Woodside Energy Group Ltd Q4 FY2024 earnings call

• Leveraged operational excellence to deliver strong financial results, including a fully franked dividend of U.S. 122 cents per share. - Made progress on growth projects: Sangomar had exceptional early production, Scarborough was 80% complete with first LNG cargo expected in 2026, Trion was on track for first oil in 2028, and Beaumont New Ammonia was 83% complete with first ammonia production targeted for the second half of 2025. - Focused on safety improvement despite increased hours worked in 2024, with no permanent injuries or Tier 1 process safety events, but remained vigilant after a tragic death at the Beaumont New Ammonia project. - Demonstrated sustainability efforts by reducing net equity Scope 1 and 2 emissions by 14% below the starting base and making $35.4 million AUD in social investments.

In 2024, Woodside achieved record annual production of 194 million barrels of oil equivalent from Sangomar, which was at the top end of the full year guidance range. Unit production cost was reduced to $8.10 per barrel of oil equivalent. Net profit after tax was $3.6 billion, a significant increase from 2023, and underlying net profit after tax was $2.9 billion. The company's base business performed strongly with consistent high reliability and cost control across global assets.

• Expected a 4% to 5% compound annual growth rate for portfolio sales from 2024 to 2030. - Anticipated significant free cash flow once Sangomar, Beaumont New Ammonia, Scarborough, Trion, and Louisiana LNG come online. - Targeted first ammonia production from Beaumont New Ammonia in the second half of 2025, with lower carbon ammonia expected in the second half of 2026. - Aimed to be FID ready for Louisiana LNG from the first quarter of 2024.

• Safety risk: Tragic death at the Beaumont New Ammonia project highlighted the need for continuous safety improvement. - Approval delay risk: Lengthy approval process for projects like Northwest Shelf life extension caused uncertainty in business decisions. - Market volatility risk: Impact on LNG pricing and demand, though LNG was seen as crucial in the energy transition.

Q: About decommissioning costs moving forward A: Explained approval delays and focus on cleaning up legacy assets like Stybarrow, Enfield, etc.

Q: On Beaumont New Ammonia progress A: Stated it's going well and expects to meet or exceed 10% IRR target Q: On Louisiana LNG sell-down A: Said they're well advanced, expecting a premium similar to U.S. peers like Cheniere Q: On Sangomar Phase 2 A: Discussed need for 12-24 months of data to inform Phase 2 development Q: On U.S. oil projects A: Addressed reserve adjustments at Mad Dog and continued focus on U.S. Gulf portfolio Q: On Northwest Shelf approval A: Expressed frustration with lengthy approval process and impact on business decisions Q: On Louisiana LNG FID A: Stated they're FID ready and expect to have partners close to signing up Q: On urea pricing derivative A: Explained embedded derivative revaluation and update in quarterly reports Q: On climate ambition A: Stated no material change, focus on value from acquisitions like Beaumont New Ammonia Q: On equity performance A: Highlighted quality of assets and future free cash flow potential Q: On abandonment liabilities A: Explained annual update process for provisions and differentiation between P&L impact and cash outflow Q: On Scarborough schedule A: Outlined progress on FPU fabrication, D&C, and plant construction with first LNG in H2 2026 Q: On dividend uncertainty A: Explained accounting treatment of urea contract and commitment to update embedded derivative in quarterly reports