MENU

Why the Woodside Petroleum Limited share price just hit a 3-year high

Shares in oil and gas producer group Woodside Petroleum Limited (ASX: WPL) hit a 3-year high of $36.22 in trade this afternoon to bring some cheer to investors in Australia’s leading pure play oil and gas business.

The group was hit hard by the oil price crash that bottommed at the end of 2015, with prices on an upward trajectory since the start of 2016, amidst some regular price volatility.

This afternoon benchmark oil futures are both near multi-year highs, with Brent crude at US$77.61 and WTI at US$74.14 in a price move that is leading investors to bid Woodside higher.

The energy industry also received a shot-in-the-arm today with news that UK energy giant BP is reportedly prepared to bid US$10 billion for BHP Billiton Limited’s shale oil assets concentrated around the south-western United States.

Woodside itself has been active in the mergers and acquisitions recently in a failed bid for LNG-producing rival Oil Search Limited (ASX: OSH), while the group also raised $2.5 billion in February 2018 to acquire a further 50% interest in the Western Australian located Scarborough gas field.

In financial year 2017 the group posted a gross profit margin of $23 per barrel of oil equivalent for a total profit of $1 billion. Investors’ eyes will be focused on these two metrics when it hands Woodside hands in its full year results next month.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.