ASX expert: Why Woodside shares could have a 'strong finish to the year'

This expert has a bold prediction for Woodside shares.

| More on:
An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face as the Woodside share price climbs today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Woodside Energy Group Ltd (ASX: WDS) share price has been on a bit of a wild ride over the past month or so. Thanks largely to whipsawing energy prices on the back of the terrible conflict in the Middle East, Woodside shares have been on a bit of a rollercoaster.

Between 6 and 18 October, this ASX 200 energy stock rocketed more than 7%, only to fall by around 6.3% between 18 October and today. This Wednesday has seen the oil producer gain a healthy 0.9%, leaving Woodside shares at $34.56 each at present.

That's despite big falls in both the West Texas Intermediate (WTI) and Brent crude oil prices overnight, as we covered this morning.

Today's gains still leave the Woodside share price with a year-to-date loss of 2.2%. Check all of that out for yourself below:

Woodside Energy share price

So with this volatile performance from Woodside shares over 2023 to date, many investors and shareholders might be wondering whether this oil stock is on track for a strong finish to the year, or whether Woodside might enter 2024 with a whimper.

What's next for Woodside Energy shares?

Well, one ASX expert reckons it's a clear case for the former proposition. Atlas Funds Management's chief investment officer Hugh Dive has just released an October trading update for investors to digest as we head into the second-last month of the year.

In this update, Dive reflects on the Woodside share price, and where it might be heading next. Here's what he had to say:

Woodside Energy had a solid quarter, with production up +8% to 48 million barrels of oil. The company also announced that they had started producing at a new field in the Gulf of Mexico which was six months ahead of expectations, which saw full year guidance being upgraded. 

Woodside has little exposure to a weakening Australian consumer, selling energy into a global market primarily via long-term off-take agreements to utilities in Japan, China and Korea. Stronger energy prices in the latter part of 2023 and a weaker Australian dollar are setting Woodside up for a strong finish to the year.

No doubt Woodside investors will be delighted with that assessment. But we'll have to wait and see what happens, particularly noting the ongoing uncertainty in the global oil price's future given the current geopolitical situation.

At the present Woodside share price, this ASX 200 energy share has a market capitalisation of $65.58 billion, with a trailing dividend yield of 9.84%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

A mature aged man with grey hair and glasses holds a fan of Australian hundred dollar bills up against his mouth and looks skywards with his eyes as though he is thinking what he might do with the cash.
Dividend Investing

Did OPEC+ just crimp the outlook for the 2024 Woodside dividend?

Woodside shares delivered an all-time high final dividend in April.

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

ASX 200 energy shares slip as fractious OPEC+ meeting pressures oil price

ASX 200 energy shares are in the red as oil prices resume their downward slide.

Read more »

Oil rig worker standing with a clipboard.
Energy Shares

Santos shares lost 10% of their value in November: Is it time to buy?

Is November's weakness a buying opportunity for investors?

Read more »

Two workers at an oil rig discuss operations.
Energy Shares

Should I buy Woodside shares now ahead of the OPEC+ meeting results?

As you’d expect, the oil price has a strong influence on the performance of Woodside shares.

Read more »

Worker inspecting oil and gas pipeline.
Mergers & Acquisitions

Origin Energy share price tumbles on 'incomplete complex' revised takeover offer

Origin Energy shareholders will get to cast their votes on the contentious takeover proposal on Monday.

Read more »

View of a mine site.
Energy Shares

Guess which ASX uranium stock just hit a key milestone

Shares in ASX uranium stock Boss Energy have more than doubled in 2023.

Read more »

A woman wearing glasses has an uncertain look on her face as she bites her lip, she's just read some news on her phone.
Energy Shares

Can AGL shares reach $11 by Christmas?

Is a rebound on the cards in a short time-frame?

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Which major ASX energy share will pay the best dividend yield in FY24?

And are ASX energy shares usurping mining and banking stocks when it comes to dividends?

Read more »