Citi positive on Australian energy firms on improved September commodity prices

Woodside Energy

12/10/2026 20:59

** Citi sees upside in Australian gas companies following "constructive" commodity price environment in Sept quarter
** Brokerage sees double-digit core earnings growth for energy giants Woodside Energy WDS.AX and Santos STO.AX over CY26
** Sees free cash flow growth in STO's Barossa, Pikka projects and says WDS leverages high global gas prices while investor attention grips firmly on successful execution of WDS's Scarborough project commissioning
** Notes that among smaller caps, the debate remains operational delivery
** Says Karoon Energy KAR.AX trades at discount following operational disruptions at its Bauna plant
** Brokerage sees Beach Energy BPT.AX beating headline production for Sept quarter, needs guarantees over operational strength in Waitsia plant 
** Raises target price (TP) for STO by 3% to A$9.6/shr, keeps BPT unchanged at A$0.8/shr, cuts WDS by 2% to A$32.5 and a 14% cut to KAR at A$1.8 apiece  
** Energy sub-index .AXEJ down 0.4% as of last close, up 29.1% YTD  

 (Reporting by Aamir Sheik Khalid in Bengaluru)
 ((Aamir.SheikKhalid@thomsonreuters.com))