The Woodside Energy Group Ltd (ASX: WDS) share price is pushing higher on Wednesday morning.
At the time of writing, the energy giant's shares are up over 1% to $25.13.
This follows the release of a strong quarterly update that has offset a sharp decline in oil prices overnight.
Woodside share price higher on quarterly update
According to the release, for the three months ended 30 September, Woodside delivered record quarterly production of 53.1 MMboe. This is up 20% from the second quarter of FY 2024 and was driven by the ramp-up of Sangomar and increased uptime across operated assets. This includes 99.9% LNG reliability at Pluto and increased seasonal domestic gas demand.
Speaking of the Sangomar ramp up, Woodside revealed that it achieved nameplate capacity at Sangomar with gross production rates of 100,000 barrels per day.
In light of this strong production, Woodside has narrowed its full year production guidance to 189 MMboe to 195 MMboe. This compares to its previous guidance range of 185 MMboe to 195 MMboe.
Also catching the eye during the quarter was Woodside's revenue generation. It reported quarterly revenue of US$3,679 million, which is up 21% from the second quarter. Management notes that this was primarily due to Sangomar cargo sales and higher average LNG prices.
How does this compare to expectations?
The consensus estimate was for production of 50.1 MMboe for the third quarter of FY 2024. As you can see above, Woodside delivered production that was comfortably ahead of expectations.
In addition, the market was forecasting quarterly revenue of US$3,281 million. Whereas Woodside's revenue was 12.1% ahead at US$3,679 million.
These production and revenue beats are helping the Woodside share price avoid being dragged lower following last night's oil price weakness.
Management commentary
Woodside's CEO, Meg O'Neill, was pleased with the company's performance. She said:
Our production for the third quarter was a record 53.1 million barrels of oil equivalent. The strong operational performance was underpinned by the accelerated ramp-up of Sangomar and exceptional performance at Pluto LNG and NWS, which recorded 99.9% and 99.2% reliability respectively.
Our 39% exposure to LNG gas hub indices allowed us to take advantage of increased LNG spot prices in the market over the period, demonstrating the importance of maintaining a balanced and flexible portfolio. At Sangomar the 24-well drilling program has been completed and the project has achieved nameplate capacity of 100,000 barrels per day. Commissioning activities continue to progress as planned and startup of gas and water injection systems is underway.
So Long, London
Rio Tinto is abandoning the ship in London and saying goodbye to its listing on the LSE. It explains:
Woodside shares represented by depositary interests account for approximately 1% of Woodside's issued share capital. Trading volumes of Woodside shares on the LSE are low and delisting from the LSE will reduce Woodside's administration costs.
The last day of trading for the Woodside share price on the LSE is expected to be 19 November 2024.
