Woodside Energy Flags Lower 2026 Production Outlook Despite Strong Q4 Revenue Beat

Australia’s Woodside Energy delivered stronger-than-expected fourth-quarter revenue, supported by resilient production levels, even as global oil and gas prices weakened. However, the company also flagged a lower production outlook for 2026, which slightly tempered investor sentiment. Despite this, Woodside Energy shares rose as much as 2.53% to $24.93 in early trading, outperforming the broader market, which edged down 0.22%.

As Australia’s largest gas producer, Woodside exceeded market expectations for December-quarter revenue, benefiting from record output of 198.8 million barrels of oil equivalent (boe). This result surpassed company guidance, driven by strong operating performance across key assets including Sangomar, Shenzi, and Pluto LNG. Analysts described the quarterly performance as “strong,” noting that higher production helped offset the impact of the lowest oil prices seen since 2020.

While the market had anticipated softer production guidance for 2026, Woodside’s updated outlook came in around 3% below the consensus midpoint of 172 million to 186 million boe. The company attributed the lower forecast to planned maintenance activities and a major turnaround at the Pluto LNG project in the second quarter, as well as the timing of new volumes from the Scarborough project. Analysts pointed out that Woodside has a history of issuing conservative guidance and subsequently upgrading it, raising expectations that actual production may again exceed forecasts.

Interim CEO Liz Westcott said the quarterly results were underpinned by sustained plateau production at the Sangomar oil field offshore Senegal and Pluto LNG operating at full capacity through the second half of 2025. She also highlighted progress at the Scarborough Energy Project, which reached 94% completion by year-end and remains on budget. The project is now targeting its first LNG cargo in the fourth quarter of 2026, slightly later than previous market expectations.

Woodside also confirmed first ammonia production at its Beaumont New Ammonia project in December, with commissioning set to continue into early 2026. With stable operations, major projects nearing completion, and a track record of conservative guidance, analysts believe Woodside Energy is on a more stable upward trajectory despite near-term production uncertainty.