The Woodside Energy Group Ltd (ASX: WDS) share price is down 1.4% in morning trade.
The S&P/ASX 200 Index (ASX: XJO) oil and gas stock is facing headwinds on Friday from a drop in crude oil prices. Both Brent crude and WTI declined by more than 2% overnight on global recession fears.
ASX 200 investors will also be mulling over Woodside's first quarter results for the three months ending 31 March (Q1 2023).
Here are the highlights.
Woodside share price dips alongside production
- Quarterly production of 46.8 million barrels of oil equivalent (MMboe), up 122% year on year, down 9% from Q4 2022
- Sales volume of 50.4 MMboe, up 112% from Q1 2022, down 4% from Q4 2022
- Revenue of $4.33 billion, up 81% year on year, down 16% from Q4 2022
- Portfolio average realised price of $85 per barrel of oil equivalent
What else happened during the quarter?
Woodside noted that the 9% quarter-on-quarter decline in production stemmed from a planned turnaround and maintenance activities.
On the gas front, the ASX 200 energy stock achieved LNG reliability of 99.9% at Pluto LNG and 98.3% at its North West Shelf Project. It sold 32% of the produced LNG at prices linked to gas hub indices.
As for major projects with a potential impact on the Woodside share price, the company reported that its Scarborough and Pluto Train 2 projects in Western Australia are 30% complete. Manufacturing of the export trunkline is 86% complete, with the first concrete poured for Pluto Train 2.
The drilling program for the Sangomar field in Senegal continued over the three months. Ten of 23 wells are now complete. Sangomar contains both oil and gas and is located approximately 100 kilometres south of Dakar.
What did management say?
Commenting on the results that have yet to lift the Woodside share price today, CEO Meg O'Neill said:
Our operations teams continued to achieve strong outcomes. Production was 122% higher than the corresponding quarter last year, demonstrating the significant value generated by the merger with BHP's petroleum business…
We are making good progress on all major growth projects in Australia and globally…
Mad Dog Phase 2 in the US Gulf of Mexico achieved a significant milestone with first production in April 2023. Mad Dog is one of several low cost producing assets for Woodside in the region with significant expansion potential and in close proximity to infrastructure and attractive markets.
What's next?
Looking at what might impact the Woodside share price in the months ahead, the company noted that despite a slip in production from the prior quarter, full-year production guidance remained unchanged.
With drilling progressing at Sangomar, the ASX 200 energy stock is targeting first oil from the project later in 2023.
In the new energy business, Woodside is continuing to progress activities and approvals for its H2OK project, located in the US state of Oklahoma. The company aims to achieve final investment decision (FID) readiness for the liquid hydrogen production facility this year.
Woodside's half-year report 2023 will be released on 22 August.
Woodside share price snapshot
As you can see on the chart below, despite today's dip, the Woodside share price remains up a slender 1% over the past 12 months.
