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Jarden analysts are forecasting double-digit returns for Woodside Energy Group (ASX: WDS) shareholders, with the company's US liquefied natural gas (LNG) interests seen as a good earner.
The Australian oil and gas major acquired Tellurian Inc in October 2024 for US$1.2 billion, with the key asset being the Driftwood LNG project in Louisiana.
Since then, Woodside has rapidly progressed the LNG project, renamed Woodside Louisiana LNG, signed up EPC contractor Bechtel in December 2024, sold a 40% stake in the infrastructure part of the project to Stonepeak and sanctioned a three-train, 16.5 million tonne per annum LNG development in April 2025.
Jarden analysts said the US$17.5 billion project was targeting first gas production in 2029, and Woodside would look to sell stakes in part of the project.
Risk mitigation is now the main near-term priority, in our view, via equity sell-down, locking in upstream gas supplies and LNG contracts. Woodside may have a great project here, but … equity sell down will provide more balance-sheet flexibility to ride out a sustained period of lower oil and LNG prices, pursue other growth opportunities and/or increase shareholder returns.
Jarden analysts have an overweight rating on Woodside shares and a price target of $26.10, compared with the current price of $24.60.
They are expecting a total shareholder return of 13.4%, with 7.5% from the share price and 5.9% from the dividend.
