Woodside Energy Group Ltd (ASX: WDS) shares are up 0.04% in lunchtime trading on Thursday.
The S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed yesterday trading for $35.09 a share. Woodside shares are currently swapping hands for $35.105 apiece.
That puts the company's share price up 20% since this time last year.
That's a great run for Woodside. And it doesn't even include the $3.754 per share in fully franked dividends the company has paid out over the past 12 months, offering shareholders some welcome passive income.
Throw in those dividends and the Woodside share price is up a stellar 33% over the full year.
And there could be more outperformance to come.
Do Woodside shares present 'an attractive market opportunity'?
Following on a strong year, there look to be more tailwinds building for Woodside shares.
Among those is the big drop in liquified natural gas (LNG) exports to Asia from the United States, down 46% in 2022. This comes as the US prioritises supplying gas to Europe in the wake of Russia's invasion of Ukraine.
That, according to RBC analysts, could be a real benefit for ASX 200 oil and gas stocks.
According to RBC (courtesy of The Australian):
In our view, the decrease in US exports to Asia creates an attractive market opportunity for increased Australian LNG sales into Asia, particularly as Chinese growth picks up…
We continue to think China has potential to be a key factor driving global LNG markets this year, but its path forward remains uncertain.
Of the ASX 200 energy stocks that stand to benefit, Woodside shares are RBC's top pick.
More energy tailwinds blowing from the US
In other potentially good news for Woodside shares, the US Senate introduced the Indo-Pacific Strategic Energy Initiative Act on Tuesday.
The act still needs to jump through various legislative hoops. But if it passes, it will enable the US International Development Finance Corporation to fund gas projects owned by non-US companies in the Indo-Pacific region.
Which could present another potential boon for Woodside shares.
Speaking in Perth yesterday, Woodside CEO Meg O'Neill explained that the act seeks to "promote the financing and development of new energy infrastructure projects in the Indo-Pacific region – with a focus on natural gas".
According to O'Neil (quoted by The Australian Financial Review)
It aims to reduce dependence on Russian supplies and transition away from higher-carbon emitting energy sources. Australia is among a select group of countries identified in the Act as being a focus for US energy-related cooperation.
And O'Neill said Woodside shares are well-positioned to take advantage:
That's because since our merger last year with BHP's petroleum business, we have a significant presence in both countries.
We are proudly headquartered here in WA, but we now have more than 800 employees based in the US and a regional office in Houston.
