WOODSIDE ENERGY GROUP LTD earnings calls

Beaumont sale and Louisiana structure

Q (Tom Allen · UBS): Would Beaumont be sold fully or partly, and would Louisiana LNG’s project structure be revisited? Also timeline and CapEx for Browse toward an FID.

A: They have opened a strategic review of Beaumont New Ammonia and will consider all options; no decision path is set today. For Louisiana LNG, the project structure will not change today and Woodside has reduced its capital exposure to 57%, totaling $9.9 billion, while continuing to seek holdco partners. Browse is at pre-FEED, must move through FEED before any FID, and total CapEx will be informed by EPC work so they have nothing further to add now.

"We are going to look at all options to determine the best value option for Woodside." — Elizabeth Westcott (CEO)

New single capital plan and cost cuts

Q (Nik Burns · Jarden Australia): What are the new IRR and payback targets under the single capital framework and when will you release details? For the $350m cost-out, is it opex only or CapEx too and when will savings appear?

A: They said the single framework will make every dollar compete equally and the strategy will be comprehensive, not like the old approach; more detail will come at Capital Markets Day. The USD 350 million is line of sight to be delivered from 2028, from a simpler organization and working smarter, and it includes operating costs, corporate overheads and some sustaining CapEx.

"We're going to make sure every dollar is deployed efficiently and we'll be looking at how we measure and consider risk as well as the maximizing shareholder returns." — Elizabeth Westcott (CEO)

Scope and timing of cost cuts; Louisiana sell-downs; governance

Q (Saul Kavonic · MST): What is the scope and why can you cut USD 350m now? Will a Louisiana sell-down be announced by Capital Markets Day? And do you consider a director nondisclosure consistent with your governance?

A: The cost program covers the whole business with structured cost reductions across operating segments, corporate and sustaining portfolio, with expected savings from 2028. On Louisiana, they see strong interest from counterparties and are taking a patient, disciplined approach to secure high-quality long-term partners. On governance, the board and executives take governance seriously, consider outside appointments appropriately, and say the Mark Cutifani Northern Star appointment remains highly speculative with no discernible conflicts.

"So the scope is across Woodside's business, and we're looking at structured cost out of our base operating business to make us more efficient and more resilient through the cycle." — Elizabeth Westcott (CEO)

Sangomar wells and hydrogen plans

Q (Gordon Ramsay · RBC): Is the 6–8 well Sangomar plan targeting S400 sands and is it for backfill or expansion? Also where does Woodside stand on hydrogen/new energy?

A: Phase 2 is under discussion with PETROSEN and the Senegalese Government; they see a 6–8 well program intended to backfill existing facilities, not raise nameplate capacity. The company will continue to explore new energy options including hydrogen, ammonia and CCS but will be disciplined and make those investments compete for capital.

"We do see maybe a 6- to 8-well program." — Elizabeth Westcott (CEO)

Middle East supply impact and Bass Strait plans

Q (Adam Martin · E&P): Could Middle East disruption affect Louisiana construction or Holdco sell-down timing? And what about Bass Strait EBITDA and the domestic gas reservation effect on new projects?

A: Louisiana construction is a lump sum turnkey under Bechtel; Bechtel continues fabrication, using alternative supply routes and can also fabricate in the U.S. or Vietnam, and Woodside is comfortable with the response. Sell-down discussions continue and the company is being patient. For Bass Strait, the assets account for 40% of domestic gas with Woodside equity at 20%; Australia needs new gas and Woodside is working with government on the national reservation scheme while assessing a potential 200 PJ, four-well development and awaiting further policy details.

"Bechtel have also got opportunities to fabricate steel in the U.S. or in Vietnam as other locations that they work from." — Elizabeth Westcott (CEO)

Drivers of lower gearing and capital review scope

Q (Robert Koh · Morgan Stanley): What are the key elements that will push gearing below 20% in H2 and does that include the Chevron/Wheatstone swap? Does the capital review cover payout and gearing targets or just project returns?

A: Gearing improvement reflects several elements: stronger H2 production (Pluto turnaround done), a strong pricing environment, expected cash from the Wheatstone/North West Shelf swap (contingent on critical path items), and that 62% of hedges had cash settled in H1 supporting H2 cashflow. The capital strategy review is comprehensive and covers capital allocation and capital management frameworks, so it includes all those policy areas.

Sangomar Stage 2 needs and Louisiana interest

Q (Uwan Minogue · Barrenjoey): What must happen to progress Sangomar Stage 2, and has anything materially changed? Is Louisiana sell-down interest picking up or delayed?

A: To progress Stage 2 they need to complete technical work and continue discussions with PETROSEN and the Senegalese Government before making decisions; Sangomar is performing well though in natural decline. For Louisiana they see strong and broad interest, but some parties are focused on securing short-term supply so Woodside is being patient while seeking long-term strategic partners.

"So Sangomar continues to be a really strong asset for us." — Elizabeth Westcott (CEO)

Louisiana expansion and contract coverage

Q (Tom Wallington · Citi): How has thinking changed on brownfield Trains 4–5 and is there any change to contracted vs uncontracted LNG targets into the early 2030s?

A: The Trains 4 and 5 expansion is fully permitted and remains an evaluated growth opportunity, but the immediate focus is on Trains 1–3 delivery, sell-down and offtake. They reported being about 75% contracted in the 2026–2028 window and expect contracting to continue into the early 2030s where current contracted levels are lower but will be layered into the market as they market volumes.

"So with Louisiana, the 4 and 5 expansion opportunity is a fully permitted opportunity that we have at that site." — Elizabeth Westcott (CEO)

Perdaman contract volatility and Bass Strait thresholds

Q (Sarah Kerr · Argonaut): Will you hedge or change the Perdaman contract to reduce TTF mark-to-market swings? For Bass Strait, what price or reservation details would make the 200 PJ development uneconomic or cause co-development?

A: They said most of the mark-to-market volatility was driven by the long-term view on the TTF and the contract exists to provide upside versus the WA domestic gas mechanism; they are conscious of volatility but are not considering hedging that embedded derivative today. On Bass Strait they need a clear long-term regulatory and pricing framework before committing near $1 billion of investment; they will model outcomes once policy details are known and remain open to co-development if that fits their investment framework.

"Most of the change in the value or the volatility for the period is driven by the long-term view on the TTF." — Graham Tiver (CFO)

Scarborough start and Scope 3 target change

Q (Baden Moore · CITIC CLSA): How will Scarborough be contracted at start-up and when will first cargoes under contracts begin? Does retiring the Scope 3 $5bn target free up about $3bn capital?

A: Scarborough is 98% complete; there will be commissioning cargoes and then they expect to move to sustained operations in 2027 and commence contracted cargo delivery then. On Scope 3 they retired the $5 billion target because they do not see line of sight to commercial, value-accretive new energy projects by 2030; they have not reserved about $3 billion on the balance sheet and so there is no impact on the forward outlook.

"And then we anticipate in 2027 moving into sustained operations and commencing cargo delivery under our contracts." — Elizabeth Westcott (CEO)

Louisiana leadership and marketing results

Q (Cameron Needham · BofA): Does the Louisiana LNG president’s departure change execution or governance? And is the low H1 marketing EBIT a timing issue or weakening opportunity set?

A: They said the project is progressing well, they have moved two experienced people from their Australia LNG operations to Louisiana, and they are comfortable with the execution team and depth. On marketing, lower H1 marketing EBIT was largely a timing/volume issue from cyclones and the Pluto turnaround limiting trades; several trades executed in H1 will deliver more than $100 million of value into H2.

"So I would say, as you touched on, it is very much a timing issue." — Graham Tiver (CFO)