The Woodside Energy Group Ltd (ASX: WDS) share price is in focus today after the company reported a 28% increase in quarterly operating revenue to US$4,185 million and continued reliable production from major assets, despite some operational headwinds.
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What did Woodside Energy Group report?
- Quarterly operating revenue rose 28% quarter-on-quarter to US$4,185 million.
- Average realised price was US$85 per barrel of oil equivalent, up 35% quarter-on-quarter.
- Quarterly production volumes were 41.3 million barrels of oil equivalent (MMboe), down 9% from Q1 due to planned maintenance and cyclone recovery.
- Sangomar and Shenzi operations delivered over 99% reliability, while Pluto and North West Shelf LNG assets exceeded 97% reliability.
- Capital expenditure for the quarter was US$784 million, with major growth projects on budget and schedule.
What else do investors need to know?
The Scarborough Energy Project is now 98% complete and remains on budget, targeting first LNG cargo in the December quarter of 2026. Project commissioning milestones were achieved in the period, including first gas from the Scarborough reservoir after quarter end.
Woodside advanced its global portfolio, assuming operatorship of the Gippsland Basin assets in July and moving ahead with a key acquisition in the Browse Joint Venture, expected to increase its equity to 41.27% pending approvals. The company entered new gas sales agreements, including a deal to supply Alcoa's Western Australian alumina refining operations out to 2030.
The Trion Oil Project reached 64% completion and remains on budget, targeting first production in 2028. In the United States, the Louisiana LNG Project progressed to 28% complete and is expected to deliver first LNG in 2029.
What did Woodside Energy Group management say?
Woodside Energy Group CEO Liz Westcott said:
We delivered production of 41.3 million barrels of oil equivalent in the second quarter, highlighted by outstanding reliability of 99.3% at Sangomar and 99.2% at Shenzi. Sustained production performance and asset reliability have provided greater certainty around expected full-year outcomes, supporting a narrower production guidance range for 2026.
Strong realised prices supported earnings and cash generation, highlighting the resilience of our diversified portfolio amid ongoing macroeconomic and commodity price volatility. We continue to deliver our major growth projects to budget and schedule.
What's next for Woodside Energy Group?
Woodside reaffirmed its full-year 2026 guidance, including production between 174–185 MMboe, capital expenditure of US$4–4.5 billion, and continued gas hub exposure of around 30%. The company expects production performance to remain robust, as growth projects like Scarborough, Trion, and Louisiana LNG progress towards first production.
Looking ahead, focus remains on safe and reliable operations, progressing key projects, and supporting the domestic energy market through new contracts. The structured review of its operating model continues, with an update expected at the half-year results.
Woodside Energy Group share price snapshot
Woodside Energy Group share price has outperformed the S&P/ASX 200 Index (ASX: XJO) over the past year with a 21% gain, reflecting higher oil prices and investor confidence in its project execution and growth outlook.
