Woodside Releases Quarter Three 2024 Results

Sangomar fuels record-breaking production

Operations

   -- Record quarterly production of 53.1 MMboe (577 Mboe/day), up 20% from Q2 
      2024 due to ramp-up of Sangomar, increased uptime across operated assets 
      including 99.9% LNG reliability at Pluto and increased seasonal domestic 
      gas demand. Full-year production guidance has been narrowed to 189--195 
      MMboe. 
 
   -- Quarterly revenue of $3,679 million, up 21% from Q2 2024 primarily due to 
      Sangomar cargo sales and higher average LNG prices. 
 
   -- Achieved nameplate capacity at Sangomar with gross production rates of 
      100,000 barrels per day. 
 
   -- Capitalised on increased gas-hub prices by selling 39% of produced LNG 
      cargoes in the quarter on prices linked to gas hub indices.1 Full year 
      gas hub guidance has been increased to 33--37% of produced LNG. 

Projects

   -- The Scarborough Energy Project was 73% complete at the end of the quarter, 
      with trunkline installation successfully completed in October. The 
      project is on track for first LNG cargo in 2026.2 
 
   -- The Trion Project was 15% complete at the end of the quarter and is 
      targeting first oil in 2028. 
 
   -- Completed acquisition of OCI's Clean Ammonia Project in Beaumont, Texas 
      for an all-cash consideration of approximately $2,350 million, with 80% 
      paid and the remaining 20% to be paid at project completion. The project 
      is targeting first ammonia production from 2025 and lower carbon ammonia 
      from 2026.3 

Other

   -- Completed acquisition of Tellurian and its US Gulf Coast Driftwood LNG 
      development opportunity in October. The project has been renamed Woodside 
      Louisiana LNG. 
 
   -- Signed a sale and purchase agreement $(SPA)$ with JERA for the supply of 
      approximately 0.4 Mtpa LNG for 10 years. 
 
   -- Executed 66 PJ of Western Australian gas sales for delivery across 2025 
      and 2026. 
 
   -- Successfully completed issuance of $2 billion of senior unsecured bonds 
      to quality debt investors in the US market, with the book peaking at 
      almost four times oversubscribed. 
PERTH, Australia--(BUSINESS WIRE)--October 15, 2024-- 

Woodside Energy Group (ASX: WDS) $(WDS)$ (LSE: WDS):

Woodside CEO Meg O'Neill said:

"We would like to acknowledge the tragic death in early October of an employee of one of the construction contractors at our Clean Ammonia Project in Beaumont, Texas.

"Safety is our top priority. We are taking steps to understand the circumstances around what occurred and are working closely with local authorities, OCI and the contractor company.

"Our production for the third quarter was a record 53.1 million barrels of oil equivalent. The strong operational performance was underpinned by the accelerated ramp-up of Sangomar and exceptional performance at Pluto LNG and NWS, which recorded 99.9% and 99.2% reliability respectively.

"Our 39% exposure to LNG gas hub indices allowed us to take advantage of increased LNG spot prices in the market over the period, demonstrating the importance of maintaining a balanced and flexible portfolio.

"At Sangomar the 24-well drilling program has been completed and the project has achieved nameplate capacity of 100,000 barrels per day. Commissioning activities continue to progress as planned and start-up of gas and water injection systems is underway.

The Scarborough Energy Project in Western Australia is now 73% complete and remains on target for first LNG cargo in 2026. Installation of the offshore Scarborough gas trunkline was completed in early October.

"At the end of September we completed the acquisition of OCI's Clean Ammonia Project in Beaumont, Texas. Subsequent to quarter end, we completed the acquisition of Tellurian and its development opportunity, now named Woodside Louisiana LNG.

"The Clean Ammonia Project is expected to produce first ammonia in 2025 and at Woodside Louisiana LNG we are targeting final investment decision $(FID.AU)$ readiness from the first quarter of 2025. These acquisitions expand our diverse, geographically advantaged portfolio and position Woodside to execute our strategy to thrive through the energy transition and deliver long-term value to shareholders.

"Our sale and purchase agreement with JERA for the long-term supply of LNG from Woodside's global portfolio again evidenced the value Asian customers place on our product.

"Woodside's commitment to the domestic market was also demonstrated by the execution of gas sales of 66 petajoules (PJ) across 2025 and 2026 in Western Australia. In eastern Australia, to date we have executed sales of 63 PJ across 2025 and 2026 under an ongoing Expression of Interest process, with further sales expected to be completed in the fourth quarter."

 
(1) 16% of total equity production in the quarter was sold on prices linked to 
gas hub indices. 
(2) The completion % excludes the Pluto Train 1 modifications project. 
(3) Production of lower carbon ammonia is conditional on supply of carbon 
abated hydrogen and ExxonMobil's CCS facility becoming operational. See 
disclaimer and important notices on page 16 for information on "lower carbon 
ammonia". 
 

Comparative performance at a glance

 
                                Q3     Q2    Change   Q3    Change   YTD    YTD    Change 
                                2024   2024     %     2023     %     2024   2023      % 
 ----------------  ----------  -----  -----  ------  -----  ------  -----  ------  ------ 
Revenue            $ million   3,679  3,033   21%    3,259   13%    9,681  10,673   (9%) 
-----------------  ----------  -----  -----  ------  -----  ------  -----  ------  ------ 
Production(4)        MMboe     53.1   44.4    20%    47.8    11%    142.4  139.1     2% 
 Gas                MMscf/d    2,001  1,885    6%    2,001    -     1,939  2,000    (3%) 
 Liquids             Mbbl/d     226    157    44%     169    34%     180    159     13% 
 Total               Mboe/d     577    488    18%     520    11%     520    510      2% 
 ----------------  ----------  -----  -----  ------  -----  ------  -----  ------  ------ 
Sales                MMboe     55.8   48.0    16%    53.3     5%    149.7  152.1    (2%) 
 Gas                MMscf/d    2,154  2,103    2%    2,341   (8%)   2,075  2,292    (9%) 
 Liquids             Mbbl/d     228    159    43%     169    35%     182    155     17% 
 Total               Mboe/d     606    528    15%     579     5%     546    557     (2%) 
 ----------------  ----------  -----  -----  ------  -----  ------  -----  ------  ------ 
Average realised 
 price               $/boe      65     62      5%     60      8%     63      69     (9%) 
-----------------  ----------  -----  -----  ------  -----  ------  -----  ------  ------ 
Capital 
 expenditure(5)    $ million   3,033  1,233   146%   1,360   123%   5,445  4,135    32% 
 Capex excl. 
  acquisitions     $ million   1,133  1,233   (8%)   1,360  (17%)   3,545  4,135   (14%) 
 Acquisitions(6)   $ million   1,900    -     100%     -     100%   1,900    -      100% 
 ----------------  ----------  -----  -----  ------  -----  ------  -----  ------  ------ 
 

Operations

Pluto LNG

   -- Achieved outstanding quarterly LNG reliability of 99.9%. 

North West Shelf $(NWS.AU)$ Project

   -- Achieved outstanding quarterly LNG reliability of 99.2%. 
 
   -- Successfully completed planned maintenance offshore at North Rankin 
      Complex and an onshore LNG train at Karratha Gas Plant (KGP), and 
      production has recommenced as planned. 
 
   -- Continued to pursue opportunities for third party onshore gas processing 
      following announcement of the Western Australian Government's updated 
      policy allowing onshore gas exports. 
 
   -- Took FID on the Low-Low Pressure Operation Project at Goodwyn Alpha, 
      aimed at increasing NWS production from the Goodwyn area reservoirs. This 
      project is targeted for start-up in Q2 2027. 
 
   -- Planning to bring one LNG train offline for retirement in the fourth 
      quarter of 2024. 
 
(4) Q3 2024 includes 0.28 MMboe, Q2 2024 includes 0.30 MMboe and Q3 2023 
includes 0.26 MMboe primarily from feed gas purchased from Pluto non-operating 
participants processed through the Pluto-KGP Interconnector. 
(5) Includes capital additions on property plant and equipment, exploration 
and evaluation capitalised, other corporate spend and investment expenditure 
on Beaumont Clean Ammonia Project. 
(6) Acquisition of OCI's Clean Ammonia Project in Beaumont, Texas. 
 

Bass Strait

   -- Safely completed the Kipper Compression Project, adding compression 
      facilities on the West Tuna Platform, increasing production potential of 
      existing well stock and enabling development of additional Kipper 
      reserves. 
 
   -- Continued optimisation of facilities through the Gippsland Asset 
      Streamlining project with closure of the Cobia Platform in September 
      2024. 
 
   -- Ethane power generation project successfully started up in September. 

Sangomar

   -- Achieved nameplate capacity of 100,000 barrels per day in July 2024. 
 
   -- Continued to receive strong interest in Sangomar crude from buyers in 
      Europe and Asia. 
 
   -- The final Phase 1 well was drilled and completed in the period. The 
      Sangomar drilling campaign is now complete marking the successful 
      drilling and completion of 24 development wells. 
 
   -- Start-up of gas and water injection systems has commenced and 
      commissioning activities are expected to continue through 2024. 

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October 15, 2024 23:40 ET (03:40 GMT)