struck an agreement with the Wester ...

Company Leadership Changes - Woodside Energy has appointed Liz Westcott as the new CEO and managing director [1] - BHP has named Brandon Craig as CEO, succeeding Mike Henry [3] Market Conditions - The U.S. national average gasoline price has exceeded $3.75 per gallon for the first time since October 2023, driven by supply disruptions linked to the ongoing Middle East conflict [2]

Core Insights - Woodside Energy emphasizes the central role of sustainability in its strategy and long-term shareholder value delivery [1] - The company highlights that strong governance and risk management support its performance [1] - Woodside aims to provide energy responsibly and sustainably, positioning itself for resilient and profitable business growth [1] Sustainability Strategy - Acting CEO Liz Westcott outlined how sustainability priorities drive business performance and shareholder value [1] - The Sustainability Report and 2025 Climate and Sustainability Summary were released on February 24, 2026 [1] Production and Financial Performance - Woodside reported record production of 198.8 million barrels of oil equivalent (MMboe) for the full year 2025, averaging 545 Mboe/day [1] - The production performance was supported by operations at Sangomar, Pluto LNG, and NWS Project assets [1] - Despite lower realized prices, the company achieved a net profit, indicating strong operational performance [1] Reserves Statement - As of year-end 2025, Woodside had remaining proved (1P) reserves of 1,882.1 MMboe and proved plus probable (2P) reserves of 2,999.5 MMboe [1] - The company reported an increase in proved reserves by 134.1 MMboe and proved plus probable reserves by 141.0 MMboe, reflecting strong portfolio performance [1]

For personal use only Sustainability Briefing 2026 16 March 2026 www.woodside.com Disclaimer, important notes and assumptions • The purpose of this presentation is to enable readers to obtain a high-level understanding of Woodside's sustainability strategy and performance in 2025. • It also includes extracts of broader market analysis relating to the potential demand for Woodside's products and services and other information. • This presentation does not contain all of the underlying context and detail that ...

Group 1 - The analyst has over a decade of experience researching various companies across different sectors, including commodities like oil, natural gas, gold, and copper, as well as technology firms such as Google and Nokia [1] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, where extensive research on hundreds of companies has been conducted [1] - The analyst expresses a particular interest in covering metals and mining stocks, while also being comfortable with other industries such as consumer discretionary/staples, REITs, and utilities [1]

Core Viewpoint - Woodside Energy Group Ltd (WDS) has seen an 18% increase in stock price since a Hold recommendation was issued in August 2024, while the S&P 500 has increased by 22% during the same period [1]. Group 1 - The stock performance of Woodside Energy Group Ltd (WDS) is being compared to the S&P 500, highlighting a relative underperformance of 4% [1].

Production and Reserves - Woodside produced a total of 211.4 MMboe in 2025, including 197.7 MMboe produced for sale and 13.7 MMboe consumed as fuel in operations[123]. - As of December 31, 2025, Woodside's proved (1P) reserves were 1,882.1 MMboe, with a decrease of 16.3 MMboe due to the divestment of the Greater Angostura assets[123]. - Excluding divestments and production, Woodside's proved reserves increased by 134.1 MMboe in 2025, driven by extensions, discoveries, and improved recovery[124]. - The final investment decision on Greater Western Flank 4 (GWF4) contributed to proved reserves increases of 16.4 MMboe[126]. - Woodside's proved developed reserves were 643.6 MMboe, while proved undeveloped reserves were 1,238.5 MMboe as of December 31, 2025[128]. - In 2024, Woodside produced a total of 206.3 MMboe, with remaining proved (1P) reserves of 1,975.7 MMboe[129]. - The first-time booking of reserves at Trion in Mexico and Mad Dog Southwest in the United States increased proved reserves by 204.1 MMboe in 2023[131]. - As of December 31, 2025, Woodside's remaining proved undeveloped reserves were 1,238.5 MMboe, a decrease of 30.4 MMboe from 1,268.9 MMboe as of December 31, 2024[142]. - In 2025, 67.2 MMboe of proved undeveloped reserves were transferred to proved developed reserves due to the start-up of development wells at Greater Pluto (47.3 MMboe), Bass Strait (4.1 MMboe), North West Shelf (1.2 MMboe), and Mad Dog and Atlantis (14.6 MMboe)[142]. - Technical updates and performance-based revisions in Australia and the United States contributed to an increase of 11.5 MMboe in proved undeveloped reserves[143]. - The final investment decision on Greater Western Flank 4 and Turrum Phase 3 resulted in an increase of 22.5 MMboe in proved undeveloped reserves[143]. - As of December 31, 2024, Woodside's remaining proved undeveloped reserves were 1,268.9 MMboe, a decrease of 443.6 MMboe from 1,712.5 MMboe as of December 31, 2023[149]. - In 2024, 132.6 MMboe of proved undeveloped reserves were transferred to proved developed reserves with the start-up of development wells in Sangomar (94.5 MMboe), Mad Dog and Atlantis (24.0 MMboe), and compression projects at Bass Strait (9.3 MMboe)[150]. - Revisions of previous estimates resulted in an increase of 5.0 MMboe in proved undeveloped reserves due to technical updates at Greater Pluto[151]. - Approximately 88% of Woodside's proved undeveloped reserves are scheduled to be developed within five years of initial disclosure[146]. - The company is committed to progressing large and complex capital investment projects, with approximately 12% of proved undeveloped reserves scheduled for development beyond five years from initial disclosure[146]. - As of December 31, 2023, Woodside's remaining proved undeveloped reserves increased to 1,712.5 MMboe, up by 97.2 MMboe from 1,615.2 MMboe in 2022[155]. - In 2023, 87.7 MMboe of proved undeveloped reserves were transferred to proved developed reserves, with significant contributions from Mad Dog Phase 2 (56.0 MMboe) and Shenzi North (10.5 MMboe)[156]. - Approximately 89% of Woodside's proved undeveloped reserves are scheduled to be developed within five years, while 11% are linked to complex projects expected to take longer due to investment constraints[158]. - Woodside incurred approximately US$4.7 billion in 2023 to progress the transfer of proved undeveloped reserves for projects achieving development status[159]. - The total proved undeveloped reserves reconciliation shows a closing balance of 1,712.5 MMboe, with extensions and discoveries contributing 204.1 MMboe[160]. Financial Performance - The company reported net capitalized costs of US$41.362 billion for oil and gas production activities in 2023, with US$26.208 billion attributed to Australia and US$15.154 billion to international operations[169]. - Total costs incurred for oil and gas property acquisition, exploration, and development activities in 2023 amounted to US$5.962 billion, including US$3.315 billion for development[173]. - Oil and gas revenue for 2023 reached $12,263 million, a decrease from $11,688 million in 2024 and $11,257 million in 2025[176]. - The results of oil and gas producing activities for 2023 were $1,823 million, down from $3,012 million in 2024 and $2,110 million in 2025[176]. - Future cash inflows for 2023 were estimated at $155,475 million, compared to $105,376 million in 2024 and $92,757 million in 2025[183]. - The standardised measure of discounted future net cash flows for 2023 was $32,153 million, decreasing to $22,855 million in 2024 and $20,264 million in 2025[185]. - Capitalised exploratory well costs at the end of 2023 were $668 million, increasing to $721 million in 2024 and $790 million in 2025[189]. - Future production costs for 2023 were $43,289 million, compared to $35,348 million in 2024 and $33,970 million in 2025[183]. - The company incurred exploration expenses of $354 million in 2023, which increased to $329 million in 2024 and $183 million in 2025[176]. - The number of projects with capitalised exploratory well costs for more than one year was 12 in 2023, remaining at 7 in 2024 and 2025[193]. - The company reported a depreciation, depletion, amortisation, and valuation provision of $5,843 million in 2023, which decreased to $4,536 million in 2024 and $5,029 million in 2025[176]. - Income taxes for 2023 amounted to $1,449 million, compared to $1,389 million in 2024 and $1,321 million in 2025[176]. Risks and Challenges - Woodside's operations are exposed to foreign exchange risk and counterparty defaults, which could result in financial losses[111]. - Cybersecurity risks are increasing, with potential impacts on operations and data security due to sophisticated attacks and rapid technology changes[118]. - Woodside's acquisition activities carry risks that anticipated benefits may not be fully realized, affecting net income and dividend payments[111].

Financial Performance - Woodside achieved a net profit after tax (NPAT) of $2.7 billion and underlying NPAT of $2.6 billion, resulting in a full-year dividend of 112 US cents per share[1134]. - Operating expenditure was $2,417 million, which was better than target, while EBITDA excluding impairment was $9,277 million[1134]. - Woodside's gross equity Scope 1 and 2 emissions were 6.616 Mt CO2-e, slightly above the target of 6.590 Mt CO2-e, reflecting ongoing efforts to reduce emissions[1207]. - The consolidated operating revenue for 2025 was $12,984 million, a decrease of 1.5% from $13,179 million in 2024[1271]. - Gross profit for 2025 was $4,536 million, down 20.1% from $5,678 million in 2024[1271]. - Profit after tax for 2025 was $2,737 million, a decline of 25% compared to $3,646 million in 2024[1271]. - The total assets of the Group increased to $66,501 million in 2025, up from $61,264 million in 2024[1273]. - Net cash from operating activities for 2025 was $7,192 million, significantly higher than $2,847 million in 2024[1274]. - The profit for the period ended 31 December 2025 was $2,737 million, an increase from the previous period[1276]. - Total comprehensive income for the period was $2,883 million, reflecting a significant increase in retained earnings[1276]. Production and Projects - Woodside's record production reached 198.8 MMboe in 2025, driven by strong performance from Sangomar and LNG reliability[1135]. - The Scarborough Energy Project advanced to 94% completion, with first LNG cargo on track for Q4 2026[1136]. - A final investment decision (FID) was made to develop Louisiana LNG, with the foundational phase 22% complete, targeting first LNG in 2029[1136]. - Woodside achieved a record production of 198.8 MMboe, exceeding the target by 11.8 MMboe due to strong performance at Sangomar and other assets[1207]. - The Scarborough Energy Project was 94% complete, with first LNG cargo expected in Q4 2026, and the Louisiana LNG project was 22% complete at year-end[1207]. Executive Remuneration and Incentives - The Corporate Scorecard performance outcome was 7.0 out of 10, with no discretionary adjustments applied[1137]. - The 2025 Executive Incentive Scheme (EIS) award was 130.3% of the target opportunity for each Executive KMP[1140]. - The Board approved a new Variable Annual Reward (VAR) scheme for 2026, separating short-term and long-term incentives[1145]. - Woodside's Executive KMP remuneration structure for 2025 includes a Fixed Annual Reward (FAR) and a Variable Annual Reward (VAR) delivered through the Executive Incentive Scheme (EIS) with a 70% corporate and 30% individual performance assessment[1172]. - The EIS award is subject to performance in each 12-month period, with corporate performance rated on a scale from 0 to 10, where a score of 5 indicates target achievement[1175]. - The minimum EIS award for an Executive can be zero if performance conditions are not met, while exceeding targets can lead to increased awards[1175]. - The performance period for the 2025 EIS award is from March 2026 to March 2031, with vesting occurring shortly after if performance hurdles are met[1175]. - The vesting schedule for Performance Rights is based on Woodside's relative total shareholder return (RTSR) percentile position, with no vesting below the 50th percentile[1176]. - Restricted Shares are divided into three tranches with deferral periods of five, four, and three years, creating a strong retention proposition for Executives[1176]. - The cash component of the remuneration is payable following the end of the 12-month performance year, specifically in the March 2026 pay cycle[1176]. - The Board has not exercised any discretion regarding the 2025 EIS award outcomes, ensuring alignment with shareholder interests[1175]. - The former CEO, Meg O'Neill, resigned on December 18, 2025, and is not eligible for any EIS award related to the 2025 performance[1161]. - Woodside's Acting CEO, Ms. Westcott, had her fixed annual remuneration (FAR) increased to A$1,803,000, which includes a higher duties allowance of A$600,000 per annum[1191]. - The FAR for Executive KMPs was adjusted, with Mr. Tiver's FAR increased to A$1,238,000, Mr. Kalms' to US$701,000, and Mr. Abbotsford's to A$998,000, effective January 1, 2025[1194]. - The 2019 Performance Rights under the EIS lapsed due to Woodside's relative total shareholder return (RTSR) performance being below the 50th percentile, resulting in a loss of A$710,012 in value for the former CEO and Executive KMPs[1199]. - The Board engaged KPMG and Meridian for external benchmarking of executive remuneration, focusing on ASX20 companies and 17 international oil and gas companies[1190]. - Woodside's Minimum Shareholding Requirements (MSR) Policy mandates Executive KMP to acquire shares worth at least 100% of their FAR after five years, and 200% for the CEO[1187]. - The Woodside Equity Plan (WEP) allows eligible employees to build equity in the company, with no ongoing performance conditions for the offered Equity Rights[1199]. - The Supplementary Woodside Equity Plan (SWEP) was updated in 2022 to broaden eligibility to all employees of Woodside subsidiaries[1183]. - The Board retains discretion over the treatment of EIS awards upon cessation of employment, with specific conditions for resignation or termination for cause[1191]. - The Board may adjust vesting outcomes for Performance Rights to better reflect shareholder expectations or management performance[1198]. - The new 2026 Variable Annual Reward structure increases the proportion of equity-based remuneration at risk, with Performance Rights comprising 58% of the target STI compared to 27.5% under the existing structure[1225]. - The target STI for Executive KMP is set at 150% of Fixed Annual Reward (FAR), with a maximum of 225% of FAR, while the LTI opportunity remains at 200% of FAR[1230]. - The Corporate Scorecard for the STI includes 20% for EBITDA, split into 10% adjusted EBITDA and 10% unadjusted EBITDA, enhancing transparency and fairness in performance evaluation[1230]. - The new LTI structure includes a three-year performance period followed by a two-year service condition, ensuring long-term alignment with shareholder interests[1232]. - The vesting threshold for the ROACE measure in the LTI is set at 7%, with maximum vesting achieved at 8.4%[1234]. - The weighting of financial metrics in the Corporate Scorecard has increased to 40%, strengthening alignment between executive remuneration and shareholder experience[1230]. - Any portion of the STI award above target will be delivered entirely as Restricted Shares, reinforcing alignment with shareholders[1224]. - The new LTI structure focuses on long-term value creation by delivering awards entirely as Performance Rights, ensuring over 50% of variable reward is long-term[1232]. - The Board retains discretion to determine the treatment of STI and LTI awards upon cessation of employment, ensuring flexibility in management[1237]. Sustainability and Climate Considerations - The Group has prepared a separate sustainability report in accordance with AASB S2, addressing climate considerations[1290]. - Woodside's long-term price assumptions reflect management's current best estimate scenario regarding global decarbonisation goals[1291]. - The energy transition may lead to changes in the expected useful life of oil and gas properties, potentially accelerating depreciation charges[1300]. - The Group continues to monitor climate change risks to assess if additional changes to restoration provisions should be recognized[1304]. - Climate risks may affect the assumptions used to assess forecast cash flows of long-term contracts, including pricing forecasts and discount rates[1305]. - The recoverability of deferred tax assets is dependent on the Group's future taxable income, which may be impacted by commodity and carbon pricing uncertainties[1307]. - The Group's revenue is exposed to commodity price fluctuations, and management regularly performs stress testing to assess financial position under low commodity price scenarios[1315]. Shareholder and Market Information - The Group's shares are publicly traded on both the Australian Securities Exchange (ASX) and the New York Stock Exchange (NYSE)[1277]. - The financial statements comply with International Financial Reporting Standards (IFRS) and Australian Accounting Standards[1279]. - Woodside's accounting policies remain materially consistent with those disclosed in the 2024 Financial Statements[1280]. - As of December 31, 2025, the Group recognized $274 million in carbon credits within inventory, an increase from $202 million in 2024[1302]. - 56% of the Group's non-current restoration liabilities are expected to be settled more than 10 years in the future, up from 53% in 2024[1303]. - The Group held commodity hedging financial instruments with a net asset carrying value of $176 million as of the reporting date, compared to $27 million in 2024[1317]. - An increase in relevant commodity prices of 10% would decrease the carrying value of hedging instruments by $77 million, with the same effect for a 10% decrease[1317].

Core Viewpoint - Woodside, Australia's largest LNG producer, acknowledges a potential oversupply in the global LNG market that may pressure prices, but emphasizes strong demand growth and the uncertainty of new supply [1][3] Group 1: Market Dynamics - The International Energy Agency (IEA) and BloombergNEF predict that the global LNG market may enter a state of oversupply as early as this year due to new LNG plants coming online in North America and the Middle East [1] - Over 50 countries currently have LNG import capabilities, enhancing market liquidity, while some high-cost projects have been shelved, including a Louisiana LNG export project halted by Energy Transfer LP [3] Group 2: Company Performance - Woodside's annual net profit decreased by 24% to $2.7 billion, although this was above market expectations of $2.54 billion, primarily due to falling oil and gas prices [3][4] - Total oil and gas production increased by over 6% year-on-year, reaching a record 198.8 million barrels of oil equivalent, partially offsetting the impact of a 5% decline in average realized prices to $60 per barrel of oil equivalent [3] Group 3: Future Projects - Production growth is attributed to the commissioning of a synthetic ammonia plant in Beaumont, Texas, and a final investment decision on the Louisiana LNG project, expected to deliver its first shipment by 2029 [4] - The Scarborough project in Australia is 94% complete and is scheduled to deliver its first LNG shipment in the fourth quarter, while the Trion oil field project in Mexico is expected to commence production in 2028 [4] Group 4: Shareholder Returns - Woodside announced a final dividend of $0.59 per share, up from $0.53 per share in the same period last year, reflecting positive performance news that boosted the company's stock price by over 2%, reaching an 18-month high [4]

Core Viewpoint - Woodside Energy Group Ltd has demonstrated strong financial performance in 2025, achieving record production levels and surpassing revenue expectations despite facing lower realized prices [3][5][7]. Financial Performance - The company reported earnings per share (EPS) of $1.43, exceeding analyst expectations of approximately $1.28, but down from $1.89 in 2024 [3][7]. - Woodside generated revenue of approximately $12.98 billion, slightly above the analyst consensus estimate of $12.83 billion, but down 1% from $13.18 billion in 2024 [3][7]. Production Achievements - Woodside achieved a record production of 198.8 million barrels of oil equivalent in 2025, translating to about 545,000 barrels per day [4][7]. - The production success was primarily driven by the Sangomar project, which operated at its nameplate capacity for most of the year, along with contributions from Pluto LNG and NWS Project assets [4][7]. Market Valuation - The company has a price-to-earnings (P/E) ratio of approximately 12.45, indicating the market's valuation of its earnings [6][7]. - Woodside's price-to-sales ratio stands at about 2.90, while the enterprise value to sales ratio is around 3.47, reflecting the market's perception of its revenue and sales performance [6][7].