Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — H1 2022 Earnings Presentation
41 slides from Woodside Energy's earnings presentation, Aug 30, 2022
Slide 1: Half-Year 2022 Results Teleconference and Presentation Announcement
Woodside Energy Group Ltd ACN 004 898 962 Mia Yellagonga 11 Mount Street Perth WA 6000 Australia T +61 8 9348 4000 www.woodside.com ASX: WDS NYSE: WDS LSE: WDS Announcement Tuesday, 30 August 2022 HALF-YEAR 2022 RESULTS TELECONFERENCE AND PRESENTATION A teleconference providing an overview of the ha
Slide 2: Half-Year Results Briefing 2022
HALF-YEAR RESULTS BRIEFING 2022 INVESTOR PRESENTATION 30 August 2022 www.woodside.com investor@woodside.com
Slide 3: Disclaimer, important notes and assumptions
Disclaimer, important notes and assumptions Information Forward looking statements • This presentation has been prepared by Woodside Energy Group Ltd (“Woodside”). By accessing/attending this • This presentation may contain forward-looking statements with respect to Woodside’s business and operation
Slide 4: Disclaimer, important notes and assumptions (continued)
Disclaimer, important notes and assumptions (continued) Notes to petroleum resources estimates (continued) Non-IFRS financial information 4. Woodside reports its petroleum resource estimates inclusive of all fuel consumed in operations. • Throughout this presentation a range of financial and non-fin
Slide 5: Strong financial and strategic achievements
Strong financial and strategic achievements DELIVERED VALUE EXECUTED STRATEGY Underlying net Net profit after tax profit after tax Completed merger Project execution 1,640 1,819 with BHP’s petroleum of Scarborough and Pluto $ $ business Train 2, Sangomar and minor million 417% million 414% capital p
Slide 6: Maximising value through operational excellence
Maximising value through operational excellence FINANCIAL PERFORMANCE OPERATIONAL PERFORMANCE Operating revenue Production 5,810 54.9 Includes one full month of $ Increased realised prices and production from the merged million 132% production volume MMboe 19% portfolio Free cash flow1 LNG reliabili
Slide 7: Health and safety
Health and safety Tier 1 or Tier 2 loss of primary Total recordable injuries (TRI) and containment process safety total recordable injury rate (TRIR) 4 events 30 2 1.81 One Tier 2 loss of primary containment 3 1.74 1.8 2 process safety event; no impact to 25 1.32 1.6 people or environment 3 19 21 1.
Slide 8: Merger benefits being realised
Merger benefits being realised CASH SHAREHOLDER ENERGY PORTFOLIO GENERATION RETURNS AND DEVELOPMENT SYNERGIES AND TRANSITION QUALITY AND BALANCE CAPITAL OPTIONALITY VALUE CREATION LEADERSHIP SHEET DISCIPLINE Completed merger Generated $2,568 109 US cps dividend Progressing Progressing $100 million o
Slide 9: Strong market conditions
Strong market conditions Average realised price and oil and gas price markers Average realised price1 160 90 140 $ 96.4 96 120 60 (US$/bbl) 100 (US$/MMBtu) 116% $/boe 80 51 51 45 36 60 30 40 20 2 H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 0 0 February May September December May April June February Apri
Slide 10: Largest interim dividend declared since 2014
Largest interim dividend declared since 2014 Interim and final dividend (US cps) 109 105 91 Optimising value and shareholder returns Interim dividend payment value of $2.1 billion 55 53 Reflects strong operational performance, higher 36 realised prices and contribution from the BHPP assets 26 30 12
Slide 11: Sangomar Field Development Phase 1 – 63% complete
Sangomar Field Development Phase 1 – 63% complete Ocean BlackRhino drillship FPSO Léopold Sédar Senghor in shipyard Overhead view of subsea structures DRILLING FPSO CONVERSION SUBSEA Five of 23 wells drilled and Final drydock activities for the FPSO Installation of the mooring system completed conve
Slide 12: Scarborough targeting first LNG cargo 2026
Scarborough targeting first LNG cargo 2026 PROCUREMENT ONSHORE • All major equipment items • Commenced Pluto Train 2 construction procured; compressors, generators works and turbines • FEED activities for Pluto Train 1 modifications on schedule LNG refrigeration Bechtel construction compressor casin
Slide 13: Strong and sustained LNG outlook
Strong and sustained LNG outlook LNG supply and demand gap1 650 LNG supply/demand 600 gap (high case) LNG markets are incentivising new global LNG projects as Europe replaces Russian gas 550 LNG supply/demand gap (low case) 500 Gaseous fuels remain critical to the energy transition with low-risk and
Slide 14: Committed to strong ESG performance
Committed to strong ESG performance Environmental • Zero significant environmental events • Ongoing decommissioning campaigns at Enfield and Balnaves • Undertook a range of biodiversity-related research programs in the areas where we are active Social • Increased value of contracts to local and Indi
Slide 15: Scope 1 and 2 decarbonisation plan underway
Scope 1 and 2 decarbonisation plan underway STRATEGY TARGETS Reduce our net equity SCOPE 1 AND 2 greenhouse gas emissions STRATEGY AND (Scope 1 & 2) 15% 30% Net zero by 2025 by 2030 aspiration by 2050 TARGETS or sooner Net equity emissions reduction targets1 OFFSET DESIGN OUT OPERATE OUT PORTFOLIO A
Slide 16: Investing in new energy and lower carbon services
Investing in new energy and lower carbon services STRATEGY TARGET SCOPE 3 Invest in the products and services STRATEGY AND our customers need $5 billion as they reduce their emissions TARGET Invested in new energy products and lower carbon services by 20301 CAPITAL PROMOTE SUPPORT VALUE ALLOCATION M
Slide 17: Financial Update
FINANCIAL UPDATE Graham Tiver | Chief Financial Officer
Slide 18: Optimising value; preparing for major capital expenditure
Optimising value; preparing for major capital expenditure HY22 HY21 Change Increased realised prices and contribution from Operating revenue $m 5,810 2,504 132% the BHPP assets driving higher revenue and profit EBITDA $m 3,971 1,496 165% EBIT $m 2,982 621 380% Significant operating and free cash flo
Slide 19: Increased profit moderated by higher tax expense
Increased profit moderated by higher tax expense Increased royalties and $ Derecognition and excise due to higher Category million unwind of the Corpus revenue Christi onerous Merger transaction costs 424 contract provision Primarily due to Derecognition of the 474 (309) merger Corpus Christi onerou
Slide 20: 414% increase in underlying NPAT
414% increase in underlying NPAT Operating revenue EBIT Underlying NPAT 3.0 1.8 5.8 1.0 0.7 0.6 $ billion $ billion $ billion 2.4 2.5 2.3 0.6 1.9 0.4 0.4 0.3 (5.2) H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 1 Higher revenue
Slide 21: Cash generative business through the cycle
Cash generative business through the cycle Operating cash flow Investing cash flow Free cash flow2 (excluding BHP merger completion payment)1 2.6 1.1 2.5 0.3 1.2 $ billion 1.0 $ billion 1.0 $ billion 1.5 0.8 1.5 1.5 1.3 1.1 0.6 0.9 0.4 0.3 0.3 H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 H1 2018 H1 2019
Slide 22: Production cost
Production cost Production cost 500 7.3 7.2 Unit8.0 production cost 450 ($/boe) One month of BHPP included 400 5.2 6.0 350 4.9 86 Production cost (BHPP) 4.5 $ million 300 311 Production cost (WDS) 250 4.0 Unit production cost impacted by: 200 232 283 224 225 150 2.0 • Planned major shutdown at Wheat
Slide 23: Maintained cash margin above 80%
Maintained cash margin above 80% Cash margin1 CASH MARGIN 76.9 $/boe Impact of higher realised prices Strong underlying cost control $/boe PRODUCTION COSTS Inclusion of BHPP assets (Based on sales boe excluding purchased LNG) Associated cost with Interconnector 7.6 $/boe Wheatstone shutdown OTHER CA
Slide 24: Tax expense reflects higher realised prices and increased profitability
Tax expense reflects higher realised prices and increased profitability H1 2022 tax expense reconciliation (USD) Impacted by higher asset profitability 228 1,476 424 1,248 Impacted by higher taxable income Increase in oil and gas prices reflected in 751 39 34 824 higher PRRT, royalty and excise expe
Slide 25: Disciplined capital management for future investment
Disciplined capital management for future investment Capital management framework Reliable framework to optimise value and shareholder returns through the cycle Operating cash flow Investing cash flow4 Dividend declared $ 2,523 million $ 45 million $ 2,070 million Preparing the balance sheet for $9
Slide 26: Returning value to shareholders
Returning value to shareholders BASED ON BHP MERGER 1 2 UNDERLYING NPAT COMPLETION PAYMENT 1.8 Interim 2022 fully franked dividend of 109 US cents per 1.5 share ($2.1B): 1.1 (0.3) • 80% of Woodside’s $ billion 80% ordinary 0.8 underlying net profit after tax dividend component 0.6 for H1 2022 (76 US
Slide 27: Prepared for upcoming capital expenditure phase
Prepared for upcoming capital expenditure phase Continuing strong liquidity Balanced debt maturity profile1 7.9 7.6 Low portfolio cost of debt (3.6%) 1.5 6.0 5.8 5.3 3.6 years portfolio weighted average term to maturity 1.0 $ billion 3.9 $ billion Credit ratings of BBB+ and Baa1 reaffirmed 0.5 Refin
Slide 28: Outlook
OUTLOOK Meg O’Neill | Chief Executive Officer
Slide 29: Capital allocation framework
Capital allocation framework OIL GAS NEW ENERGY OFFSHORE PIPELINE LNG DIVERSIFIED Generate high returns to fund New energy products and lower Leveraging infrastructure to monetise undeveloped FOCUS diversified growth, focusing on gas, including optionality for hydrogen carbon services to reduce cust
Slide 30: Clear priorities
Clear priorities Return to leading personal safety performance 1 OPERATIONS Maintain safe, reliable and low-cost operations 2 SYNERGIES Deliver merger synergies and progress merger integration Continue execution of Scarborough, Pluto Train 2, Sangomar and Shenzi North CREATE AND PROTECT 3 Focus on d
Slide 31: Annexure
ANNEXURE
Slide 32: Minor capital projects
Minor capital projects AUSTRALIA Pluto LNG Pyxis Hub infill campaign on track; Xena well on track for RFSU in H2 2022 Pluto-KGP Interconnector Paid back capital investment within first three months of operation GWF-3 infill project achieved RFSU in April 2022; Lambert Deep infill well achieved RFSU
Slide 33: New segment performance
New segment performance CORPORATE/ AUSTRALIA INTERNATIONAL MARKETING OTHER Pluto LNG, NWS Project, Shenzi, Mad Dog, Trading of LNG (non- Revenue and expenses not Bass Strait, Wheatstone, Ruby/Angostura, Atlantis produced) and optimisation allocated to operating Nguijima-Yin, Macedon, DESCRIPTION Pyr
Slide 34: Cash flow reconciliation
Cash flow reconciliation Free cash flow Cash flow from financing $2,568 million ($968 million) 1,082 (1,037) 2,523 (42) (717) (209) (10) 4,615 Includes Scarborough, Pluto Train 2 and Dividends paid Sangomar expenditure (2021 final dividend) Higher lease partially offset by repayments due to new 3,02
Slide 35: 2022 full-year guidance
2022 full-year guidance 2022 production guidance 2022 capital expenditure guidance 1 • Woodside’s production guidance is 145 – 153 MMboe • Woodside’s capital expenditure guidance is $4,300 – 4,800 million 2022 guidance 2022 guidance LNG MMboe 77 – 79 Sangomar2 % ~25% Pipeline gas MMboe 27 – 29 Scarb
Slide 36: Reserves update
Reserves update Proved (1P) Developed and Proved plus Probable (2P) Developed and Undeveloped Reserves Undeveloped Reserves No changes to reservoir outcomes compared to Woodside’s most recent 2,340 MMboe 47%1 3,786 MMboe 65%1 Reserves and Resources Statement issued in February 2022 Oil and Oil and c
Slide 37: Asset tables
Asset tables Capital and Depreciation and Operating revenue EBITDA EBIT exploration Production costs Asset amortisation $ million $ million $ million expenditure $ million $ million $ million Australia North West Shelf 912 628 170 458 50 60 Pluto 2,058 1,896 384 1,512 117 163 Wheatstone 460 365 128
Slide 38: Realised price
Realised price Revenue Variance Products Units H1 20221 H1 2021 impact % $ million LNG produced2 $/boe 89 41 117 1,428 LNG traded3 $/boe 140 39 259 709 Pipeline gas $/boe 52 17 206 6 Oil and condensate $/boe 114 71 61 339 NGLs $/boe 48 60 (20) - Average realised price $/boe 96 45 113 Average Dated B
Slide 39: Corporate performance
Corporate performance H1 2022 H1 2021 Production volume MMboe 54.9 46.3 Operating revenue $ million 5,810 2,504 EBITDA $ million 3,971 1,496 EBIT $ million 2,982 621 Net finance costs $ million 55 118 Tax expense/(benefit) $ million 1,248 161 Non-controlling interest $ million 39 25 NPAT $ million 1
Slide 40: Glossary
Glossary $, $m, $B US dollar unless otherwise stated, millions of dollars, billions of dollars IRR Internal rate of return A$, AUD Australian dollar The Japan customs-cleared crude is the average price of customs-cleared crude oil imports JCC into Japan as reported in customs statistics (also known
Slide 41: Head Office
Head Office: Woodside Energy Group Ltd Mia Yellagonga 11 Mount Street Perth WA 6000 Postal Address: GPO Box D188 Perth WA 6840 Australia T: +61 8 9348 4000 F: +61 8 9214 2777 E: companyinfo@woodside.com Woodside Energy Group Ltd ABN 55 004 898 962 woodside.com
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