The Woodside Energy Group Ltd (ASX: WDS) share price could keep lifting higher, according to one global asset management company.
Woodside shares closed 0.28% lower today to finish at $35.34 apiece. However, the S&P/ASX 200 Index (ASX: XJO) fell 1.31% today.
Let's take a look at what could be ahead for the Woodside share price.
What's ahead for the Woodside share price?
Analysts at AllianceBernstein have lifted the price target on Woodside shares to $46 apiece, the Australian Financial Review reported.
This implies a 27% upside based on today's closing price.
Analysts are optimistic gas and oil prices can go higher. In comments cited by the publication, AllianceBernstein said:
[Woodside may] further benefit from a potential spike in gas prices on lower Russian gas exports to Europe and a recovery of oil prices on a China reopening.
Woodside is a major global oil and gas producer. The Brent crude oil price is currently down 0.31% to US$85.64 a barrel, according to Bloomberg. WTI crude oil has fallen 0.26%.
Meantime, natural gas prices have tumbled a massive 7.84% to US$4.12/MMBtu amid milder weather in Europe.
The gas price caps in Australia may be another factor weighing on the Woodside share price this year. Woodside has gas projects in Australia and overseas.
In December, Woodside raised concerns about the federal government's plan to "intervene in the Australian gas market". Prices on new domestic wholesale gas contracts by east coast producers are set to be capped at $12/GJ for 12 months.
Commenting on the government's gas plans, Woodside CEO Meg O'Neill said:
We need to unlock gas supply now. For example, Woodside has been looking at options to increase supply, including through new LNG import terminals, exploration spending and further development on the east coast. Unfortunately, the proposed market intervention will make it very difficult for industry to economically invest to increase supply.
Woodside supplies about 20% of domestic gas on the east coast of Australia, the Australian Financial Review reported. Commenting on the impact of the changes on Woodside, O'Neill said (as cited by the AFR):
One of the things that is important to us is fiscal stability, so if a government changes the rules even for six or 12 months, what it says to us is the government is likely to change the rules again, so it's a black mark.
It would make investing in Australia riskier than other jurisdictions where you've got confidence in the stability of the fiscal regime for the long haul.
Share price snapshot
The Woodside share price has soared 61% in the last year.
Woodside has a market capitalisation of about $67 billion based on its current share price.
