Name: Angel J.

Moya López 12/03/2022

Student #: 84285
Course: MEM:5600 Engineering Economic Analysis
Trimester: LW-22
Activity 3.1:

Article for Discussion:

“Woodside Energy cash flow outlook sparks concern about future payouts vs
growth”

The article presented was published on reuters.com by Sonali Paul on Wednesday,

November 30, 2022, and it describes the current condition of the company Woodside Energy

Group Ltd in regard to the market and the factors that influence it. It explains how the shares

have dropped a significant percentage and how the payout, as well as other legal matters, are

holding the company from growth projects they have on the table. The company indicated in a

graph that the amount of free cash flow of 6 billion would be less than 2 billion by the year 2023

and that they won’t see growth over the current year’s cash flow until after 2026.

With this in mind, Woodside targets to make a final investment decision on two current

projects, Trion and Oklahoma-based hydrogen. The article also explains the biggest growth

project the company has on its table, with 12 billion in investment, Woodside’s Scarborough gas

development and Pluto LNG expansion seem to be on track to begin production for LNG

(liquified natural gas) in 2026. However, CEO Meg O’Neil has stated the company’s concern

over the fact that they’re facing some setbacks due to the drilling permits.

After reading this article we can determine that we have two cash flows being described,

we have the present cash flow which the company projected as 6 billion, and we also have the

future cash flow for the next 4 years that should be less de 2 billion per year.

Reference:
Paul, S. (2022). Woodside Energy cash flow outlook sparks concern about future payouts vs growth.
Reuters. https://www.reuters.com/business/energy/woodside-continues-look-ways-expand-gulf-
mexico-2022-12-01/