Shares in Woodside Energy Group Ltd (ASX:WDS, LSE:WDS, OTC:WOPEF) rose 1.5% to A$25.22 in afternoon trade on Wednesday after the company raised its annual production guidance and lowered cost forecasts, easing investor concerns over its ambitious global expansion.
In its June quarter update, the Australian energy major lifted 2025 production guidance to 188–195 million barrels of oil equivalent (MMboe), up from 186–196 MMboe. The increase reflects stronger-than-expected output from its Senegalese asset and improved reliability across domestic liquefied natural gas (LNG) operations.
Woodside also cut its full-year unit production cost guidance to US$8.00–US$8.50 per barrel, down from US$8.50–US$9.20, attributing the revision to “robust operational performance, portfolio efficiency and tight cost control.”
The updated metrics come as Woodside accelerates a wave of global growth through new developments and strategic acquisitions, positioning the company as one of the world’s top LNG producers. Key projects include the US$12.5 billion (A$19.05 billion) Scarborough development in Western Australia and the Louisiana LNG facility.
Despite progress, the company announced it will exit the proposed H2OK liquid hydrogen project in Oklahoma, citing persistent challenges within the lower-carbon hydrogen sector. As a result, Woodside expects to recognise a pre-tax impairment of approximately US$140 million (US$110 million post-tax) in its half-year results.