The Woodside Energy Group Ltd (ASX: WDS) share price has risen 33% since 16 April 2025, as the chart below shows. During this resurgent period, the ASX energy share has been a positive for shareholders.
Now, investors need to consider whether the business is an appealing investment in the current environment.
It can be difficult for investors to predict what will happen with energy prices, which is partly why the business usually trades with a relatively low price-earnings (P/E) ratio.
Here are some positives and negatives about Woodside shares I'd consider.
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Woodside shares positives
Energy prices have increased in recent times following the uncertainty and conflict in the Middle East.
Woodside's earnings are heavily influenced by the energy price. Its production costs don't change much each month or even each year, so what happens with energy prices is significant. A reduction of energy prices over the past two years led to a reduction of the Woodside share price, while the last few weeks have seen a recovery.
I'm not going to try to predict what will happen in the Middle East or what will happen to energy prices as a result, but it's important to recognise that geopolitical events can have an unpredictable influence.
Another positive to consider is the passive income. Woodside has usually paid a generous dividend to shareholders each year, and that's expected to continue, according to some projections. The forecast from UBS suggests a possible dividend per share of US 53 cents in FY26 and US 91 cents per share in FY27. At the current Woodside share price, that translates into future grossed-up dividend yields of 4.5% and 7.8%, respectively, including franking credits.
Finally, Woodside is working on several projects that could increase earnings in the future, including the Louisiana LNG development, the Beaumont ammonia project, the Scarborough project, and the Trion project.
Negatives
Woodside shares have already risen significantly in response to the change in energy prices. The share price is nowhere near as cheap as it was before, so the 'easy money' may already have been made here.
Energy prices usually move in cycles; we just don't know when the cycle will change. I'd prefer to invest when the energy price and Woodside share price are cheap. That would give me the best chance of outperforming the market and unlocking a stronger dividend yield.
Woodside is not the type of business that usually delivers growing profits every single year – it's normal for ASX energy shares to experience volatility regularly. And that sort of volatility may not suit the temperaments of many investors – they could decide to sell at the wrong time.
Overall, I don't think Woodside shares are a great bargain like they were a couple of months ago.
