Summary: Woodside Petroleum Ltd.

Long-life gas reserves Low-cost operations Asset concentration to North West Shelf Venture (NWSV) and Pluto Our expectation that Woodside's FFO to debt will be higher than 45% in the medium term Adequate liquidity Positive free operating cash flow The stable outlook reflects our expectation that Woodside Petroleum Ltd. will maintain its funds from operations (FFO) to debt (adjusted to include asset-retirement obligations and operating leases) of more than 45% while the company pursues its growth opportunities in the short-to-medium term. We also expect Woodside to generate positive free operating cash flows. Downward rating pressure could arise if we forecast Woodside's adjusted FFO-to-debt ratio would fall to less than 45%. This deterioration could occur if Woodside outspends its internal cash flows

...Positive free operating cash flow Outlook: Stable The stable outlook reflects our expectation that Woodside Petroleum Ltd. will maintain its funds from operations (FFO) to debt (adjusted to include asset-retirement obligations and operating leases) of more than 45% while the company pursues its growth opportunities in the short-to-medium term. We also expect Woodside to generate positive free operating cash flows....

Summary