WOODSIDE ENERGY GROUP LTD

Start of Transcript

**Vanessa Martin:**Good morning, everyone. Welcome to Woodside’s 2026 Capital Markets Day in Sydney.

I’m Vanessa Martin, Woodside’s Vice President of Investor Relations.

A very warm welcome to everybody in the room and every one of those joining us online by webcast.

Today, we are meeting on the land of the Gadigal People of the Eora Nation. We acknowledge their continued connection to these beautiful lands and waters.

We pay our respects to Gadigal elders past and present, and honour their enduring traditions and culture.

So a few housekeeping and disclosure points. In an emergency, please leave all your belongings behind and please follow the instructions of hotel staff. Could you also please silence your mobile phones for the presentation.

And also read the disclaimer, assumptions and other important information on slides 2, 3 and 4 of the presentation pack. A reminder that all dollar figures in the presentation are in US dollars unless otherwise noted.

Slide 60 in the appendix of the pack also provides detail on key assumptions relating to the information we are presenting today.

This morning we will provide a detailed overview of how Woodside plans to deliver long-term shareholder value.

Woodside has made great, strong progress in our business and in executing our projects since our last Capital Markets Day, and of course we have welcomed Liz Westcott’s appointment as our new Chief Executive Officer and Managing Director.

Today, Liz will highlight the strong foundations of Woodside’s business, the enduring global demand for our products, and our actions underway to sharpen execution and maximise value for our shareholders.

You’ll also hear from two members of our Executive Leadership Team: Chief Financial Officer Graham Tiver, and Chief Commercial Officer Mark Abbotsford.

Graham will outline our new capital strategy and new shareholder distributions framework, while Mark will explain how we are shaping a more resilient and competitive portfolio to further strengthen returns.

Following Liz’s closing remarks, we’ll open the floor to questions, so could you please hold your questions until then.

We also invite you to join Liz, Graham, Mark and the other members of the Woodside leadership team who are here today for lunch following the presentation.

Today’s slide presentation is available to download from the Woodside website.

And with that, please join me in welcoming Liz to the stage.

**Liz Westcott:**Thanks Vanessa, and a warm welcome to everyone joining us in person and online.

Thank you for your interest and engagement as we position Woodside to meet growing energy demand and deliver long-term value.

Since becoming CEO in March, I’ve had the privilege of meeting with our investors, customers and governments around the world. My discussions have reinforced two things.

First, Woodside is a highly regarded company, with a strong track record of safe and reliable production and consistent shareholder returns. Investors trust us to deliver.

Second, Woodside has significant potential to unlock even more value. By leveraging our proven strengths and applying even greater focus towards long-term profitability and resilience.

As we look ahead to the significant capital expected to be generated over the next decade, I believe we must be diligent and disciplined in how we allocate that capital and ensuring it creates shareholder value.

Today, I will set out the next iteration of our strategy to realise this potential and deliver greater value for our investors.

Slide 7 sets out three key elements of this morning’s presentation.

First, our strong foundations for growth and value. Our high-quality portfolio and competitive advantages reflect decades of proven project delivery and reliable operations.

Near-term volatility is real, but long-term energy demand is robust. We are positioned to deliver value through the cycle.

Second, how we will sharpen execution to strengthen our long-term profitability and resilience.

We will demonstrate where we have raised the bar on efficiency, execution and capital allocation, to support long-term shareholder value.

Third, how we maximise value by making our assets and capital work harder to deliver strong returns and value-accretive growth.

Recent announcements show we will make disciplined decisions to improve portfolio value and performance – even when they are not easy.

Slide 8 shows the holistic set of actions underway to lift performance and strengthen shareholder returns.

This begins with the safe delivery of our Scarborough, Trion and Louisiana LNG growth projects to schedule and budget.

We expect to deliver sales of approximately 280 million barrels of oil equivalent by 2032, and generate more than $40 billion in adjusted operating cash flow over the same period.

We are converting these strong foundations into higher returns and long-term value through specific actions.

These include resetting our cost base, targeting $400 million in annual structural savings from 2028; applying a single capital framework under which every investment opportunity competes equally for capital; introducing a new shareholder distributions policy that aligns dividends more closely with underlying performance, with flexibility for additional returns; setting a new 2035 net equity Scope 1 and 2 greenhouse gas emissions intensity target; further strengthening our marketing, trading and shipping capabilities to unlock more portfolio value; and actively shaping our portfolio to focus our investment where returns are highest.

Together, these measuresre-calibrate our business to drive a significant uplift in performance and reflects our unrelenting focus towards achieving our new portfolio ROACE target of 12 to 15 percent by themid-2030s.

This is a bold and clear target for the organisation to deliver for our shareholders, and we will demonstrate today how we intend to achieve that.

Delivering long-term shareholder value builds on Woodside’s proven, distinctive strengths.

From our beginnings in Australia more than 70 years ago, we now operate across three continents, with established customers in major energy markets.

Our 2022 merger with BHP’s petroleum business delivered a step change in production and sales. It added quality assets in Bass Strait, Mexico and the Gulf of America to our Western Australian LNG, pipeline gas and offshore oil business.

With approximately 19 million tonnes per annum of operated LNG capacity, we are one of the world’s largest independent LNG companies, contributing just under 5 percent of 2025 global supply.

Our reliable, cost-competitive operations generate strong margins that support value-accretive investment and consistent shareholder returns.

Since 2022 we have returned nearly $13 billion in dividends to shareholders.

Together, the quality, scale and geographic diversity of our portfolio position us to meet growing global demand for reliable and affordable energy.

Slide 11 shows our Australian business, built over more than 40 years of operations.

The large-scale, long-life North West Shelf and Pluto LNG assets anchor this business, providing resilient production and cash flow.

Both continue to produce with outstanding consistency, achieving reliability above 99 percent in the most recent quarter.

They have established Woodside as a significant supplier to Asia’s major economies, with enduring customer relationships across the region.

Our LNG operations are complemented by domestic gas production that is vital to Australia’s economy, and oil assets close to regional markets.

The BHP merger added Bass Strait gas and liquids production, and four months ago we assumed operatorship of these established assets.

Our existing footprint and quality infrastructure create a strong platform for future resource development and value creation.

Our Scarborough Energy Project will add long-term production and cash flow as legacy projects come off plateau.

Slide 12 shows our high-performing international portfolio and its significant growth potential.

Our oil assets in the Gulf of America and Senegal include Shenzi, Atlantis, Mad Dog and Sangomar.

Sangomar reached full production within nine weeks ofstart-up in 2024 and exceeded targets by sustaining near-nameplate production well into this year.

Two major projects will drive a step change in growth and contribute to our ROACE target.

Trion is targeting first oil in 2028, adding a new source of long-life oil production.

Louisiana LNG, targeting first LNG in 2029, creates a major US production platform and Atlantic Basin supply option.

Together, these projects are expected to almost triple our international sales volumes through to 2032.

We have built competitive advantages, over decades of operating experience, that underpin our performance and position us for sustained value creation.

First, our global portfolio of high-quality assets provides a resilient foundation for growth and cash generation. It combines long-life, low-decline LNG and gas assets with high-return oil projects. Our current average breakeven price of $30 supports resilience through changing market conditions.

Second, operational excellence, highlighted by our exceptional average operated LNG reliability of 98 per cent.

Third, project delivery. Our decades of LNG and deepwater oil execution experience is critical as we execute projects that will more than double our operated LNG capacity over the next five years.

Fourth, trusted customer relationships. More than 7,700 LNG cargoes delivered since 1989 have established us as a supplier of choice in major energy markets.

Finally, financial discipline. Our investment-grade credit rating allows us to invest in growth while providing returns to shareholders.

Together, these advantages differentiate Woodside and underpin our ability to deliver shareholder value and uplift ROACE.

The strategic priorities I set when I became CEO in March will guide how we build on these strengths.

As our growth projects move from execution to operations, our focus is on disciplined delivery of value.

Operational excellence means safe, reliable operations, greater efficiency and an enduring commitment to social and environmental performance.

Disciplined execution means delivering projects to schedule and budget, transitioning them into high-performing operations and optimising value through enhanced marketing and trading.

Sustained value creation means actively managing our portfolio and directing capital to the highest-value opportunities.

We are enabling these priorities through a sustained shift in how we work, with a focus on simplifying the business and improving cost-competitiveness.

This includes building a global ‘One Team’ culture with stronger accountability and adaptability, embedding digital and AI innovation where it creates value, and developing workforce capabilities for an evolving energy landscape.

Operational excellence is fundamental to maximising value from our base business.

Slide 15 shows how a focus on sustainability is embedded through our business to support reliable operations and project delivery, reducing risk, protecting cash flow.

Safe, reliable operations and lower operational greenhouse gas emissions can increase plant availability, reduce unit costs and enhance asset value.

Community engagement and effective management of environmental and cultural heritage risks support regulatory approvals and continued access to resources.

Strong customer and stakeholder relationships help us understand changing expectations, improving flexibility across transition scenarios.

Together, these actions protect our licence to operate and support resilient cash flows, higher returns on invested capital and future growth opportunities.

Slide 16 shows the link between operating performance, sustainability and value in practice.

The left-hand chart shows the consistent reliability of our operated LNG assets in Western Australia.

Reliability of at least 98 percent for five consecutive years puts us in the top quartile of industry peers.

This reflects proactive management of potential risks to safe, environmentally responsible operations.

Safety remains our highest priority, and strong process safety performance is fundamental to how we operate.

Following a trend of improved performance over 2024 and 2025, we have experienced three process safety incidents so far in 2026. That is three too many.

While none of these process safety incidents caused injury or lasting environmental impact, they reinforce the need to apply lessons learned and strengthen our controls.

We are also demonstrating global industry leadership in monitoring and managing methane emissions.

While our methane emissions [Clarification: intensity] are already at around 0.1 percent, well below industry benchmarks, we are identifying opportunities to reduce them further.

Proactive monitoring, including offshore drone surveys and a helicopter laser survey over the Karratha Gas Plant, has identified and addressed potential sources of methane leakage.

Slide 17 shows the major projects driving our current phase of growth and cash generation.

Our delivery of each of these projects to budget and schedule reflects Woodside’s proven track record of disciplined project execution.

Our Scarborough Energy Project offshore Western Australia is 99 percent complete and on track for first LNG cargo this year.

We’ve made good progress on commissioning andstart-up activities offshore, and initial supply of Scarborough gas has entered the warm end of Pluto Train 2 ahead of liquefaction.

Scarborough offers large-scale, cost-competitive supply close to major Asian markets. With reservoir carbon dioxide below 0.1 percent, it is one of the lowest carbon-intensity LNG sources for delivery into North Asia.

Our Trion Project offshore Mexico is 71 percent complete. The floating production unit is nearing completion with integration activities underway in the shipyard. In Mexico, we have drilled 10 of the project’s 24 wells and begun offshore installation works.

Louisiana LNG is 32 percent complete, with construction underway across all three foundation trains.

This transformative project establishes Woodside as a multi-basin LNG supplier, complementing our established Australian LNG business with a major production hub on the US Gulf Coast.

Slide 18 shows how these projects lift sales volumes and sustain cash generation into the 2030s.

Annual sales volumes are projected to rise by more than 30% to approximately 280 million barrels of oil equivalent once Scarborough, Trion and Louisiana LNG are all producing.

Adjusted operating cash flow is expected to be around $7 billion per year through to 2032.

Some of you may remember the case we showed last year included Louisiana LNG expansion, contributing to sales volume growth to more than 300 million barrels of oil equivalent per year and $9 billion net operating cash flow.

This year we have deliberately sought to make the outlook more clearly anchored in the portfolio investors can see today, with future opportunities competing for capital.

Strong cash generation gives us choices on where to invest and creates options for long-term shareholder value. These include additional distributions, targeted improvements to an already strong balance sheet, or disciplined investment in value-accretive growth.

Slide 19 sets out our existing growth options that leverage established assets, infrastructure and capabilities.

In Australia and the Gulf of America, infill wells and tiebacks can add production without a new supply hub. In Bass Strait, we are evaluating a four-well opportunity that could deliver substantial new volumes to Australia’s east coast domestic gas market.

In Senegal, a potential second phase of Sangomar could backfill declining production, leveraging an established facility with exceptional reliability.

For Browse to North West Shelf, we are progressing regulatory approvals, technical definition, and contractor and commercial agreements.

Combining our interests in Browse upstream resource and North West Shelf infrastructure offers a capital-efficient way to create value while delivering long-term economic benefits for Western Australia and Australia.

Louisiana LNG provides scope for value-accretive expansion, with potential trains 4 and 5 offering 11.1 million tonnes per annum of fully permitted capacity.

As we assess these existing portfolio growth options alongside other opportunities, they must each compete under the new capital framework.

Let me close this section with three key messages.

First, our proven performance has built enduring competitive advantages that set Woodside apart and position us to deliver through the cycle.

Second, our base business and approved growth projects are expected to generate more than $40 billion in adjusted operating cash flow by 2032.

Third, this cash generation, our global footprint and high-quality assets give us options to sustain growth and value into the 2030s and beyond.

Our clear ambition is converting these strengths into greater shareholder value.

Let’s now watch a short video that highlights our major projects in execution.