The ratings on Woodside reflect our opinion of the company's cost-competitive operations, long reserve life, strong development pipeline, and the favorable outlook for the LNG market. Our view of Woodside's credit quality is also underpinned by the company's predictable cash flow from long-term take-or-pay domestic gas and LNG contracts with offtakers with investment-grade ratings. These strengths are partly tempered by the company's large capital-expenditure commitments, potential commissioning risks associated with the Pluto project, limited—although improving—geographic diversity, and the cyclical and capital-intensive nature of the industry the company operates in. Woodside recorded total production of 72.7 million barrels of oil equivalent (mmboe) for fiscal 2010. About 54% of Woodside's production comes from natural gas, 46% from liquid production (i.e. oil, condensate,
