Woodside Energy Group (WDS) CMD 2026 summary

Strategy and returns

• Shift toward extracting more value through execution, efficiency, capital allocation and portfolio focus; target portfolio ROACE of 12%-15% by the mid-2030s, versus ~10% from the base business and committed projects under mid-price assumptions.

• Priorities include operational excellence, disciplined project delivery and active portfolio management; growth is a priority but has no automatic capital allocation.

• Growth investments must deliver IRR above 12% and positive NPV under low-price assumptions, while competing with shareholder returns and supporting the ROACE target.

Projects and cash generation

• Scarborough was 99% complete and on budget, with first LNG cargo on track for Q4 2026; Trion was 71% complete and on budget, targeting first oil in 2028.

• Louisiana LNG was 32% complete and on budget, targeting first LNG in 2029; its three trains provide 16.5 Mtpa capacity.

• Base business and sanctioned projects are expected to generate >$40bn AOCF in 2027-2032 at $70 Brent, >$50bn in the high-price case and ~$7bn in 2032 at $70 Brent; figures are indicative, not guidance.

• Sales are projected to grow by >30% from ~212 MMboe in 2025 to ~280 MMboe by 2032; equity LNG portfolio expected to double from 2025 to 2032.

• FY2026 guidance: production 174-181 MMboe, capital expenditure $4.0-4.5bn and abandonment expenditure $500-800m; production includes 1.5-2.5 MMboe from Beaumont New Ammonia.

Capital allocation and shareholder returns

• From FY2026 results, distribution policy targets a base dividend of 20% of AOCF plus up to 20% more through dividends and/or buybacks; the Board retains discretion to exceed 40%.

• Priority one funds the base dividend, sustaining capital and committed projects; priority two can fund balance-sheet and portfolio actions, discretionary distributions or growth.

• Priority two funds are estimated at ~$17bn for 2027-2032 at $70 Brent and ~$26bn at $85 Brent; growth and discretionary shareholder returns compete for this capital.

• Balance-sheet resilience and maintaining an investment-grade credit rating remain financial guardrails through the cycle.

• Under the new framework, historical distributions would have totaled ~$5.4bn at the 40% upper threshold versus $4.2bn under the prior policy; illustrative comparison, not a forecast.