This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) Feb. 25, 2025--Woodside's propensity to use its balance sheet in pursuit of growth leaves little room for underperformance of its robust cash generation. We project Woodside Energy Group Ltd.'s capital expenditure (capex) in fiscal 2025 (ending Dec. 31, 2025) will be about US$5.0 billion, excluding its Louisiana LNG (LLNG) production and export terminal in Calcasieu Parish, Louisiana. Woodside is targeting a potential final investment decision (FID) readiness for LLNG from the first quarter of 2025. An FID on LLNG would materially add to Woodside's funding needs for capital projects, pressuring its balance sheet and credit ratios, which are under strain from elevated growth capex at various expansion projects.
