With nervousness over the falling price of crude oil and the subsequent dramatic falls in ASX-listed oil producers, investors may be forgiven for running for the hills.
However I'm still a buyer for a number of reasons, and falling prices only make the companies I'm looking at more attractive.
Woodside Petroleum Limited (ASX: WPL) is one of the most appealing, with the company releasing a third consecutive quarter of solid production growth to the market this morning.
Here are some of the highlights:
- Production up 7.2% on Q2 2014 and 15.1% on Q3 last year
- Sales revenue up 16.7% on Q2 2014 and 46.4% on Q3 last year
- LNG sale and purchase agreements signed with Cheniere Energy, Inc, a subsidiary of Corpus Christi Liquefaction, LLC
- Farm-in agreement signed with Beach Energy Ltd (ASX: BPT) for Lake Tanganyika basin in Tanzania
- Farm-in agreements signed with Noble Energy and Glencore for the Tilapia field off the coast of Cameroon
- Acquired a participating interest in the Gabon Coastal Basin
Including Q1 and Q2 results, Woodside has delivered a 10.1% increase in production and a 22.4% rise in overall revenue this year despite its share price having only appreciated some 2.5% in the last 52 weeks.
While the current low price of oil may impact revenues in future quarters, Woodside has also been receiving excellent prices for its LNG exports which have helped drive increased revenue.
Although exploration activity has been slow recently, Woodside's prospects at Lake Tanganyika and those in Cameroon and Gabon are excellent and I'd say its highly likely that the company can maintain its production and reserves going forwards.
With a mouth-watering 5.9% dividend and low share price I think it's pretty hard to look past Woodside Petroleum as a great value investment.
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