Woodside Energy, Aramco ink deal to explore stake in Louisiana LNG project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2025
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Should l Buy WDS?
Source: SeekingAlpha
Woodside Energy and Aramco Agreement: Woodside Energy has signed a non-binding agreement with Saudi Arabia's Aramco for a potential stake acquisition in Woodside's LNG project in Louisiana, which could also involve collaboration on other initiatives.
Investment Interest in Louisiana LNG: The deal highlights the growing interest in Louisiana's LNG sector from high-quality investors, following Woodside's recent agreement with Stonepeak for a significant stake in the project's infrastructure.
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Analyst Views on WDS
About WDS
Woodside Energy Group Ltd is a global energy company. Its segments include Australia, International and Marketing. The Australia segment is engaged in the exploration, evaluation, development, production and sale of liquefied natural gas, pipeline gas, crude oil and condensate and natural gas liquids in Australia. International segment is engaged in the exploration, evaluation, development, production and sale of pipeline gas, crude oil and condensate and natural gas liquids in international jurisdictions outside of Australia. Marketing segment is engaged in the marketing, shipping and trading of its oil and gas portfolio. Its projects include Pluto LNG, the North West Shelf Project, Macedon, Sangomar, the lower carbon ammonia project in Texas, and others. It holds an interest in Woodside Louisiana LNG, which is an under-construction LNG production and export terminal in Calcasieu Parish, Louisiana. The Sangomar, containing both oil and gas, is located 100 kilometers south of Dakar.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Woodside Energy Faces LNG Sales Challenges in Louisiana
- Sales Agreement Progress: Woodside Energy has signed a long-term sales agreement with Germany's Uniper for up to 2 million metric tons of LNG per year, representing about 25% of the total production from its Louisiana LNG facility, with deliveries expected to start in 2030, indicating a certain demand foundation in the market.
- Pricing Strategy Issues: Woodside's sought liquefaction fee exceeds $2.80 per MMBtu, while the broader U.S. market rates are between $2.40 and $2.50, which may lead to potential customer loss and negatively impact the company's sales capabilities and market competitiveness.
- Market Competition Analysis: Compared to competitors, Cheniere Energy charges approximately $2.60 per MMBtu, while Venture Global's fees are as low as $2.30, suggesting that Woodside's pricing strategy may place it at a disadvantage in a highly competitive market.
- Customer Interest Maintained: Despite pricing challenges, CEO Liz Westcott stated that customer interest remains strong, and the company is satisfied with the progress of the Louisiana LNG project, indicating that potential opportunities still exist in the market.
See More
Woodside Energy Reports Mixed Q1 Performance
- Revenue Decline: Woodside Energy's operating revenue fell 2% year-over-year to $3.261 billion from $3.315 billion, reflecting challenges in the market environment and pressure on the company's revenue growth.
- Production Volume Decrease: The company's production volumes declined by 8% from 49.1 million barrels of oil equivalent (MMboe) to 45.2 MMboe, indicating difficulties in resource extraction that could impact future supply capabilities.
- Sales Volume Increase: Despite the drop in production, sales volumes rose by 3% from 50.3 MMboe to 51.7 MMboe, suggesting that the company still possesses some resilience in market demand.
- Uncertain Market Outlook: The mixed performance may lead investors to question Woodside Energy's future growth potential, particularly against the backdrop of volatility in the global energy market.
See More
Woodside Energy Reports Q1 Revenue Beat Amid LNG Supply Constraints
- Revenue Performance: Woodside Energy Group reported Q1 revenue of $3.26 billion, reflecting a 1.8% year-over-year decline, yet exceeding market expectations by $200 million, demonstrating the company's resilience in a challenging market environment.
- LNG Supply Constraints: The resumption of production at the North West Shelf follows cyclone disruptions, while Chevron's Wheatstone repairs are expected to take weeks, further tightening global LNG supply and potentially impacting future price trends.
- Sustainability Strategy: During the analyst call, Woodside emphasized its sustainability strategy, indicating a commitment to governance and environmental responsibility amid the energy transition, which may enhance investor confidence.
- Market Impact: Despite challenges, Woodside's revenue growth and production recovery could provide support for its stock price, while the tightening global LNG supply backdrop may further solidify the company's market position.
See More
Woodside Energy Reports Q1 Production Decline Amid Weather Disruptions
- Production Decline: Woodside Energy reported a first-quarter production of 45.2 million barrels of oil equivalent (MMboe) in 2026, an 8% decrease from the previous quarter primarily due to seasonal weather disruptions in Western Australia, although the company maintained operational reliability at nearly 99%.
- Revenue Growth: Despite the production drop, Woodside's revenue increased by 7% to $3.26 billion, supported by an 11% rise in average realized prices to $63 per barrel of oil equivalent, indicating strong market pricing resilience.
- Project Progress: The company continues to advance several large-scale projects, with the Scarborough LNG project 96% complete and targeting first cargo in Q4 2026, while the Trion oil project in Mexico is 56% complete, aiming for first oil in 2028.
- Leadership Change: Newly appointed CEO Liz Westcott emphasized a focus on cost discipline and operational efficiency, aiming to streamline decision-making processes as Woodside navigates challenges from weather disruptions and maintenance activities.
See More
Woodside Energy Reports Strong Q1 Performance with Key Project Updates
- Production Stability: Woodside achieved production volumes of 45.2 million barrels of oil equivalent in Q1, down 8% from Q4 2025, yet maintained asset reliability above 99%, ensuring the company's stable position in the global energy market.
- Project Progress: The Scarborough Energy Project is 96% complete and on track for first LNG delivery in Q4 2026, highlighting the company's ongoing investment and growth potential in the liquefied natural gas sector.
- New CEO Appointment: Liz Westcott was appointed CEO in March 2026, emphasizing a focus on operational excellence and sustainable value creation, which is expected to enhance the company's strategic execution and decision-making efficiency moving forward.
- Stable Capital Expenditure: Woodside's capital expenditure remained at $3.45 billion with no changes, reflecting the company's ongoing commitment to expanding and maintaining its asset portfolio despite market fluctuations.
See More
BP Faces Shareholder Revolt at AGM Over Governance and Climate Issues
- AGM Voting Results: At BP's annual general meeting, while 81.8% of shareholders supported the election of Albert Manifold as chair, the company failed to secure the 75% needed to pass two significant resolutions, reflecting shareholder dissatisfaction with governance and climate transparency.
- Proposals Blocked: The board's decision to block a proposal from Follow This, which sought to require BP to disclose plans for creating shareholder value amid declining oil and gas demand, raised eyebrows among investors, particularly given the recommendations against BP from proxy advisors like Glass Lewis and ISS.
- Investor Backlash: Nick Mazan from climate group ACCR remarked that the AGM results were unprecedented, indicating that investors are fed up with BP's lack of capital discipline and shareholder rights, and stressing that the new leadership must demonstrate the value of its planned upstream investments.
- Market Performance Comparison: In stark contrast to BP's struggles, shares of Woodside Energy have surged over 33% year-to-date, highlighting its success in capital management and shareholder returns, thereby increasing the pressure on BP to improve its performance.
See More
Woodside Energy Faces LNG Sales Challenges in Louisiana
- Sales Agreement Progress: Woodside Energy has signed a long-term sales agreement with Germany's Uniper for up to 2 million metric tons of LNG per year, representing about 25% of the total production from its Louisiana LNG facility, with deliveries expected to start in 2030, indicating a certain demand foundation in the market.
- Pricing Strategy Issues: Woodside's sought liquefaction fee exceeds $2.80 per MMBtu, while the broader U.S. market rates are between $2.40 and $2.50, which may lead to potential customer loss and negatively impact the company's sales capabilities and market competitiveness.
- Market Competition Analysis: Compared to competitors, Cheniere Energy charges approximately $2.60 per MMBtu, while Venture Global's fees are as low as $2.30, suggesting that Woodside's pricing strategy may place it at a disadvantage in a highly competitive market.
- Customer Interest Maintained: Despite pricing challenges, CEO Liz Westcott stated that customer interest remains strong, and the company is satisfied with the progress of the Louisiana LNG project, indicating that potential opportunities still exist in the market.
See More
Woodside Energy Reports Mixed Q1 Performance
- Revenue Decline: Woodside Energy's operating revenue fell 2% year-over-year to $3.261 billion from $3.315 billion, reflecting challenges in the market environment and pressure on the company's revenue growth.
- Production Volume Decrease: The company's production volumes declined by 8% from 49.1 million barrels of oil equivalent (MMboe) to 45.2 MMboe, indicating difficulties in resource extraction that could impact future supply capabilities.
- Sales Volume Increase: Despite the drop in production, sales volumes rose by 3% from 50.3 MMboe to 51.7 MMboe, suggesting that the company still possesses some resilience in market demand.
- Uncertain Market Outlook: The mixed performance may lead investors to question Woodside Energy's future growth potential, particularly against the backdrop of volatility in the global energy market.
See More
Woodside Energy Reports Q1 Revenue Beat Amid LNG Supply Constraints
- Revenue Performance: Woodside Energy Group reported Q1 revenue of $3.26 billion, reflecting a 1.8% year-over-year decline, yet exceeding market expectations by $200 million, demonstrating the company's resilience in a challenging market environment.
- LNG Supply Constraints: The resumption of production at the North West Shelf follows cyclone disruptions, while Chevron's Wheatstone repairs are expected to take weeks, further tightening global LNG supply and potentially impacting future price trends.
- Sustainability Strategy: During the analyst call, Woodside emphasized its sustainability strategy, indicating a commitment to governance and environmental responsibility amid the energy transition, which may enhance investor confidence.
- Market Impact: Despite challenges, Woodside's revenue growth and production recovery could provide support for its stock price, while the tightening global LNG supply backdrop may further solidify the company's market position.
See More
Woodside Energy Reports Q1 Production Decline Amid Weather Disruptions
- Production Decline: Woodside Energy reported a first-quarter production of 45.2 million barrels of oil equivalent (MMboe) in 2026, an 8% decrease from the previous quarter primarily due to seasonal weather disruptions in Western Australia, although the company maintained operational reliability at nearly 99%.
- Revenue Growth: Despite the production drop, Woodside's revenue increased by 7% to $3.26 billion, supported by an 11% rise in average realized prices to $63 per barrel of oil equivalent, indicating strong market pricing resilience.
- Project Progress: The company continues to advance several large-scale projects, with the Scarborough LNG project 96% complete and targeting first cargo in Q4 2026, while the Trion oil project in Mexico is 56% complete, aiming for first oil in 2028.
- Leadership Change: Newly appointed CEO Liz Westcott emphasized a focus on cost discipline and operational efficiency, aiming to streamline decision-making processes as Woodside navigates challenges from weather disruptions and maintenance activities.
See More
Woodside Energy Reports Strong Q1 Performance with Key Project Updates
- Production Stability: Woodside achieved production volumes of 45.2 million barrels of oil equivalent in Q1, down 8% from Q4 2025, yet maintained asset reliability above 99%, ensuring the company's stable position in the global energy market.
- Project Progress: The Scarborough Energy Project is 96% complete and on track for first LNG delivery in Q4 2026, highlighting the company's ongoing investment and growth potential in the liquefied natural gas sector.
- New CEO Appointment: Liz Westcott was appointed CEO in March 2026, emphasizing a focus on operational excellence and sustainable value creation, which is expected to enhance the company's strategic execution and decision-making efficiency moving forward.
- Stable Capital Expenditure: Woodside's capital expenditure remained at $3.45 billion with no changes, reflecting the company's ongoing commitment to expanding and maintaining its asset portfolio despite market fluctuations.
See More
BP Faces Shareholder Revolt at AGM Over Governance and Climate Issues
- AGM Voting Results: At BP's annual general meeting, while 81.8% of shareholders supported the election of Albert Manifold as chair, the company failed to secure the 75% needed to pass two significant resolutions, reflecting shareholder dissatisfaction with governance and climate transparency.
- Proposals Blocked: The board's decision to block a proposal from Follow This, which sought to require BP to disclose plans for creating shareholder value amid declining oil and gas demand, raised eyebrows among investors, particularly given the recommendations against BP from proxy advisors like Glass Lewis and ISS.
- Investor Backlash: Nick Mazan from climate group ACCR remarked that the AGM results were unprecedented, indicating that investors are fed up with BP's lack of capital discipline and shareholder rights, and stressing that the new leadership must demonstrate the value of its planned upstream investments.
- Market Performance Comparison: In stark contrast to BP's struggles, shares of Woodside Energy have surged over 33% year-to-date, highlighting its success in capital management and shareholder returns, thereby increasing the pressure on BP to improve its performance.
See More
