Woodside's New CEO Steers Major Projects Through Production Headwinds

PERTH, Australia – April 29, 2026 – Woodside Energy Group has affirmed its full-year guidance despite a weather-impacted first quarter that saw production dip 8%. In its Q1 2026 report, the energy giant showcased significant progress on its multi-billion-dollar growth projects and highlighted strong operational reliability, signaling confidence as new Chief Executive Officer Liz Westcott takes the helm and initiates a company-wide strategic review.

Operating revenue rose to $3.26 billion, up 7% from the previous quarter, buoyed by a sharp 11% increase in average realised prices. The results paint a picture of a company navigating short-term operational hurdles while executing a long-term strategy focused on major gas and oil developments, alongside nascent investments in new energy.

Operational Resilience Amidst Storms

Woodside reported first-quarter production of 45.2 million barrels of oil equivalent (MMboe), a decline from the 48.9 MMboe in the prior quarter. The company attributed the drop primarily to shutdowns at its Western Australian assets caused by Severe Tropical Cyclones Narelle and Mitchell.

Despite the disruptions, CEO Liz Westcott praised the company's performance, stating, “The team’s cyclone response ensured we maintained the safety of our people, assets and the environment throughout the shutdown and restoration of operations.”

Beneath the headline production figure, key assets demonstrated exceptional robustness. The Pluto LNG facility achieved 100% reliability for the third consecutive quarter, while the flagship Sangomar project in Senegal and the Shenzi platform in the Gulf of Mexico posted reliability of 99.9% and 99.0%, respectively. This underlying strength in core operations helped mitigate the impact of the storms and underscores the company’s focus on asset performance.

Mega-Projects Forge Ahead

Central to Woodside's future are its three major growth projects, all of which reported significant progress and remain on budget and schedule.

The Scarborough Energy Project off the coast of Western Australia is now 96% complete. A critical milestone was achieved with the successful mooring of the massive floating production unit (FPU) at the Scarborough field, with hook-up and commissioning activities now underway. The project is on track to deliver its first LNG cargo in the fourth quarter of 2026.

In the Gulf of Mexico, the deepwater Trion oil project is 56% complete, with drilling of the first of 24 subsea wells commencing in March. Woodside is targeting first oil from the massive development in 2028.

Across the globe, the Louisiana LNG project in the United States is also advancing. The first of three trains is 31% complete, with structural steel erection and pipe installation in progress. The project, which is targeting its first LNG cargo in 2029, is backed by major partners, including infrastructure investor Stonepeak and US pipeline operator Williams, which de-risks Woodside's financial commitment.

A New Era of Disciplined Execution

The quarter marked the official start of Liz Westcott's tenure as CEO on March 18. A veteran of ExxonMobil and former Chief Operating Officer at EnergyAustralia, Westcott has wasted no time in setting the tone for her leadership. She has initiated a “structured review of our business to streamline decision making, reduce complexity and improve accountability.”

In the company's report, Westcott stated her focus would be on “operational excellence, disciplined execution and sustainable value creation for Woodside shareholders.” The review is expected to yield benefits in organizational effectiveness and capital management without compromising safety or project delivery. This push for efficiency comes as the company juggles a capital expenditure program forecasted to be between $4.0 and $4.5 billion for 2026.

Navigating a Volatile Global Market

Woodside's financial performance demonstrated an ability to capitalize on a volatile global energy market. The 11% quarter-on-quarter jump in the average realised price to $63 per barrel of oil equivalent (boe) was driven by elevated spot prices for LNG and crude oil. The company noted that interruptions in global supply have increased demand for crude products, boosting prices.

“We have seen modest increases to our portfolio average realised pricing in the quarter, driven by elevated spot prices,” Westcott noted, adding that further benefits from currently higher spot LNG prices will be reflected in subsequent quarters due to lags in contract pricing.

Woodside's hedging strategy also played a role, providing a pre-tax profit of $32 million for the quarter. The company has hedged a significant portion of its 2026 and 2027 oil production at average prices above $74 per barrel, and has also locked in prices for the majority of its Corpus Christi LNG volumes for the next two years, providing a buffer against market fluctuations.

The High-Wire Act: Balancing Growth and Green Ambitions

While Woodside doubles down on its massive fossil fuel projects, it continues to face scrutiny from environmental groups and some investors over its climate strategy. The Scarborough project, in particular, has been the target of sustained opposition, with activists labeling it a “methane bomb.” In 2022, nearly half of the company's shareholders voted against its climate plan.

In an effort to balance its portfolio, Woodside is advancing its new energy ventures. The Beaumont New Ammonia facility in Texas achieved its first cargo in February, and Woodside assumed full operational control in March. While the facility is currently producing conventional ammonia, the company is targeting the production of lower-carbon ammonia in 2027.

Simultaneously, the company is attempting to bolster its social license to operate. It recently released a Social Contribution Report detailing A$39.8 million in community investments in 2025, including coastal resilience projects in Louisiana and local procurement efforts. This dual strategy of pursuing major hydrocarbon projects while investing in future-facing energy and community initiatives represents the complex high-wire act Woodside must perform to satisfy diverse stakeholder demands in a world undergoing a profound energy transition.