Woodside Energy Group Ltd (WDS.AX) closed Monday's trading session higher, with shares rising 1.4% to A$25.84. This gain occurred even as benchmark crude oil prices fell approximately 1% during Asian trading hours. The price drop followed diplomatic signals from the U.S. and Iran, which suggested continued negotiations over Tehran's nuclear program and eased immediate supply concerns in the market.
Production Outlook and Key Projects
Acting CEO Liz Westcott provided updated operational guidance, indicating that 2026 production is expected to range between 172 million and 186 million barrels of oil equivalent. This forecast incorporates planned maintenance downtime at the Pluto LNG facility as it prepares for the integration of gas from the Scarborough project. Westcott noted the Scarborough development is 94% complete and remains on budget and schedule, with first LNG cargo targeted for the fourth quarter of 2026.
Some analysts viewed the production range as conservative relative to prior market expectations. However, observers noted Woodside has a historical pattern of setting initial guidance below consensus before later revising estimates upward.
Market Drivers and Forthcoming Events
Energy sector equities, including peers like Santos Ltd (STO.AX), remain highly sensitive to crude oil price fluctuations and geopolitical developments. While incremental project updates often receive limited attention, broader macro factors like Brent crude movements and developments surrounding sanctions continue to dictate daily price action for energy stocks.
Investor focus now shifts decisively to Woodside's annual report release and its investor briefing scheduled for February 24. Market participants will scrutinize the details for signals on dividend policy and the company's financial positioning amid evolving commodity markets.
