Woodside clarifies production outlook after share price plunge

FILE PHOTO: The logo of Woodside Petroleum, Australia’s largest independent oil and gas company, adorns a promotional poster displayed during an investor briefing in Sydney, Australia May 23, 2018. REUTERS/David Gray

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MELBOURNE, July 22 (Reuters) – Woodside Energy Group (WDS.AX) said on Friday its lower production outlook, which rattled investors on Thursday, was due to a change in conversion factors and did not reflect any change in physical product volumes.

Shares of Woodside fell 4% on Thursday after announcing that its full-year production, excluding assets inherited from BHP, would be between 88 million and 94 million barrels of oil equivalent (mmboe), in down 4 mmboe from its previous forecast due to “new conversion factors”. “. Read more

On Friday, he said LNG and pipeline production and reported reserves in barrels of oil equivalent (boe) were calculated on a volumetric basis with a conversion factor of 5,700 standard cubic feet (scf) per boe. .

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Previously, it based its conversion on product-specific energy conversion factors for gas.

The change resulted in Woodside’s full-year liquefied natural gas (LNG) production forecast, excluding BHP assets, dropping from 71 mmboe and 74 mmboe to between 67 mmboe and 70 mmboe.

“Woodside confirms that there is no change in the physical product volumes underlying the full year 2022 production guidance issued by Woodside in January 2022, which did not include production from BHP Petroleum (BHPP ),” the company said.

“There is also no revenue impact due to the change in conversion factors announced in the Q2 2022 report.”

Woodside also noted that BHP Group, whose oil assets it acquired in June, previously used a conversion factor of 6,000 (scf) per boe.

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Reporting by Sonali Paul; edited by Richard Pullin

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Richard L. Militello