Woodside Energy Group (ASX:WDS) enters the second half of 2026 against a volatile global energy backdrop, with Crude Oil prices above USD 100 per barrel and several major development projects moving closer to production.

Brent crude traded around USD 105.46 per barrel on 14 September 2026, while West Texas Intermediate was around USD 100.96 per barrel after sizeable intraday movements. Higher global energy prices coincide with Woodside progressing Scarborough in Western Australia, Trion in Mexico and Louisiana LNG in the United States.

H1 2026 Results

Woodside reported Operating Revenue of US$7.45 billion for the six months ended 30 June 2026, an increase of 13% from US$6.59 billion in the prior corresponding period.

Net profit after tax increased 27% to US$1.67 billion, while underlying net profit rose 7% to US$1.33 billion.

The company's average realised price increased 20% to US$74.0 per barrel of oil equivalent.

Operating cash flow was US$3.01 billion, while free cash flow reached US$352 million compared with US$136 million in H1 2025.

Production Profile

Woodside produced 86.5 million barrels of oil equivalent during H1 2026, equivalent to approximately 478,000 barrels of oil equivalent per day.

Production was 13% below the prior corresponding period. Woodside attributed the decline to factors including cyclone impacts, the planned Pluto LNG turnaround and the divestment of the Greater Angostura assets.

Unit production costs were US$8.80 per barrel of oil equivalent.

Woodside maintained high reliability across several operated assets, with its LNG facilities recording reliability of 98.7% during the period.

Scarborough Progress

The Scarborough Energy Project was 98% complete at 30 June 2026, excluding the Pluto Train 1 modifications.

Woodside continues to target the first LNG cargo from Scarborough during the fourth quarter of 2026.

The project reached another milestone after the reporting period when first gas flowed from the Scarborough field to the floating production unit in July.

Scarborough gas will be processed through the Pluto LNG facilities in Western Australia, including the new Pluto Train 2 and modifications to the existing Train 1 infrastructure.

Trion Development

Woodside's Trion oil development in Mexico was 64% complete at the end of H1 2026.

The project remains targeted for first oil in 2028.

During the first half, construction progressed on the floating production facilities, while drilling of the planned 24 subsea wells commenced.

Woodside holds a 60% participating interest in Trion and operates the project.

Trion forms part of the company's longer-term oil production portfolio alongside its existing operations.

Louisiana LNG

The foundation phase of Louisiana LNG was 28% complete at the end of June 2026.

The project comprises three LNG trains with first LNG targeted for 2029.

By early August, Train 1 was 35% complete, Train 2 was 25% complete and Train 3 was 18% complete. Construction was also progressing across storage tanks and marine infrastructure.

The foundation development has a total project cost of US$17.5 billion and forms part of Woodside's expansion in the US LNG market.

Oil-Price Environment

Global crude prices have increased sharply during September amid heightened geopolitical and Supply uncertainty.

Brent crude has recently traded above USD 100 per barrel, compared with substantially lower levels earlier in 2026.

Oil prices are relevant to Woodside because part of its oil and LNG portfolio has direct or indirect exposure to crude-linked pricing.

The financial effect is not determined by the headline Brent price alone. Contract structures, pricing lags, hedging arrangements, production volumes and individual product prices also affect realised revenue.

At 30 June 2026, Woodside reported that approximately 62% of 30 million barrels of oil-equivalent 2026 oil-linked production that had previously been hedged had been cash settled. The company also had 10 million barrels of oil-equivalent of 2027 oil-linked production hedged at an average price of US$76.76 per barrel.

Dividend and Balance Sheet

Woodside declared a fully franked interim Dividend of US$0.57 per share for H1 2026.

The company reported Liquidity of US$8.19 billion at 30 June 2026, including US$4.34 billion of cash and cash equivalents.

Gearing stood at 20.6%, marginally above Woodside's target range of 10% to 20%. The company said gearing was affected by new Lease liabilities, hedge settlements and higher trade receivables during the period.

2026 Guidance

Woodside narrowed its full-year 2026 production guidance to between 174 million and 185 million barrels of oil equivalent.

Capital expenditure guidance remains between US$4.0 billion and US$4.5 billion.

Production costs are expected to total between US$1.5 billion and US$1.8 billion, while feed gas, services and processing costs are forecast at US$500 million to US$600 million.

The company's second-half operating profile will include continued production from its established portfolio alongside commissioning activities associated with Scarborough.

Project and Market Position

Woodside Energy enters the remainder of 2026 with Scarborough approaching first LNG, Trion progressing towards its 2028 first-oil target and Louisiana LNG continuing construction towards planned start-up in 2029.

At the same time, global oil prices above USD 100 have changed the commodity-price environment compared with earlier in the year.

Woodside's financial performance will continue to reflect realised oil and LNG prices, production volumes, operating costs, hedging arrangements and expenditure across its major development portfolio.