The Woodside Energy Group Ltd (ASX: WDS) share price is slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed flat yesterday at $28.60. In morning trade on Tuesday, shares are changing hands for 28.18 apiece, down 1.5%.
For some context, the ASX 200 is up 0.5% at this same time.
This comes as investors digest Woodside's second-quarter production update.
Here are the highlights.
Image source: Getty Images
Woodside share price in the red
ASX investors are pressuring the Woodside share price today despite the company reporting a 2% quarter on quarter increase in revenue to $3.03 billion.
22% of Woodside's total equity production over the quarter was sold at prices linked to gas hub indices. The company's full-year gas hub guidance remains unchanged in the range of 26% to 33% of produced LNG.
Quarterly production came in at 44.4 million barrel of oil equivalent (MMboe) or 488 thousand barrel of oil equivalent (Mboe) per day.
Production for the three months was down 1% from Q1 2024, which Woodside said was due to planned maintenance activities, weather impacts at North West Shelf and unplanned outages at Wheatstone and Julimar. These slowdowns were said to be partly offset by higher seasonal demand at Bass Strait and first oil at Sangomar.
Woodside reaffirmed full-year production guidance of 185 to 195 MMboe and capital expenditure of $5.0 to $5.5 billion.
On the funding front, in May, Woodside secured a $1 billion, 10-year loan from JBIC to support its Scarborough Energy Project.
What did management say?
Commenting on progress made with the company's major projects that are yet to lift the Woodside share price today, CEO Meg O'Neill said, "The first oil from our Sangomar project offshore Senegal was a significant milestone, delivering against our growth strategy."
O'Neill added:
The Scarborough Energy Project in Western Australia is now more than two-thirds complete and we remain on target for first LNG cargo in 2026.
We are also progressing our opportunities in new energy, securing all primary environmental approvals for the Hydrogen Refueller @H2Perth, while continuing offtake discussions for H2OK in the US.
We see ongoing demand for Woodside's LNG in Asian markets, as evidenced by our long-term sale and purchase agreement with CPC Corporation, Taiwan.
O'Neill also touched on Woodside's agreement to acquire Tellurian Inc (NYSE: TELL), which we reported here yesterday.
"The recent announcement of an agreement to acquire Tellurian and Driftwood LNG positions Woodside to be a global LNG powerhouse, adding scalable US LNG development exposure to our portfolio," she said.
Woodside will release its half-year results on 27 August.
With today's intraday moves factored in, the Woodside share price is down 10% year to date.
