Woodside Energy Group (NYSE:WDS) outlined record production, progress on major growth projects, and an 80% payout ratio dividend as it reported full-year 2025 results, while also emphasizing cost discipline and portfolio management during a capital-intensive period.
2025 operational and financial highlights
Management said 2025 annual production reached a record 198.8 million barrels of oil equivalent, exceeding guidance, driven by “exceptional performance” at Sangomar and reliability across the operating portfolio. The company reported unit production costs of $7.80 per boe, citing efficiency gains and cost control.
Despite higher capital expenditure and “softer prices,” Woodside said it generated $1.9 billion of free cash flow and ended the year with gearing of 18.2%, within its 10% to 20% target range. CFO Graham Tiver also highlighted a liquidity position of AUD 9.3 billion and reiterated the company’s commitment to maintaining an investment-grade credit rating.
Project execution: Scarborough, Trion, Louisiana LNG, and Beaumont
Woodside said its Scarborough Energy Project was 94% complete at year-end and remains on track for first LNG cargo in the fourth quarter of 2026. Management described remaining offshore work such as installing the floating production unit, pulling in risers and umbilicals, subsea dewatering, and topsides commissioning, noting these activities can be affected by weather. Onshore, the company still needs to complete construction and commissioning at Pluto Train 2 before starting up and reaching steady-state operations.
On Trion, Woodside said it is targeting first oil in 2028 and the project was 50% complete at year-end. Construction advanced on the floating production unit and floating storage and offloading unit, with major field activity expected to begin in 2026 and a deepwater drill ship expected to commence drilling in early 2026.
Following a final investment decision in April, management characterized the three-train, 16.5 million ton per annum Louisiana LNG Project as a “game-changing investment,” with the project 22% complete at year-end and targeting first LNG in 2029. The company said it secured foundational transportation capacity and entered a long-term agreement with BP to supply up to 640 billion cubic feet of natural gas beginning in 2029. Woodside also said Louisiana LNG is expected to be the primary supply source for long-term sale and purchase agreements it signed with European customers targeting delivery from 2029.
At Beaumont New Ammonia, Woodside said the project commenced production of first ammonia in December 2025 and expects full handover by OCI in the first half of 2026. The company said lower-carbon ammonia production is targeted for the second half of 2026, contingent on carbon-abated hydrogen supply and ExxonMobil’s carbon capture and storage facility becoming operational. Management said it has seen “strong early customer uptake” for conventional ammonia and is advancing additional agreements, including for lower-carbon volumes, though it noted demand for lower-carbon ammonia has been “slower than we had forecast.”
Portfolio moves, partners, and capital allocation
Woodside highlighted portfolio refinement, including the divestment of its Greater Angostura assets for $259 million in cash. On Louisiana LNG, management said the addition of partners reduced Woodside’s expected share of total capital expenditure to less than 60%, and that after sell-downs Woodside’s expected total capex is $9.9 billion (about 57% of total project capex cited at FID). The company said Stonepeak is funding 75% of 2025 and 2026 project capital expenditure and said Williams brings U.S. natural gas infrastructure capabilities and a gas sourcing platform.
In Q&A, management said it continues to target up to an additional 20% sell-down at the Louisiana LNG holding company level, but emphasized it would prioritize “value over speed.” Woodside also said any potential expansion to trains four and five would compete for capital against other opportunities under its unchanged capital allocation framework, and reiterated that its near-term focus remains on further sell-downs for trains one through three.
Costs, maintenance, decommissioning, and hedging
Looking ahead, management flagged 2026 as a transition year that includes a major Pluto turnaround in the second quarter of 2026, which will affect production and increase costs at the Pluto asset, alongside tie-ins related to Scarborough. Woodside also said it will conduct dry dock maintenance for two Australian oil assets in 2026 as part of its normal maintenance cycle, though it did not provide asset names or downtime details on the call.
On decommissioning, Woodside said it completed drilling and abandonment work across closed facilities including Stybarrow, Griffin, and Minerva, and completed the Enfield program. It guided to AUD 500 million to AUD 800 million of decommissioning expenditure in 2026 and said Bass Strait platform removals are targeted for 2027.
Woodside also discussed hedging, with Tiver stating the company hedges “defensively” during heavy capital periods to provide cash flow certainty rather than taking a view on oil prices. He said Woodside’s full-year 2025 Brent hedges were positive and that it has progressively hedged 18 million barrels for 2026 at approximately $70.
Sustainability, markets, and other investor topics
Woodside said it achieved its 2025 target of a 15% reduction in net equity Scope 1 and 2 greenhouse gas emissions below its starting base, using a combination of facility performance and carbon credits, and that underlying reductions allowed it to reduce its use of carbon credits. Management also pointed to the World Heritage listing of the Murujuga Cultural Landscape, which it said it supported in collaboration with traditional custodians, and said it spent $9.3 billion globally on goods and services.
On markets, Woodside said it expects oil demand to remain resilient due to the difficulty of decarbonizing sectors such as heavy transport and petrochemicals, and it expressed confidence in continued demand for LNG, citing energy security and affordability priorities. The company said it contracted 4.7 million tons of new LNG supply over the last year to “Tier One” end customers and stated that approximately 75% of its LNG volumes for 2026 to 2028 are contracted.
Additional Q&A topics included taxes and joint venture developments. Tiver said Woodside’s global effective tax rate was 45% and its Australia effective tax rate was 44%, adding that PRRT is one component of Australia taxes and that PRRT could rise as Scarborough comes online, though he declined to provide quantitative guidance due to “many moving parts.” On the North West Shelf, Woodside said the joint venture remains interested in processing third-party gas and that Browse progress depends on refining an investable concept, concluding commercial agreements between the Browse and North West Shelf joint ventures, and securing environmental approvals.
Woodside also addressed CEO succession, saying the chair intends to announce a decision in the first quarter of 2026. The company said it will host a Sustainability Investor Briefing in Sydney next month.
About Woodside Energy Group (NYSE:WDS)
Woodside Energy Group (NYSE: WDS) is an Australia-based energy company focused on the exploration, development, production and marketing of oil and natural gas, with a strong emphasis on liquefied natural gas (LNG). The company’s activities span the upstream value chain, including exploration and appraisal of hydrocarbon resources, development and operation of production facilities, and the sale and delivery of hydrocarbons to global customers.
Woodside’s operations center on conventional oil and gas projects and large-scale LNG processing and export, supported by project management, engineering and commercial trading capabilities.
