Australia's largest listed-energy company, Woodside Petroleum Limited (ASX: WPL), sits snugly amongst the top 200 listed companies on the S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO). It has steadily improved its performance over the last 18 months, since firing-up its flagship Pluto LNG plant.
But are investors overlooking Woodside in favour of more high profile and media-soaked companies like Santos Limited (ASX: STO) or BHP Billiton Limited (ASX: BHP)?
Woodside's latest fourth quarter result to 31 December 2013, further built on the growth achieved since Pluto LNG started up. Production was up 5.9% on the prior quarter, to 23.2 million barrels of oil equivalent (mmobe), while revenue was up 23.2% to US$1.628 billion ($1.849 billion).
Full-year revenue for 2013 was lower than 2012 due to a higher mix of natural gas production compared to oil, but the increase in production in Q4 was enough to push full-year 2013 production to a record high, up 2.5% on 2012 to 87 mmobe.
After relatively little project activity in 2013, capital expenditure for the full year was down 61%. This is good for cash flows, but should not be mistaken for a lack of opportunities. Woodside signed on for two new exploration projects last year; one in Ireland's Porcupine Basin and another to explore two sea basins off the coast of New Zealand.
The company is also shifting its focus away from the Gulf of Mexico in the United States, where it has signed an agreement to sell its 20% stake in the Power Play field operated by U.S. energy company Anadarko.
Woodside's production guidance for 2014 is for between 86 and 93 mmobe, an increase of up to 8%, which pleased investors and sent shares in Woodside higher.
Foolish takeaway
Sometimes we miss opportunities right under our nose. Shares in Woodside are up 7% in the last 12 months, slightly lagging the S&P / ASX 200 Index. For a company with strong, stable cash flows, a healthy dividend, and long-term growth opportunities, it feels like Woodside may be being overlooked by prospective investors.
