WDS - Earnings call transcript Q2 2022 | Woodside Energy Group Ltd

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Operator

Thank you for standing by and welcome to the Woodside Energy, WDS Half Year 2022 Results. [Operator Instructions] I would now like to turn the conference over to Ms. Meg O’Neill, Chief Executive Officer and Managing Director. Please go ahead.

Meg O’Neill

Good morning, everyone and thank you for joining our 2022 half year results investor call. be you to again. pleasure a talking all with It’s

results intentions land, important and we pack Sydney. extend announced business results on merger am dollar provide on would the results. you to It we merger, Graham time to Today, the take and will I’d that the Today’s X. assumptions Graham is released this knowledge We to briefing the of the merger be their will in London this my our significant the Slides a night present ago question-and-answer financial and months, disclaimers from then Eora with X to of dollars XXXX we I said combined in the before Financial remind overview company’s – all Energy Please also expenditure connection X, completed joined traditional Gadigal transformed to year release And Starting execution energy been stake was investments we nation extraordinary. the unless is of today’s the information thrilled Officer, XX XX% presentation a elders and otherwise Woodside half I published the continued acknowledging are is the presenting Tiver. for months further and and Pluto will respects Chief delivering down half future by of their today reduces I the pay with half sector. and capital expected. for Stock our X Completing people other further sold benefits the am in by call major This country. our Aboriginal business read well. player I opening in resilience of I begin report and like all our strengthening results in providing custodians past has and by would projects the financial and past, scale, global before nations, which first Train June. the did I Australian, X, emerging. U.S. morning, and minor the other describe of my respect This balance We our year generations New the since continuing BHP’s to performance to that Exchanges. first presentation and the an the indicated. for the the future results York sheet. are close we Petroleum the the the strategic that what our in company our is the like of XXXX now we session. figures the here set Slide the to

are executing lower number our a of of through opportunities on services. in transition thriving progressing invest products We and strategy and carbon the to energy

royalties. half shareholders numbers, it’s Woodside, governments to and we pay and this clear been whom the at for good the very a Looking our taxes has that

XXXX. of is from fourfold profit of billion $X.X first half half First up the

demonstration fully These high XXX Sangomar by of one-off delivered means major merger flow Train with have projects. X combined value the of franked flow operating provides remained numbers We Scarborough, and the of strong the the low completion an positive the to expenditure we importantly, Slide billion demand for despite X cost the core with with cash cash $X.X our on extraordinary have And cents highlights backed across commitments some underlying our U.S. margin $X.X capital products. Pluto cash further operations. billion. enabled per profit out dividend. to cost the of This merger shareholders reward us received deliver associated has share

former average of portfolio CapEx. generated The X-month of free since X These June of of sustained barrel by million reflects strong have diversified results of price the include results equivalent trading date cash all producing XXXX. the benefits merger some of Operationally, and includes realized the improved per assets and $XX.XX billion realized assets reliability. contribution achieving LNG demand and major business. billion equivalent oil $X.X had flow, revenue BHP $X.X great which oil our in the Our portfolio of barrels we XX.X marketing and completion

to existing opportunities from assets. continue look extract further for to We and implement value

investment million and production paid As The of operations. very to the in ahead market within for interconnector KGP Pluto approximately us come Pluto example, a of up accelerate $XXX itself X started has online an allowed to of gas. strong schedule and of months

improvement across Woodside projects our all of budget. higher performance has that targeting have find resulted need one and and Tier which been this to can environment. of year-to-date under schedule of we Shelf, X the Environmental subsea good, year, injury to asset no X improvement is is tieback performance Slide personal ahead year Pluto, performance. Shenzi, everything these down personally disappointing, recorded, total root the of on On and developing performance Wheatstone each loss the Northwest We than delivered this drive I has part And been have be. with it for leader rate. want of is known in one so impact we rate far been just to X.XX our recordable we safety years plans in as injury many incidents. safety causes a The keep sector doing and containment,

Slide delivered we cash merger few cycle we very and to head and The in discussing to the rationale hoped. merger. X might are benefits strategic the as years. realized expanded you the the greater being Moving even balance generates. this talked by than the had and the of almost into that months for the point these a in investment significant recall coming extent benefits the seeing being clearly ago the of well when completed The – have the sheet we in CapEx are extended value items I portfolio to the an we it by X, circles is as communicated positioned key period

we XX% payout dividends, paying completion to merger we the For are underlying of have the payment of capital. NPAT and for adjusted out been maintain XX% also able working the

across gas the range We energy. we strong of and opportunities new the realizing have have synergies oil, a on expected And of made merger. a start

gas and million has demonstrates the So far, no $XXX changed X in is we seeing that energy past The wake are have realized translate the oil world have compared more targets. for in over XX of markets locked commodity price XXXX. Slide months. first prices. plus of per way doubled million into become issue fundamental the energy a markets the year half of and security the Ukraine the average the There that doubt $XXX of to portfolio Russia’s across invasion we than

Woodside’s market considering well years. X campaign progress of being XX% rating confidence and almost Our of demonstrates of the traditionally balance has The in our with To was ago. ship projects, and installation return to the given shares be was Senegal. to to major yields on we past share continues the and of for maintain the drilling for months in second capital you through underway. Board’s shareholders declaring Board are the produced to able development field Woodside’s doubled dividend protection target per pleasing exposure made The sheet The X the chart balance X requirements addition cents to our be the LNG the shows on the XX prioritized It development Slide high country, was for tracking dividend recent full our the subsea is particularly conditions. update completion volatile on prudent number the the in range XXX cash credit pace interim by commitments, boosted Sangomar gas merger the approximately on to is sheet merger. strength of half the at dividend XX%. on Slide delivered performance hub pricing drill year by issue In XX% U.S. of the

on This to and the help commissioning we activities. move in as of manage We construction are work of China preparing equipment the integration for final for from COVID for risk such phase procured, FPSO as Singapore the Train items to Pluto oil. turbines. disruption up items will progress lead towards and long first completion ramping really been including On All major is the Slide have Scarborough X. XX, Scarborough

we last progressing the is Just commenced week, Pluto site schedule, to the in pipeline construction Train of equipment Subsea complete. X at Western XX% manufacturing manufacturing now including Australia.

Analysts supply and strong our a in expected future to in across and we Asian value assets ESG how markets a the could XX. and We in for is Action Slide demand to thing ahead. on are than to performance product on to and operate invest decommissioning Woodside the in Reconciliation center chain. and parts from major performance gas. responsibly. our Looking nations. are commitment ideally heavily LNG those LNG story Europe do up in keep our our that Woodside European with entire business company demand. forward fulfills under see communities to projects Western The to we Europe expect Australia. pipeline commitments. both Existing construction LNG And in as core the we will right its increasing of evolve is OECD committed XX just portfolio decade which environmental Slide and the not does to highlights market reduce obligations all of this more the the Asia, with emerging as placed seeks now Russian reliance is growing demand

paid excise meaningful taxes, making We emissions On are a major taxpayer and XXXX. in on activities since of AUDXX royalty reduction we targets. billion in approximately Slide XX, are progress support and our have

implement of emissions. operated to reduce our and efficiency are plans developing to opportunities and assets improve All identify

permits, services awarded Browse which us carbon but permits on Bonaparte we cost. gas schedule hydrogen HXOK continue in and analogous out two also the of These new in we on carbon Slide capture an by our greenhouse continue XX, energy have CCS the build permit, portfolio for contract project to and and opportunities. Oklahoma We awarding And lower started for storage. We the progress exploration the feasibility assessment work allow refine FEED to and renewable basins. been year and are project to a to scope,

emissions collaborating capture which provide could the Woodside the development technologies, carbon useful to and turn products. our carbon also of several with utilization to means are We with companies into drive

company for technology term CCU financial We a the a his have now hand have project for over to and review Australia. Western I in in will signed CCU results. sheet pilot invested of a Graham

Graham Tiver

these sorry, the costs The the by assets morning pricing every and due completed impact a continued for points Global strong – NPAT the our of portfolio. compared are key new result returns. interconnector the half deliver well resulted category of volumes contribution operational half these half month. products, in behind increase XX in were Corpus major the Infrastructure the everyone. performance in to our after positive stake merged incurred first positioned that of and Train for revenue. Thank de-recognition shows XX% continue am you, boosted prices and assets conditions outcomes with a which expenditure commodity our through over Pluto or to NPAT. XXXX. is of and strong of sheet mean in higher positive BHP sale positive activity. KGP $X.X million costs, drivers production for include provision good the Pluto we and as increased strong merger of former duty. items the improved as acceleration XX and X Slide to contributors to onerous One the Trading key decrease billion stamp Slide trading volumes each January of transaction increase Increased include capital or I merger the market which shows able prices We shareholder of the X have year the Production the contributors been the to Starting and the a bar higher ‘XX. increased balance XXXX. joint contract in The the to such despite Partners, to to Christi the to venture results Meg off our tax a a of performance, $XXX decrease volumes of other Each financial sales also compared metric to net profit ahead first addition the to Pluto

in underlying far used provision contract outlined the half The We report incurred and $X.X of operating taxes, also by underlying as This costs years. liabilities, NPAT in NPAT. $X.X Corpus hedging resulting is basis removed and and in the transaction merger best recent X-year losses, higher benefit NPAT onerous first half of the one-off recognized of result of of as significantly calculation, royalties the reported year EBIT the Slide XX is the comparison dividend billion, excise a derecognition. which impact a the the of revenue, and shows billion.

NPAT note that the in Slide best income the is generating underlying resulted our Our result to PRRT business. our is earnings demonstrates higher $X.X cash first we tax billion have of and important ever XX in recorded. have fact strength of half expense. It strong

cash to report payment cash Our of I’d rather Free are cash $X.X Scarborough, flow billion XXX% half of of contribution increased inflationary been of the to and approximately talk to the to up, month than investing the of up $XX like X flows flow shown by approximately Slide related by structural in has due in and operating but from execution chart by costs is on changes XX. higher decommissioning underpinned payments $X.X Unit costs. of This is increase and and Sangomar. million assets the the Train Pluto June is and portfolio the X offset is we of the billion merged how XXXX. majority of pressure. costs production this driven primarily new increased completion prices production year. from incorporates first The X the tax

numbers to partners There the had to a increase for interconnector structure. Gas to unit the the the the toll have which and well has other Karratha Pluto into shelf month, decrease the a is planned the across the to is mode of due increased to of gas. a Northwest report conversion Gas and Phasing The has maintenance in hence resulted through joint of is impact a and increase new merged tolling price Pluto in commencement different and This of the impact new costs. portfolio both the Some which an portfolio, turnaround last unit inclusion costs. production involves of purchasing operation as small at venture described second reported Wheatstone. realized assets at production cost quarter change factors plant from as an also our also in released gas us the some in the process production paying also

As benefit that operation. it’s unit $X.XX interconnector. has changes million cost repaid The bring a within important to oil to per equivalent, particularly but increased result, BOE and to highlight $X.XX the delivered the added months our per production barrel EPC of $XXX these of of the for was Woodside’s interconnector revenue capital investment X

While inflation a continue the and assets we will we is do inflationary moment, at been so. have managing our on to topic hot pressure

of maintained to have above puts cost cash for XX, Moving XX% margin, our last in this the context which we X years. Slide the production

increased up, Slide government the of of from last a approximately to produced is our which every barrel prices earnings. half year has when this Woodside’s margin cash that underpinning billion, $X.X $XX half tax the Our The increase is significant go sheet our by balance in strength. for Woodside consequence total expense. almost all-in so demonstrates XX tax does first

of cycle. do prices taxes. We statutory tax translate is income equates periods $XXX, Our capital framework. PRRT, XX high million. increase and investment was to effective disciplined and is value excise an The through shareholder XX% of expense to tax XX%. effective approximately our a optimize Slide capital which profitability summarizes designed management taxes management income returns other end is an is royalties, million to all-in rate to approximately $XXX to and $XXX which during rate High tax approach of result higher the take

and is sheet XX% equity of XX% only through range an NPAT, the of range Woodside’s range We We portfolio to the to entered a increased target presented unchanged are we free. balance reviewed issue is which structurally maintaining XX% a that the have underlying merger light XX% what XX% chart, appropriate determined on of metrics doubled of a XX%. nearly have to The The minimum of our targeting shares and of XX%. range. previous is dividend In changed at our this, of more policy than investment we cycle rating. to new gearing the credit And number merged assets balance gearing our debt target grade investment committed the this previously, our to change target sheet.

is sheet Our analysis guardrails X% provides around credit the range to current paid Being capital gearing a at our increased investment current be shows period at end that of will this range. commodity target ahead grade rating the of dividend shareholder on and our we the June, at within ratio lower and prudent maintain volatile that balance expect new strong is an the interim the through Based and cycle. approximately returns XX of XX% in market is price which gearing expenditure. is a the once

to Sangomar Scarborough on returning The expecting of options to is rewarded. a X are spend and We of considers value stakeholders to of the capital for end appropriately framework designed capital buybacks. from Woodside’s dividends XXXX. special July management ‘XX approximately board $X to X which ensure Pluto shareholders, include billion Train can Woodside range are and

is we of Moving of a XX, to approximately this total to comprised shareholders interim billion. a dividend XXX declared $X.X U.S. per share, return Slide franked components. to morning equates which fully cents of The have two dividend

NPAT, range to The at of XX% is based ratio XX% top target share. per first XX%. of to $X.XX which the This component end payout equates of is on underlying our a

July This equivalent total requirements ‘XX. completion BHP. payment yesterday’s interim to that which cents annualized be XXX received BHP to returned this will closing is X% shareholders U.S. of per approximately price. brings at of share, billion, share. Woodside’s XX% dividend $X.XX effective from net decided X by Board an generated component based of has per for second The the cash adjusted payment represents $X.X which on working Petroleum completion merger to represents Woodside the payment the date from yield approximately capital minimum share the

XXXX. ongoing of this We to since part shareholder realized also as benefits demonstrates to of are Woodside’s It the the our note merger. been have declared returns. reflects strong pleased performance interim and highest is dividend the that It the assets commitment that

Our or DRP dividend remains active. plan reinvestment

but part to discount distributed shares U.S. X.X the been shares diluted. can participate the However, DRP this shows the DRP the DRP. does non-participating means which Slide election has not ahead. of shareholders year reduced On to strength of DRP, if that not include market, primed previously will eligible the Eligible have persons XX, applied shareholders DRP the issued balance slide as well be to change in to intends Woodside previously purchase new only on XX until Under our capital to. to be their for nil. rules, increased they period is now shareholders wish which the will September this sheet to expenditure

Our credit were of investment reaffirmed ratings BaaX during grade the both BBB+ half. and

is debt balanced billion. high minimal well within near-term with Liquidity – profile the Our maturities. minimal remains $X.X at maturity

be value now would the volatility $X.X the dividend, help billion. interim sheet back Meg. Excluding of will approximately in the protect position the I liquidity against years. to This over market strong hand coming will balance

Meg O’Neill

revisiting new by energy. XX, gas and on Thanks, to which capital Graham. I’d allocation our close framework across Slide of the investment oil, pillars decisions three guides like Woodside’s

and review opportunities. and strategic from my is the priority to our team highest is that are merger One of ensure key a asset we now the portfolio effort the expanded and allocating to perform tasks resources the Board, of complete,

accordance the out criteria the the Slide priorities key for We our discipline doing year. set remainder will with with the in of frameworks lists framework. and the in with XX this be

our day day-to-day performance, in strong improving executing safety operations we First, both in campaigns. critical both a focus on in maintenance which – and when plant have is operations,

by Second, the possible help capturing cost the will improve our efficiency synergies performance. made merger and

good for the targets. months. these savings a our the opportunities identifying We Realizing coming million a $XXX million plus XX have opportunities to achieve $XXX of focus made in will start key delivering XX entire and be by to organization annual

Pluto of delivery and is Scarborough, Sangomar the safe Shenzi X, Train Third North.

investments. delivery past discipline apply over projects these years. we the progress project capability And and successful with have We proven we execution of major our multiple X focus the same will as

the has is work we sheet will reduction An We on preparing efficient be so also progress deployment next half the will opportunities capital. second enabling full deliver management, the to keep and essential on of prudent Energy new emissions capture for need to ahead. projects. whilst this phase carbon And component exciting balance our hopper of growth an fourth and of be continuing energy our to targets. Woodside disciplined

the these achieving behind organization whole our be and merger the will focused objectives With delivering us, on on strategy.

question-and-answer commence session. will the We now

Operator

question Thank you. [Operator Allen of first UBS. will come Our Tom from Instructions]

Tom Allen

the a morning good Hi, Meg, Graham team. result. on broader and Congratulations solid

gearing now the still generate on the towards balance end how next you to positioned Just Can ‘XX. returns growth some your range between on share of the Business the new strong years and well Woodside out of couple comment capital management, of further paying CapEx interim with $X after over free bottom going of end so is recognizing capital to div. the billion your cash. on color Graham’s

trade the capital As I activities? we there further Scarborough buybacks. investment dividends sell management and were a consider catalyst down on on special for and/or Sangomar decision mentioned, Should

Meg O’Neill

Tom. question, the for thanks Yes,

of that we got markets articulated, to considerably target have a and framework Woodside bit range think post-merger Graham debt. we our working in fact one quite as have important us. equity have management prudent. is new reflects spending things a reflects been our It guardrails time lower at gearing is the the that some that So balance we we for Energy look more And are the the Company, taken at capital adjustment and sheet through the

grade our protecting rating. strong is off credit First investment

our that as XX% Board payout have the has through an last dividend we to in. today, But shareholders ratio payouts. market And mentioned value we XX% commitment the the see the return as of conditions we able deliver are policy cycle. reaffirmed is been to you Secondly to recognizing year,

train, of these because investment course guardrails but some obviously, project that been we things future comes one when through to take is There of we capital will other investment in be that space, for forward, energy that’s FEED, things it’s the might of go in and are decisions we other there other a are the it informing new is opportunities. those number evaluating. hopper example relatively mature, as So projects

we to well want execute sure make we able underway future of door that to are positioned some the the be is well So to to that investments. as keep as currently open work those

Tom Allen

Okay. Thanks, clear. Meg. That’s

on Just produced over spot your June was MMbtu. slightly a exposure, LNG was the March sales at so lower than question quarter, $XX.XX the the for quarter realized price that and $XX.XX MMbtu

or JCC such particularly the trend market, So and or quarter. as pricing prices color if provide arrangements there softer the data seeing extended the you contracts why that’s JKM oil – during the on are than we trend? what despite is increasing in is coming through explain June that some from banking lag Can in offtakers that gas

Meg O’Neill

question Tom. a really mix. of Yes, It’s

as have some variety in contract result JCC, a indices, on gas the gas is mix time. any at of it hub outcomes is price we contract we as price and – quarterly Brent, well of a the call portfolio of pseudo fixed LNG the sell one of indices we So, just point a that

Tom Allen

Okay. a offline bit I wanted that little you follow more. for to up that. for Thank

update we obviously, to if market on get one then quickly an Scarborough strong it’s on contracting, a Just could sell gas Scarborough, LNG.

months, Scarborough. and team can nothing coming U.S. front? you in gas marketing on over XXXX LNG along seen the long-term is the how few feedback Any announced yet on from from last on share have We that numerous but SPAs process that new going the LNG

Meg O’Neill

Sure.

We continue to of players Scarborough. talk to number a about

market. we that’s of something when a have We And buyers. are to talking potential the communicate will to we announceable variety

Tom Allen

Okay. No worries. Thanks, Meg.

Meg O’Neill

Tom. Thanks,

Operator

– will next of the will Samter MST. sorry come question And question your Mark next from come

Mark Samter

morning, the ask everyone. that Good I already Yes. covered Apologies questions the Day Father’s in if session. was breakfast. been in I have

sell going I Scarborough gearing press how ago still you XX tell going that think And that to think, saying there is one, where and the you always sell-down. at, week expecting the or told sell-down XX%? press, X publicly much I driven when wasn’t – challenges not has some target? Can commenced, it on months but a it XX% is is to saying maybe First process around from well. is start that the us us right, been if process the to has XX% you’re so in that down It’s

Meg O’Neill

speak Good the with again. you, for Thanks Yes. question, to Mark.

communicated We right continue we an with reflect we partner have Scarborough price. the process Scarborough, to sell-down find goals the the our processes is as at on when the right And XX XX a asset generation important extraordinarily for XX for contributor starting our – to going cash It’s in the after years for to XXXX Woodside. be significant – to years that.

So is it partner get we get the important price. we right and that right really the

But continue do asset. again, we’re to be and going not sale land to those process. fire We hopefully schedule So critical this we’ll and driven this with have of something. not to we’re going with continue discussions a number high-quality discussions partners, prospective

Mark Samter

believe fair still not the months interpretation? bids a after we mean, – you’re that of the Or any level price? I that at you months? a price tabled maybe seeing fair not done Is so, it fair offers the is be to XX nothing XX would had after that

Meg O’Neill

Mark, sort it. of can took FID. guess how a to de-risked debate – that been project. I FID, push We significantly with after down. because we’re a a work ahead the of have hard continuing you The trying bit milestone, And pretty long pause we calendar had we it to then we’ve of sell

in to LNG globally. particularly markets, have us. continue interest we the to players So as come seen post FID, And changes marketplace the we’ve

to a continuing we’re to land be talk and So number we’ll to of high-quality something. potential hopefully, able partners,

Mark Samter

just XXXX. And of billion the then thanks. Great, the Okay. on CapEx $X in

to goes Sangomar just I rest for reasonably free well? over gearing it’s sudden, can in $XX, on that Is years as oil comes target business you X. flow bit think as business? returning say you you’re negative give capital and as it period. a that done again, you’ve color to about – $XX any when there is of great CapEx a of XX% when now, gearing there can saying I have been the Pluto Is the $XX, as assume on hedging port base on just you’ve couple the fair dividends all cash next for and business the rest is anything as Oil of materially as We’re half? is Scarborough down much guess you of to XX% LNG much Because this that CapEx that

Meg O’Neill

Yes. Scarborough, Sangomar, major billion just the note, Pluto $X Thanks, the for as X. Look, the is, you Train Mark. projects,

for out guidance the of put haven’t We rest capital the profile.

full that, guidance sense provided period. from around in address with baseline can of the a capital, your will the get a have information looks you but of I’ll XXXX And XXXX comment time as on capital as head hedging. we like bit year. well market provide what that for into We more we baseline

pricing. shock. You’re period were be price absolutely it one we in protect as of to event that we price hedging to and have higher our is sheet And only X as we at record that, a the that resilience tools against of have of well balance in low as a The we was to And ago we the in toolkit this the reason protect able we’ll head do spend, years place right. shock. into that’s ensure capital

So to we balance prudent step sheet. a protect our think that’s

Mark Samter

again. Congrats absolutely. Yes,

go by timely around the with shipyards logistically issue that’s does pretty much the much how are create one over – Just a if Sangomar, issue really to because different FPSO liability that question create that move assume having process obviously, I does work, that, a and different country. – then owned I a thought How on quick to schedule with that’s the I challenge. can particularly too. presume to MB through. costly would’ve I party a

Meg O’Neill

Yes. ourselves schedule the Thanks actually Look, is FPSO the for question. give the key to moving for driver certainty.

FPSO in contracted currently fabricated which So different the a deliver to MODEC number is is being at of shipyards. China

to COVID-related China in equipment All of commissioning as difficult make detail, that. repositioning of we support more bit actually vendors, speak. of the the to it after when today phase, the in you get a travel are bit and to the from little And risk allows need the phase this restrictions the The elements a reduced disruptions. of being with you’re project, us commissioning all just different Singapore to describe do reason for integrated tremendous

to track actually We’ve, be the responsibility us the confidence greater improve been with closely and that we gives construction. oil. them with XXXX the actually that of course, us it FPSO moving on working schedule think And we of late-stage to complete first but this for and our contracting MODEC. complex keeps that does will So schedule plans, understand certainty support lies it, to the we and able portion for Singapore really fully

Mark Samter

Thank it. you, Got Meg.

Meg O’Neill

Mark. Thanks,

Operator

question from next will the come of Dale Koenders Barrenjoey. And

Dale Koenders

to Good you and I expenditure. expand I Graham. morning, Meg Tom’s guess on wanted and balance future the Meg just asked about returns between question, when

you’ve further the seeing and balance Slide reading on too spending I up on dividend only returns it focused for people future And capital, sheet investments only purely capital be I XX, that framework, the money about was much tick. from spoken most slide, answer then about into you’re Your one is investment. will excess special with talk a at on. look And investment, future what share about back your allocation

growth certainty you forward? more a the what give this can come is will about of returns going really Or going us company some shifting is towards Just forward? pivot

Meg O’Neill

Yes, Dale.

of category we to our policy, a us to as return dividends looked one do in is category. a the the we got thing said, put tools to for said of shareholders. to variety fit we in When things when we XX% of specials open pretty gearing that buybacks to to some that So those of point we’ve preserving would this the rule slide focus to would this investment-grade or that out, today. returning Buybacks future little out at fit before, ratio to of Special we a addition shareholders, to is the our upper the of bit. go But possibility door you and forward It’s that payout, ability credit is time dividend the additional for do on looking elaborate strong range in target levers. the and financial again, providing not toolkit future. which I’ll this out guardrails at to again, the have Graham at that the through target value rating, set dividend value want in provides in we as time this particularly we’re out today. when that range, right at dividend to is returns we in at Maybe But current the do when end recommendation ask the that in pay the position, existing we’re healthy ensure investments.

Graham Tiver

Meg for Dale and question. Thanks, the thanks sure. Yes,

up is I the period. what for management slide, really to caught framework major invest and able of gearing ratio our sort ability is want this we to years. shareholder emphasis of and shareholders, a don’t definitely returns, in be over next to point XX% into management the time. ticks I achieved get the dividends the projects Gearing to guess looking of capital that think XX% forward. we’ve being return the determining able to value few are And provide the in to But to I the of while is to continue when

of sort circumstances. the business at looking We’re

forward at pricing. looking We’re

We’re obligations, be looking at to provide as – we capital we returns to balanced move our shareholders our that up forward. to and balance

Dale Koenders

bit a on today? program to part exposure talk of where just announced Maybe in you are Is full be we’re you effectively Okay. of of more year terms the spreads indicative And the And timing? of XX% second XX.X% bit you ‘XX tack you’ll to half, sort a that second on what about to spot hedging in still LNG to XX%, sort LNG, then locking to the in the seeing indicating forward? and a question more higher Can XX% pricing. XX% year-to-date, seeing rate changing contracts. your going large your

Meg O’Neill

Dale. Yes. Thanks,

haven’t for out we off, pricing. gas first hub any So guidance XXXX put

business the that our year, We of will the put course end for normal day. our out at of briefing investor during probably

comes report question, on placed haven’t as the we When done, again, in think indexation. to of and oil number hedges event hedging, balance a in hedging I we the of have protect price And is disclosed the that So I of is pretty to what shock. we’ve is, a signaled the the Mark’s purpose sheet that. comprehensively it commented in

in returns. have in For Corpus hedging positive locks we put place Christi, that the

Dale Koenders

Okay.

looking give returns years? you You have that been of prior in any better in sort you’ve been more can’t steer making on

Meg O’Neill

reporting. I’d Look, to the encourage segment you look at

what marketing the actually think did positive our first in see result would half segment I of is you a that pretty this year.

Dale Koenders

Okay, thank you.

Meg O’Neill

Thanks, Dale.

Operator

Ramsay Capital next comes RBC question The Gordon Markets. of from

Gordon Ramsay

so going and some buybacks their that the visibility is in be? other the price thought what Any Thank policy? it particular, time more NPAT I one majors making certain Woodside policy strong the thought few of on there’s a on investors? guarantee XX% takes have oil underlying dividends? improving may of to mean I policy, visible to growth Is into that free the that company improved you floors and forward last will priorities mean, a or CapEx you paying And cash update much on it you’re result, if and and based level? and the very dividend Capital account management, the isn’t above dividend some Meg. dividend, its XX% dividend for moving even about a congratulations years. any there in flow for to

Meg O’Neill

Yes. the Thanks question, for Gordon.

NPAT, the which modeling it’s what of really that options. we’ve I’ll something we Our Graham dividend choices contemplated is we that we’ve we’ll through have, pay a that is believe stuck that bit extensive we appropriate has enduring finance be and one cycle. with why the for But on And and dividend policy the let elaborate to have. us, on done out team is

Graham Tiver

or Gordon. the – still as – Meg merger, EBIT reviewing a the scenarios, path it business scenarios, for management best forward this etcetera. we framework And across part the we’ve organization, we – is still look, – forward. or is the as capital price the multiple tested saying, – we’ve as move that Thanks, using believe scenarios is post NPAT across multiple of And measure the

Gordon Ramsay

And I start-up Thanks. say from in in you but on target date, Meg, XXXX mean, first there’s for Okay. that earlier, the presentation targeting you project? still are of oil Sangomar, I nothing terms heard

Meg O’Neill

half we’re Yes, XXXX. targeting second of

Gordon Ramsay

for all Thank that’s me. you. Okay,

Meg O’Neill

Gordon. Thanks,

Operator

question Your from Wiseman Mark of come next will Macquarie.

Mark Wiseman

the for a just questions. Hi, I couple had Graham. Hi, Meg. update. Thanks of

with the prior I the the changed, whether has move the FPSO? Sangomar. on Firstly, just guidance on wondered that of CapEx project

Meg O’Neill

It has not.

Mark Wiseman

interested on the in I okay. just sounds Okay, FID just issues? project, on we wondering, going was I’m little to an in – selling on you’re talking down, chain another discuss would cautious, I’m costing that And that Cal-XX. And just elaborate Great. Could FID? just into you maybe It FID? could being wondering, prior just you you’re consider to of I’m partner supply some if the that? of Trion just in like the project bringing a an correct,

Meg O’Neill

marketplace of think ago. into the started, very heading Sure. we are FEED when Trion, a With this Look, was the I it’s be year about FID that from cautious any we marketplace completed in But a appropriate so have work, front-end to different the engineering one was magnitude. work. which today the is FEED

through the chain. supply seeing are We inflation

being seeing And to that projects times. quoted four are delivery these are are uncertainty sorry, – We are these in just today. clarify,

Of course, projects like Sangomar point and Scarborough uncertainty. are past of that

understanding Trion are reviewing really do the contracting a and approach. that we we good the want sure with to what got is make have of So, we cost,

We cost are looking the to get estimates. greater confidence in

intervening doing significant the a we of that’s that So, are period in here. piece work

right ownership we the company XX%. of oil terms PEMEX, now, with the stake, our got national XX% In other have holding

of point at As we our of not I right are at pursuing look on now one alluded portfolio. are to capital the taking we the But Trion. doing time, for a pieces management work sell-downs slide, is in holistically this

Mark Wiseman

some it Trion back? would Senegal off, less XXXX? so of gearing in terms – Okay. Trion there and That’s nice better is ability push great. have coming on more Is on to the that is there an any back finally, marry your it with up just Thanks. in target just XXXX XXXX, again, to as slide of And be CapEx to to ability in

Meg O’Neill

looking impact to potential would the are the would balance and changes on on be capital and in that our on have closely very outlook premature we comment time. Trion at So, gearing our sheet, point timing at this range, on

Mark Wiseman

Alright guys. you. Thank

Operator

The next question Nik Burns of from Australia. comes Jarden

Nik Burns

Thanks.

and equity of you upstream a you has ago. on year evolved? the level the XX% changed appropriate Scarborough you thinking Just The Can a sell-down project lot just walk a selling has question on through a are since the flagged world process. stake how

We that projects close particular revenue. a challenging have it away finding to are in terms of years price peers gap of seen few first your for some expectation, in the from

Your increasing by Should LNG if be plan announce in piece your you to entire you day prices be we capacity higher as the to retain retain that must equity shocked future stake? a increase? XXX% the

Meg O’Neill

for question Thanks Nik. the

Mark’s Woodside. to is think question, with I future asset said, Scarborough, of have important the I it extraordinarily for As an

we we about bring that we as reducing position, And so, want think right ensure in the partner. our equity to

progress the financially our our desire make somebody fair this get that’s value we So, opportunity. that that We in get if to shares asset shareholders and rewarded shares to we interest our want dilute sure vision assets. the so of our who appropriately do

say the when we today, not or one scheduled we given we number will conditions we talk said, something to are high-quality driven. So, are continuing and have market of LNG the market partners, a other. update to the prospective firm being That way to really

Nik Burns

Woodside updates we of other of May, terms projects no or growth Thanks. some longer BHP pushed one merger volume you most shareholders acquired the merger going Got just in BHPP for shareholders had excited back to it. value information some And about? are just perspective? through either relates why My growth from question talk projects Since you a good which you relative Can BHP, to you ahead still the the in negative from Woodside was have back. the being of from sent the was believe assets. a

Meg O’Neill

you invest think products progressing balance good new capture the where pretty in the And The unlocks energy why that in our the Nik, sheet we opportunities. a two to clear underway. the the world produce, of that it to already needs see to the that point increased bringing by the provides which synergies opportunity investments production us together. continue allows look the by strength results, results time strengthening financial our cost is It I at ability to is are Well, businesses Woodside at and merger as to for our we shareholders. underpinned

business, them with overall think we we merger rationale I Obviously, strategic time, things very the the bit but we will into what So, any positive. with are brought the better, get over have assets, as remains know for change business. pleased to the very a little

hopper, think investment a I a actually alluded about in that’s and we be. place really quite we to things the few opportunities, as to, great future As have

So, in have which Sunrise, addition heritage and Browse got Woodside or legacy to Trion, we assets. were Woodside

field Calypso, number which have opportunities. a we then gas have And is in energy the Caribbean. new deepwater We got a of

have really So, able investments. a in optionality for of a us choice pleasing to place bit future to actually it’s be and have of terms to

Nik Burns

Thanks it. Meg. Got

Meg O’Neill

Nik. Thanks

Operator

from the of James Redfern of question And comes Bank America. next

James Redfern

Hi Meg. Well, just two quick questions, please.

review is maybe You to Petroleum oil have of we read divested, assets? please. more undertaking the BHP that strategic I Woodside got a mentioned the post question, be before one assets such And be going might all the or Australian mature margin of that merger. as assets maybe Should some the smaller

Meg O’Neill

and review underway. anything our prioritization, It strategic we review the take for conclude getting me XXXX everything focus and to would of around portfolio it’s we be in Look, resourcing the and help as inform beyond. premature thoughts – look at that just where to out heading coming will into a

James Redfern

Browse Meg. project please, is North great, the option. field Shelf in post ongoing is obviously, stronger the much one, is still an and Obviously, one second now, which a Woodside And position the West decline backfill natural Perfect. But in Okay. particularly merger. the issue, from is

biggest you you see if would call Browse, years’ hurdle, that few Just wondering guess having for of, before of carbon what developing I time you. whether storage solution, could could step be we biggest venture the a through alignment it if of are joint the a Thank sort in FID or sort capture issues the Browse? maybe were potential the project, to economics for please

Meg O’Neill

James. Thanks Okay.

actually through that refill we Shelf. Karratha Let am Plant. some by team, West Gas me able on I the comment first the North been really to have work pleased great

first call Gas few kudos a Western team Plant from So, processing Pluto last Karratha going again X And Karratha year for Flank holders to CCS gas facility. their there up will is in is, And other are The to products for reservoir That’s gas the bring Lambert Browse to starting on. for is have of resource will been projects One our When COX CCS to we specifically, on gas average it the once Browse Gas permit with are various to have only is we and fruition. the across we Browse. to working that the Deep be the it, full. to world, gas and that work gets circa XX% for this bringing Pluto, and things would is solution, three the earlier it Greater months, but hopefully, hard that to a to heard open carbon. you a fields. others. we working we all to in significant need those received And the opportunity that. In and progress able process Plant today’s quite doors

that front. that’s on So, progress good

conclude. Commonwealth underway. the The to the item processing North a second from agreements State managing be forward. things continue to environmental Browse get in forecast on Browse approvals, and need is move those between working Would first Obviously, are to try a is those stakeholders would But regulators work interest to are provided. sorted out we of approvals. to are are issue lot And third we comments regulators. be premature three discussions were that we gas variety progressing those those for both to public Those the those the commercial time Shelf, agreement of any through with West that and and which and able external

James Redfern

Thanks Meg. Okay.

Meg O’Neill

James. Thanks Alright.

Operator

Suisse. Kavonic comes Credit The next of from question Saul

Saul Kavonic

Graham. two the couple to LNG a ask moment. spot the of to times I several equivalent Hi oil spot want just on Meg. at all, areas Hi the But on. want price first of is I of focus have just things LNG given kind exposure, of

XX% second versus first the hub XX% XX.X% about the the talked in exposure You year for to half half. for

the to we are to expect expect exposure if the XX% spot so exposure? ‘XX XX% we the to well Pluto the what And of should exposed contracts volumes moment? off? Pluto increase exposure up, when that also second half. could on going for And year the level be to do touch with roll in new to hub be be just we – of that’s interconnector So, Should going kind have increased are you we see as maintained hub at the

Meg O’Neill

on gas our for provide December. the hub Investor at will we outlook So, in guidance Day exposure, XXXX Briefing probably

be will for normal that So, part year. process of guidance coming the our

that to look, get am comment The on any that. to back Pluto So, will need not I to you today. going further contracts, on we

Sorry, disclosed I don’t know that that we have previously.

Saul Kavonic

Okay. for contracting are by increasing, asset And just M&A signs purposes being seeing quickly for whether purposes? that’s also, long-term industry price that you LNG are used or assumptions

Meg O’Neill

we lows me XXXX. inappropriate that is an would seeing in at have to on for Well, comment to were yes. What it, where ago, we contrast being X done, is we are the were short XXs. deals we call slopes in years If we now level. from we but from uptick be there certainly with numbers, specific will It rebounded the that answer the were

Saul Kavonic

price for still that is and free can expect billion question the before cash chart, outlook changed comes has any next flow. in the same production, was as on and in materially – that flow price price outlook cash my assumptions, flow about growth confirm that just XXXX? several in the provided increases $X from we if with And of second way, Alright. or roughly assumptions that years assume the free speaking, those merger want under to line assumption we was for X-year about if provided just cash operating side, documentation. part you I There

Meg O’Neill

have will that, Saul. we on Look, to you circle back with

But to put need you the we we to the were with not so documents updated guidance circle were merger out back market. to need They will put the might we indicative. So, with out that we will any – guidance.

Saul Kavonic

of a if period? mean year, per I price question next rate for dividend reasonable that the yield roughly the billion price going put you to that’s has your on annualized guess the X% what that is are sustain then, it got of is, now, FDI [ph] you I $X is out year, better can only in the in assumptions mean since I expect to and kind and indefinite Woodside early have

Meg O’Neill

of the is calculation mean numbers. yield two I a

presented merger not depends do. kind understand of as on our over That’s were it time does what to So, The the to provide share said, free have price typically going are Look, period. intended shareholders cash by not something merger. on documents the we I that flow. help opportunity explanatory guidance we

Saul Kavonic

including a guess Understood. over And to That’s range conversion the guidance, out to we million that’s a explain new a BHP for million, million if is, you bit – until outlook. $XXX there? X-year to broader this chart it’s outlook the about the And the production million adding May, go factor, last full BHP soft a that there we $XXX XXX on difference XXX you question nothing for just on guidance XXX ‘XX, to year. here had the assets to have been Can on million why that barrels this the except XXXX. of I question is is barrels adjust the put the for your of get calendar old year

already been risk it the outlooks, versus want looks miss like the if outlooks, So, in XXXX, is earlier there in we if upside downside XXXX get sense to we year. in to are modeling these chart for because that presented or from of slight outlook has to the those a there a

Meg O’Neill

Yes.

help of the guidance versus what year, the will provided in the the investors the to be it’s Look, of in the December. chart in either understand value on I view It potential million is said, bang million range. we headed point Day the have that Briefing providing another XXX provide XXX at again, million was worth to in to is the think company or earlier where explanatory for mouth, memorandum merger. Investor specific squiggle time, XXX wasn’t as Saul, much your will pretty So, I be

Saul Kavonic

Okay. me. Thanks for Meg. all That’s

Meg O’Neill

Thank you.

Operator

of come Daniel next question the will And CLSA. Butcher from

Daniel Butcher

one Meg. spot on couple on LNG. a of one I – had Hi exploration,

things. on Just of side exploration the

to with And and before I spent of $XXX difference million which reconcile after million merger million, the and $XXX on secondly, other it’s that your think being includes just saved. your and being $XXX was million first of that, target low now merger, is exploration $XX CapEx million. $XXX return the projects the exploration to guidance CapEx what synergy reconcile

extra that So, CapEx on explain could where maybe comes from? exploration you

Meg O’Neill

Sure.

exploration So, does BHP the this back of business year. have heritage commitments the half some in

drilling other of is think is reporting. for Hulu is in the and September that The is those some there we some I underway. wells, have spud one in signaled exploration example to going that

number. bit a seismic is also there of in course, Of that

companies two this Woodside modest. did our year heritage guidance – view So, the portfolio and their was portfolios. did exploration bit have a differently why relatively exploration within quite The was into heading that’s limited,

them you technical is a success, exploration focused I our focus a heartland track are we we a of things do very perspective, our I assets of Mexico, So, ensuring oriented quickly. the but can activities forward. going activity. Gulf business. move It’s have struggle record be of to so to have of the of one the would commercially are matured where that clearly call towards oriented bit that And finding think has merged in our industry, what be things largely new towards unfortunately, doing a From

doing So, that put to ensure is part that have activity of focus. that we two groups for we guidance the you year legacy are largely how the of the commitments we that the exploration of our a we part bring were fits been exploration as exploration XXXX, the merger. for for into or outlook. And some will together, right feel will is as made had heading the rest But we this give within overall that spend spending out

Daniel Butcher

you some million the wells that half? mentioned. of cards well like lot impact on there that than we seems deepwater million more to seismic $XXX the should BHP other plus side, months, amount, $XXX for the big marginal this any the Because extra seven aware be Are a Okay. one from

Meg O’Neill

well Hulu probably of the The the There non-offsetting. is biggest been Gulf few in in Mexico wells have hitter. a exploration the other

Daniel Butcher

going And or playing about some at up of hub, for example, the maybe LNG just just in are selling the spot, interconnector medium-term? strategy on for Okay. you expecting or on quickly, right that can for your Are the Pluto you, contracting talk short stuff kind that TTF you JKM of now? to

Meg O’Neill

approach have on that basis. sales a the to is, we So, down LNG our taken portfolio we contract

to volumes. have interconnector a So, we dedicated that’s strategy don’t

sell a to example, portfolio we For look on basis.

do So, projected contracts the that a one our to the performance off, have indexation, price of take at of ongoing but the things contracts on lifted, secondly, product will linked sure JCC. that future we look that doing, we to first production ensure long-term is lot an and are and right basis our or we we, that mix Brent A indexation. make are got either of be oil confidence have

to preserve to TTF. JKM, be able a the so how some on is or basis And much duration gas indices, we MDP shorter of course for either do sell those hub of us, question using

expect year and that again, XXXX guidance range, the little will the to we the insights is XX% for to bit finish give a into the we So, later XX% in this market year this year.

Daniel Butcher

final That Thank lastly my Okay. you. question. to helps

you portfolio BP big that’s outages. couldn’t And trading and projects, understanding selling moved of LNG the specific as [indiscernible] force mentioned a just is I on rather we quarter, arms declare towards largely lot think portfolio of some Freeport well. on than Woodside losses they make has and my last And on Shell as the because majeure. so saw

one your had LNG the side? trading of block So, you how losses if a on plants, of you mitigate would

Meg O’Neill

sales, of contracted those are historic when plants. we specific from look much the sales at existing our Look, actually –

a of portfolio smaller companies some represents of our new than business portion that position. the so, sales And those that more probably trading a established have

Daniel Butcher

Right.

most stuff on going or your So, most are legacy that plants new of the you from portfolio sales put future? of the in specific are to

Meg O’Neill

Correct.

Daniel Butcher

portfolio? a apply to mostly you. time strategies future forward few your you And years would get Thank as how and in on that

Meg O’Neill

at experience ups for making that flexible point are in to much something the of about is we want to upsets to do and make contracted positioned But a how for very sales, is we we you how and those for want just have that sure as downs operational important Yes. plant. account one. It some you have might we much look an we operational do decide available

Daniel Butcher

you. leave there. it Thank will I Okay.

Meg O’Neill

you the call. Okay. joining all Alright. thank on us for Well,

Sorry. Go ahead.

Operator

just remarks. was take ahead. back you closing Go there Oh. to No. to going any I was

Meg O’Neill

update thank coming Thank Okay. us with joining weeks Annual am providing on Alright. you all Investor our at on our in Well, looking I December. Day many to you. call for forward strategic Briefing the you meeting of direction in an the today. and

Operator

our conclude conference you does for today. for That participating. Thank

You may now disconnect.

Woodside Energy (WDS) 30 Aug 222022 Q2 Earnings call transcript