TIDMWDS
RNS Number : 3783T
Woodside Energy Group Ltd
22 July 2022
Woodside Energy Group Ltd
ACN 004 898 962
Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T +61 8 9348 4000
www.woodside.com
ASX: WDS
NYSE: WDS
LSE: WDS
Announcement
Friday, 22 July 2022
2022 PRODUCTION GUIDANCE CLARIFICATION
Woodside provides the following information in relation to its
Second Quarter 2022 Report, changes to conversion factors, and the
impact on reported production and full-year 2022 production
guidance.
Woodside confirms that there is no change to the physical
product volumes underpinning the full-year 2022 production guidance
issued by Woodside in January 2022, which did not include BHP
Petroleum (BHPP) production.[1] There is also no impact on revenue
as a result of the change in conversion factors announced in the
Second Quarter 2022 Report.
The reduction in the contribution of the pre-merger Woodside
assets to full-year 2022 production guidance is solely due to the
change in conversion factors. A reconciliation is provided
below.
Consistent with common industry practice, Woodside now applies a
single volumetric conversion factor when calculating barrels of oil
equivalent (boe) for gas products. This consistent methodology
applies across the combined portfolio reflecting Woodside's
increased scale and diversified product mix following the
merger.
Reconciliation of January 2022 and Second Quarter 2022 Report
production guidance
The full-year 2022 production guidance included in the Second
Quarter 2022 Report of 145 - 153 million barrels of oil equivalent
(MMboe) combines:
-- 2022 production guidance for the pre-merger Woodside assets
-- 2022 production guidance for the BHPP assets from 1 June 2022, and
-- alignment of the conversion factors for the reporting of boe for all gas products.
The comparison of Woodside's production guidance between January
2022 and in the Second Quarter 2022 Report is:
Production guidance issued January 2022 Production guidance issued Q2 2022
(MMboe) (MMboe)
--------------------------------- ---------------------------------------- -----------------------------------------
Relevant conversion factor Based on product-specific energy Based on volumetric conversion factor of
conversion factors for gas 5,700 scf to 1 boe
LNG 71 - 74 67 - 70
Pipeline gas 4 - 5 4 - 5
Crude and condensate 16 - 18 16 - 18
Natural gas liquids (NGLs) 0.5 0.6
--------------------------------- ---------------------------------------- -----------------------------------------
Woodside excluding BHPP 92 - 98 88 - 94
BHPP contribution (from 1 June) - 57 - 59
Production range 92 - 98 145 - 153
================================= ======================================== =========================================
Numbers are subject to minor rounding differences
LNG and pipeline gas for production and reserves will be
reported in boe and calculated from a volumetric basis with a
conversion factor of 5,700 standard cubic feet (scf) per boe. BHPP
previously used 6,000 scf per boe. NGLs will be reported on a
liquid volume basis.
The change has not impacted the previously reported production
volumes of LNG in tonnes in the First Quarter 2022 Report. The
Second Quarter 2022 Report has restated First Quarter 2022 realised
price in boe to reflect the change in conversion factors.
Contacts:
INVESTORS MEDIA
Australia & Europe Christine Forster
| Damien Gare M: +61 484 112 469
W: +61 8 9348 4421 E: christine.forster@woodside.com
M: +61 417 111 697
Americas | Matthew
Turnbull
M: +1 (713) 448-0956
E: investor@woodside.com
This announcement was approved and authorised for release by
Woodside's Disclosure Committee.
Forward-looking statements
This announcement contains forward-looking statements with
respect to Woodside's business and operations, market conditions,
results of operations and financial condition which reflect
Woodside's views held as at the date of this announcement. All
statements, other than statements of historical or present facts,
are forward-looking statements and generally may be identified by
the use of forward-looking words such as 'guidance', 'foresee',
'likely', 'potential', 'anticipate', 'believe', 'aim', 'estimate',
'expect', 'intend', 'may', 'target', 'plan', 'forecast', 'project',
'schedule', 'will', 'should', 'seek' and other similar words or
expressions. These forward-looking statements include, but are not
limited to, statements about our expectations for full-year 2022
production results. Forward-looking statements are not guarantees
of future performance and are subject to inherent known and unknown
risks, uncertainties, assumptions and other factors, many of which
are beyond the control of Woodside, its related bodies corporate
and their respective officers, directors, employees, advisers or
representatives. Important factors that could cause actual results
to differ materially from those in the forward-looking statements
include, but are not limited to: fluctuations in commodity prices;
the impact of armed conflict and political instability (such as the
ongoing conflict in Ukraine) on economic activity and oil and gas
supply and demand; operating hazards, natural disasters, severe
storms and other adverse weather conditions; and a shortage of
skilled labor and construction materials, equipment and supplies.
Details of the key risks relating to Woodside and its business can
be found in the "Risk" section of Woodside's most recent Annual
Report which was released to the Australian Securities Exchange on
17 February 2022 and Woodside's filings with the U.S. Securities
and Exchange Commission. You should review and have regard to these
risks when considering the information contained in this
announcement.
Investors are strongly cautioned not to place undue reliance on
any forward-looking statements. Actual results or performance may
vary materially from those expressed in, or implied by, any
forward-looking statements. All information included in this
announcement, including any forward-looking statements, speak only
as of the date of this announcement and, except as required by law
or regulation, Woodside does not undertake to update or revise any
information or forward-looking statements contained in this
announcement, whether as a result of new information, future
events, or otherwise.
[1] Refer to Woodside's Fourth Quarter 2021 Report, released to
the ASX on 20 January 2022.
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END
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