Woodside Energy (US:WDS)2026-02-24 00:02Financial Data and Key Metrics Changes - In 2025, the company achieved a record annual production of 198.8 million barrels of oil equivalent, exceeding full-year guidance [3] - Underlying net profit after tax was reported at $2.6 billion, with record production offsetting lower realized prices compared to 2024 [3] - Free cash flow generated was $1.9 billion, with a total fully franked full-year dividend of $1.12 per share, representing a payout ratio of 80% of underlying NPAT [4][25] Business Line Data and Key Metrics Changes - The Sangomar project maintained nameplate production of 100,000 barrels per day with nearly 99% reliability, contributing $2.6 billion to EBITDA since startup [8] - The Beaumont New Ammonia project commenced production in December 2025, with expectations for lower carbon ammonia production targeted for the second half of 2026 [9] - The Scarborough Energy Project was reported at 94% completion at year-end, on track for first LNG cargo in Q4 2026 [10] Market Data and Key Metrics Changes - Oil demand is forecasted to remain resilient due to the difficulty of decarbonizing hard-to-abate sectors, with strong customer demand for Sangomar oil noted [16] - Approximately 75% of LNG volumes for 2026-2028 are contracted, with a mix of oil-linked and gas hub link exposure [17] - The company has contracted 4.7 million tons of new LNG supply to Tier One end customers, reinforcing its position as a reliable energy supplier [17] Company Strategy and Development Direction - The company is focused on disciplined execution to deliver long-term value, maximizing performance from its base business and creating future opportunities for growth [5] - Strategic partnerships, such as those with Stonepeak and Williams for the Louisiana LNG project, are aimed at reducing capital commitments and de-risking investments [22] - Sustainability performance is emphasized as a key component of business success, with a target of reducing greenhouse gas emissions by 15% achieved [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ongoing demand for LNG as a reliable energy source amid global energy security concerns [16] - The company anticipates a transition year in 2026 with significant activities planned, including a major turnaround at Pluto and the ramp-up of Scarborough [38] - The management remains committed to maintaining a strong balance sheet and liquidity position while delivering solid shareholder returns [25] Other Important Information - The company achieved a 4% reduction in unit production costs through disciplined cost management [8] - Significant safety milestones were reported, with no high-consequence injuries recorded during the year [6] - The company plans to continue optimizing its marketing portfolio and layering in Louisiana LNG offtake [27] Q&A Session Summary Question: Update on Louisiana LNG sell-down progress - Management is pleased with the sell-down process and targets an additional 20% sell-down, reducing Woodside's capital commitment to $9.9 billion [32] Question: Dividend outlook for 2026 - Management indicated flexibility in the capital management framework to consider special dividends or buybacks, depending on performance and market conditions [38] Question: Decommissioning activities and Bass Strait platform removal - Decommissioning activities are ongoing, with major campaigns planned for 2026 and platform removals targeted for 2027 [42] Question: Unit production costs and Beaumont's impact - Management clarified that costs associated with Beaumont will be separate from traditional production costs, with transparency in future reporting [44][46] Question: Contracting status for Beaumont New Ammonia - The company is seeing genuine interest in ammonia products and is layering contracts as the facility ramps up production [60] Question: Production guidance and decline rates - Management noted that natural field decline and maintenance activities are factored into production guidance, with ongoing assessments of Sangomar's performance [86]