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Why Woodside Petroleum Limited shares slumped lower

The Woodside Petroleum Limited (ASX: WPL) share price dropped lower on Thursday following the release of its fourth-quarter update.

The energy producer’s shares finished the day down almost 1% to $33.40.

What was in the update?

According to today’s release, Woodside reported an 11.1% dip in full-year production to 84.4 million barrels of oil equivalent (MMboe) for FY 2017. Whilst this was a disappointing decline on FY 2016, it was in-line with its revised guidance.

Production is expected to increase next year, with management guiding to 85 to 90 MMboe.

Management also expects that stronger oil prices experienced in the fourth-quarter will flow through to higher realised LNG prices in the first-quarter of 2018.

In addition to this, due to an increase in annual LNG production it anticipates being cash flow neutral at $35 a barrel in 2018.

Elsewhere, the Liquefied Natural Gas Ltd (ASX: LNG) share price was notably weaker today following the release of Woodside’s result. Its shares finished the day 7% lower at 65 cents. Santos Ltd (ASX: STO) shares also finished the day lower by 1%.

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