The Woodside Energy Group Ltd (ASX: WDS) share price has had a year to forget in 2024.
Since the turn of the year, the energy giant's shares have lost almost a quarter of their value.
Will things be better in 2025? Let's see what could happen next year.
Woodside share price 2025 outlook
As with all companies involved in the resources sector, the main driver of the Woodside share price is likely to be commodity prices.
If oil and gas prices have a good year, then there's every chance that the energy producer's shares will also. And vice versa is oil and gas prices have a bad year.
According to a recent note out of Goldman Sachs, its analysts are expecting the Brent crude oil price to average US$81 per barrel in 2024 and then drop to an average of US$76 per barrel for 2025.
Though, it is worth noting that the latter is higher than the current spot price for Brent crude oil of US$72 per barrel.
What else?
Woodside's own performance could have an impact on its share price.
It is guiding to 189 MMboe to 195 MMboe in FY 2024. If it delivers on the high end of its guidance range, this could give investor sentiment and its shares a boost. As could some positive guidance for FY 2025.
Goldman Sachs is expecting Woodside to deliver production of 193 MMboe in FY 2024. After which, it expects production to remain flat at this level in FY 2025.
Do brokers believe its shares can rise?
Goldman Sachs currently has a neutral rating on Woodside's shares.
However, it has a price target of $26.90, which is 12% ahead of where its shares trade today.
Elsewhere, the team at Morgans is bullish and has an add rating and $33.00 price target. This is almost 38% higher than where its shares currently trade. Clearly 2025 would be a fantastic year for the Woodside share price if this recommendation proves accurate.
And as ambitious as it may sound, it could be possible. Morgans highlights that Woodside's shares are dirt cheap right now. It recently said:
The tide is certainly out in terms of investor sentiment on WDS. Despite Brent oil trading in line with our long-term forecast, WDS' share price implies a near cycle-low oil price level. We do not see this as capable of being explained by WDS' growth profile (comfortably funded) or risks around non-core assets such as Browse.
While the share price performance has been disappointing, supported by a strong balance sheet and high margins, we see WDS investors as capable of being patient. Investment view: We maintain an ADD recommendation believing WDS offers attractive long-term value.
