Key Highlights

• Woodside Energy Group (ASX:WDS) reported its third-quarter results for the period ended 30 September 2026 on 20 October 2026 (US time), with all figures below in US dollars unless stated.

• Woodside says it is 99 per cent complete and on budget, with the first LNG cargo targeted for the fourth quarter of 2026.

• Production for the quarter was 46.2 million barrels of oil equivalent (MMboe), or 503 thousand barrels a day.

• That was 12 per cent higher than the second quarter's 41.3 MMboe but 9 per cent below the third quarter of 2025 (50.8 MMboe).

What does Woodside Energy (ASX:WDS)'s third-quarter update tell investors as its Scarborough LNG project approaches first cargo? In short, it shows a Business whose near-term output has dipped while Revenue has risen on more encouraging prices, and whose growth case now rests on delivering a handful of very large projects on time and on budget.

Woodside Energy Group (ASX:WDS) reported its third-quarter results for the period ended 30 September 2026 on 20 October 2026 (US time), with all figures below in US dollars unless stated.

The central development: Scarborough nears first LNG

The most important line in the Quarterly Report is the status of the Scarborough Energy Project off Western Australia. Woodside says it is 99 per cent complete and on budget, with the first LNG cargo targeted for the fourth quarter of 2026.

That matters because Scarborough is intended to add a new stream of LNG and pipeline gas to the group's portfolio. First production from a project of this scale is a milestone that has been awaited for some time, though the company's target is a plan rather than a certainty, and commissioning of large LNG facilities can slip.

What Woodside does and how it earns money

Woodside is Australia's largest listed oil and gas producer by market reputation and scale. Its revenue comes mainly from liquefied Natural Gas (LNG), with the rest from pipeline gas, Crude Oil and condensate. Its principal Assets include the North West Shelf, Pluto LNG and Wheatstone in Western Australia, plus operations in the Gulf of Mexico and elsewhere.

The mix means Earnings are tied to Commodity benchmarks. LNG is often sold under contracts linked to oil prices, so crude movements flow into gas revenue with a lag, while some volumes are sold at spot-linked prices.

Third-quarter operating performance

Production for the quarter was 46.2 million barrels of oil equivalent (MMboe), or 503 thousand barrels a day. That was 12 per cent higher than the second quarter's 41.3 MMboe but 9 per cent below the third quarter of 2025 (50.8 MMboe). For the first nine months, production was 132.7 MMboe, down 11 per cent on the same period a year earlier.

Operating revenue was US$4,281 million, up 2 per cent on the second quarter and 27 per cent on the third quarter of 2025. The average realised price was US$84 per barrel of oil equivalent, against US$60 a year earlier, which explains how revenue rose while volumes fell. Woodside reported its LNG price at US$13.3 per million British thermal units, and oil and condensate at US$93 a barrel, while Dated Brent averaged US$97 a barrel in the quarter.

Guidance, spending and the half-year result

Woodside narrowed its 2026 production guidance to 174-181 MMboe from 174-185 MMboe, trimming the top end. Capital Expenditure guidance of US$4,000-4,500 million was unchanged, as were production costs of US$1,500-1,800 million.

In the half-year to 30 June 2026, reported net profit after tax was US$1,672 million, up 27 per cent, while underlying net profit was US$1,334 million, up 7 per cent. Operating Revenue was US$7,446 million. The board declared a fully franked Interim Dividend of 57 US cents per share, equal to an 80 per cent payout ratio. Gearing was 20.6 per cent, slightly above the company's target range, and free Cash Flow was US$352 million.

Other projects and portfolio moves

Beyond Scarborough, the growth pipeline is long-dated. Louisiana LNG in the United States is 32 per cent complete and on budget, with first LNG targeted for 2029. Trion, a deepwater oil development in Mexico, is 71 per cent complete, with first oil targeted for 2028.

The Beaumont New Ammonia plant in Texas had a more troubled quarter. A process safety event led to a suspension of about 30 days, and production reached 69 per cent of nameplate capacity. Woodside has completed a strategic review and will begin a formal process to reduce its investment, with lower-carbon ammonia production targeted for 2027.

Portfolio changes are also under way. Woodside agreed to sell its 70 per cent operated interest in the Calypso project to bp, announced on 6 August 2026, and expects completion in the fourth quarter. A Wheatstone and Julimar-Brunello asset swap with Chevron is also targeted for completion in the fourth quarter, subject to regulatory approvals.

Sector conditions and competitive position

Oil and gas producers have been helped this year by firm benchmark prices. Those conditions can reverse, and the company has no control over them.

Competitively, Woodside is one of the larger LNG suppliers in the Asia-Pacific region, competing with Australian peers and with growing US, Qatari and other export capacity. Its strategy of building a position in United States LNG at Louisiana diversifies its customer and pricing exposure but also adds construction and execution risk in a different jurisdiction.

Risks and uncertainties

The main risks are straightforward. Commodity prices could fall. Scarborough could take longer to reach first cargo or ramp up than planned. Cost pressure on Louisiana LNG, Trion and other projects could erode returns. Operational incidents, as seen at Beaumont, can interrupt output. Regulatory approvals are still needed for some transactions. Gearing slightly above target also limits flexibility if conditions deteriorate.

What to watch next

Woodside's Capital Markets Day was scheduled for 5 November 2026 in Australia and 12 November 2026 in New York, according to the company's report. Further dates in the company's calendar are the fourth-quarter report on 28 January 2027, the 2026 Annual Report on 23 February 2027 and the first-quarter report on 21 April 2027.

In the meantime, confirmation of Scarborough's first LNG cargo, and completion of the Calypso and Wheatstone transactions, are the milestones that could change the picture most visibly.