Woodside Energy Group (WDS) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of Tellurian and Driftwood LNG provides a fully permitted, scalable 27.6 Mtpa US LNG project, expanding presence in the Atlantic Basin and complementing Pacific assets.

• Enables value optimization and arbitrage across Atlantic and Pacific LNG markets, leveraging competitive cost-of-supply sources.

• Leverages LNG development, operations, and marketing expertise to unlock value and optimize the project.

• Supports energy transition strategy and decarbonization, with advanced technology and emissions-reducing design features to lower Scope 1 and 2 intensity.

• Strengthens global LNG positioning, supporting long-term growth, cash generation, and shareholder returns.

Financial terms and conditions

• All-cash acquisition of Tellurian for $1 per share, total equity consideration of ~$900 million, and implied enterprise value of $1.2 billion.

• Woodside to provide up to $230 million secured loan to Tellurian for interim project funding prior to deal completion.

• Over $1 billion already spent on engineering and pre-FID civil works, with site construction underway.

• Development cost for phases I and II estimated at $900–$960 per ton of capacity, excluding pipeline costs.

• Transaction scope includes Driftwood LNG, proposed pipeline, and an additional 780-acre Site II for future expansion.

Synergies and expected cost savings

• Leverages decades of LNG development, operations, and marketing expertise to unlock value and optimize the project.

• Integrated LNG value chain approach aims to increase margins versus typical US tolling models.

• Phased development allows for cost management, flexibility, and targeted equity sell-down of ~50% to bring in partners.

• Completed groundwork and relationship with Bechtel reduce EPC timeline and cost risks.

• Expands relationship with Bechtel, the EPC contractor for both Driftwood LNG and Pluto Train 2.