PERTH, Australia--(BUSINESS WIRE )--Woodside Energy CEO Meg O’Neill said production and revenue in the second quarter rose 60% and 44% respectively from the first three months of 2022, helped by the contribution from BHP’s petroleum business.
“Production for the period was 33.8 million barrels of oil equivalent, while revenue climbed to $3,438 million on the back of a 51% increase in sales volume to 35.8 million barrels of oil equivalent.
“The completion on 1 June of our merger with BHP’s petroleum business was the highlight of the period, transforming Woodside into a top 10 global independent energy producer by hydrocarbon production, and making us the largest energy company listed on the Australian Securities Exchange.
“Woodside received a net cash payment from BHP Group of approximately $1.1 billion, which included the cash remaining in the bank accounts of BHP Petroleum immediately prior to completion.
“The merger was overwhelmingly endorsed by Woodside’s shareholders at our Annual General Meeting in May, and they are now seeing first evidence of the increased financial and operational strength the transaction will deliver.
“The subsequent listings of Woodside shares on the New York and London stock exchanges were historic moments for the company, reflecting our more diverse shareholder base.
“Significant progress was made on our key projects during the quarter. All major equipment items for Scarborough have been procured and construction has begun at the Pluto Train 2 site.
“First steel for Scarborough’s floating production unit topsides was cut, pipeline manufacturing is 25% progressed and the subsea trees for initial start-up of the project are all complete.
“Installation of the mooring system for the floating production, storage and offloading facility at the Sangomar field has been completed and the second drillship, the Ocean BlackHawk, commenced drilling in July.
“Following extensive discussions with potential new partners, we have decided to discontinue the sell-down of equity in Sangomar.
“In Australia, accelerated Pluto gas transported through the Pluto-Karratha Gas Plant Interconnector has resulted in additional LNG production and sales of uncontracted cargoes in a high-priced market.
“Lambert Deep, a component of the Greater Western Flank Phase 3 project, achieved ready for start-up in July,” she said.
Comparative performance at a glance
Production was 60.2% higher and sales volume was 50.8% higher than the previous quarter primarily due to the inclusion from 1 June 2022 of the BHP petroleum assets, following the completion of the merger.
Woodside and BHP Petroleum merger
1 Woodside analysis of independent energy companies excludes government-backed national oil companies, companies with free float less than 60%, major integrated oil and gas companies and Canadian oil sands companies.
This was partly offset by lower production at NWS and Wheatstone compared to the prior quarter due to scheduled turnaround activities.
Greater Western Flank Phase 3 (GWF-3)
2 The emission reductions in the NWS Project Extension Greenhouse Gas Management Plan are determined off a baseline of 7.7 Mtpa CO2-e, as per existing State approvals for Karratha Gas Plant.
Change of company name and ticker code
4 Woodside’s previous production range was 92-98 MMboe. Woodside’s production range, excluding the former BHPP assets and updated for the new conversion factors, would result in a range of 88-94 MMboe.
5 Capital and exploration expenditure related to former BHPP assets included from 1 June 2022.
7 Scarborough represents 100% participating interest (from 1 June 2022). Pluto Train 2 represents 51% participating interest. Excludes the benefit of Global Infrastructure Partners’ additional contribution of approximately $800 million for Pluto Train 2.
8 Other growth includes primarily Shenzi North, Mad Dog Phase 2, Trion, New Energy and Browse.
9 Base business includes Pluto LNG, NWS, Gulf of Mexico (Atlantis, Shenzi, Mad Dog), Bass Strait, Wheatstone, Macedon, Pyrenees, Ngujima-Yin, Okha, Trinidad & Tobago and Corporate.
Movement in onerous contract provision benefit
Unwind and derecognition of the provision for Corpus Christi.
General, administrative and other costs
Includes merger transaction costs of ~$420 million.
Australia & Europe | Damien Gare
E: christine.forster@woodside.com
This ASX announcement was approved and authorised for release by Woodside’s Disclosure Committee.
10 Production and sales volumes in boe for Q1 2022 have been restated using updated conversion factors, referenced on page 18.
11 Q2 2022 includes 2.51 MMboe of LNG, 0.10 MMboe of condensate and 0.04 MMboe of LPG and Q1 2022 includes 0.35 MMboe of LNG and 0.01 MMboe of condensate processed at the Karratha Gas Plant (KGP) through the Pluto-KGP Interconnector.
12 Includes the aggregate Woodside equity domestic gas production from all Western Australian projects.
13 Natural gas liquids (NGL) includes LPG, ethane, propane and butane.
14 Production and sales volumes in boe for Q1 2022 have been restated using updated conversion factors, referenced on page 18.
15 Overriding royalty interests held in the Gulf of Mexico (GOM) for several producing wells.
16 Natural gas liquids (NGL) include LPG, ethane, propane and butane.
17 Production and sales volumes in boe for Q1 2022 have been restated using updated conversion factors, referenced on page 18.
18 Processing of volumes commenced at the Karratha Gas Plant via the Pluto-KGP Interconnector in 2022.
19 Includes periodic adjustments reflecting the arrangements governing Wheatstone LNG sales of 0.06 MMboe in Q2 2022, -0.18 MMboe in Q1 2022 and -0.11 MMboe in Q2 2021.
20 Natural gas liquids (NGL) include LPG, ethane, propane and butane.
21 Production and sales volumes in boe for Q1 2022 have been restated using updated conversion factors, referenced on page 18.
22 Overriding royalty interests held in the GOM for several producing wells.
23 Natural gas liquids (NGL) include LPG, ethane, propane and butane.
24 Purchased LNG volumes sourced from third parties.
25 Q2 2022 includes $5 million, Q1 2022 includes -$20 million, Q2 YTD 2022 includes -$15 million, Q2 2021 includes -$7 million and Q2 YTD 2021 includes -$11 million, recognised in relation to periodic adjustments reflecting the arrangements governing Wheatstone LNG sales. Q2 2022 includes $38 million relating to Pluto volumes delivered into a Wheatstone sales commitment. These amounts will be included within other income/(expenses) in the financial statements rather than operating revenue.
26 Overriding royalty interests held in GOM for several producing wells.
27 Values include cargoes from Corpus Christi, third party trades and the joint venture partners’ share of Pluto upside cargoes under the transitional marketing arrangements agreement (TMAA).
28 Realised price has been restated to incorporate the updated boe conversion factors.
29 Realised prices include the impact of periodic adjustments reflecting the arrangements governing Wheatstone LNG sales.
30 Excludes any additional benefit attributed to produced LNG through third-party trading activities.
Key project expenditure (US$ million)
31 Exploration expense includes the reclassification of well results during the period.
32 Exploration capitalised represents expenditure on successful and pending wells, plus permit acquisition costs during the period and is net of well costs reclassified to expense on finalisation of well results.
33 Project final investment decisions result in amounts of previously capitalised exploration and evaluation expense (from current and prior years) being transferred to oil and gas properties. This table does not reflect the impact of such transfers.
Key changes to permit and licence holding during the quarter ended 30 June 2022 are noted below.
GB 630, GB 676, GB 677, GB 721, GB 762, GB 805, GB 806, GB 851, GB 852, GB 895, GB 672, GB 716, GB 760
GB 640, GB 641, GB 685, GB 555, GB 556, GB 726, GB 770, GB 771, GB 604, GB 605, GB 647, GB 648, GB 649, GB 728, GB 729, GB 773, GB 774, GB 421, GB 464, GB 465, GB 508, GB 509, GB 736, GB 780, GB 824
GB 719, GB 720, GB 763, GB 807, GB 501, GB 502, GB 545
Exploration or appraisal wells drilled
Mad Dog SP1 exploration tail
34 Well depths are referenced to the rig rotary table.
35 Drilling of exploration tail in existing Mad Dog SP1 well commenced 11 July 2022.
Average daily production rates (100% project) for the quarter ended 30 June 2022:36
Production rate (100% project, Mboe/d)
Production was lower in Q2 due to onshore and offshore turnaround activities. Condensate production increased due to RFSU of GWF-3 in April.
Production was higher in Q2 due to a full quarter of production following start-up in March.
Production was lower in Q2 due to onshore and offshore turnaround activities.
New addition to Woodside portfolio.
Production was higher in Q2 due to increased reliability.
Production was lower in Q2 due to decreased reliability.
New addition to Woodside portfolio.
Macedon production included from 1 June 2022.
36 Standalone former BHPP assets represented at 100% rates over the month of June only.
37 Woodside share reflects the net realised interest for the period.
38 Production and sales volumes in boe for Q1 2022 have been restated using updated conversion factors, referenced on page 18.
39 Includes the aggregate Woodside equity domestic gas production from all Western Australian projects.
Production rate (100% project, Mboe/d)
New addition to Woodside portfolio.
New addition to Woodside portfolio.
New addition to Woodside portfolio.
New addition to Woodside portfolio.
40 Woodside share reflects the net realised interest for the period.
41 Production and sales volumes in boe for Q1 2022 have been restated using updated conversion factors, referenced on page 18.
Forward looking statements and other conversion factors
This announcement contains forward-looking statements with respect to Woodside’s business and operations, market conditions, results of operations and financial condition which reflect Woodside’s views held as at the date of this announcement. Forward-looking statements generally may be identified by the use of forward-looking words such as ‘guidance’, ‘foresee’, ‘likely’, ‘potential’ ‘anticipate’, ‘believe’, ‘aim’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘target’, ‘plan’, ‘forecast’, ‘project’, ‘schedule’, ‘will’, ‘should’, ‘seek’ and other similar words or expressions. These forward-looking statements include, but are not limited to, statements about Woodside’s future plans for projects and the timing thereof, the implementation of Woodside’s new energy strategy, Woodside’s planned sell-down of interests in certain projects, and Woodside’s expectations and guidance with respect to production and certain financial results for full year 2022. Forward-looking statements are not guarantees of future performance and are subject to inherent known and unknown risks, uncertainties, assumptions and other factors, many of which are beyond the control of Woodside, its related bodies corporate and their respective officers, directors, employees, advisers or representatives. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, fluctuations in commodity prices; the impact of armed conflict and political instability (such as the ongoing conflict in Ukraine) on economic activity and oil and gas supply and demand; Woodside’s ability to identify purchasers, and to negotiate acceptable terms, for the sell-down of interests in certain projects; and the effect of future regulatory or legislative actions on Woodside or the industries in which it operates, including potential changes to tax laws. Details of the key risks relating to Woodside and its business can be found in the “Risk” section of Woodside’s most recent Annual Report which was released to the Australian Securities Exchange on 17 February 2022 and in Woodside’s filings with the U.S. Securities and Exchange Commission. You should review and have regard to these risks when considering the information contained in this announcement.
Investors are strongly cautioned not to place undue reliance on any forward-looking statements. Actual results or performance may vary materially from those expressed in, or implied by, any forward-looking statements. All information included in this announcement, including any forward-looking statements, speak only as of the date of this announcement and, except as required by law or regulation, Woodside does not undertake to update or revise any information or forward-looking statements contained in this announcement, whether as a result of new information, future events, or otherwise.
All figures are Woodside share for the quarter ending 30 June 2022, unless otherwise stated.
All references to dollars, cents or $ in this presentation are to US currency, unless otherwise stated.
References to “Woodside” may be references to Woodside Energy Group Ltd or its applicable subsidiaries.
thousand barrels of oil equivalent
million barrels of oil equivalent
billion cubic feet of gas
million standard cubic feet of gas
standard cubic feet of gas
INVESTORS Australia & Europe | Damien Gare W: +61 8 9348 4421 M: +61 417 111 697 Americas | Matthew Turnbull M: +1 (713) 448-0956 E: investor@woodside.com MEDIA
Christine Forster M: +61 484 112 469 E: christine.forster@woodside.com
Woodside Energy Group Ltd Announces Second Quarter Report for Period Ended 30 June 2022
INVESTORS Australia & Europe | Damien Gare W: +61 8 9348 4421 M: +61 417 111 697 Americas | Matthew Turnbull M: +1 (713) 448-0956 E: investor@woodside.com MEDIA
Christine Forster M: +61 484 112 469 E: christine.forster@woodside.com