Woodside Energy Group Ltd saw its share price advance modestly on Wednesday, closing 0.4% higher at A$25.94. The move came as the market digested the company's annual reserves statement, released after the trading session concluded. Trading volume reached approximately 3.8 million shares.
Reserves Update Shows Mixed Picture
The energy producer reported that its proved reserves stood at 1,882.1 million barrels of oil equivalent (MMboe) as of December 31, 2025. This represents a decrease from the 1,975.7 MMboe recorded at the end of the previous year. The company's production for the year totaled 211.4 MMboe.
However, a more detailed analysis reveals underlying growth. Excluding the impact of production and asset divestments, Woodside's proved reserves actually increased by 134.1 MMboe. The company attributed these additions to successful technical revisions at its Pluto and Sangomar assets, alongside new project approvals for Greater Western Flank 4, Turrum Phase 3, and an expansion at Atlantis.
Broader Resource Base and Cautious Notes
Woodside also disclosed its proved-plus-probable (2P) reserves, which totaled 2,999.5 MMboe. Furthermore, contingent resources (2C) were reported at 5,795.7 MMboe. The 2P reserves saw a net increase of 141.0 MMboe after adjusting for production and sales.
The company included standard disclaimers, noting that these reserve and resource estimates are subject to change. Factors such as project execution, cost fluctuations, market conditions, and other uncertainties could materially impact future outcomes. The statement also explicitly excluded any contribution from a proposed asset swap with Chevron, as that transaction remains pending regulatory approval.
Management Commentary and Portfolio Context
Acting Chief Executive Officer Liz Westcott emphasized the "strength and resilience" of Woodside's asset portfolio. She specifically highlighted the sanctioned Louisiana LNG project in the United States as a key future driver for stable cash flow generation.
Woodside's operations are anchored by flagship Australian assets like the Pluto LNG facility and the North West Shelf project. Its international footprint includes the Sangomar development offshore Senegal and the aforementioned stake in Woodside Louisiana LNG. The company is a leading global producer of liquefied natural gas and liquid hydrocarbons.
Investor Focus Shifts to Upcoming Results
The reserves disclosure strategically precedes the company's full-year financial results, scheduled for release on Tuesday, February 24. This timing allows investors to integrate the updated resource picture with forthcoming guidance, capital expenditure plans, and operational updates, all of which are potent catalysts for the stock.
The annual report will be published alongside Woodside's latest climate and sustainability update. An investor briefing, led by Acting CEO Liz Westcott and Chief Financial Officer Graham Tiver, is set for 10:00 AM Australian Eastern Daylight Time (AEDT) on the same day.
Broader Market Backdrop
The trading session occurred against a backdrop of relative stability in the energy complex. After significant declines the previous day, oil prices paused. Brent crude futures edged up by 23 cents to settle at $67.65 per barrel, while U.S. West Texas Intermediate (WTI) crude added 19 cents to $62.52. Market participants continued to monitor U.S.-Iran diplomatic negotiations and the latest weekly inventory data from the United States.
Analysts note that sophisticated investors typically look beyond headline reserve numbers. The critical analysis involves assessing what proportion of the booked resources are tied to active, funded projects and understanding the capital requirements and development timelines needed to convert those subsurface resources into tangible cash flow.