Is Woodside Energy Group Ltd (WDS) A Good Stock To Buy Now?

Is WDS a bully banal to buy? We came crossed a bullish thesis on Woodside Energy Group Ltd connected The Dividend Auditor’s Substack. In this article, we volition summarize the bulls’ thesis connected WDS. Woodside Energy Group Ltd's stock was trading astatine $22.51 arsenic of June 2^nd. WDS’s trailing and guardant P/E were 15.63 and 12.14 respectively according to Yahoo Finance.

Photo from Sasol Ltd website

Woodside Energy Group is presented arsenic 1 of the world’s premier LNG operators, combining an irreplaceable plus base, industry-leading profitability, and a transformational maturation pipeline that could importantly heighten accumulation and currency travel implicit the coming years. Following the BHP Petroleum merger, Woodside has returned astir $11 cardinal to shareholders portion maintaining EBITDA margins supra 70%, supported by world-class LNG assets including Pluto LNG, North West Shelf, Sangomar, and Gulf of Mexico operations.

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While little commodity prices reduced FY2025 underlying NPAT by 8% to $2.65 billion, the institution delivered grounds accumulation of 198.8 MMboe and maintained its argumentation of distributing 80% of underlying net done a $1.12 per stock dividend. The cardinal concern thesis revolves astir Scarborough, a large LNG improvement that is 94% implicit and expected to present archetypal LNG cargo successful the 4th fourth of 2026.

Once operational, Scarborough is projected to summation accumulation from astir 179 MMboe successful FY2026 to much than 230 MMboe successful FY2027 portion astir tripling escaped currency travel arsenic the institution transitions from a play of highest superior expenditure into a harvest phase. Additional upside is expected from Louisiana LNG, wherever spouse sell-downs person reduced Woodside’s superior load portion validating task prime up of targeted accumulation successful 2029.

The marketplace remains focused connected near-term concerns including weaker commodity prices, elevated capex, and a impermanent accumulation dip successful 2026, but these challenges are viewed arsenic transitory. As Scarborough comes online, leverage declines and escaped currency travel expands, creating a pathway for stronger dividend sustainability and valuation improvement. With a $26 terms target, the thesis implies charismatic upside, with further imaginable from higher lipid prices, palmy task execution, and further Louisiana LNG monetization.

Previously, we covered a bullish thesis connected Occidental Petroleum Corporation (OXY) by Magnus Ofstad successful May 2025, which highlighted its low-cost Permian Basin assets, diversified concern model, c seizure initiatives, and rerating imaginable from improved operational execution. OXY's banal terms has appreciated by astir 37.29% since our coverage. The Dividend Auditor shares a akin presumption but emphasizes Woodside’s LNG leadership, transformational maturation projects, and escaped currency travel enlargement driven by Scarborough and Louisiana LNG.