Woodside Energy Group (WDS) Status Update summary

Strategic direction and LNG portfolio

• Focuses on a diversified, resilient, and lower carbon portfolio, leveraging 35 years of LNG experience and operational excellence across the Atlantic and Pacific basins.

• Recent acquisitions of Tellurian/Driftwood LNG and OCI's Clean Ammonia Project expand Atlantic LNG and lower carbon ammonia exposure, with Driftwood fully permitted for 27.6 Mtpa and unaffected by U.S. regulatory pauses.

• Major projects like Sangomar (Senegal, first oil June 2024), Scarborough (Australia, first LNG 2026), and Trion (Mexico, first oil 2028) are progressing.

• Portfolio is 70% gas and 30% liquids, supporting energy transition and market flexibility.

• Organic growth opportunities include Browse, Sunrise, and Calypso projects.

Market outlook and demand drivers

• Global LNG demand is forecast to grow by 50% by 2033, driven by rising GDP per capita, population growth, decarbonisation goals, and coal-to-gas switching, especially in Asia.

• Price-sensitive buyers in South and Southeast Asia are expected to absorb significant volumes, with flexibility in contract structures to meet diverse needs.

• Long-term contracts remain prevalent, with Asian and European buyers seeking security of supply and diversification.

• US supply and Asian demand are expected to lead future LNG growth, with new supply absorbed by resilient long-term pricing.

• Recent contracts with KOGAS, CPC Taiwan, JERA, and LNG Japan reinforce demand and strategic partnerships.

Financial strength and capital management

• Maintains a strong balance sheet, targeting a gearing range of 10%-20% and investment-grade credit rating, with gearing at 13.3%.

• Disciplined capital allocation framework guides investments, targeting IRR >15% for oil, >12% for gas/LNG, and >10% for new energy.

• Returned nearly $9 billion in dividends since the BHP merger, with a payout ratio at the top end of the 50%-80% range and interim dividend of $1.3 billion (7.3% yield).

• H1 2024 underlying NPAT was $1.63 billion, with $8.5 billion liquidity and a cash margin of ~80%.

• Recent $2 billion U.S. bond offering was four times oversubscribed, supporting future growth.