REG - Woodside Energy Grp. - 2023 full-year guidance

Woodside EnergyAnnouncement

29/11/2022 07:00

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RNS Number : 8510H  Woodside Energy Group Ltd  29 November 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

 

Tuesday, 29 November 2022

 

 

2023 FULL-YEAR GUIDANCE

 

Woodside has completed a review of its 2023 corporate plan, including cost,
production and sales forecasts. As a result, the following guidance is
provided.

 

 

Capital expenditure

 

Woodside's full-year 2023 capital expenditure guidance is US$6.0
- 6.5 billion, assuming no change to current participating interests. The
approximate split by activity area is:

 

 Sangomar 1  (#_ftn1)                        ~20%
 Scarborough 2  (#_ftn2)                     ~50%
 Gulf of Mexico and Caribbean                ~15%
 Australia, Corporate and Other 3  (#_ftn3)  ~15%

 

 

Production

 

Woodside's full-year 2023 production guidance is 180 - 190 million barrels of
oil equivalent (MMboe). Key factors influencing this range are:

 

·      Sangomar Field Development Phase 1 is targeting first oil in late
2023. No credit is taken for any production in 2023.

·      Mad Dog Phase 2 is undergoing commissioning and Woodside assumes
for production guidance purposes a start-up in mid-2023.

·      A major turnaround is planned at Pluto LNG in Q2 2023 with an
expected duration of approximately four weeks.

 

The approximate split by product type is:

 

 LNG                   MMboe  83 - 85
 Pipeline gas          MMboe  40 - 42
 Crude and condensate  MMboe  50 - 55
 Natural gas liquids   MMboe  7 - 8
 Total                 MMboe  180 - 190

 

In July 2022, Woodside updated its methodology for calculating the barrels of
oil equivalent (boe) for its products, applying a single volumetric conversion
factor across the entire post-merger portfolio. Natural gas liquids are
reported on a liquid volume basis. All gas products are calculated on a
volumetric basis with a conversion factor of 5,700 standard cubic feet (scf)
per boe. Woodside previously used product-specific conversion factors on an
energy basis. BHP Petroleum previously used 6,000 scf per boe. 4  (#_ftn4)

 

The 2023 production guidance using the previous conversion factors would be
approximately 6 MMboe higher.

 

 

Gas hub exposure

 

Woodside expects approximately 20-25% of its 2023 produced LNG to be sold at
prices linked to gas hub indices.

 

 

Investor Briefing Day 2022

 

Woodside's Investor Briefing Day 2022 will be held in Sydney, Australia, on
Thursday, 1 December 2022, commencing at 09.30 AEDT / 06.30 AWST (16.30 CST on
Wednesday, 30 November 2022).

 

Woodside CEO Meg O'Neill and the executive team will provide an update on the
company's strategy and value proposition.

 

A live webcast of the event will be available at
https://webcast.openbriefing.com/9173/
(https://webcast.openbriefing.com/9173/) .

 

 

 Contacts:

 INVESTORS                     MEDIA

 Matthew Turnbull              Christine Forster

 M: +1 (713) 448-0956          M: +61 484 112 469

                               E: christine.forster@woodside.com

 Sarah Peyman

 M: +61 457 513 249

 E: investor@woodside.com.au

 

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. Forward-looking statements 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 Woodside's
expectations and guidance with respect to capital expenditures, production and
gas hub exposure for 2023. 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, drilling and
production results; gas commercialisation; development progress; operating
results; engineering estimates; environmental risks; physical risks; project
delay or advancement; approvals; 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; the effect of
future regulatory or legislative actions on Woodside or the industries in
which it operates, including potential changes to tax laws; inflation and
government efforts to reduce inflation; increases in interest rates; and
fluctuations in currency exchange rates. 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 in Woodside's filings with the U.S.
Securities and Exchange Commission. Further details of the key risks can also
be found in the prospectus issued by Woodside in connection with its admission
to trading on the London Stock Exchange, available on the Company's website at
https://www.woodside.com/investors (https://www.woodside.com/investors) . 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  (#_ftnref1) Sangomar at 82% participating interest.

 2  (#_ftnref2) Scarborough at 100% participating interest; Pluto Train 2 at
51% participating interest.

 3  (#_ftnref3) Australia, Corporate & Other includes expenditure for new
energy.

 4  (#_ftnref4) Refer to announcement "2022 production guidance recommendation
(https://www.woodside.com/docs/default-source/asx-announcements/2022/2022-production-guidance-clarification.pdf?sfvrsn=6ecf0059_3)
", 22 July 2022.

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