The Woodside Petroleum Limited (ASX: WPL) share price is in the red in late morning trade, down 1.02% to $24.27.
The S&P/ASX 200 Index (ASX: XJO) is struggling today too, and is currently up 0.13% after earlier posting an 0.2% loss.
Below, we take a look at the ASX 200 energy company's quarterly update for the quarter ending 30 September.
What quarterly results did Woodside report?
Woodside reported a 19% quarter-on-quarter revenue boost with Q3 sales revenue of $1.53 billion.
Despite this, the total delivered production of 22.2 million barrels of oil equivalent (MMboe) fell 2% from Q2 2021.
Revenues were boosted by the 28% quarter-on-quarter increase in the average realised price of oil equivalent. The average price in Q3 increased to $59 per barrel.
Among the biggest news of the quarter was Woodside's merger commitment deed with mining giant BHP Group Ltd (ASX: BHP). That agreement aims to combine BHP's oil and gas portfolio with Woodside's own portfolio.
Meg O'Neill took the helm of the energy giant as CEO and managing director during the quarter.
Commenting on the quarterly results, O'Neill said:
Revenue from LNG sales during the period was 27% higher than the second quarter despite production being impacted by planned maintenance activities at the North West Shelf Project and Pluto LNG…
We expect in the fourth quarter to see the benefit of stronger pricing on our realised prices, reflecting the oil price lag in many of our contracts and recent increases in gas hub prices. Our production guidance remains unchanged at 90-93 MMboe.
On the highly publicised and anticipated merger agreement with BHP, O'Neill added:
The agreement to pursue a proposed merger of Woodside and BHP's petroleum business is progressing as planned. Execution of a share sale agreement and an integration and transition service agreement is expected in November, in advance of targeted completion in the second quarter of 2022 following all approvals.
Woodside share price snapshot
Over the past 12 months, the Woodside share price has risen 30%. This compares to a 20% gain for the S&P/ASX 200 index (ASX: XJO).
Over the past month, Woodside shares have leapt 16% higher as global demand for oil increases.
