WOODSIDE ENERGY GROUP LIMITED (WDS)
Share Price Analysis and Chart

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26/08/2026

3

Neutral

$30.00

-6.25%

On another look, UBS raises the target to $30 from $29.60.

Management has a new target for US$350m in annualised cost savings from 2028 across operating costs, corporate overheads and sustaining capex.

New CEO Liz Westcott will unveil a new capital strategy at the November Capital Markets Day, combining capital management and allocation into a single framework. This is viewed positively given Woodside's ROACE has averaged just 7.2% over the past three years.

While near-term oil and LNG price risks are to the upside, UBS highlights modest FCF and dividend yields, heavy capital demands and uncertainty around the new capital strategy, and retains its Neutral rating.

First take: first-half revenue increased 14% to US$7.38bn and EBITDA exceeded consensus by almost 6%, although net profit was below UBS' forecast.

The US57c dividend modestly beat expectations and represented an 80% payout. Production and capital expenditure guidance were unchanged.

Management introduced a US$350m cost-reduction target from 2028 but provided limited supporting detail, the analysts comment.

Woodside has also abandoned its previous US$5bn new-energy investment target and retired its Scope 3 investment and emissions-abatement targets.

A further sell-down of Louisiana LNG remains important, UBS adds. Neutral with a $30 target.

FORECAST
UBS forecasts a full year FY26 dividend of 193.34 cents and EPS of 239.86 cents.
UBS forecasts a full year FY27 dividend of 170.08 cents and EPS of 212.24 cents.

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27/08/2026

2

Overweight

$33.70

5.31%

Jarden maintains its Overweight rating for Woodside Energy with its target price increased to $33.70 from $32.30 following a positive first-half financial result with EBITDA printing 4% ahead of consensus.

Operational performance was highlighted by a strategic review resulting in the company walking away from its 5mtpa Scope 3 emissions reduction target, US$5bn new energy capital expenditure targets, and the three-pillar capital allocation framework.

The broker indicates that growth projects remain firmly on track with the Scarborough first liquefied natural gas targeted for the fourth quarter of 2026.

The analyst highlights that target price upside is driven by a new US$350m cost-out program and Bass Strait drilling activity, offset by lower Beaumont risk-weighting.