The Woodside Energy Group Ltd (ASX: WDS) share price is underperforming the market on Friday, down 0.55% to $21.80.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up 0.56% to 8,343.6 points.
Here's what is moving the Woodside share price today.
Woodside share price trails the market
There is no official news from the ASX 200 oil and gas giant today.
However, Woodside announced pricing for a United States bond offer yesterday.
Woodside said it had conducted a bond offer and successfully priced US$3.5 billion of senior unsecured bonds in the US market.
Woodside Finance Limited, a subsidiary of Woodside Energy Group, will issue the bonds.
The US bond offer is comprised of:
- US$0.5 billion of 3-year bonds with a coupon of 4.9%
- US$1.25 billion of 5-year bonds with a coupon of 5.4%
- US$0.5 billion of 7-year bonds with a coupon of 5.7%
- US$1.25 billion of 10-year bonds with a coupon of 6%
Woodside is expecting settlement of the bonds on 19 May, subject to customary closing conditions.
The ASX 200 energy giant said it would use the funds for general corporate purposes.
What's the outlook for Woodside?
There are 16 analysts on the CommSec platform covering Woodside shares.
Their consensus rating on the ASX 200 oil and gas stock is a moderate buy.
Five analysts rate Woodside shares as a strong buy, four say they're a moderate buy, and seven say they're a hold.
Goldman Sachs has a neutral (or hold) rating on Woodside with a 12-month share price target of $22.90.
In a note published on 30 April, Goldman said it was neutral-rated due to the Woodside share price's "relatively full valuation".
The broker also predicts limited near-term production growth to offset ongoing weakness in commodity prices.
Goldman said:
We expect production to remain relatively flat over the near term with a -1% CAGR to 2027 as Mad Dog 2 and Sangomar oil production offset existing decline at the North West Shelf and Bass Strait, leaving earnings largely exposed to softening commodity prices.
According to Trading Economics, the Brent crude oil price is down 13.4% in the year to date to US$64 per barrel.
Trading Economics analysts said the US-China 90-day tariff deal had "eased demand fears from the world's top oil consumers".
However, gains were capped by reports that Iran may reach a deal with the US for sanctions relief.
President Trump also signaled progress in long-term peace talks with Iran, fueling expectations of increased Iranian oil supply.
Adding to the pressure, US government data revealed a surprise build in crude inventories.
Natural gas is down 7.4% to US$3.36 per MMBtu in the year to date.
Trading Economics analysts said:
Warmer-than-usual weather forecasts through late May are expected to limit heating demand, while mild temperatures also dampen cooling needs, reducing overall consumption.
Additionally, gas flows to LNG export terminals have declined from record levels in April, amid seasonal maintenance.
