Woodside Energy Group Ltd

Thank you for standing by and welcome to the Woodside Energy Group Limited Fall Year 2025 results. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Liz Westcott, Acting Chief Executive Officer. Please go ahead.

Good morning and welcome to Woodside's 2025 full year results presentation. We are presenting from Sydney and I would like to begin by acknowledging the traditional custodians of this land, the Gadigal people of the Eora Nation and pay my respects to their elders past and present. Today I'm joined on the call by our Chief Financial Officer, Graeme Tiver. Together we will provide an overview of our full year 2025 performance before opening up to Q&A. Please take time to read the disclaimers, assumptions and other important information. And I'd like to remind you that all dollar figures in today's presentation are in US dollars, unless otherwise indicated. I am very pleased to present an outstanding set of full year results today, which highlight the disciplined execution of our strategy throughout 2025. We delivered on our commitments, leveraging our track record of operational excellence, world-class project execution and financial discipline to reward our shareholders today while positioning Woodside for future value and growth. In 2025, we achieved record annual production of 198.8 million barrels of oil equivalent, exceeding our full year guidance range. This was driven by the exceptional performance at Sangamah and world-class reliability across our operating portfolio. We progressed major cash generative growth projects to budget and schedule, including excellent progress on our Scarborough energy project, which was 94% complete at year end and remains on track for first LNG cargo in the fourth quarter of 2026. We recorded strong underlying net profit after tax of $2.6 billion, where record production offset lower realized prices when compared to full year 2024 underlying net profit after tax. Based on this, I'm pleased to report our board has determined a final dividend of 59 US cents per share. This brings our total fully franked full year dividend to 112 US cents per share. This represents a payout ratio of 80% of underlying NPAT, which is once again at the top end of our range. Additionally, in a testament to the strength of our underlying business during a period of increased capital expenditure and softer prices, we generated free cash flow of $1.9 billion. We achieved this while continuing to invest in the next phase of value accretive growth. We demonstrated strong sustainability performance, achieving our 2025 target of a 15% reduction in net equity Scope 1 and 2 greenhouse gas emissions below our starting base. Turning to slide 6. As outlined at our Capital Markets Day in November, we are delivering our strategy to thrive through the energy transition. Our strategy and our approach remains unchanged. Our priorities are clear and we remain firmly focused on disciplined execution to deliver long-term value. We are doing this by maximising performance from our base business, delivering cash-generative projects and creating future opportunities for value. In 2025, we delivered across each of these areas. We combined record production with increased efficiency, reducing our unit production costs to $7.80 per barrel of oil equivalent. We achieved first production at Beaumont New Ammonia and achieved significant milestones in the delivery of our SCARBRA and TRION projects. We took a final investment decision to develop the three-train, 16.5 million tonne per annum Louisiana LNG project. This game-changing investment positions Woodside as a global LNG powerhouse, with greater capacity to meet growing energy demand. We also welcomed high-quality strategic partners to Louisiana LNG, with Woodside's expected share of total capital expenditure now less than 60%. One of these partners, Stone Peak, is funding 75% of 2025 and 2026 project capital expenditure. We continue to actively refine our portfolio, including divestment of our greater Angostura assets, receiving $259 million in cash. And all of this was achieved while maintaining a strong balance sheet and liquidity position, with gearing within our target range. Keeping our people safe remains our top priority. During a year of increased activity, we delivered strong safety performance with no high consequence injuries recorded. We marked significant safety milestones across our global portfolio with no recordable injuries at our Sangamar project in its first 18 months of operations. And construction of our Scarborough floating production unit marking three years of work without a single lost time incident. These achievements set the required standard for Woodside as we embed a focus on safety, drive safety field leadership, and a culture of continuous learning across our global business. To slide eight. In 2025, we once again showcased Woodside's world-class operational capabilities by delivering reliable energy to customers while driving continuous improvement through cost discipline and efficiency. we have increased production from our growing global portfolio and maintaining operated LNG reliability of approximately 98% over the past five years, which compares exceptionally well against our global peers. This year we've delivered a 4% reduction in unit production costs through disciplined cost management across the business while continuing to maximise value from our assets through brownfield developments, portfolio optimisation and leveraging our marketing expertise to capture additional value. In 2026, we will execute major turnarounds to maximise longevity at existing assets and support ramp up of new production, including at Pluto LNG in preparation for Scarborough startup. We will also undertake dry dock maintenance for some of our Australian oil assets. Let's now turn to Sangama on slide nine. During 2025, operational performance continued to be exceptional, with nameplate production of 100,000 barrels per day for most of the year, at almost 99% reliability. This has contributed $2.6 billion to Woodside's EBITDA since start-up, demonstrating Sangamar's value to our business. Based on strong early performance, we will be assessing options for a potential phase two, which would leverage the existing FPSO and the subsea infrastructure to unlock additional value. In December 2025, our Beaumont New Ammonia project commenced production of first ammonia. We expect full handover of the project by OCI in the first half of 2026. The production of lower carbon ammonia which will be made possible by the supply of carbon abated hydrogen and ExxonMobil's CCS facility becoming operational is currently targeted for the second half of 2026. Pleasingly we have seen strong early customer uptake from Beaumont, securing uptake agreements with leading global customers to supply conventional ammonia from the facility. These contracts reflect prevailing market prices and we are now advancing additional agreements to align with expected future output, including for lower carbon ammonia. In 2025, we continued to make excellent progress at our Scarborough energy project, which was 94% complete at year end and on track for first LNG cargo in the fourth quarter of this year. Major milestones included the assembly and subsequent to the period, safe arrival of the floating production unit at the Scarborough Field. The drilling campaign for all eight development wells were successfully completed in line with pre-drill expectations. During the period, we completed the tie-in to the Pluto domestic gas export line as construction activities at Pluto Train 2 continued. We also commissioned the Integrated Remote Operations Centre at our Perth headquarters, enabling Pluto and Scarborough to be operated remotely from more than 1500 kilometres away. Moving to Trion on slide 12. We are targeting first oil in 2028, with the project 50% complete at year end. During the year, we advanced construction of both the floating production unit and floating storage and offloading unit with major field activity set to start in 2026. The image shown on the slide taken this month is the lifting of the first of three modules onto the hull of the FPU. Preparations for the drilling and completion campaign also progressed with the deep water drill ship expected to commence drilling in early 2026. Following FID in April, we have maintained strong momentum on our Louisiana LNG project. As outlined on slide 13, the project was 22% complete at year end and is targeting first LNG in 2029. Key ongoing activities in 2025 included the construction of LNG tanks, soil excavation, pile installation for the main marine berth, and the establishment of material offloading facilities. We have now secured foundational transportation capacity, a key milestone in providing access to diverse and abundant supply sources. In support of feed gas supply, we also entered into a long term agreement with BP for the supply of up to 640 billion cubic feet of natural gas to the project, starting in 2029. We will continue to layer in agreements like this, ensuring access to multiple supply sources. The project's value proposition was reinforced during the year as we brought in high quality partners. This included the 40% sell down of Louisiana LNG infrastructure to Stone Peak and sale to Williams of a 10% interest in Louisiana LNG LLC and 80% interest and operatorship of Driftwood Pipeline LLC. The project is expected to be the primary supply source for long-term sale and purchase agreements that Woodside signed during the year with European customers targeting delivery from 2029. We will continue to progress further sell-downs and off-take agreements in 2026 in response to ongoing interest received from potential high-quality partners and customers. Woodside views strong sustainability performance as an essential component of our overall business success and ability to make a positive contribution where we live and work. Our approach enables us to focus on the right areas, manage key risks and impacts, drive responsible decision making and set plans and targets that add value to our business and meet the expectations of our stakeholders. In 2025, we made positive progress across key sustainability areas. A particular highlight of 2025 was the World Heritage listing of the Murrajuga cultural landscape, which Woodside was pleased to support in collaboration with traditional custodians. We continued making significant contributions to local economies and communities, including $9.3 billion spent globally on goods and services. We also achieved our 2025 net equity scope one and two greenhouse gas emissions reduction target through a combination of underlying emissions performance at our facilities and the use of carbon credits. Our gross equity scope one and two greenhouse gas emissions were fewer than the previous year, despite higher oil and gas production. This strong underlying performance allowed us to reduce our use of carbon credits to offset emissions and holds us in good stead as we progress towards our 2030 target. I look forward to providing investors with a more detailed overview of Woodside's sustainability planning and performance at our investor briefing scheduled for next month in Sydney. Let's now turn to the global market landscape. Oil is a core product for Woodside, underpinned by a robust demand outlook. The difficulty of decarbonising hard-to-abate sectors, such as heavy transport and petrochemicals, means that oil demand is forecast to remain resilient as the world's energy mix evolves. Customer demand for Sangamart Oil has been strong over its first 18 months of operations, and we are very confident in continued demand for oil, including for our Trion project, which is targeting first oil in 2028. Moving to slide 16. As countries around the world prioritise energy security and affordability, while also pursuing decarbonisation, we are confident in ongoing demand for LNG as a reliable and flexible energy source. This underpins our investments in long-life LNG projects like Scarborough and Louisiana LNG, which we expect to drive a step change in future sales volumes and cash flow. While periods of demand supply imbalance may occur in the near term, we believe these are unlikely to persist. Woodside's experience reinforces this long-term demand outlook as we continue to lay our new contracts to support our growing supply portfolio. Over the last year, we have contracted 4.7 million tonnes of new LNG supply to Tier 1 end customers with significant gas and LNG experience. This contracting activity speaks to our credentials as a proven operator and the growing importance placed on reliable access to energy by end users. Approximately 75% of our LNG volumes for 2026 to 2028 are contracted, with most oil-linked and some gas hub-linked exposure. This mixture provides diversification, portfolio resilience and the ability to capture value from market dislocations, as well as manage risks as additional supply comes online. Some of our new contracts will see Woodside's LNG supplied into Asia and Europe through to the 2040s, further demonstrating ongoing long-term demand. Our achievements in 2025 have further supported Woodside's resilience and ability to deliver enduring value. Our financial discipline and performance underpins Woodside's strength in the near term, allowing us to fund our operations and growth projects while delivering solid shareholder returns, even in tighter market conditions. Our operational excellence and balanced portfolio are central to our resilience through the cycle. High reliability and a contracted portfolio help reduce volatility while preserving upside exposure to favourable market conditions. Our long-term resilience is reinforced by a diverse portfolio of high-quality assets that supports consistent production and creates optionality for future growth and value. I'll now hand over to Graham to provide an overview of our financial strategy and performance.

Thanks, Liz. And hello, everyone. I am pleased to present a strong set of financial results. In 2025, we maintained a focus on cost control and maximising returns from our producing assets and driving down unit cost production. In addition, in exploration and new energy, we delivered over $200 million in cost reductions. For 2026, we will continue to focus on costs, including delivering maintenance campaigns to schedule and budget. This is particularly relevant for our Pluto major turnaround scheduled for the second quarter of 2026, where in addition to maintenance, we will complete important tie-ins for Scarborough. We maintained discipline in our investment decisions, adhering to our clear capital allocation framework. Our divestment of the Greater Angostura assets in Trinidad and Tobago highlight this disciplined investment approach. Attracting strategic partners to our major growth projects brings complementary skills and de-risks our investment. This is demonstrated through our partnerships with Stone Peak and Williams on Louisiana LNG. Following the completion of these sell-downs, Woodside's expected total capital expenditure is now $9.9 billion, which is less than 60% of the total project cost announced at FID. Williams also brings complementary capabilities in US natural gas infrastructure and an existing gas sourcing platform to benefit the project. We also maintained a strong balance sheet, supporting our investment grade credit rating while progressing developments and distributing robust returns to shareholders. We actively manage liquidity and where appropriate we expect to hedge a modest portion of our oil volumes to provide cash flow certainty and manage price volatility. Our full year 2025 Brent hedges were in a positive position. and we have progressively hedged 18 million barrels for 2026 at approximately $70. Moving to our capital management framework, which remains unchanged. This framework underpins our disciplined approach with clear targets to ensure the strength of our underlying business and provide certainty for our shareholders. We are disciplined in how we position the balance sheet to achieve our goals and remain committed to an investment grade credit rating. Our target gearing range is 10% to 20% through the cycle. And as I've stated previously, although we may at times temporarily sit outside this range during capital intensive periods, we manage it very closely. This approach provides us with flexibility to fund value accrued growth while delivering solid shareholder returns. Our dividend policy is to pay a minimum of 50% of our underlying net profit after tax, and we target a range of 50% to 80%. We know how important returns are to our shareholders, and over the last decade we have consistently paid at the top end of this range. In 2025, we continue to deliver outstanding returns from our base business. Ongoing exceptional production performs from Sangamah, disciplined cost control, the divestment of later life assets in Trinidad and Tobago, and gains on hedging, predominantly driven by favourable Brent positions, contributed to an EBITDA margin of over 70% and an underlying NPAT of $2.6 billion. Furthermore, the strength of our underlying business coupled with the cash received from Stonebeak and Williams contributed to $1.9 billion of free cash flow. Our gearing of 18.2% has remained within the target range during a period of increased capital expenditure and we closed the year with a strong liquidity position of $9.3 billion. We maintain credit ratings of BBB plus or equivalent and continue to have access to debt markets, including the US SEC registered bond market. On average, cash break even of less than $34 per barrel makes us resilient to less favourable price scenarios. And we are very well positioned to progress our growth projects and create future value generating opportunities while continuing to deliver solid shareholder distributions. As highlighted on slide 23, these achievements translated into a fully franked final dividend of $1.1 billion, bringing our total full-year dividend to $2.1 billion. Our ongoing business performance means consistent returns for our shareholders, having returned approximately $11 billion in dividends since 2022, while reinvesting in the business and maintaining a strong balance sheet. We have consistently paid at the upper end of our target range for over a decade, demonstrating our commitment to shareholder returns. Thank you, and I'll now hand back to Liz.