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Key Points:
- Woodside achieved record quarterly production of 53.1 MMboe, with a 21% increase in revenue, driven by Sangomar oil production and higher LNG prices.
- The Scarborough LNG project is 73% complete, and the Clean Ammonia Project acquisition in Texas positions Woodside for cleaner energy production.
- The company secured major LNG sales agreements and successfully issued $2 billion in senior bonds, underscoring financial strength and market confidence.
Woodside Energy (ASX:WDS) has released its third-quarter update for 2024, showing record production, revenue growth, and key project advancements that have garnered significant market attention. The company continues to build momentum across its global operations while advancing major energy projects, including clean ammonia and liquefied natural gas (LNG).
Operational Highlights
Woodside achieved a record quarterly production of 53.1 million barrels of oil equivalent (MMboe), a 20% increase compared to the second quarter of 2024. This production surge was largely driven by the ramp-up of output from the Sangomar oil field, which reached its nameplate capacity with gross production rates of 100,000 barrels per day. Additionally, the company benefitted from increased reliability across its operated assets, such as the Pluto LNG facility, which achieved an impressive 99.9% reliability. Seasonal domestic gas demand also contributed to the company's increased production.
The company's strong operational performance allowed it to revise its full-year production guidance to between 189 and 195 MMboe. In the same quarter, Woodside reported a quarterly revenue of $3.679 billion, marking a 21% increase from the previous quarter. This growth was primarily driven by Sangomar cargo sales and higher average LNG prices, with 39% of produced LNG sold at prices linked to gas hub indices. As a result, Woodside increased its full-year gas hub guidance to 33–37% of produced LNG.
Progress in Key Projects
Woodside is also making notable advancements in its major projects. The Scarborough Energy Project, one of its flagship LNG ventures, is now 73% complete. The company successfully installed the trunkline in October 2024, keeping the project on track for its first LNG cargo delivery in 2026. Meanwhile, the Trion Project, aimed at first oil production in 2028, reached 15% completion by the end of the third quarter.
Woodside further expanded its portfolio by completing the acquisition of OCI’s Clean Ammonia Project in Beaumont, Texas, for an all-cash consideration of approximately $2.35 billion. The project is expected to produce ammonia by 2025, with lower-carbon ammonia production anticipated by 2026. This acquisition is a key part of Woodside's strategy to diversify into cleaner energy sources and reduce its carbon footprint.
Strategic Acquisitions and Agreements
In addition to its operational and project successes, Woodside completed the acquisition of Tellurian's US Gulf Coast Driftwood LNG development in October, which has been renamed Woodside Louisiana LNG. This acquisition enhances Woodside’s LNG portfolio and strengthens its presence in the US energy market.
Woodside also signed a significant sale and purchase agreement (SPA) with Japanese energy company JERA for the supply of approximately 0.4 million tonnes per annum (Mtpa) of LNG over a 10-year period. Furthermore, the company secured 66 petajoules (PJ) of Western Australian gas sales for delivery across 2025 and 2026.
Outlook
Woodside's third-quarter performance solidifies its position as a key player in the global energy sector. With strong production figures, robust financials, and significant project progress, the company is well-positioned to meet its future goals. Its strategic moves in LNG, clean ammonia, and acquisitions demonstrate a clear focus on growth and energy diversification.
