The hedging profile is inadequate against the capital needs of the business post Louisiana FID in my opinion. Similarly so with respect to protecting 2025/26 dividends. Futures were backwardated for months after the TELL acquisition but they didn’t hedge more… now we are in contango of several dollars. Huge missed opportunity. Especially with all that spare OPEC+ capacity sitting on the sidelines and UAE/Iraq/Kazakhstan all over-producing vs quotas, agitating Saudis for faster tapering of the cuts… In energy bear markets, if history is any guide, Australian oil companies hedge material amounts at the very bottom, when the board is panicked and presumably bond holders are kicking and screaming. That’s when the share price has bottomed. Until then as far as I am concerned Woodside is a value trap!
WDS Price at posting:
$19.15 Sentiment: None Disclosure: Not Held
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