Woodside Q1 2026 Shows Strong Reliability and Project Progress

Operational Reliability Weathering Cyclone Impact

Woodside Energy (ASX:WDS, NYSE:WDS) maintained exceptional operational reliability across its portfolio in Q1 2026 despite disruptions from Severe Tropical Cyclones Mitchell and Narelle. Key assets like Sangomar and Shenzi posted reliability rates above 99%, with Pluto LNG hitting 100% reliability for the third straight quarter. However, production volumes fell 8% quarter-on-quarter to 45.2 million barrels of oil equivalent (MMboe), primarily due to weather-related shutdowns impacting Western Australian operations.

This resilience was underpinned by effective cyclone response protocols that safeguarded personnel and assets, enabling a swift restart of facilities. The North West Shelf Project, another cornerstone asset, delivered 99.7% reliability, though its production was partially curtailed by the cyclones, with a return to normal expected by late April.

Price Gains Offset Volume Decline

Woodside’s average realised price rose 11% from the prior quarter to US$63 per barrel of oil equivalent, driven by elevated spot market prices for LNG and oil. This price increase partially offset the volume decline, supporting operating revenue growth to US$3.26 billion, a 7% increase over Q4 2025. The company noted that further benefits from higher spot prices will flow through in coming quarters due to lagged contract pricing, particularly for LNG.

Hedging programs remain robust, with 30 MMboe of 2026 oil production hedged at an average price of $74.23 per barrel, and Corpus Christi LNG volumes largely hedged through commodity swaps. The quarter’s hedging activities contributed an estimated pre-tax profit of US$32 million.

Major Projects Progressing on Schedule and Budget

The Scarborough Energy Project, Woodside’s marquee LNG expansion, is 96% complete and on track for its first LNG cargo in Q4 2026. The project’s Floating Production Unit (FPU) completed hook-up and began topside commissioning after arriving in Australia. Meanwhile, the Pluto LNG Train 2 project continues construction and commissioning, with preparations underway for a major turnaround scheduled for May 2026.

Beaumont New Ammonia marked a milestone with its first ammonia cargo in February and transitioned to full operational control in March following handover from OCI Global. However, production of lower-carbon ammonia faces delays due to third-party supplier issues, now targeting 2027 for ramp-up.

Woodside also advanced the Trion oil project, reaching 56% completion with drilling of 24 subsea wells underway and topside modules installed. Trion targets first oil in 2028. The Louisiana LNG project is 24% complete, with Train 1 at 31%, progressing structural steel erection and piping. The project remains on budget, aiming for first LNG in 2029.

Preparations continue for the asset swap with Chevron, targeted for the second half of 2026, involving key Western Australian assets including the North West Shelf and Julimar-Brunello fields. The drilling and completion of Julimar Development Phase 3 wells was achieved this quarter, advancing the swap conditions.

Leadership and Strategic Focus on Cost Discipline

Liz Westcott formally assumed the role of CEO and Managing Director in March 2026, following her tenure as Acting CEO since December 2025. Westcott has emphasised operational excellence, disciplined execution, and sustainable shareholder value creation. She announced a structured business review aimed at streamlining decision-making, reducing complexity, and improving accountability, all while maintaining safety and reliability.

This leadership transition builds on Woodside’s recent strategic continuity, as highlighted in the CEO appointment and strategic continuity. Cost discipline remains a priority amid ongoing capital expenditure, which rose 4% quarter-on-quarter to US$853 million, including US$470 million in acquisitions.

Exploration and Sustainability Initiatives

Exploration activities included the successful Bandit-1 well in the Gulf of America, which encountered high-quality oil-bearing sands. Woodside was also awarded multiple new leases in the Gulf, expanding its exploration footprint. These efforts align with the company’s disciplined exploration strategy and growth ambitions.

On sustainability, Woodside published its 2025 climate-related disclosures and held a sustainability briefing in March 2026. The company released its 2025 Social Contribution Report, underscoring its commitment to better social and economic outcomes for host communities.

Woodside’s full-year 2026 guidance remains unchanged, with production volumes forecast between 172 and 186 MMboe and capital expenditure expected between US$4 billion and US$4.5 billion. The company’s strong liquidity position, with approximately US$8.3 billion available, supports ongoing project delivery and operational resilience.