Bulletin: High Prices Fuel Woodside's Funding Flexibility

This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) Feb. 27, 2023--A boost to cash flow from high oil and gas prices and increased production is shoring up Woodside Energy's capacity for growth projects. The Australia-based oil and gas producer's reported free cash flow of US$6.5 billion for fiscal 2022 provides additional balance sheet strength to accommodate its committed capital expenditure (capex) pipeline and manage any project delays or cost overruns. Woodside's Scarborough-Pluto Train 2 gas project exposes the company to a large capex funding requirement of about US$12 billion (100% basis; Woodside's share: estimated US$8.4 billion). The project is about 25% complete (as of Dec. 31, 2022) with Woodside expecting the first liquified natural gas cargo

...MELBOURNE (S&P Global Ratings) Feb. 27, 2023--A boost to cash flow from high oil and gas prices and increased production is shoring up Woodside Energy's capacity for growth projects. The Australia-based oil and gas producer's reported free cash flow of US$6.5 billion for fiscal 2022 provides additional balance sheet strength to accommodate its committed capital expenditure (capex) pipeline and manage any project delays or cost overruns. Woodside's Scarborough-Pluto Train 2 gas project exposes the company to a large capex funding requirement of about US$12 billion (100% basis; Woodside's share: estimated US$8.4 billion). The project is about 25% complete (as of Dec. 31, 2022) with Woodside expecting the first liquified natural gas cargo in 2026. The company also expects first oil for its Senegal-based Sangomar project (US$4.6 billion; 100% basis; Woodside's share: around US$3.8 billion), which is 77% complete (as of Dec. 31, 2022), to occur in late fiscal 2023 (ending Dec. 31, 2023). The...

Bulletin