At A$36.602 per share, Woodside Energy Group (ASX: WDS) appears reasonably valued based on its existing operations and near-term production growth. Woodside reports in US dollars and recorded 2025 operating revenue of US$12.9 billion, underlying profit of US$2.65 billion and earnings of US$1.43 per share. Using an assumed exchange rate of US$0.70 per Australian dollar gives earnings of approximately A$2.04 per share and a P/E ratio of around 18 times.
Woodside produced a record 198.8 million barrels of oil equivalent and generated US$1.9 billion of free cash flow during 2025. Its full-year dividend of US$1.12 per share equates to approximately A$1.60 at the same exchange rate, representing a fully franked yield of around 4.4% at the assessed price.
The valuation also allows for Scarborough and Pluto Train 2 beginning production as planned, with the project 96% complete and targeting its first LNG cargo in the fourth quarter of 2026. However, net debt had increased to approximately US$9.3 billion by 31 March 2026 as Woodside continued investing in Scarborough, Trion and Louisiana LNG.
Importantly, this assessment is based mainly on Woodside’s existing assets and a reasonable contribution from projects already under construction. It does not assume that all future LNG projects deliver their full expected value. Oil and gas prices, construction costs, project delays, debt and regulatory risks may materially affect the result.
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