With the Woodside share price down 21% in a year, should you buy more?

Is the ASX 200 oil and gas stock now trading for a bargain?

| More on:
Workers inspecting a gas pipeline.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Woodside Energy Group Ltd (ASX: WDS) shares have, so far, failed to rebound in 2025 following a big leg down in 2024.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock are in the green in afternoon trade today, up 0.3% at $24.57. But that's still a few cents below the closing price of $24.60 on 31 December. And it sees Woodside shares down 21.2% since this time last year.

Does that mean the ASX 200 oil and gas stock is now trading for a bargain?

Are Woodside shares a good buy now?

Longer term, I believe investors will look back on today and see Woodside shares at current levels as bargain-priced, as I believe energy prices are more likely to rise long-term than fall.

And don't forget Woodside's strong dividend payout record. Over the past year, Woodside paid $1.937 a share in fully franked dividends. At today's share price, that sees the ASX 200 energy stock trading at a trailing dividend yield of 7.9%. With potential tax benefits from those franking credits.

As for the shorter-term outlook for Woodside shares, a lot of that will depend on where oil and gas prices head in 2025.

If US President Donald Trump is successful in helping to quell the conflicts in the Middle East, which is possible, and pushes through with his pro-drilling promise to bring down energy costs, which is likely, then oil prices could well slide in 2025.

After topping US$91 per barrel last April, Brent crude oil is currently fetching US$76 per barrel.

And according to the latest oil price forecast from Citi, Brent crude will trade between US$60 and US$65 per barrel in 2025 as supply growth exceeds demand growth. That forecast assumes that growing production from non-OPEC members, particularly the US, will outweigh any additional cuts from OPEC+ and the reduced oil expected from Iran amid new US sanctions.

If Citi has this right, Woodside shares could continue to face headwinds in 2025.

Major project approvals

Another key area to monitor if you're considering buying Woodside shares is the company's major project pipeline.

In 2024, Woodside achieved a record annual production of 194 million barrels of oil equivalent, with its Sangomar project producing 75 thousand barrels of oil equivalent per day.

For production to be sustainably growing and boost Woodside shares, the company needs to get its growth projects online and keep them on schedule.

On that front, as of 31 December, Woodside's Scarborough Energy project was 78% complete, while its Trion project was 20% complete. And Woodside is investing billions of dollars to expand its LNG footprint in the US.

Here in Australia, all eyes will be on the North West Shelf in Western Australia. That's where Woodside hopes to receive the green light from the federal government later this month for its $30 billion Browse offshore LNG project by the end of the month. The project is a joint venture with backing from Mitsui, Mitsubishi, BP, and PetroChina.

Western Australia's environment minister Reece Whitby approved Browse on the state level in December. This followed six years of court delays spurred by climate activists who feared It would fuel a new wave of greenhouse gas emissions.

On the other side of the argument, the massive energy project is supported by Aussie manufacturers and others demanding a future with reliable, low-cost energy.

While the outcome is uncertain, the Federal Government's approval later this month could boost Woodside shares, which the company owns a 30.6% stake in Browse.

According to the company's website, Browse presents "Australia's largest untapped conventional gas resource," with the potential to produce 11.4 million tonnes per annum (Mtpa) of LNG/LPG.

Should you invest $1,000 in Appen Limited right now?

Before you buy Appen Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Appen Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended BP. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Share Gainers

Boss Energy shares have rocketed 90% in a month. Here's why

The massive rally in Boss Energy shares will be painful to the host of short sellers betting against the uranium…

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Female oil worker in front of a pumpjack.
Energy Shares

Should you buy Woodside shares in May?

Is this energy giant a good investment right now?

Read more »

Hand holding out coal in front of a coal mine.
Energy Shares

Down 20% this year, are Whitehaven Coal shares a buy, hold or sell according to Macquarie?

Here’s what’s in store for this Australian independent coal producer.

Read more »

Rocket powering up and symbolising a rising share price.
Energy Shares

Guess which ASX uranium stock could rocket 45%

Big returns could be on offer from this stock. Let's see what Bell Potter is saying.

Read more »

A miner stands in front of an excavator at a mine site.
Energy Shares

3 ASX 200 uranium shares soaring 10%-plus today

What has got investors excited today?

Read more »

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Woodside shares higher on 'game-changer' news

Let's see what the energy giant has announced on Tuesday.

Read more »

A Paladin Energy miner wearing a hard hat and protective gear stands in front of a large mining truck and smiles to the camera.
Energy Shares

Paladin Energy shares have surged 32% in 2 days. Macquarie says that's the tip of the iceberg

After a tough year, the future is looking brighter for Paladin Energy shares.

Read more »