Stock Markets January 27, 2026

Woodside Energy Posts 13% Q4 Revenue Decline as Prices and Output Slip

Lower realized oil and gas prices and reduced production drive weaker fourth-quarter results; 2026 guidance reflects planned downtime and major project buildout

By Caleb Monroe WDS
Woodside Energy Posts 13% Q4 Revenue Decline as Prices and Output Slip
WDS

Woodside Energy reported a 13% year-on-year drop in revenue for Q4, citing lower realized prices and reduced production. The company also provided 2026 volume guidance that factors in planned downtime as it prepares to process Scarborough gas, and flagged significant capital expenditure to complete Scarborough and advance a Louisiana LNG project.

Key Points

  • Q4 revenue fell 13% year-on-year to $3.04 billion for the quarter ended December 31.
  • Average realized price on oil and gas sales dropped to $57/boe from $63/boe year-on-year; production fell 5% and sales fell 3% in the quarter.
  • Woodside expects 2026 production of 172-186 million boe versus 198.8 million boe in 2025 and plans $4-5 billion of capital expenditure to complete Scarborough and progress the Louisiana LNG project.

Woodside Energy recorded a decline in fourth-quarter revenue, with the Australian energy company attributing the fall to softer prices for its oil and gas sales and a reduction in output.

For the three months ended December 31, Woodside reported revenue of $3.04 billion, down 13% compared with the same period a year earlier.

The company said its average realized price for oil and gas fell to $57 per barrel of oil equivalent (boe) from $63/boe in the prior-year quarter. Production volumes during the quarter were also weaker, decreasing 5% year-on-year, while oil and gas sales declined by 3%.

Woodside pointed to a broader fall in oil prices through 2025, which tumbled by nearly 20% during the year amid two-fold concerns - a potential supply glut in 2026 and market worries about weakening global demand in the face of rising economic uncertainty.

Looking ahead, Woodside provided a production range for 2026 of 172 million to 186 million boe, compared with 198.8 million boe produced in 2025. On the company’s guidance, Acting CEO Liz Westcott said:

"Our 2026 volume guidance… reflects planned down time at Pluto as we prepare the facility to begin processing Scarborough gas and for first LNG cargo in Q4 2026,"

Woodside also outlined plans for significant capital spending in 2026. Capital expenditure is expected to be between $4 billion and $5 billion as the firm advances the Scarborough Energy project to completion and continues build-out of its Louisiana LNG project. The company sold down several stakes in the Louisiana LNG venture through 2025 as part of efforts to secure more working capital and investment for the project.


Context and implications

The reported fourth-quarter results reflect the immediate impact on Woodside’s top line of lower realized commodity prices coupled with modest declines in production and sales volumes. The 2026 volume guidance and planned capital outlays indicate a year of project transition for the company, with planned downtime at an existing facility to enable processing at a new development and the first LNG cargo slated for late 2026.

Risks

  • Slower commodity prices - The near 20% decline in oil prices through 2025 reduced realized sales prices, directly pressuring revenue and margins; this impacts the energy sector and commodity-linked markets.
  • Production interruptions - Planned downtime at Pluto to prepare for Scarborough processing reduces volumes in 2026, affecting company output and supply to markets tied to LNG and oil.
  • Project financing and execution - Continued capital investment of $4-5 billion and prior stake sales in Louisiana LNG highlight dependence on successful project financing and execution, with implications for project partners and the broader LNG supply chain.

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