Woodside Energy 2023 Output at Top End of Target; Santos Merger Talks Remain at Early Stage

By Rhiannon Hoyle

Woodside Energy on Wednesday reported record annual production that was at the top end of the company's own forecast and said that talks with Santos about a possible merger remain at an early stage.

Woodside said it produced 187.2 million barrels of oil equivalent in calendar year 2023--including 48.1 million barrels in the fourth quarter, in line with the three months prior--to reach the upper end of production guidance of 183-188 million barrels.

"Fourth quarter production reflected the completion of planned turnaround and maintenance activities at the North West Shelf and Shenzi," said Chief Executive Meg O'Neill. "Pluto LNG also maintained its strong production performance, again achieving 99.9% reliability during the period."

Woodside said its revenue totaled US$3.36 billion in the three months through December, up 3% on the prior quarter.

The company said in December it was in discussions about a potential merger with Australia's Santos. A combination of the companies would bring together Australia's two largest energy companies as the country vies with Qatar to be the world's top exporter of liquefied natural gas.

"The talks are still at an early stage and there is no certainty that the transaction will progress," said O'Neill. "Woodside will be disciplined, conduct thorough due diligence, and will only pursue a transaction that is value-accretive for shareholders."

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

January 23, 2024 17:55 ET (22:55 GMT)

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