Woodside Energy recorded a decline in fourth-quarter revenue, with the Australian energy company attributing the fall to softer prices for its oil and gas sales and a reduction in output.
For the three months ended December 31, Woodside reported revenue of $3.04 billion, down 13% compared with the same period a year earlier.
The company said its average realized price for oil and gas fell to $57 per barrel of oil equivalent (boe) from $63/boe in the prior-year quarter. Production volumes during the quarter were also weaker, decreasing 5% year-on-year, while oil and gas sales declined by 3%.
Woodside pointed to a broader fall in oil prices through 2025, which tumbled by nearly 20% during the year amid two-fold concerns - a potential supply glut in 2026 and market worries about weakening global demand in the face of rising economic uncertainty.
Looking ahead, Woodside provided a production range for 2026 of 172 million to 186 million boe, compared with 198.8 million boe produced in 2025. On the company’s guidance, Acting CEO Liz Westcott said:
"Our 2026 volume guidance… reflects planned down time at Pluto as we prepare the facility to begin processing Scarborough gas and for first LNG cargo in Q4 2026,"
Woodside also outlined plans for significant capital spending in 2026. Capital expenditure is expected to be between $4 billion and $5 billion as the firm advances the Scarborough Energy project to completion and continues build-out of its Louisiana LNG project. The company sold down several stakes in the Louisiana LNG venture through 2025 as part of efforts to secure more working capital and investment for the project.
Context and implications
The reported fourth-quarter results reflect the immediate impact on Woodside’s top line of lower realized commodity prices coupled with modest declines in production and sales volumes. The 2026 volume guidance and planned capital outlays indicate a year of project transition for the company, with planned downtime at an existing facility to enable processing at a new development and the first LNG cargo slated for late 2026.