Woodside Energy reported fourth-quarter revenue that surpassed market expectations, underpinned by resilient production, even as oil and gas prices weakened to levels the company described as the lowest since 2020. The Australian energy major also issued a softer production projection for 2026, citing planned maintenance and the sequencing of new volumes from its Scarborough project.
The company recorded a record output of 198.8 million barrels of oil equivalent (boe) in the quarter, a result that exceeded internal guidance and reflected strong operating performance across core assets including Sangomar, Shenzi and the Pluto LNG facility.
Market reaction was positive on the news. Woodside shares rose as much as 2.53% to $24.93 at 0424 GMT, while the broader benchmark fell 0.22% over the same interval.
Analysts who reviewed the results characterized the quarter as robust. Nik Burns of Jarden and Saul Kavonic of MST Marquee both referred to the outcome as "strong." Burns noted that although the market had anticipated lower production in 2026, the company nnounced guidance still sits about 3% below the midpoint of a consensus range spanning 172 million to 186 million boe.
Woodside attributed the softer 2026 outlook to scheduled maintenance activities and a major turnaround at the Pluto LNG project in the second quarter, plus the timing of new Scarborough volumes. Burns reminded investors that a year earlier Woodside initially issued guidance below consensus, later upgraded that outlook twice, and ultimately produced more hydrocarbons than the top end of its earlier range. "We think the market will assume the same thing may be happening again this time around and largely take it in its stride," he said in an email.
Liz Westcott, serving as Woodside's interim chief executive, highlighted the operational drivers behind the quarterly performance. She pointed to sustained plateau production at the Sangomar oil field offshore Senegal and to Pluto LNG operating at full capacity through the second half of 2025.
Westcott also flagged a recent milestone at the Scarborough Energy Project: the safe arrival of the floating production unit at the field and the start of hook-up activities. As of the end of the year the Scarborough project was 94% complete, she said, and remained on budget and on target for a first LNG cargo in Q4 2026. She noted the market had previously expected the first cargo in the third quarter.
On personnel, Woodside confirmed that Meg ONeill departed the company in mid-December to lead BP, and the company has not yet named a permanent chief executive. Westcott is viewed by analysts as one of three strong internal candidates for the role.
Kavonic echoed Burns' view that actual production this year could outpace the conservative guidance, saying the company now appears to be on a more stable upward trajectory. "The strong result reinforces that Woodside has moved towards providing conservative production guidance," he wrote in a note.
Beyond hydrocarbons, Woodside confirmed first ammonia production at its Beaumont New Ammonia project in December, with commissioning activities continuing into early 2026.
Separately, the company and third-party tools that track equities have presented the investment question for Woodside's ticker. One such service evaluates WDS alongside thousands of other companies each month using over 100 financial metrics and highlights which stocks it deems to offer attractive risk-reward profiles. That service cited notable past winners, including Super Micro Computer (+185%) and AppLovin (+157%), while offering promotions to access its strategies.
Summary: Woodside delivered a stronger-than-expected December-quarter revenue print and a record 198.8 million boe of output, yet signaled lower 2026 production guidance driven by planned maintenance at Pluto LNG and timing of Scarborough volumes. The Scarborough project remains on budget and 94% complete, targeting a first LNG cargo in Q4 2026, and first ammonia production was reported at Beaumont.