REG - Woodside Energy Grp. - 2022 Production guidance clarification

Woodside EnergyAnnouncement

22/07/2022 07:00

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RNS Number : 3783T  Woodside Energy Group Ltd  22 July 2022

Woodside Energy Group Ltd

ACN 004 898 962

Mia Yellagonga

11 Mount Street

Perth WA 6000

Australia

T +61 8 9348 4000

www.woodside.com

 

ASX: WDS

NYSE: WDS

LSE: WDS

 

Announcement

 

Friday, 22 July 2022

 

 

2022 PRODUCTION GUIDANCE CLARIFICATION

 

Woodside provides the following information in relation to its Second Quarter
2022 Report, changes to conversion factors, and the impact on reported
production and full-year 2022 production guidance.

 

Woodside confirms that there is no change to the physical product volumes
underpinning the full-year 2022 production guidance issued by Woodside in
January 2022, which did not include BHP Petroleum (BHPP) production. 1  There
is also no impact on revenue as a result of the change in conversion factors
announced in the Second Quarter 2022 Report.

 

The reduction in the contribution of the pre-merger Woodside assets to
full-year 2022 production guidance is solely due to the change in conversion
factors. A reconciliation is provided below.

 

Consistent with common industry practice, Woodside now applies a single
volumetric conversion factor when calculating barrels of oil equivalent (boe)
for gas products. This consistent methodology applies across the combined
portfolio reflecting Woodside's increased scale and diversified product mix
following the merger.

 

Reconciliation of January 2022 and Second Quarter 2022 Report production
guidance

 

The full-year 2022 production guidance included in the Second Quarter 2022
Report of 145 - 153 million barrels of oil equivalent (MMboe) combines:

 

·      2022 production guidance for the pre-merger Woodside assets

·      2022 production guidance for the BHPP assets from 1 June 2022,
and

·      alignment of the conversion factors for the reporting of boe for
all gas products.

 

The comparison of Woodside's production guidance between January 2022 and in
the Second Quarter 2022 Report is:

 

 

 

 

 

 

 

 

                                  Production guidance issued January 2022 (MMboe)              Production guidance issued Q2 2022 (MMboe)
 Relevant conversion factor       Based on product-specific energy conversion factors for gas  Based on volumetric conversion factor of

                                                                                               5,700 scf to 1 boe
 LNG                              71 - 74                                                      67 - 70
 Pipeline gas                     4 - 5                                                        4 - 5
 Crude and condensate             16 - 18                                                      16 - 18
 Natural gas liquids (NGLs)       ~0.5                                                         ~0.6
 Woodside excluding BHPP          92 - 98                                                      88 - 94

 BHPP contribution (from 1 June)  -                                                            57 - 59

 Production range                 92 - 98                                                      145 - 153

Numbers are subject to minor rounding differences

 

LNG and pipeline gas for production and reserves will be reported in boe and
calculated from a volumetric basis with a conversion factor of 5,700 standard
cubic feet (scf) per boe. BHPP previously used 6,000 scf per boe. NGLs will be
reported on a liquid volume basis.

 

The change has not impacted the previously reported production volumes of LNG
in tonnes in the First Quarter 2022 Report. The Second Quarter 2022 Report has
restated First Quarter 2022 realised price in boe to reflect the change in
conversion factors.

 

 

 

 Contacts:

 INVESTORS                              MEDIA

 Australia & Europe | Damien Gare       Christine Forster

 W: +61 8 9348 4421                     M: +61 484 112 469

 M: +61 417 111 697                     E: christine.forster@woodside.com

 Americas | Matthew Turnbull

 M: +1 (713) 448-0956

 E: investor@woodside.com

 

This announcement was approved and authorised for release by Woodside's
Disclosure Committee.

 

Forward-looking statements

 

This announcement contains forward-looking statements with respect to
Woodside's business and operations, market conditions, results of operations
and financial condition which reflect Woodside's views held as at the date of
this announcement. All statements, other than statements of historical or
present facts, are forward-looking statements and generally may be identified
by the use of forward-looking words such as 'guidance', 'foresee', 'likely',
'potential', 'anticipate', 'believe', 'aim', 'estimate', 'expect', 'intend',
'may', 'target', 'plan', 'forecast', 'project', 'schedule', 'will', 'should',
'seek' and other similar words or expressions. These forward-looking
statements include, but are not limited to, statements about our expectations
for full-year 2022 production results. Forward-looking statements are not
guarantees of future performance and are subject to inherent known and unknown
risks, uncertainties, assumptions and other factors, many of which are beyond
the control of Woodside, its related bodies corporate and their respective
officers, directors, employees, advisers or representatives. Important factors
that could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to: fluctuations in
commodity prices; the impact of armed conflict and political instability (such
as the ongoing conflict in Ukraine) on economic activity and oil and gas
supply and demand; operating hazards, natural disasters, severe storms and
other adverse weather conditions; and a shortage of skilled labor and
construction materials, equipment and supplies. Details of the key risks
relating to Woodside and its business can be found in the "Risk" section of
Woodside's most recent Annual Report which was released to the Australian
Securities Exchange on 17 February 2022 and Woodside's filings with the U.S.
Securities and Exchange Commission. You should review and have regard to these
risks when considering the information contained in this announcement.

 

Investors are strongly cautioned not to place undue reliance on any
forward-looking statements. Actual results or performance may vary materially
from those expressed in, or implied by, any forward-looking statements. All
information included in this announcement, including any forward-looking
statements, speak only as of the date of this announcement and, except as
required by law or regulation, Woodside does not undertake to update or revise
any information or forward-looking statements contained in this announcement,
whether as a result of new information, future events, or otherwise.

 1  Refer to Woodside's Fourth Quarter 2021 Report, released to the ASX on 20
January 2022.

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