Woodside shares slump 3% after reserves update as oil prices drop
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The news: Woodside Energy shares fell more than 3% in morning trade after the oil and gas giant reported lower proved and proved-plus-probable reserves in 2024.
The numbers: The company’s proved reserves were 1,975.7 million barrels of oil equivalent (MMboe), down from 2,450 MMboe a year earlier. Proved-plus-probable reserves fell to 3,092.2 MMboe from 3,757 MMboe in 2023.
The divestment of 25.1% of Woodside’s stake in the Scarborough field reduced proved reserves by 323 MMboe and proved-plus-probable reserves by 504.7 MMboe.
Excluding divestments and production, Woodside’s proved reserves increased by 54.9 MMboe, while proved-plus-probable reserves rose by 46.2 MMboe.
Woodside shares were down 3.3% to $23.75 by 11am AEDT, having retreated more than 20% over the last 12 months. The broader energy sector was also lower after crude prices dropped overnight.
The context: Woodside CEO Meg O'Neill said the reserves update reflected the strength of the company's portfolio. Excluding the impact of divestments and production, reserves additions were driven by strong performance at the Sangomar oil project in Senegal, the company said. They were also boosted by successful final investment decisions of projects in Australia and the US, and performance-based revisions across the portfolio.
The source: ASX announcement
