Woodside Petroleum (WOPEF, Financial) significantly depended on Pluto in the North West Shelf for the supply which resulted in solid production volumes of 95.1 million barrels of oil equivalent, an increase of 9% compared to 2013 level. Woodside also delivered superior free cash flows of $4.17 billion and seems to be positioned robustly to fund its growth and expansion plans. Therefore, Woodside seems to be in a strong position to offer significant complete-year dividend of approximately $0.0255 per share.
Making the right moves
Woodside has utilized its capacities to expand towards innovative growth verticals, expanding sources of supply and developing healthy relationships in fresh markets, and Woodside has packed its expansion pipeline with innovative projects that are believed to add huge production capability to its portfolio.
The continued solid execution of Woodside at its key basins coupled with significant growth achieved through the planned acquisitions of some major projects is estimated to deliver robust top line growth for the company and thus, improved investor returns.
Woodside has lowered its 2015 operating cost by approximately 15% and its investment costs by approximately 20% compared to its earlier plan.
During 2014, Woodside delivered major extra value through enhanced production, lowered costs and resizing the organizational structure.
The continued reduction of the operational costs through strategically resizing the organizational structure and improving upon the operational execution is believed to drive enhanced cost savings for the company.
Woodside also expects to expand its key operating cash flows with the launch of the innovative Wheatstone facility within two years.
Woodside made huge progress towards worldwide record quartile health and safety performance, gaining about 50% lowering of lost time process safety events and injury frequency with 37% advancement in personal safety standards.
The rapidly enhancing balance sheet of Woodside with superior free cash flows along with the notable improvement in health and safety performance with reduction in the injury frequency is forecasted to uniquely position Woodside among its key competitors and turn it into a preferred stock for the investors.
Woodside also delivered six 3D marine seismic reviews, ranging approximately 12,000 square kilometers and revealed gas at the Toro-1 well in the Exmouth sub-basin. During 2015, development processes include additional drilling in Australia and somewhat three key global wells with seismic surveys planned in five global basins.
Woodside is yet to take a final investment decision for Browse that involves exploration of the offshore gas resource and a uniquely forecasted vessel among three floating LNG vessels by mid-2016.
Conclusion
The solid exploration activities performed by Woodside in Australia and a positive investment into the drilling activities at Browse are believed to significantly expand the company operations and hence, delivering improved cash flows further strengthening the already robust balance sheet.
