Woodside Energy Group Limited American Depositary Shares, each representing one Ordinary Share 2026 Q2 Earnings Call

Please go ahead. Good morning, and welcome to Woodside's 2026 half year results presentation.

Joining me on today's call is our Chief Financial Officer, Graham Tiver. We are presenting from Sydney, and I'd like to begin by acknowledging the traditional custodians of this land, the Gadigal people of the Eora Nation, and pay my respects to their elders, past and present. Please take time to read the disclaimers, assumptions, and other important information on slides 2 and 3. I'd also like to remind you that all dollar figures in today's presentation are in U.S. dollars unless otherwise indicated. It's a great pleasure to present my first set of results as Woodside CEO. I'm proud of the way we have delivered reliably and consistently through our company leadership transition and during a time of historic volatility on global energy markets.

This continues our proven track record as a reliable supplier to customers and highlights the competitive advantages we have developed over 40 plus years of operations. Woodside's core value proposition remains: we supply energy to meet rising demand, return value for our shareholders through the cycle, and offer tangible growth catalysts for investors. At our Capital Markets Day in November, we outlined Woodside's transformative growth pathway to achieve more than 50% sales growth and approximately $9 billion in net operating cash flow in 2032. My focus as CEO is on the disciplined delivery of this pathway while raising the bar further to translate future growth into greater value for our shareholders. There are some key areas where Woodside can build from our strengths to lift performance, sharpen our focus on value, and improve the resilience of our business through the cycle.

These include active management of our portfolio to maximize returns on capital. With all investment opportunities competing under a single framework for shareholder value. Our investment choices in new energy must be underpinned by customer demand and market commerciality. We must also achieve structural cost savings across our business, driven by an ambitious and transparent cost out target. We are announcing today a structural cost reduction target of $350 million per year to be delivered from 2028. Later in the presentation, I will provide more detail on how we will sharpen our focus on value. But first, to our half year results, which reflect Woodside's impressive operational and financial performance to date in 2026. These results demonstrate how we are de-risking our business today and driving long-term shareholder value. As shown on slide 6, reliable operations underpin strong production and cash flow across our global portfolio.

We achieved total production of 86.5 MMboe for the half. Free cash flow achieved a year-on-year increase of more than 150%, and we maintained strong EBITDA of $4.6 billion. Regrettably, we experienced one high consequence injury during the period. We made significant progress on our next phase of value, advancing major projects at Scarborough, Trion, and Louisiana LNG on schedule and on budget. We recorded an underlying NPAT of $1.3 billion, and based on this, the board has determined a fully franked interim dividend of $0.57 per share, once again at the top end of our payout range. Slide seven highlights Woodside's world-class delivery during the half, underpinned by reliable operations and disciplined investment in growth. At Pluto, we safely executed a major planned turnaround on schedule and within budget, which included works to prepare for Scarborough.

Our unit production cost remained competitive, notwithstanding the significant turnaround activity. We continued to efficiently execute our major projects with a strong focus on cost management, remaining on schedule and budget. We also continue to strengthen the quality of our global portfolio, sharpening our focus on opportunities that play to Woodside's strengths and offer value accretive growth. During the period, we exercised our preemption right, which will result in increased equity in Browse on completion. Woodside's combined interest in the Browse resource and the North West Shelf onshore infrastructure provides the basis for an integrated development concept with long-term cash flow potential. Subsequent to the half, in July, we assumed operatorship of the Gippsland Basin assets, supporting the continued reliable supply of gas to the Australian domestic market.

In August, we agreed to divest our interest in the Calypso project in Trinidad and Tobago, demonstrating our prudent approach to portfolio management and capital allocation. Keeping our people safe remains our highest priority at Woodside, and we continue striving for sustained improvement in our safety performance. During the half, we completed more than 11 million work hours, including construction, commissioning, and complex turnarounds at our global operating and project sites. As shown on slide eight, we recorded one high consequence injury and zero tier 1 or tier 2 process safety events. One high consequence injury is one too many, and we remain firmly focused on continuous improvement and management of risk across our operations. This includes proactively managing risk and leveraging field leadership programs to provide deeper insights to our performance. Turning now to our operational performance on slide nine.

The first half once again showcased Woodside's operational excellence and proven ability to maximize value from our producing assets, which delivered $3 billion in operating cash flow during the period. We are making good progress on decommissioning across the portfolio. We commenced plug and abandonment on eight subsea wells at the North West Shelf and Julimar-Brunello, and removed around 26 kilometers of flow lines and umbilicals at Stybarrow and Griffin. At our Australian operations, we are executing infill opportunities across Pluto, Julimar Development Phase 3, and Turrum Phase 3, supporting continued value creation from our existing infrastructure and assets. Woodside is assessing the opportunity in our Gippsland Basin assets to unlock up to 200 petajoules of potential Bass Strait gas, supporting domestic energy security and creating additional value from the portfolio.

Technical maturity and final details of the Australian government's proposed Domestic Gas Reservation Scheme will influence whether we progress this opportunity to a final investment decision. Our international portfolio performed very well over the half, led by exceptional ongoing performance at Sangomar, which produced 15 MMboe Woodside share at 99.5% reliability. The asset has now generated $3.8 billion of EBITDA for Woodside since startup. We are continuing our discussions with Petrosen and the government of Senegal on a potential additional phase, which we estimate could be a six to eight well program. At Beaumont New Ammonia, we assumed operational control in March and are delivering cargoes to domestic and international markets. During the half, production was constrained by third-party feedstock availability, with impacts expected to continue through 2027. Moving to delivery of our major projects on Slide 10.

We continue to make excellent progress on the Scarborough Energy project, which was 98% complete at the end of the half and remains on track for first LNG cargo in the fourth quarter of 2026. Subsequent to the period, the floating production unit achieved ready for startup status and first gas, marking another significant milestone as we move closer to production. Onshore, we continued construction and commissioning at Pluto Train 2. Mechanical runs have been completed on three of the six liquefaction compressors, with the remaining activities progressing as planned. Our focus is now on disciplined execution through to startup. We are progressively bringing wells online, pressurizing the trunk line, and introducing gas into the onshore facilities while testing and verifying each part of the system.

We are taking the time to ensure we bring these facilities online safely and reliably as we move towards first LNG cargo and a significant new source of cash generative production to our portfolio. Moving to our Trion project on slide 11, which was 64% complete at the end of the half and targeting first oil in 2028. During the half, we achieved key construction and drilling milestones. Engineering of the floating storage and offloading facility is progressing to plan, with fabrication underway and major equipment ordered. Preparations are now well advanced for the subsea installation campaign, with equipment set to be delivered ahead of offshore installation commencing in the third quarter of 2026. Turning to slide 12. Louisiana LNG continues to progress on schedule and budget and was 28% complete at the end of the half.

We achieved several key construction milestones, including commencement of berth dredging, installing the first mechanical equipment in Train 1, which was 35% complete at the end of the half, and erecting the first structural steel in Train 2. We are also advancing feed gas procurement in line with our gas supply strategy. Williams, our partner and pipeline operator, is progressing execution of Line 200. We continue to see strong interest from potential counterparties across both sell downs and LNG offtake, and our approach remains focused on the quality partnerships required for this long-term investment. Strong sustainability performance remains fundamental to the long-term success of our business, and we made good progress in key areas during the half. Having achieved our 2025 net equity Scope 1 and 2 greenhouse gas emissions reduction target, we remain on track to meet our 2030 target of a 30% reduction against our baseline.

We submitted our second annual Oil and Gas Methane Partnership 2.0 implementation plan, including enhanced methane emissions reporting at our Sangomar and North West Shelf operations. During the half, we continued making significant economic and social contributions to the communities where we operate. We paid more than AUD 1 billion in taxes, royalties, and levies to Australian governments during the half and committed to more than AUD 520 million of spend with almost 300 local businesses during our Pluto Train 1 modifications program. Subsequent to the period, we launched our inaugural Global Indigenous People strategy, setting out our intent to strengthen partnerships and support positive outcomes for indigenous peoples across the regions where we operate. We also took forward biodiversity initiatives in the U.S. and Australia. In Louisiana, we committed $5 million over six years to the Sam Houston Jones State Park Restoration Project.