Half Year 2024 Woodside Energy Group Ltd Earnings Call

August 27, 2024

Thank you for standing by and welcome to the Woodside Energy Group Limited, Hofia 2024 Results.

24 results.

Unknown Executive: All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad.

Speaker Change: All participants are in a list in only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question you will need to press the star key followed by the number one on your telephone keypad.

Speaker Change: I would now like to hand the conference over to Ms. Meg O'Neill, Chief Executive Officer and managing director. Please go ahead.

Meg O'Neill: Good morning, everyone, and welcome to Woodside's 2024 Half-Year Results Presentation. We are presenting from Sydney, and I would like to begin by acknowledging the traditional custodians of this land, the Gadigold people of the Eora nation, and pay my respects to their elders past and present.

Marguerite ONeill: We are presenting from Sydney and I would like to begin by acknowledging the traditional custodians of this land, the radical people of the Eora Nation, and pay my respects to their Elders past and present. Today I'm joined on the call by our Chief Financial Officer, Graham Tiver. Together we will provide an overview of our half-year 2024 performance before opening up to Q&A. Please take the time to read the disclaimers, assumptions, and other important information. I'd like to remind you that all dollar figures in today's presentation are in US dollars unless otherwise indicated. I am very pleased to present a strong set of half-year results today.

Meg O'Neill: Today, I'm joined on the call by our Chief Financial Officer Graham Tiver. Together, we will provide an overview of our half-year 2024 performance before opening up to Q&A.

Graham Tiver: Please take the time to read the disclaimers, assumptions, and other important information. I'd like to remind you that all dollar figures in today's presentation are in US dollars unless otherwise indicated.

Marguerite ONeill: They are a testament not just to our operating performance in the past six months, but also demonstrate how we are delivering on our strategy to thrive through the energy transition. This strategy is underpinned by three goals: providing energy, creating and returning value to our shareholders, and conducting our business sustainably. During the first half of 2024, we have delivered on all three. Our project execution capabilities have been demonstrated again with the safe startup and strong ramp-up performance at Sangamar, and excellent progress at our Scarborough Energy Project. Our reliable and cost-competitive-based business has translated into strong financial performance and returns to shareholders, with a fully franked interim dividend of 69 US cents per share, once again at the top end of our payout ratio range.

Graham Tiver: I am very pleased to present a strong set of half-year results today.

Speaker Change: They are a testament, not just to our operating performance in the past six months, but also demonstrate how we are delivering on our strategy to thrive through the energy transition.

Meg O'Neill: This strategy is underpinned by three goals, providing energy, creating and returning value to our shareholders, and conducting our business sustainably.

Meg O'Neill: During the first half of 2024, we have delivered on all three.

Meg O'Neill: Our project execution capabilities have been demonstrated again with the safe startup and strong ramp up performance at Sangamar and excellent progress at our Scarborough Energy Project.

Speaker Change: Our reliable and cost-competitive based business has translated into strong financial performance and returns to shareholders with a fully-ranked interim dividend of 69 U.S.S. per share, once again at the top end of our payout ratio range.

Marguerite ONeill: With our disciplined approach to cost management, we have reduced our unit production cost by 6% in an inflationary environment, and we will continue progressing actions to ensure that we can fund growth while supporting strong shareholder distributions. Looking across Woodside's global business, I have never been more confident in our ability to deliver reliable, affordable, and lower carbon energy to a world that needs it today and into the future. Our key operational and financial metrics in the half-year results demonstrate how well our base business is performing. World-class LNG reliability of 98%, and production of more than 89 million barrels of oil equivalent, put us on track to deliver our full-year production guidance.

Speaker Change: With our discipline approach to cost management, we have reduced our unit production cost by 6% in an inflationary environment.

Speaker Change: and we will continue progressing actions to ensure that we can fund growth while supporting strong shareholder distributions.

Speaker Change: Looking across Woodside Global Business, I've never been more confident in our ability to deliver reliable, affordable and lower carbon energy to a world that needs it today and into the future.

Speaker Change: Our key operational and financial metrics in the half-year results demonstrate how well our base business is performing.

Speaker Change: World Class LNG Reliability of 98% and production of more than 89 million barrels of oil equivalent put us on track to deliver our full year production guidance.

Marguerite ONeill: We're pleased to have delivered net profit after tax of $1.9 billion, translating into strong earnings per share and a healthy interim dividend for our shareholders. Ensuring everyone who works at Woodside Go some safely remains our highest priority. Our commitment to continuous improvement means taking actions to strengthen our safety culture, simplify our processes, and improve our systems. The full impact of these actions will take some time, and our overall safety performance is not yet meeting our expectations. However, we are seeing some positive results. For example, the safe delivery of our Sangamar project included 30 million hours worked on the FTSO without a serious injury; a remarkable result and set the standard for what I expect to see across the business.

Speaker Change: We're pleased to have delivered net profit after tax of $1.9 billion, translating into strong earnings per share and a healthy interim dividend for our shareholders.

Speaker Change: Ensuring everyone who works at Woodside Go Some safely remains our highest priority.

Speaker Change: Our commitment to continuous improvement means taking action to strengthen our safety culture, simplify our processes, and improve our systems.

Speaker Change: The full impact of these actions will take some time and our overall safety performance is not yet meeting our expectations. However, we are seeing some positive results.

Speaker Change: For example, the safe delivery of our Sangamar Project included 30 million hours work on the FPSO without a serious injury, a remarkable result, and set the standard for what I expect to see across the business.

Speaker Change: Let me now speak to the global market environment in our firm conviction that LNG will play an important role in the energy transitions.

Speaker Change: Starting with energy demand, the fundamentals are strong, as the world's population continues to grow and economies develop, the demand for energy is increasing.

Marguerite ONeill: The decision continues to grow, and economies develop, the demand for energy is increasing. According to recent updates on progress towards the UN Sustainable Development Goals, the number of people lacking access to electricity around the world remains significant. In 2022, this reached 685 million people, the highest in over a decade. So, while the precise pathway of the global energy transition remains uncertain, there is one thing we can bank on: demand for reliable, affordable, and increasingly lower carbon energy will continue to grow. At the same time, we firmly believe that LNG will remain an important global energy source as countries seek to lower their emissions.

Speaker Change: According to recent updates on progress towards the UN Sustainable Development Goals, the number of people lacking access to electricity around the world remains significant.

Speaker Change: In 2022, this reached 685 million people, the highest in over a decade.

Speaker Change: So, while the precise pathway of the global energy transition remains uncertain, there is one thing we can bank on, demand for reliable, affordable, and increasingly lower carbon energy will continue to grow.

Speaker Change: At the same time, we firmly believe that LNG will remain an important global energy source as countries seek to lower their emissions.

Marguerite ONeill: When used to generate electricity, gas typically produces half the life cycle emissions of coal. Gas can also provide support for electricity grids powered by renewables and batteries. Therefore, for many economies, switching from coal to gas is often the most material and affordable way to reduce emissions while maintaining a reliable source of energy to underpin modern living standards. For example, in the US from 2022 to 2023, coal-to-gas switching accounted for two thirds of the emissions reduction in electricity generation. While coal use in markets like Europe has already peaked, the Asia Pacific region currently accounts for more than 80% of global coal use.

Speaker Change: When used to generate electricity, gas typically provides, sorry, gas typically produces half the life cycle emissions of coal. Gas can also provide support for electricity grids powered by renewables and batteries.

Speaker Change: Therefore, for many economies switching from coal to gas is often the most material and affordable way to reduce emissions, while maintaining a reliable source of energy to underpin modern living standards.

Speaker Change: For example, in the U.S. from 2022 to 2023, coal to gas switching accounted for two-thirds of the emissions reduction in electricity generation.

Speaker Change: While coal use in markets like Europe has already peaked, the Asia Pacific region currently accounts for more than 80% of global coal use. And global coal consumption is approximately eight times higher than global LNG.

Marguerite ONeill: And global coal consumption is approximately eight times higher than global LNG. So we see a clear and sustained opportunity for coal to gas switching in key markets as they navigate the energy transition. These fundamental drivers for long-term demand also give us confidence that the so-called LNG gluts forecast for later this decade is unlikely to have a sustained impact on demand or pricing. Recent history has shown that, due to customers' energy security and decarbonization drivers, increased supply is continuously absorbed by the market, with price remaining resilience. For example, International Energy Agency concerns expressed in both 2009 and 2016 of a sustained quote-unquote LNG gluts with far-reaching impacts on gas prices did not eventuate.

Speaker Change: So we see a clear and sustained opportunity for coal to gas switching and key markets as they navigate the energy transition.

Speaker Change: The fundamental drivers for long-term demand also give us confidence that the so-called LNG Gluts forecast for later this decade is unlikely to have a sustained impact on demand or pricing.

Speaker Change: Recent history has shown that due to customers' energy security and decarbonization drivers, increased supply is continuously absorbed by the market with price remaining resilience.

Speaker Change: For example, International Energy Agency concerns expressed in both 2009 and 2016.

Speaker Change: of a sustained, quote-unquote, Ellen G. Glut, with far-reaching impacts on gas prices, did not then two-way.

Marguerite ONeill: Looking forward, we believe demand will continue to keep pace as new supply comes online. Underpinned by these strong market fundamentals, our high-quality portfolio is well positioned to provide energy and create value now and into the future. Core to this is Woodside's continued world-class operational performance, which combines consistently high reliability with reduced operating costs. We are also making targeted investments to extend the production life of our key operated assets to ensure we continue to extract value from our base business. We achieved a major milestone in June with the startup of our Sangamar project. This demonstrates clear delivery against our growth strategy, creating shareholder value, as well as significant economic benefits to Senegal.

Speaker Change: Looking forward, we believe demand will continue to keep pace as new supply comes online.

Speaker Change: Underpinned by these strong market fundamentals, our high quality portfolio is well positioned to provide energy and create value now and into the future.

Speaker Change: Core to this is Woodside's continued world-class operational performance, which combines consistently high reliability with reduced operating costs.

Speaker Change: We are also making targeted investments.

Speaker Change: To extend the production life of our key operated assets to ensure we continue to expect value from our base business.

Speaker Change: We achieved a major milestone in June with the start-up of our Sengamar Project.

Speaker Change: This demonstrates clear delivery against our growth strategy, creating shareholder value, as well as significant economic benefits to sending all.

Marguerite ONeill: I'm pleased to report strong well and subsurface performance. Nameplate capacity of 100,000 barrels per day has been achieved, and all 24 wells have been drilled and completed. This achievement has relied on the creation of strong local relationships, including with our joint venture partner, Petra Sen. We will operate this asset in the same way we do in all jurisdictions, maintaining full compliance with local requirements and positive relationships with regulators, while ensuring we protect shareholder value. Moving to Australia, we have made impressive progress with our Scarborough Energy project. Scarborough was 67% complete at the end of the period and is on track for first LNG cargo in 2026.

Speaker Change: I'm pleased to report strong, well, and sub-surface performance.

Speaker Change: Nameplate capacity of 100,000 barrels per day has been achieved, and all 24 wells have been drilled and completed.

Speaker Change: This achievement has relied on the creation of strong local relationships, including with our joint venture partner Petrasen.

Speaker Change: We will operate this asset in the same way we do in all jurisdictions, maintaining full compliance with local requirements and positive relationships with regulators while ensuring we protect shareholder value.

Speaker Change: Moving to Australia, we have made impressive progress with our Scarborough Energy Project.

Speaker Change: Scarborough was 67% complete at the end of the period and is on track for first LNG cargo in 2026.

Marguerite ONeill: Scarborough is also set to deliver domestic gas at a time the local Western Australian market needs it. The image on this slide shows the floating production unit, which reached a major milestone during the half, achieving structural completion of the top sides. Other key onshore and offshore activities are progressing well, and I look forward to taking some of our investors to see firsthand our progress at Scarborough during a site visit planned for later this year. We were very pleased to welcome LNG Japan to the Scarborough joint venture and look forward to completing the sell down to JIRA.

Speaker Change: Scarborough is also set to deliver domestic ass at a time the local Western Australian market needs it.

Speaker Change: The image on this slide shows the floating production unit which reached a major milestone during the half, achieving structural completion of the top sides.

Speaker Change: Other key onshore and offshore activities are progressing well, and I look forward to taking some of our investors to see firsthand our progress at Scarborough during a site visit planned for later this year.

Speaker Change: We were very pleased to welcome Ellen G. Japan to the Scarborough Joint Venture and look forward to completing the sell down to Jira.

Marguerite ONeill: This demonstrates our ability to attract high-quality partners at a competitive price to a Woodside operated project. Moving to TREON, we remain on track for first oil in 2028. Front end engineering design on the FSO was completed in the period. We have also progressed engineering, procurement, and contracting activities, including the award of the Sub-C marine installation contract. While progressing our growth projects, we continue to look for opportunities to grow our portfolio into the 2030s and beyond to deliver long-term value for our shareholders. In July and August, we entered into agreement to acquire two significant energy projects on the US Gulf Coast, which I will now turn to.

Speaker Change: The STEM constraints are ability to attract high-quality partners at a competitive price to a wood-side operated project.

Speaker Change: Moving to TREON, we remain on track for first oil in 2028.

Speaker Change: Front-end engineering design on the FSO was completed in the period. We have also progressed engineering, procurement, and contracting activities, including the award as a subsea marine installation contract.

Speaker Change: While progressing our growth projects we continue to look for opportunities to grow our portfolio into the 2030s and beyond to deliver long-term value for our shareholders.

Speaker Change: In July and August, we entered into agreement to acquire two significant energy projects on the U.S. Gulf Coast, which I will now turn to.

Marguerite ONeill: Our proposed acquisition of Tolerian and its Fristwood LNG development positions Woodside as a leading independent LNG player, with exposure to both the Pacific and Atlantic basins. It has potential for significant future cash generation and reduction of the average scope one and two emissions intensity of our LNG portfolio. As we engage with investors following the announcement, there was a desire for more clarity on Woodside's value drivers and expected returns from the Driftwood LNG opportunity. Driftwood is a pre-FID project, and we are confident it can achieve the returns of our capital allocation framework. Looking at the chart on the slide, the first two gray bars compare the return profile of a typical project finance development with the returns already achieved by some US LNG players.

Speaker Change: Our proposed acquisition of Tolerian and its first-word LNG development positions outside as a leading independent LNG player, with exposure to both at the specific and Atlantic Basins.

Speaker Change: It has potential for significant future cash generation and reduction at the average scope 1 and 2 emissions intensity of our LNG portfolio.

Speaker Change: As we engage with investors following the announcement, there was a desire for more clarity on Woodside's value drivers and expected returns from the driftwood LNG opportunity.

Speaker Change: Driftwood is a pre-FID project and we are confident it can achieve the returns of our capital allocation framework.

Speaker Change: Looking at the chart on the slide, the first two gray bars compare the return profile of a typical project finance development with the returns already achieved by some U.S.L.N.G. players.

Marguerite ONeill: Some are retrieved, improving returns by increasing plant capacity, selling some volumes at international pricing, and extending the life of the project. We see even more potential for Woodside. Driftwood plays to our established strengths in project execution, operations, and marketing. Our track record on reliability and train debottlenecking gives us the credentials to extract more value from assets compared to other players. Another competitive advantage of Woodside is our global LNG marketing portfolio. This provides us with flexibility to serve our customers and enables global price indexation. Our long shipping position is another strength we bring to the opportunity.

Speaker Change: Some are re-tube improving returns by increasing plant capacity, selling some volumes that international pricing and extending the life of the project.

Speaker Change: We see even more potential for wood side.

Speaker Change: First would place to our established strengths in project execution, operations and marketing.

Speaker Change: Our track record on reliability and train deep bottlenecking gives us the credentials to extract more value from assets compared to other players.

Speaker Change: Another competitive advantage of Woodside is our global LNG marketing portfolio.

Speaker Change: This provides us with flexibility to serve our customers and enable global price indexation.

Marguerite ONeill: We've seen traditional US LNG players building out shipping plates to allow devs' sales. This is a core strength of Woodside today. Driftwood is truly advantaged. It is the only fully permitted pre-FID opportunity in US LNG and has Bechtel as the EPC contractor. We have a very compelling opportunity for selldowns. Multiple inbounds have been received, and we are in conversations with interested parties. Importantly, however, we will be focused and find the right strategic partners for this opportunity as we did for Scarborough.

Speaker Change: Our long shipping position is another strength we bring to the opportunity. We've seen traditional US LNG players building out shipping plates to allow dead sales. This is a core strength that would side today.

Speaker Change: Driftwood is truly advanced. It is the ONeill, only permitted pre-FID opportunity in USLNJ and has to be a projectile as the EPC contractor.

Speaker Change: We have a very compelling opportunity for cell-downs.

Speaker Change: Multiple inbound have been received and we are in conversations with interested parties.

Speaker Change: Importantly, however, we will be focused and find the right strategic partners for this opportunity as we did for Scarborough.

Marguerite ONeill: Now to our proposed acquisition of OCI's clean ammonia project. This is another investment that positions us to thrive through the energy transition. The project is under development with expansion potential. Construction is already 70% complete, with ammonia production targeted for 2025 and lower carbon ammonia for 2026. Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of demand total. Market forecasts show that growing demand for lower carbon ammonia will be supported by policies in key energy markets, stimulating use for ammonia beyond traditional applications to include power generation, marine bunkering, and as a hydrogen carrier.

Speaker Change: Now to our proposed acquisition of OCI's Clean ammonia Project. This is another investment that positions us to thrive through the energy transition.

Speaker Change: The project is under development with expansion potential. Construction is already 70% complete, with the ammonia production targeted for 2025 and lower carbon ammonia for 2026.

Speaker Change: Global Immunite Demand is forecast to double by 2050, with lower carbon ammonia making up nearly 2-thirds of demand total.

Speaker Change: Market forecasts show that growing demand for lower carbon ammonia will be supported by policies in key energy markets. Stimulating use for ammonia beyond traditional applications to include power generation, marine bunkering, and as a hydrogen carrier.

Marguerite ONeill: Over the past two decades, we have seen the EU leading the charge in tackling climate change through incentives like the emissions trading scheme. Last year, it strengthened its lower carbon framework through the implementation of the carbon border adjustment mechanism. This policy combines a carbon intensity measurement with a mandatory carbon price, further incentivizing use of lower carbon energy sources. Lower carbon ammonia is also being used in Japan and Korea to decarbonize power generation by co-firing ammonia with coal.

Speaker Change: Over the past two decades, we have seen the EU leading the charge in tackling climate change through incentives like the emissions trading scheme.

Speaker Change: Last year, it strengthened its lower carbon framework through the implementation of the carbon border adjustment mechanism.

Speaker Change: This policy combines a carbon intensity measurement with a mandatory carbon price, further incentivizing use of lower carbon energy sources.

Speaker Change: Lower carbon ammonia is also being used in Japan and Korea to decarbonize power generation by co-firing ammonia with coal.

Graham Tiver: I'll now hand over to Graham to take you through our financial performance. Thanks, Meg, and hello everyone. A financial performance and balance sheet have remained resilient because of our strong underlying business and our consistent approach to capital management. I would like to highlight here that our capital management framework remained unchanged. This framework provides the flexibility of funding value accredit growth while continuing to deliver strong shareholder returns. Underpitting our capital management framework is Discipline. We run our business with consistent cost-focused and have managed our unit production costs down despite inflationary pressures. We will further tighten our belts and continue to rationalise discretionary spend.

Speaker Change: I'll now hand over to Graham to take you through our financial performance.

Graham Tiver: Thanks, Nick and hello everyone.

Graham Tiver: A financial performance and balance sheet have remained resilient because of our strong underlying business and our consistent approach to capital management.

Graham Tiver: I would like to highlight here that our Capital Management Framework remains unchanged.

Graham Tiver: This framework provides the flexibility of funding value of credit growth, while continuing to deliver strong shareholder returns.

Speaker Change: Underpeding our Capital Management Framework is disappointed.

Speaker Change: We run our business with consistent cost focus and have managed our unit production costs down despite inflationary pressures.

Speaker Change: We will further tighten our belts and continue to rationalise discretionary spend.

Graham Tiver: We are disciplined with our investment decisions. The acquisitions of Tolurian and OCI's Clean Emonia project are both aligned with Woodside's corporate strategy and our capital allocation framework. As the operator of these opportunities, we control the spend, allowing us to phase the development, bring in partners at our determination, and use the contractors we want. Cell downs of equity in the Scarborough Joint Venture bring quality partners into the project and cash back into the business. The sale proceeds of $910 million received from L&G Japan and an estimated total consideration of $1.4 billion coming from Giro. And we are disciplined in how we position the balance sheet to achieve our goals.

Speaker Change: We are disciplined with our investment decisions, the acquisitions of Tillerian and OCI's Clean ammonia projects are both aligned with wood side corporate strategy and our capital allocation framework.

Speaker Change: As the operator of these opportunities, we control the spend.

Speaker Change: allowing us to fight the development.

Speaker Change: Bring in partners at our determination and use the contractors we want.

Speaker Change: The sell-downs of equity in the Scarborough joint venture bring quality partners into the project and cash back into the business.

Speaker Change: Sale Proceeds of $910 million received from LNG Japan, and an estimated total consideration of $1.4 billion coming from Europe.

Speaker Change: and we are disciplined in how we position the balance sheet to achieve our goals.

Graham Tiver: We know the importance of dividends to our shareholders, and when we evaluate financial scenarios, we assume a dividend payout ratio at the top end of our range, even at stress case pricing. We target a gearing range of 10-20% through the investment cycle. With the recent acquisitions, we expect to access debt markets in the near term. Our gearing will likely go above the top of our range for a period of time. This is expected to reduce back to within our target gearing range by utilizing the various leaders at our disposal. Moving to our financial performance in the period, despite lower average realised prices, our base business continues to perform very well.

Speaker Change: We know the importance of dividends to our shareholders, and when we evaluate financial scenarios, we assume a dividend payout ratio at the top end of our range, even at stress case processing.

Speaker Change: We target a gearing range of 10 to 20% through the investment cycle.

Speaker Change: With the recent acquisitions, we expect to access dead markets in the near-term, and gearing will likely go above the top of our range for a period of time.

Speaker Change: This is expected to reduce back to within our target gearing range by utilizing the various labors at our disposal.

Speaker Change: Moving to our financial performance in the period.

Speaker Change: Despite lower average realised process, our base business continues to perform very well. Custer down and we're demonstrating excellent operational discipline and resilience across our financial metrics.

Graham Tiver: Costs are down, and we're demonstrating excellent operational discipline and resilience across our financial metrics. This is translating into a half-year annualised yield of 7.3% at June 30. Cash flow generation through the first half of 2024 was strong, delivering a cash margin above 80%, which has been sustained over the past five years. Importantly, we have achieved positive free cash flow of $740 million in a heavy capital investment year and with significant tax payments. This is in line with the previously provided outlook for free cash flow. We expect to update our outlook to include acquisitions and sell downs once we complete the transactions.

Speaker Change: This is translating into a healthy dividend payment, representing a half year annualized yield of 7.3% at June 30.

Speaker Change: Cast Floyd Generation through the first half of 2024 was strong.

Speaker Change: Delivering a cash margin above 80% which has been sustained over the past five years.

Speaker Change: Importantly, we have achieved positive free cash flow of $740 million.

Speaker Change: United Heavy Capital Investments here and the significant tax payments.

Speaker Change: This is in line with the previously provided outlook for free cash flow. We expect to update our outlook to include acquisitions and cell lands once we complete the transactions.

24 results.

Graham Tiver: Our balance sheet is well positioned with our gearing at the lower end of our target range and a strong cash-generative portfolio of assets.

Operator: All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question you will need to press the star key followed by the number one on your telephone keypad.

Unknown Executive: All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question you will need to press the star key followed by the number one on your telephone keypad.

Speaker Change: Our balance shape is well positioned.

Speaker Change: with a gearing at the lower end of a target range and a strong cash-generative portfolio of assets.

Graham Tiver: This is how we have created and returned value to shareholders in the first half.

Marguerite ONeill: I would now like to hand the conference over to Ms. Meg O'Neill, Chief Executive Officer and Managing Director. Please go ahead. Well, good morning everyone and welcome to Woodside's 2024 half-year results presentation. We are presenting from Sydney and I would like to begin by acknowledging the traditional custodians of this land, the radical people of the Eora Nation, and pay my respects to their elders past and present.

Marguerite ONeill: I would now like to hand the conference over to Ms. Meg O'Neill, Chief Executive Officer and Managing Director. Please go ahead.

Speaker Change: This is how we have created and returned value to shareholders in the first half.

Graham Tiver: I'll hand back to you.

Marguerite ONeill: Today I'm joined on the call by our Chief Financial Officer Graham Tiver. Together we will provide an overview of our half-year 2024 performance before opening up to Q&A.

Marguerite ONeill: Thanks, Graham. As I outlined earlier, conducting our business sustainably is one of the goals underpinning our strategy to thrive through the energy transition. While we were disappointed that the shareholder vote received on our Climate Transition Action Plan at our AGM, we respect the results and we will continue seeking feedback from investors. During the task, we progress the implementation of our asset decarbonization plans and remain on track to achieve our Scope One and Two emissions reduction targets. We also announced a new complimentary abatement target to take FID on new energy opportunities by 2030, with total abatement capacity of five million tons per annum of CO2 equivalents.

Speaker Change: ONeill hand back to me. Thanks, Graham. As I outlined earlier, conducting our business sustainably is one of the goals underpinning our strategy to thrive through the energy transition.

Marguerite ONeill: Please take the time to read the disclaimers, assumptions and other important information. I'd like to remind you that all dollar figures in today's presentation, are in US dollars unless otherwise indicated. I am very pleased to present a strong set of half-year results today. They are a testament not just to our operating performance in the past six months, but also demonstrate how we are delivering on our strategy to thrive through the energy transition.

Speaker Change: While we were disappointed at the shareholder vote received on our Climate Transition Action Plan at our HEM, we respect the results and we will continue seeking feedback from investors.

Marguerite ONeill: Well, good morning everyone and welcome to Woodside's 2024 half-year results presentation. We are presenting from Sydney and I would like to begin by acknowledging the traditional custodians of this land, the radical people of the Eora Nation, and pay my respects to their elders past and present.

Marguerite ONeill: Today I'm joined on the call by our Chief Financial Officer Graham Tiver. Together we will provide an overview of our half-year 2024 performance before opening up to Q&A. Please take the time to read the disclaimers, assumptions and other important information. I'd like to remind you that all dollar figures in today's presentation, are in US dollars unless otherwise indicated. I am very pleased to present a strong set of half-year results today. They are a testament not just to our operating performance in the past six months, but also demonstrate how we are delivering on our strategy to thrive through the energy transition.

Speaker Change: During the half, we progress the implementation of our asset decarbonization plans and remain on track to achieve our scope one into emissions reduction targets.

Marguerite ONeill: This strategy is underpinned by three goals, providing energy, creating and returning value to our shareholders, and conducting our business sustainably. During the first half of 2024 we have delivered on all three. Our project execution capabilities have been demonstrated again with the safe startup and strong ramp-up performance at Sangamar, and excellent progress at our Scarborough Energy Project. Our reliable and cost-competitive-based business has translated into strong financial performance and returns to shareholders, with a fully-franked interim dividend of 69 US cents per share, once again at the top end of our payout ratio range.

Speaker Change: We also announced a new complimentary abatement target to take FID on new energy opportunities by 2030 with total abatement capacity of 5 million tons per annum of CO2 equivalents.

Marguerite ONeill: As well as generating attractive investment returns, the acquisition of OCI's clean ammonia project is a material step towards delivering on our scope three investments and abatement targets. And beyond our own initiatives and investments, Woodside is also championing lower carbon initiatives across the sector. In January, we became the first Australian company to join the Oil and Gas Methane Partnership 2.0, a flagship international program aimed at improving the accuracy and transparency of methane emissions reporting. Conducting our business sustainably also extends to supporting community developments wherever we operate. Woodside continues to be among Australia's top tax contributors. Our total tax and royalty payments during the half to Australian governments were $2.7 billion Australian dollars.

Speaker Change: As well as generating attractive investment returns, the acquisition of OCI's clean ammonia project is a material step towards delivering on our scope three investments and abatement targets.

Speaker Change: and beyond our own initiatives and investments, outside is also championing lower carbon initiatives across the sector.

Speaker Change: In January, we became the first Australian company to join the oil and gas methane partnership 2.0, a flagship international program aimed at improving the accuracy and transparency of methane emissions reporting.

Marguerite ONeill: With our disciplined approach to cost management, we have reduced our unit production cost by 6% in an inflationary environment, and we will continue progressing actions to ensure that we can fund growth while supporting strong shareholder distributions. Looking across Woodside's global business, I have never been more confident in our ability to deliver reliable, affordable and lower carbon energy to a world that needs it today and into the future. Our key operational and financial metrics in the half-year results demonstrate how well our base business is performing.

Speaker Change: Conducting our business sustainably also extends to supporting community development wherever we operate.

Speaker Change: With side continues to be among Australia's top tax contributors, our total tax and royalty payments during the half to Australian government was $2.7 billion.

Marguerite ONeill: This demonstrates an ongoing and significant contribution to the economic prosperity of Australia. As described in our Northwest community development report, we spent more than Australian $2.4 billion with local businesses in Western Australia through the Northwest Shell and Scarborough projects during 2023. In Senegal, our Sengamart project is providing significant local content opportunities, creating jobs for more than 4,400 Senegalese people.

Speaker Change: The system illustrates an ongoing and significant contribution to the economic prosperity of Australia.

Speaker Change: As described in our Northwest Community Development Report, we spent more than Australian 2.4 billion dollars with local businesses in Western Australia through the Northwest Shell and Scarborough Projects during 2023.

Marguerite ONeill: World-class LNG reliability of 98%, and production of more than 89 million barrels of oil equivalent, put us on track to deliver our full-year production guidance. We're pleased to have delivered net profit after tax of $1.9 billion, translating into strong earnings per share, and a healthy interim dividend for our shareholders. Ensuring everyone who works at Woodside Go some safely remains our highest priority. Our commitment to continuous improvement means taking actions to strengthen our safety culture, simplify our processes, and improve our systems.

Speaker Change: In Senegal, our Sangamar Project is providing significant local content opportunities, creating jobs for more than 4,400 Senegalese people.

Marguerite ONeill: I'd like to close by recapping on our strategic priorities for 2024 and demonstrating the strong investment case before our shareholders. We have a high quality, cash generative portfolio, and we are well positioned to supply growing LNG demands. We deliver strong and consistent returns to our shareholders, and we’re on track to deliver our emissions reduction targets. And above all, we are committed to continuously improving safety. Our achievements in the first half of 2024 demonstrate delivery of our strategic goals and give us great confidence that Woodside will thrive through the energy transition.

Speaker Change: I'd like to close by recapping on our strategic priorities for 2024 and demonstrating the strong investment case before our shareholders.

Marguerite ONeill: The full impact of these actions will take some time, and our overall safety performance is not yet meeting our expectations. However, we are seeing some positive results. For example, the safe delivery of our Sangamar project included 30 million hours worked on the FTSO without a serious injury, a remarkable result and set the standard for what I expect to see across the business. The decision continues to grow, and economies develop, the demand for energy is increasing.

Speaker Change: We have a high-quality cash-generative portfolio and we are well positioned to supply growing energy demand.

Speaker Change: We deliver strong and consistent returns to our shareholders, and our on-track to deliver our emissions reduction targets.

Speaker Change: and above all, we are committed to continuously improving safety.

Speaker Change: Our achievements in the first half of 2024 demonstrate delivery of our strategic goals and give us great confidence that one side will thrive through the energy transition.

Marguerite ONeill: Last month, we celebrated 70 years as an Australian company and reflected on our proud history and proven experience. Looking to the future, we have the strategy, the people, and the portfolio to enable us to deliver shareholder value for decades to come.

Speaker Change: Last month we celebrated 70 years as an Australian company and reflected on our proud history and proven experience.

Speaker Change: Looking to the future, we have the strategy, the people, and the portfolio to enable us to deliver shareholder value for decades to come.

Marguerite ONeill: Thank you.

Unknown Executive: I'll now open the call to your questions. Please limit your questions to two each, so everybody has an opportunity to ask their questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your next, James, to be announced. If you wish to cancel your request, please press start to.

Speaker Change: Thank you.

Speaker Change: I'll now open the call to your questions, please limit your questions to two each, so everybody has an opportunity to ask their questions.

Marguerite ONeill: According to recent updates on progress towards the UN sustainable development goals, the number of people lacking access to electricity around the world remains significant. In 2022, this reached 685 million people, the highest in over a decade. So while the precise pathway of the global energy transition remains uncertain, there is one thing we can bank on, demand for reliable, affordable and increasingly lower carbon energy will continue to grow. At the same time, we firmly believe that LNG will remain an important global energy source as countries seek to lower their emissions.

Speaker Change: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced.

Unknown Executive: If you're on a speaker phone, please pick up the handset to ask your question.

Speaker Change: If you wish to cancel your request, please press start to. If you're on a speaker phone, please pick up the handset to ask your question. Your first question comes from Mark Wiseman with Macquarie. Please go ahead.

Mark Wiseman: Your first question comes from Mark Wiseman with Macquarie. Please go ahead. Oh, good morning, Meg, Graham, and Tim. Congratulations on a strong result and a strong dividend. I just had a question on the cash flows, the operating cash flows. You paid? More than we expected in tax.

Mark Wiseman: Good morning, Meg Graham and James Congratulations on a strong result in a strong dividend

Speaker Change: On the other side of the question on the cash flows, the operating cash flows.

Graham Tiver: How would it give any breakdown as a 1.7 billion tax? How much of that's PRRT versus income tax?

Mark Wiseman: The paid, more than we expected in tax, you don't want to give any breakdown of the 1.7 billion tax, so much of that's PRRT versus income tax.

Marguerite ONeill: When used to generate electricity, gas typically produces half the life cycle emissions of coal. Gas can also provide support for electricity grids powered by renewables and batteries. Therefore, for many economies, switching from coal to gas is often the most material and affordable way to reduce emissions while maintaining a reliable source of energy to underpin modern living standards. For example, in the US from 2022 to 2023, coal to gas switching accounted for two thirds of the emissions reduction in electricity generation.

Graham Tiver: Hi Mark, thank you. Graham here. So yes, so effectively of that 1.7 billion paid in tax in the cash flow statement, 1.5 was related to income tax and the remainder being PRRT. What I'd point to Mark is, if you have a look at the end of December as a part of our 4-year results in the balance sheet, we had a tax payable liability of 1.1 billion dollars. So effectively, that has been paid along with tax payments for the 2024 year.

Mark Wiseman: The National Security Council, Graham Tiver, Graham Tiver, Graham Tiver, Graham Tiver, Graham Tiver, Graham

Mark Wiseman: Hi Mark, thank you Graham here so yes so effectively of that 1.7 billion paid in tax in the cash to income tax

Speaker Change: and the remainder being PR-opsy.

Speaker Change: What I'd point to Mark is, you know, if you have a look at the end of December as a part of our full year results in the balance sheet, we had a tax payable liability of $1.1 billion.

Marguerite ONeill: While coal use in markets like Europe has already peaked, the Asia Pacific region currently accounts for more than 80% of global coal use. And global coal consumption is approximately eight times higher than global LNG. So we see a clear and sustained opportunity for coal to gas switching in key markets as they navigate the energy transition. These fundamental drivers for long-term demand also give us confidence that the so-called LNG Gluts forecast for later this decade is unlikely to have a sustained impact on demand or pricing.

Speaker Change: So, quickly, that has been paid along with tax payments for the 2024 year. So, hopefully that provides some clarity.

Graham Tiver: So hopefully that provides some clarity. Importantly, we are one of the largest tax payers in Australia, and as Meg touched on in her presentation, all up across all taxes and royalties in Australia, we paid Australian $2.7 billion in the first half.

Speaker Change: and Gordon Lee, you know, we are one of the largest taxpayers in Australia, and as Meg Teston and her presentation, all up across all taxes and royalties in Australia, we play Australian 2.7 billion dollars in the first half.

Mark Wiseman: Okay, thanks, Graham. And just for my second question, just on hedging with the two M&A deals that you're working on, the Driftwood FID coming up and maintaining the 80% dividend payouts for now at least. What's your posture with hedging in 25 and 26? Thanks.

Speaker Change: Okay, thanks Graham. And just for my second question, just on hedging with the two M&A deals that you're working on, the driftwood FID coming up.

Marguerite ONeill: Recent history has shown that due to customers' energy security and decarbonization drivers, increased supply is continuously absorbed by the market with price remaining resilience. For example, international energy agency concerns expressed in both 2009 and 2016 of a sustained quote-unquote LNG Gluts with far-reaching impacts on gas prices did not eventuate. Looking forward, we believe demand will continue to keep pace as new supply comes online. Underpinned by these strong market fundamentals, our high-quality portfolio is well positioned to provide energy and create value now and into the future.

Speaker Change: and Maintain in the 80% dividend payout for now at least. What's your posture with hedging in 25 and 26?

Graham Tiver: Yeah, Mark, it's probably worth reminding you and the investors why we hedged. So we have been hedging plus or minus 30 million barrels of oil for the last couple of years in this period of higher capital spend. We also hedge our Corpus Christi contract. So those are Henry Hub and TTF hedges, and that's really to manage the trading risk in that particular contract. So the hedging that I assume you're asking about is the oil linked hedging, and we do expect to continue hedging in 2025, and we will take a look in due course at 2026.

Speaker Change: Mark is probably worth reminding you and the investors why we head, so we have been hedging.

Speaker Change: Plus, Remidas 30 million barrels of oil for the last couple of years in this period of higher capital spend.

Speaker Change: We also hedge our corporate-skrissed contracts, so those are Henry Hub and TTF hedges, and that's really to manage the trading risk in that particular contract.

Speaker Change: So the hedging that I assume you're asking about is the oil linked hedging and we do expect to continue hedging in 2025 and we will take a look in due course at 2026.

Marguerite ONeill: Core to this is Woodside's continued world-class operational performance, which combines consistently high reliability with reduced operating costs. We are also making targeted investments to extend the production life of our key operated assets to ensure we continue to extract value from our base business. We achieved a major milestone in June with the startup of our Sangamar project. This demonstrates clear delivery against our growth strategy, creating shareholder value, as well as significant economic benefits to Senegal.

Graham Tiver: As we firm up plans forward for driftwood as we get better line of sight as to what exactly our capital spend is going to look like, that'll inform our decisions as to whether or not we hedge in 26. Okay, so would it be reasonable to assume all else equal more capics commitment and more gearing on the balance sheet would point you towards more more hedged volume. Yes, but again, well, look, I'd say not necessarily more. We've been targeting the 30 million barrels because we feel that's an appropriate level of hedging to protect our ability to cover our base cost as well as continue the investments that we sanction.

Speaker Change: As we firm up plans forward for drift to it, as we get better line of sight as to what exactly our capital spend is going to look like that'll inform our decisions as to whether or not we had in 26.

Speaker Change: Okay, so, would it be reasonable to assume?

Speaker Change: OLL SQL, more capex commitment and more gearing on the balance sheet would point you towards more hedge-dvolume.

Speaker Change: Yes, but again, well, look, I'd say not necessarily more. We've been targeting the 30 million barrels because we feel that's an appropriate level of hedging to protect our ability to cover our base costs as well as continue the investments that we've sanctioned.

Graham Tiver: So I wouldn't expect it to go above the 30 million barrels, but it really will be a question for 2026 of how much hedging is appropriate.

Speaker Change: and so I wouldn't expect it to go above the 30 million barrels.

Speaker Change: But it really will be a question for 2026 of how much edging is appropriate.

Graham Tiver: As we, you know, you'll recall 2026 is when we expect to start LNG production from Scarborough, so spend ramps down, revenue starts to come in, but that'll be kind of the critical year as we think about the cash balance going forward.

Speaker Change: As we, you know, you'll recall 20, 26 is when we expect to start LNG production from Scarborough. So spend ramps down, revenue starts to come in, but that'll be kind of the critical year as we think about the cash balance going forward.

Marguerite ONeill: Moving to Australia, we have made impressive progress with our Scarborough Energy project. Scarborough was 67% complete at the end of the period, and is on track for first LNG cargo in 2026. Scarborough is also set to deliver domestic gas at a time the local Western Australian market needs it. The image on this slide shows the floating production unit which reached a major milestone during the half, achieving structural completion of the top sides.

Mark Wiseman: Okay, thank you.

Mark Wiseman: That's clear, and congrats on the result again. Cheers. Thanks, Mark.

Speaker Change: Okay, thank you. That's clear and congrats on the result again. Cheers. Thanks Mark.

Saul Kavonic: Thank you. Your next question comes from Saul Kavonic with MST. Please go ahead. Good morning. A couple questions. Perhaps the first one is for Graham. Just in the context where you talk about gearing to go above the top end of the 20% gearing range for a period, should we think about it providing time to enable targeted sell-downs of Driftwood? That's another way of phrasing that. If you know, once a 50% sell-down of Driftwood occurs, do you think you would then be, may, may be below the 20% gearing range, you know, at kind of current $78 oil prices?

Speaker Change: Thank you. Your next question comes from Saul Cavanic with MST. Please go ahead.

Saul Cavanic: Good morning. A couple questions. Perhaps the first one is for Graham. Just in the context where you talk about gearing to go above the top end of the 20% gearing range.

Marguerite ONeill: Other key onshore and offshore activities are progressing well, and I look forward to taking some of our investors to see firsthand our progress at Scarborough during a site visit plan for later this year. We were very pleased to welcome LNG Japan to the Scarborough joint venture, and look forward to completing the sell down to JIRA. This demonstrates our ability to attract high-quality partners at a competitive price to a woodside operated project.

Saul Cavanic: for a period. Should we think about it providing time to enable targeted sell-downs of driftwoods? About another way of phrasing that. Once a 50% sell down a driftwood occurs, do you think you would then be made?

Speaker Change: Be below the 20% gearing range at kind of current 78 dollar oil prices

Graham Tiver: So, it's very early days. We are still working through, well, one project completion of the actual acquisition. We're still reassessing the capital, the phasing of the capital, etc. And then the sell-down process. But to answer your question at a very high level based on what we see today, it is highly likely that we will still pop up above 20% for a gearing for a period of time in a 50% sell-down scenario.

Marguerite ONeill: Moving to TREON, we remain on track for first oil in 2028. Front end engineering design on the FSO was completed in the period. We have also progressed engineering, procurement, and contracting activities, including the award of the Sub-C Marine installation contract. While progressing our growth projects, we continue to look for opportunities to grow our portfolio into the 2030s and beyond to deliver long-term value for our shareholders. In July and August, we entered into agreement to acquire two significant energy projects on the US Gulf Coast, which I will now turn to.

Speaker Change: So it's very early days. We are still working through one project component, you know, completion of the actual acquisition. We're still reassessing the capital, the phasing of the capital, etc. And then the sell down process.

Speaker Change: But to answer your question at a very hard level, based on what we say today.

Speaker Change: It is highly likely that we will still pop up above 20% for a gearing for a period of time, you know, 50% cell-down scenario, but having said that and I caveat, there's still a lot of work to do between between now and then.

Marguerite ONeill: Our proposed acquisition of Tolerian and its Fristwood LNG development positions woodside as a leading independent LNG player, with exposure to both the Pacific and Atlantic basins. It has potential for significant future cash generation and reduction of the average scope one and two emissions intensity of our LNG portfolio. As we engage with investors following the announcement, there was a desire for more clarity on woodside's value drivers and expected returns from the Driftwood LNG opportunity.

Marguerite ONeill: In July and August, we entered into agreement to acquire two significant energy projects on the US Gulf Coast, which I will now turn to. Our proposed acquisition of Tolerian and its Fristwood LNG development positions woodside as a leading independent LNG player, with exposure to both the Pacific and Atlantic basins. It has potential for significant future cash generation and reduction of the average scope one and two emissions intensity of our LNG portfolio.

Marguerite ONeill: But having said that, and I caveat, there's still a lot of work to do between now and then. And so maybe it's worth elaborating on Graham's answer. We've said our target gearing range is 10 to 20%, but it's not hard guardrails. It's a target range, and we may be above or below at periods in time. And, you know, you'd be well aware that we were below its last year when market conditions were in our favor. We, again, with the investment in drift, would may go above it for a period of a couple of years. But again, they're not hard-and-fast rules.

Speaker Change: And so maybe it's worth elaborating on Graham's answer. We've said our target year in range is 10 to 20 percent but it's not.

Speaker Change: Hard Gargrails, it's a target range, and we may be above or below at periods in time. You know, you'd be well aware that we were below it's last year when market conditions were in our favor. We, again, with the investment interest, would make a love it for a period of a couple of years.

Marguerite ONeill: As we engage with investors following the announcement, there was a desire for more clarity on woodside's value drivers and expected returns from the Driftwood LNG opportunity. Driftwood is a pre-FID project, and we are confident it can achieve the returns of our capital allocation framework. Looking at the chart on the slide, the first two gray bars compare the return profile of a typical project finance development with the returns already achieved by some US LNG players.

Graham Tiver: It's more targets range.

Speaker Change: But again, they're not hard and fast. Rules, it's more target range.

Saul Kavonic: Thanks.

Marguerite ONeill: Driftwood is a pre-FID project, and we are confident it can achieve the returns of our capital allocation framework. Looking at the chart on the slide, the first two gray bars compare the return profile of a typical project finance development with the returns already achieved by some US LNG players. Some are retrieved, improving returns by increasing plant capacity, selling some volumes at international pricing, and extending the life of the project. We see even more potential for Woodside.

Graham Tiver: And I guess the follow-up to that is, in the absence of a drift, would sell down, are you still comfortable? You can maintain this modeled 80% payout policy within the various scenarios you look at, or is the pressure really on to have a sell-down to maintain that recent payout or a ratio? So what we said about drift would is we really want to put together the dream team. We've had more in-bounds than we can check a stick at. And so we've got the luxury of being able to really pick the partners we want to work with.

Speaker Change: Thanks, and I guess I follow up to that ease.

Speaker Change: In the absence of a driftwood cell down, are you still comfortable? You can maintain this model to 80% payout policy within the very scenarios you look at, or is the pressure really on to have a cell down to maintain that risk and payout the right sure.

Marguerite ONeill: Some are retrieved, improving returns by increasing plant capacity, selling some volumes at international pricing, and extending the life of the project. We see even more potential for Woodside. Driftwood plays to our established strengths in project execution, operations, and marketing. Our track record on reliability and train debottle necking gives us the credentials to extract more value from assets compared to other players. Another competitive advantage of Woodside is our global LNG marketing portfolio.

Speaker Change: Yes, all we've said about driftwood is we really want to put together the dream team. We've had more in balance than we can check a stick out.

Marguerite ONeill: Driftwood plays to our established strengths in project execution, operations, and marketing. Our track record on reliability and train debottle necking gives us the credentials to extract more value from assets compared to other players. Another competitive advantage of Woodside is our global LNG marketing portfolio. This provides us with flexibility to serve our customers and enables global price indexation. Our long shipping position is another strength we bring to the opportunity. We've seen traditional US LNG players building out shipping plates to allow devs sales.

Speaker Change: So we've got the luxury of being able to really pick the partners we want to work with. And our intention as we progress towards an investment decision there is we want to have line of sight to the partnership that we want. We may not have everything signed sealed and delivered but we do want to have line of sight to the partnership.

Graham Tiver: And our intention as we progress towards an investment decision there is we want to have line of sight to the partnership that we want. Once we may not have everything signed, sealed, and delivered, but we do want to have line of sight to the partnership.

Graham Tiver: If we didn't have anybody interested, it would not be our intention to go forward at 100% with nobody queued up. All right.

Speaker Change: We didn't have anybody interested. It would not be our intention to go forward at 100% with nobody to do that.

Marguerite ONeill: This provides us with flexibility to serve our customers and enables global price indexation. Our long shipping position is another strength we bring to the opportunity. We've seen traditional US LNG players building out shipping plates to allow devs sales. This is a core strength of Woodside today. Driftwood is truly advantaged. It is the only fully permitted pre-FID opportunity in US LNG and has Bechtel as the EPC contractor. We have a very compelling opportunity for selldowns. Multiple inbounds have been received, and we are in conversations with interested parties. Importantly, however, we will be focused and find the right strategic partners for this opportunity as we did for Scarborough.

Saul Kavonic: Thanks. I also just have a question on drift good. It could be for you.

Marguerite ONeill: I don't know if Mark's on the call; maybe he's better to address it, but just looking at the steps you provided here to show how this can go from an infrastructure return to the 12-plus percent rate of return. And you highlight the bottlenecking and want the life, et cetera, but just one of the kind of holding them through elements, you talk about Woodside achieving greater than 95% reliability. Could you provide some guidance on what the average US LNG plan achieves versus what you think Woodside can achieve? Yeah, thanks for the question, Saul. We actually tried to get that hard and fast data, and unfortunately, it's a bit all over the map.

Chris Good: All right, thanks. Also, if you have a question on Chris Good, it can be for you. I don't know if Mark's on the call, maybe he's better to address it, but just looking at the steps you provided here to show how this can go from an infrastructure return to the 12 plus percent rate of return.

Marguerite ONeill: This is a core strength of Woodside today. Driftwood is truly advantaged. It is the only fully permitted pre-FID opportunity in US LNG and has Bechtel as the EPC contractor. We have a very compelling opportunity for selldowns. Multiple inbounds have been received, and we are in conversations with interested parties. Importantly, however, we will be focused and find the right strategic partners for this opportunity as we did for Scarborough.

Speaker Change: and you highlight the bottle making and one-the-life etc. but just a note that kind of hurting them through elements.

Speaker Change: He talked about Woodside achieving greater than 95% reliability. Could you provide some guidance on what the average US, LNG planer, Jesus, is what you think Woodside can achieve?

Speaker Change: Yeah, thanks for the questions, so we actually tried to get that hard and fast data. And unfortunately, it's a bit all over the map. There are some very high quality operators in the U.S. who operate in that 95-ish percent range reliability. There are other operators that struggle to keep their plant online.

Marguerite ONeill: There are some very high quality operators in the US who operate in that 95-ish percent range reliability. There are other operators that struggle to keep their plants online.

Marguerite ONeill: Now to our proposed acquisition of OCI's Clean ammonia project. This is another investment that positions us to thrive through the energy transition. The project is under development with expansion potential. Construction is already 70% complete with ammonia production targeted for 2025 and lower carbon ammonia for 2026. Global ammonia demand is forecast to double by 2050 with lower carbon ammonia making up nearly two-thirds of demand total. Market forecasts show that growing demand for lower carbon ammonia will be supported by policies in key energy markets, stimulating use for ammonia beyond traditional applications to include power generation, marine bunkering, and as a hydrogen carrier.

Marguerite ONeill: What we can speak to is our track record, and part of why we highlight our LNG reliability every half year and full year is just to kind of confirm with the market the capability that we have in our organization to get the maximum value through the facilities that we have.

Speaker Change: What we can speak to is our track record and part of why we highlight our LNG reliability every half year in full year is just to kind of confirm with the market, the capability that we have in our organization to get the maximum value through the facilities that we have.

Marguerite ONeill: Thanks, and just the second point to touch on the, I guess the upside from the marketing position. Do you expect, for example, if you were to sign an FOB contract from Driftwood that you'll achieve a premium toll value versus kind of the more recent tolls that have been signed, and I'll push, is it just like a five cent an M&B-2 premium or a 50 cent an M&B-2 premium? So, so one of the things that we're working on as we put together our dream team is making some of those decisions around how much equity LNG we want to maintain, how much equity in the plant we want to maintain, and how much equity LNG we want to maintain.

Speaker Change: Thanks for the second point to touch on the, like, the upside from the marketing position.

Speaker Change: Do you expect, for example, if you were to sign an FOB contract from Driftwood, that you'll achieve a premium toll value versus kind of the more recent tolls that have been signed and I'll push, is it this like a 5 cent and MNB2 premium or a 50 cent and MNB2 premium?

Speaker Change: This is all one of the things that we're working on as we put together our dream team is making some of those decisions around how much equity LNG we want to maintain, how much equity in the plant we want to maintain and how much equity LNG we want to maintain.

Marguerite ONeill: If, look, it'd be premature for us to speculate on how we would structure any contracts. There may be circumstances where we would sign FOB contracts, but in some ways that really is linked to the infrastructure kind of model where you get that high confidence in the revenue stream. Where we think we can really add value is actually by taking more of that into our portfolio. So, our starting point is, whatever equity position we take, we're going to take it into our portfolio because we think we can access better pricing by being able to sell it at either oil indexation, TTS indexation, or JKM.

Speaker Change: If, look, it'd be premature for us to speculate on how we would structure any contracts, there may be circumstances where we would sign FOB contracts.

Graham Tiver: I'll now hand over to Graham to take you through our financial performance. Thanks, Meg, and hello everyone. A financial performance and balance sheet have remained resilient because of our strong underlying business and our consistent approach to capital management. I would like to highlight here that our capital management framework remained unchanged. This framework provides the flexibility of funding value accredit growth while continuing to deliver strong shearholder returns. Underpitting our capital management framework is discipline.

Speaker Change: But in some ways that really is linked to the infrastructure.

Speaker Change: Kind of model, where you get that high confidence in the revenue stream, where we think we can really add value is actually by taking more of that into our portfolio.

Graham Tiver: I would like to highlight here that our capital management framework remained unchanged. This framework provides the flexibility of funding value accredit growth while continuing to deliver strong shearholder returns. Underpitting our capital management framework is discipline. We run our business with consistent cost-focused and have managed our unit production costs down despite inflationary pressures. We will further tighten our belts and continue to rationalise discretionary spend. We are disciplined with our investment decisions. The acquisitions of Tolurian and OCI's Clean Emonia project are both aligned with Woodside's corporate strategy and our capital allocation framework.

Speaker Change: So our starting point is whatever equity position we take, we're going to take it into our portfolio because we think we can access better pricing by being able to sell it at either oil indexation, TTS, indexation, or JKM.

Unknown Executive: Okay, sorry, just one more. My understanding is the approval.

Unknown Executive: Oh, we've got a few others in the queue.

Speaker Change: Thanks. I just want more. I'm understanding is the approval. We've got a few others in the queue if I can shoot us. Thank you.

Unknown Executive: If we can, if I can keep the back in, thanks all. Thank you.

Graham Tiver: We run our business with consistent cost-focused and have managed our unit production costs down despite inflationary pressures. We will further tighten our belts and continue to rationalise discretionary spend. We are disciplined with our investment decisions. The acquisitions of Tolurian and OCI's Clean Emonia project are both aligned with Woodside's corporate strategy and our capital allocation framework. As the operator of these opportunities, we control the spend, allowing us to phase the development, bring in partners at our determination and use the contractors we want.

Gordon Ramsay: Your next question comes from Gordon Ramsay with ABC. Please go ahead. First of all, a big congratulations on getting Sangamar up to 100,000 barrels a day. I think that's a terrific achievement considering the complexities of the project and particularly some of the subsurface infrastructure involved. Just on Sangamar, if you, you know, 100,000 barrels a day, obviously that's the cap that you're working with on the project. Do you think that can push out the plateau volumes further than maybe than what you originally thought based on the initial world performance? Yeah, thanks for the question. Gordon, I appreciate your commentary.

Speaker Change: Thank you. Your next question comes from Gordon Ramsay with obviously. Please go ahead.

Gordon Ramsay: First of all, a big congratulations on getting sangamol up to 100,000 barrels a day. I think that's a terrific achievement considering the complexities of the project and the particularly some of the sub-surface infrastructure involved.

Marguerite ONeill: Just on saying, Marguerite ONeill, 100,000 barrels a day, obviously, that's the cap that you're working with on the project. Do you think that can push out the plateau volumes further than maybe the what you originally thought based on the initial wealth performance?

Graham Tiver: As the operator of these opportunities, we control the spend, allowing us to phase the development, bring in partners at our determination and use the contractors we want. Cell downs of equity in the Scarborough Joint Venture bring quality partners into the project and cash back into the business. The sale proceeds of $910 million received from L&G Japan and an estimated total consideration of $1.4 billion coming from Giro. And we are disciplined in how we position the balance sheet to achieve our goals.

Graham Tiver: Cell downs of equity in the Scarborough Joint Venture bring quality partners into the project and cash back into the business. The sale proceeds of $910 million received from L&G Japan and an estimated total consideration of $1.4 billion coming from Giro. And we are disciplined in how we position the balance sheet to achieve our goals. We know the importance of dividends to our shareholders and when we evaluate financial scenarios, we assume a dividend payout ratio at the top end of our range even at stress case pricing.

Marguerite ONeill: I know you've studied that quite closely, and you appreciate the complexities of the asset that we have there. We're really pleased with the well performance that we've seen to date. What we haven't done yet is gotten water injection or gas injection up and running. And, as you would well appreciate, we need those secondary recovery mechanisms to maintain the flow rates from the wells. So it's going to take us a bit of time to really understand how the field is plumbed together and how effective.

Speaker Change: Yeah, thanks to the question Gordon, I appreciate your comment, Jaren, I know you've studied that quite closely and you appreciate the complexities of the asset that we have there.

Speaker Change: We're really pleased with the well performance that we've seen today.

Speaker Change: What we haven't done yet is scottin' water injection or gas injection up and running. And as you would well appreciate, we need those secondary recovery mechanisms to maintain the flow rates from the wells.

Graham Tiver: We know the importance of dividends to our shareholders and when we evaluate financial scenarios, we assume a dividend payout ratio at the top end of our range even at stress case pricing. We target a gearing range of 10-20% through the investment cycle. With the recent acquisitions, we expect to access debt markets in the near term. Our gearing will likely go above the top of our range for a period of time. This is expected to reduce back to within our target gearing range by utilizing the various leaders at our disposal.

Speaker Change: So it's going to take us a bit of time to really understand how the field is plumbed together and how effective.

Marguerite ONeill: The secondary recovery mechanisms are going to be, so I'd say we're still in the two-related to say stage, but very pleased with the well performance today.

Speaker Change: The secondary recovery mechanisms are going to be, so I'd say we're still in the two-reeling to say stage, but very pleased with the well-performance today.

Graham Tiver: We target a gearing range of 10-20% through the investment cycle. With the recent acquisitions, we expect to access debt markets in the near term. Our gearing will likely go above the top of our range for a period of time. This is expected to reduce back to within our target gearing range by utilizing the various leaders at our disposal. Moving to our financial performance in the period, despite lower average realised prices, our base business continues to perform very well.

Gordon Ramsay: Okay, and just one other operational question, just on the unit production cost of bringing that down by 6% to $8.30 in a lower production compared to the first half of 2023. What were the drivers to that, and could that be sustained going forward? It's a lot of hard work on a lot of different fronts, as I'm sure you'd appreciate. You know, to manage unit production cost, you know, a lot of focus in base cost management through the business, just taking a look at everything we do and how we do our work. It's looking at things like how efficiently we're managing our turn-arounds, how efficiently we're executing maintenance, looking for synergies and things like helicopters and boats, making sure we're efficient in our above-field support, so there's no silver bullets.

Speaker Change: OK, and just one other operational question, just on the unit production cost of bringing that down by $6 to $8.30 in a lower production compared to first half 2023. What were the drivers to that, and could that be sustained going forward?

Speaker Change: It's a lot of hard work on a lot of different fronts, as I'm sure you'd appreciate, you know, to manage unit production costs, you know, a lot of focus in base cost management through the business.

Graham Tiver: Moving to our financial performance in the period, despite lower average realised prices, our base business continues to perform very well. Costs are down and we're demonstrating excellent operational discipline and resilience across our financial metrics. This is translating into a half-year annualised yield of 7.3% at June 30. Cash flow generation through the first half of 2024 was strong, delivering a cash margin above 80%, which has been sustained over the past five years.

Graham Tiver: Costs are down and we're demonstrating excellent operational discipline and resilience across our financial metrics. This is translating into a half-year annualised yield of 7.3% at June 30. Cash flow generation through the first half of 2024 was strong, delivering a cash margin above 80%, which has been sustained over the past five years. Importantly, we have achieved positive free cash flow of $740 million in a heavy capital investment year and with significant tax payments.

Speaker Change: Just taking a look at everything we do and how we do our work. It's looking at things like how efficiently we're managing our turnarounds, how efficiently we're executing maintenance, looking for synergies and things like helicopters and boats.

Speaker Change: Making sure we're efficient in our above field support, so there's no silver bullet. It's a lot of hard work on a lot of different fronts.

Gordon Ramsay: It's a lot of hard work on a lot of different fronts.

Gordon Ramsay: Thank you. Thanks, Gordon.

Unknown Executive: Thank you.

Tom Allen: Your next question comes from Tom Allen with DBS. Please go ahead. Good morning, Meg Graham and the broader team. Are you comfortable looking following the two big deals recently announced with Delurian and OCI ammonia that Woodside's now added sufficient growth to the outlook, or given that these deals haven't added upstream production, should we expect more? Woodside said that it wants to add growth in LNG, new energy, and deep water oil. You've hit the first two parts of that plan with recent deals, so he's adding further scale investment in deep water oil, still a near-term key growth ambition.

Speaker Change: Thank you.

Speaker Change: Thanks Gordon. Thank you. Your next question comes from Tom Allen with CBS. Please go ahead.

Graham Tiver: Importantly, we have achieved positive free cash flow of $740 million in a heavy capital investment year and with significant tax payments. This is in line with the previously provided outlook for free cash flow. We expect to update our outlook to include acquisitions and sell downs once we complete the transactions. Our balance sheet is well positioned with our gearing at the lower end of our target range and a strong cash-generative portfolio of assets.

Tom Allen: Good morning.

Tom Allen: and the broader team. Are you comfortable to following the two big deals recently announced with Delurion?

Graham Tiver: This is in line with the previously provided outlook for free cash flow. We expect to update our outlook to include acquisitions and sell downs once we complete the transactions. Our balance sheet is well positioned with our gearing at the lower end of our target range and a strong cash-generative portfolio of assets. This is how we have created and returned value to shareholders in the first half.

Speaker Change: and OCI-Money, which I've now added sufficient growth to the outlook, or given that these deals haven't added upstream production, should we expect more? What would sides say that it wants to add growth in LNG, new energy and deep water oil? You hit the first two parts of that plan was recent deal, so he's adding further scale investment in deep water oil, still a near-term key growth ambition.

Marguerite ONeill: What time I'd say we already are taking steps to add growth in deep water LNG with Sangamara and Trion, so we've got a project that's now in the operational phase, and then the Trion project is 10% complete. We actually have taken steps to increase our deep water oil portfolio. If you're trying to fish more generally, are we looking at other M&A opportunities? Look, nothing at this point in time.

Speaker Change: We already are taking steps to add growth in deep water LNG with Sangamar and Trion, so we've got a project that's now in the operational phase and then the Trion project 10% complete So we actually have taken steps to increase our deep water oil portfolio

Graham Tiver: This is how we have created and returned value to shareholders in the first half. I'll hand back to you. Thanks, Graham.

Marguerite ONeill: I'll hand back to you. Thanks, Graham. As I outlined earlier, conducting our business sustainably is one of the goals underpinning our strategy to thrive through the energy transition. While we were disappointed that the Shareholder vote received on our Climate Transition Action Plan at our AGM, we respect the results and we will continue seeking feedback from investors. During the task, we progress the implementation of our asset decarbonization plans and remain on track to achieve our scope one and two emissions reduction targets.

Marguerite ONeill: As I outlined earlier, conducting our business sustainably is one of the goals underpinning our strategy to thrive through the energy transition. While we were disappointed that the Shareholder vote received on our Climate Transition Action Plan at our AGM, we respect the results and we will continue seeking feedback from investors. During the task, we progress the implementation of our asset decarbonization plans and remain on track to achieve our scope one and two emissions reduction targets.

Speaker Change: If you're trying to fish more generally as to are we're looking at other M&A opportunities.

Marguerite ONeill: We're very pleased with the quality of the Driftwood and OCI clean ammonia project acquisitions, and we'll be very focused on finding a pathway to make the Driftwood FID decision in a way that delivers value for our shareholders.

Speaker Change: Look nothing at this point in time. We're very pleased with the quality of the driftwood and OCI Clean ammonia Project Acquisitions.

Speaker Change: and will be very focused on finding a pathway to make the driftwood FID decision in a way that delivers value for our shareholders.

Tom Allen: Thanks, Meg. Just following an earlier question on Sangamara, the initial world performance outcomes read well, and so based on those initial outcomes and to guide how we think about cash flows over the next six to 12 months, can you please comment on when should we expect peak plateau production and are the initial flows that you're seeing recognizing it's early days? Are these supportive of around that 75,000 barrel a day plateau production level, or is risk to the upside or downside from those levels based on what you're seeing so far?

Marguerite ONeill: We also announced a new complimentary abatement target to take FID on new energy opportunities by 2030 with total abatement capacity of five million tons per annum of CO2 equivalents. As well as generating attractive investment returns, the acquisition of OCI's Clean ammonia project is a material step towards delivering on our scope three investments and abatement targets. And beyond our own initiatives and investments, Woodside is also championing lower carbon initiatives across the sector.

Speaker Change: Thanks, Max. I'm just following an earlier question on Sangamah. The initial whirl performance outcomes read well, and so based on those initial outcomes, and to guide how we think about cash flows over the next six to 12 months, can you please comment on...

Speaker Change: When should we expect plateau production and are the initial flows that you're seeing, recognizing it's early days, but are these supportive of around that 75,000 barrel a day plateau production level or is risked to the upside or downside from those levels, based on what you're seeing so far?

Marguerite ONeill: Look, Tom, as I said, really pleased with how the wells are performing. It's a new facility, and every time you start up a new facility, you always have to work through a few, we'll call it upsets. And the team's been doing actually a fantastic job of, you know, as we bring new equipment on, as we learn things, responding to those learning. But it really is too early to draw any conclusions around the long-term reservoir performance.

Marguerite ONeill: In January, we became the first Australian company to join the oil and gas methane partnership 2.0, a flagship international program aimed at improving the accuracy and transparency of methane emissions reporting. Conducting our business sustainably also extends to supporting community developments wherever we operate. Woodside continues to be among Australia's top tax contributors, our total tax and royalty payments during the half to Australian governments with $2.7 billion Australian dollars. This demonstrates an ongoing and significant contribution to the economic prosperity of Australia.

Speaker Change: Look Tom, as I said, really pleased with how the wells are performing. It's a new facility, and every time you start up a new facility, you always have to work through a few.

Speaker Change: We'll call it upsets and the team has been doing a fantastic job of, as we bring new equipment on, as we learn things, responding to those learnings. But it really is too early to draw any conclusions around the long term reservoir performance.

Marguerite ONeill: Again, the key kind of challenge or question with Sangamara is the connectivity within the reservoir, and we need to get the water injection wells up and running and the gas injection wells up and running to understand our ability to sweep oil through the reservoir.

Speaker Change: Again, the key kind of challenge or question with Angamarr as the connectivity within the reservoir. And we need to get the water injection wells up and running in the gas injection wells up and running to understand our ability to sweep oil through the reservoir.

Marguerite ONeill: As described in our Northwest community development report, we spent more than Australian $2.4 billion with local businesses in Western Australia through the Northwest Shell and Scarborough projects during 2023. In Senegal, our Sengamart project is providing significant local content opportunities, creating jobs for more than 4,400 Senegalese people.

Tom Allen: Okay, thanks, Max.

Tom Allen: Thanks, Tom. Thank you.

Speaker Change: Okay, thanks, Max.

Nick Burns: Your next question comes from Nick Burns with Jordan, Australia. Please go ahead. Oh yeah, thanks, Megan Graham. Look, I'm going to risk trying to ask another M&A question, but talk about risk management instead. I'm assuming you do complete both the Tolerian and ammonia plant acquisitions and move ahead with the Driftwood allergy project. By the time Driftwood comes online, you'll have considerable exposure to Henry Hub gas prices and input cost. Just wondering whether you're comfortable with that long-term exposure to Henry Hub, or should we expect you might look to try and remove or mitigate that risk via the acquisition of more U.S.

Speaker Change: Thank you. Your next question comes from Nick Burns with Jordan Australia. Please go ahead.

Nick Burns: Hiya, thanks for making Graham, look on I'm going to risk trying to ask another M&A question, but talk about risk management instead. Assuming you do complete both the Tiverigen and ammonia plant acquisitions and move ahead with the Drift Audit Energy Project.

Marguerite ONeill: I'd like to close by recapping on our strategic priorities for 2024 and demonstrating the strong investment case before our shareholders. We have a high quality cash generative portfolio and we are well positioned to supply growing LNG demands. We deliver strong and consistent returns to our shareholders and our on track to deliver our emissions reduction targets. And above all, we are committed to continuously improving safety. Our achievements in the first half of 2024 demonstrate delivery of our strategic goals and give us great confidence that Woodside will thrive through the energy transition.

Nick Burns: By the time driftwood comes online, you'll have considerable exposure to Henry Hubgath prices and input cost.

Speaker Change: Just running with your comfortable with that long-term exposure to Henry Hub or should we expect you might look to try and remove or mitigate that risk via the acquisition of more US gas production assets such as Shell Gas.

Nick Burns: gas production assets such as, such as Shell gas. Thank you. Yeah, thanks, Nick. Look, I appreciate a lot of interest in this topic. As we think about putting together our dream team, one of the capabilities we're going to be looking at our partners as you can bring a connection to that upstream gas world, because, as you know, it will be incredibly important for us to understand the U.S. onshore gas market and to have ability to ensure we get the gas feeding into the plant that we need at a price that remains affordable. But at this point in time, you know, we have no intentions of going into the upstream.

Speaker Change: Yeah, thanks Nick. I appreciate a lot of interest in this topic.

Speaker Change: As we think about putting together our dream team, one of the capabilities we're going to be looking at our partners as you can bring a connection to that upstream gas world, because as you know, it will be incredibly important for us to understand the U.S. onshore gas market and to have.

Marguerite ONeill: Last month, we celebrated 70 years as an Australian company and reflected on our proud history and proven experience. Looking to the future, we have the strategy, the people and the portfolio to enable us to deliver shareholder value for decades to come.

Operator: Thank you.

Marguerite ONeill: Thank you.

Speaker Change: Ability to ensure we get the gas feeding into the plant that we need at a price that remains affordable.

Operator: I'll now open the call to your questions. Please limit your questions to two each, so everybody has an opportunity to ask their questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your next- James, to be announced. If you wish to cancel your request, please press start to. If you're on a speaker phone, please pick up the handset to ask your question.

Unknown Executive: I'll now open the call to your questions. Please limit your questions to two each, so everybody has an opportunity to ask their questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your next- James, to be announced. If you wish to cancel your request, please press start to. If you're on a speaker phone, please pick up the handset to ask your question.

Speaker Change: But at this point in time, you know, we have no intentions of going into the upstream. We would be very cautious if we were to do so. Again, recognizing the skills and capabilities for ONeill, US shale gas is quite different from the skills and capabilities we have.

Marguerite ONeill: We would be very cautious if we were to do so. Again, recognizing the skills and capabilities for onshore U.S. Shell gas is quite different from the skills and capabilities we have. So, in due course, we will continue to look at ways we can manage that upstream risk, but it is not a priority for us to get into upstream U.S. At this point in time.

Speaker Change: I'm so in due course we will continue to look at ways we can manage that upstream risk, but it is not a priority for us to get into upstream U.S. at this point in time.

Mark Wiseman: Your first question comes from Mark Wiseman with Macquarie. Please go ahead. Oh good morning, Meg, Graham and Tim.

Mark Wiseman: Your first question comes from Mark Wiseman with Macquarie. Please go ahead.

Nick Burns: Right, that's clear.

Graham Tiver: Thank you. And then just a question on Scarborough. You recently increased the cost there by 500 million, and that was primarily associated with Train One mods.

Speaker Change: and then just a question on Scarborough, recently increased the cost there by $500 million and that was primarily associated with.

Graham Tiver: Oh good morning, Meg, Graham and Tim. Congratulations on a strong result and a strong dividend. I just had a question on the cash flows, the operating cash flows. You paid? More than we expected in tax. How would it give any breakdown as a 1.7 billion tax? How much of that's PRRT versus income tax?

Mark Wiseman: Congratulations on a strong result and a strong dividend. I just had a question on the cash flows, the operating cash flows. You paid? More than we expected in tax. How would it give any breakdown as a 1.7 billion tax? How much of that's PRRT versus income tax?

Graham Tiver: Just run if you can talk through your confidence in the current cost estimates now, and did the 500 million dollar increase allow you to replenish your contingency budget and just sort of looking ahead. How should we think about what are the residual key risks in the project understand. It's quite complex, but if you can talk to that and maybe the risk to the risk to cost and schedule from here. Thank you.

Speaker Change: Train 1 Mods. Just for any of you can talk through your confidence.

Speaker Change: and the current co-system is now...

Speaker Change: and did the $500 million increase allow you to replenish your contingency budget and just sort of looking ahead. How shall we think about what are the residual key risks and project understand it's quite complex, but if you can talk to that and maybe the risk to the risk to cost and schedule from here. Thank you.

Graham Tiver: Hi Mark, thank you, Graham here. So yes, so effectively of that 1.7 billion paid in tax in the cash flow statement, 1.5 was related to income tax and the remainder being PRRT. What I'd point to Mark is, if you have a look at the end of December as a part of our 4-year results in the balance sheet, we had a tax payable liability of 1.1 billion dollars. So effectively that has been paid along with tax payments for the 2024 year.

Graham Tiver: Sure. We've worked very hard before we put out that cost update to really understand the vulnerabilities of the Scarborough project to understand where we've spent the money today and where we're tight and where we needed a bit of support. I have a very high level of confidence that we will deliver the project within that 12.5 billion dollars. I guess just for the market's understanding, I am personally keeping a couple hundred million of that in my pocket. So the project team doesn't have that, so they've been challenged to deliver it for 12.3 billion. As we think about ongoing risks, so very pleased with particularly how the onshore work is going with Pluto train to please with how the offshore pipeline installation is going.

Speaker Change: We've worked very hard before we put out that cost update to really understand the vulnerabilities of the Scarborough Project to understand where we've spent the money today and where we're tight and where we needed a bit of support.

Speaker Change: I have a very high level of confidence that we will deliver the project within that $12.5 billion.

Speaker Change: I guess just for the market's understanding, I am personally keeping a couple hundred million of that in my pocket so the project team doesn't have that so they've been challenged to deliver it for 12.3 billion.

Graham Tiver: So hopefully that provides some clarity. Importantly, we are one of the largest tax payers in Australia and as Meg touched on in her presentation, all up across all taxes and royalties in Australia, we paid Australian $2.7 billion in the first half.

Speaker Change: I'm as we think about ongoing risks.

Speaker Change: So, very pleased with particularly how the ONeill work is going with Pluto train 2, pleased with how the offshore Pipely installation is going. The FPU always has been critical path and that remains on critical path.

Graham Tiver: The FPU always has been critical path, and that remains on critical path. As you saw in the deck, the top slides is structurally complete, but there's still many hours to go to get everything ready to go before we made it with the whole. So we watch, you know, from a project execution perspective at the key item to watch. The second thing that we are watching very closely and working very closely with the regulator on is the Scarborough operations environment plan. We have already passed the completeness check with Noxima. So we are continuing to work through their questions, but given the evolving rules around consultation, we wanted to make sure we got that into Noxima well in advance of needing it.

Mark Wiseman: Okay, thanks, Graham. And just for my second question, just on hedging with the two M&A deals that you're working on, the driftwood FID coming up and maintaining the 80% dividend payouts for now at least. What's your posture with hedging in 25 and 26? Thanks. Yeah, Mark, it's probably worth reminding you and the investors why we hedged. So we have been hedging plus or minus 30 million barrels of oil for the last couple of years in this period of higher capital spend.

Graham Tiver: Okay, thanks, Graham. And just for my second question, just on hedging with the two M&A deals that you're working on, the driftwood FID coming up and maintaining the 80% dividend payouts for now at least. What's your posture with hedging in 25 and 26? Thanks. Yeah, Mark, it's probably worth reminding you and the investors why we hedged. So we have been hedging plus or minus 30 million barrels of oil for the last couple of years in this period of higher capital spend.

Speaker Change: As you saw in the deck, the top slide is structurally complete, but there's still many hours to go to get everything ready to go before we made it with the whole. So we watch from a project execution perspective that the key item to watch.

Mark Wiseman: We also hedge our corpus Christi contract. So those are Henry hub and TTF hedges and that's really to manage the trading risk in that particular contract. So the hedging that I assume you're asking about is the oil linked hedging and we do expect to continue hedging in 2025 and we will take a look in due course at 2026. As we firm up plans forward for driftwood as we get better line of sight as to what exactly our capital spend is going to look like that'll inform our decisions as to whether or not we hedge in 26.

Graham Tiver: We also hedge our corpus Christi contract. So those are Henry hub and TTF hedges and that's really to manage the trading risk in that particular contract. So the hedging that I assume you're asking about is the oil linked hedging and we do expect to continue hedging in 2025 and we will take a look in due course at 2026. As we firm up plans forward for driftwood as we get better line of sight as to what exactly our capital spend is going to look like that'll inform our decisions as to whether or not we hedge in 26.

Speaker Change: The second thing that we are watching very closely and working very closely with the regulator on is the Scarborough Operations Environment Plan.

Speaker Change: We have already passed the completeness check with Nopseema, so we are continuing to work through their questions, but given the evolving rules around consultation.

Graham Tiver: To make sure that we are robust and have the approvals we need by the time we bring the FPU into Australian waters.

Speaker Change: We wanted to make sure we got that into Nopseema well in advance of needing it. To make sure that we are robust and have the approvals we need by the time we bring the FPU into Australian waters.

Graham Tiver: That's great, thanks, mate. Thank you.

Speaker Change: That's great, thanks make

Speaker Change: [inaudible]

Speaker Change: The National Security Service, the National Security Service, and the National Security Service.

Unknown Executive: I reminder to please limit your questions to two per person. Your next question comes from James Byrne with City. Please go ahead. Good morning. I wanted to ask about the outlook for cash flows and whether the performance of the business has deteriorated at all relative to the prior expectations. And just bear with me, like I'm just going to side a few things here. So the IBD last year, 2024 free cash flow at $70 oil was sort of being indicated at around 600 million. If we take that up to $84 oil using your own sensitivity, we can kind of get to a number of about one and a half billion for 2024.

Speaker Change: Thanks for watching

Speaker Change: Thank you. Our reminder to please limit your questions to two purposes, and your next question comes from James Burn with City. Please go ahead.

James Burn: Good morning. I wanted to ask about the outlook for cash flows and whether the performance of the business has deteriorated at all relative to the prior expectations and just bear with me like I'm just going to side a few things here.

Mark Wiseman: Okay, so would it be reasonable to assume all else equal more capics commitment and more gearing on the balance sheet would would point you towards more more hedged volume. Yes, but again, well, look, I'd say not not necessarily more we've been targeting the 30 million barrels because we feel that's an appropriate level of hedging to protect our ability to cover our base cost as well as continue the investments that we sanction.

Graham Tiver: Okay, so would it be reasonable to assume all else equal more capics commitment and more gearing on the balance sheet would would point you towards more more hedged volume. Yes, but again, well, look, I'd say not not necessarily more we've been targeting the 30 million barrels because we feel that's an appropriate level of hedging to protect our ability to cover our base cost as well as continue the investments that we sanction.

James Burn: So the IBD last year, 2024 free cash flow at $70 oil was sort of being indicated at around 600 million.

Speaker Change: If we take that up to 84 dollar oil using your own sensitivity, we can get to a number of about one and a half billion. The 2024, assuming second half oil prices is the same as the first.

Mark Wiseman: So I wouldn't expect it to go above the 30 million barrels, but it really will be a question for 2026 of how much hedging is appropriate. As we, you know, you'll recall 2026 is when we expect to start LNG production from Scarborough, so spend ramps down revenue starts to come in, but that'll be kind of the critical year as we think about the cash balance going forward.

Graham Tiver: So I wouldn't expect it to go above the 30 million barrels, but it really will be a question for 2026 of how much hedging is appropriate. As we, you know, you'll recall 2026 is when we expect to start LNG production from Scarborough, so spend ramps down revenue starts to come in, but that'll be kind of the critical year as we think about the cash balance going forward.

James Byrne: Assuming second half or prices is the same as the first capex, five and a half billion. So that kind of gets us to Operating cash flow is $7 billion for 2024. We have to adjust then for the asset South LNG Japan. So probably more like $6 billion. First half achieves less than $2.4 billion of operating cash flows. There's a big delta there to get up to what you'd loosely guided to at the IBD next year. And yes, Sangamara is ramping up. But nonetheless, it's a very big delta. Secondly, at the Beaumont acquisition call, it was stated that gearing would go to the low 20s to mid 20s in a subdued oil price environment.

Speaker Change: CapEx, five and a half billion, so that kind of gets us to operating cashflow is 7 billion for 2024. We have to adjust then for the asset sale to El Engage Pan, so probably more like 6 billion.

Mark Wiseman: Okay, thank you. That's clear and congrats on the result again. Cheers. Thanks Mark.

Speaker Change #100: First half achieves to a less than 2.4 billion of operating cash flows and there's a big delta there to get up to what you'd loosely guided to at the IBD next year and yes, St.Gamar is ramping up but nonetheless it's a very big delta.

Operator: Thank you.

Unknown Executive: Thank you.

Saul Kavonic: Your next question comes from Saul Kavonic with MST. Please go ahead. Good morning. A couple questions. Perhaps first one is for Graham. Just in the context where you talk about gearing to go above the top end of the 20% gearing range for a period, should we think about it providing time to enable targeted sell-downs of Driftwood? That's another way of phrasing that. If you know, once a 50% sell-down of Driftwood occurs, do you think you would then be, may, may be below the 20% gearing range, you know, at kind of current $78 oil prices?

Speaker Change #101: Secondly, at the Beaumont Acquisition Call, it was stated that gearing would go to the low 20s to mid 20s in a sub-dude or price environment and today it sounds like.

James Byrne: And today it sounds like it will go to the low to mid 20s in a, you know, at Woodside's internal assumption of oil as opposed to necessarily a subjude stress test or price environment. And lastly, Sangamara is ramping up really well, and yet the production guidance is unchanged. So, by triangulating those things, it kind of feels like there are parts of the business that might have deteriorated versus prior expectations.

Speaker Change #102: It will go to the low to mid-20s and A, you know, at Woodside Internal Assumption of Oil, as opposed to necessarily a subdued stress test or price environment.

Speaker Change #103: And lastly, Sangamah is ramping up really well and yet the production guidance is unchanged. So by triangulate those things, it kind of feels like there are parts of the business that might have deteriorated versus prior expectations, and I just want to be to explicitly be able to say that that was not the case.

James Byrne: And I just wanted you to explicitly be able to say that that was not the case. Thanks, James.

Saul Kavonic: So, it's very early days. We are still working through, well, one project completion of the actual acquisition. We're still reassessing the capital, the phasing of the capital, etc. And then the sell-down process. But to answer your question at a very high level based on what we see today, it is highly likely that we will still pop up above 20% for a gearing for a period of time in a 50% sell-down scenario.

Graham Tiver: I'm very happy to answer the cash flow question. As you've quite rightly pointed out, there are swings and roundabouts. We can go into all the different line items. But if we stand back, I'm very comfortable in saying that our half one free cash flow is on track. As our IBD 23 November 23 cash flow guidance. And when we extrapolate that forward for the full year position, also very comfortable that we are tracking above that as you hit on the prices generally higher. Well, what we've received to the mid case of 70 that we put forward in the IBD.

Speaker Change #103: Thanks, James. I'm very happy to answer the cash flow question.

Speaker Change #104: As you've quite rightly pointed out, there are swings and roundabouts. We can go into all the different line items.

Speaker Change #105: But if we stand back, I'm very comfortable in saying that our half one free cash flow is on track as per our IBD 23, November 23, cash flow guidance.

Saul Kavonic: But having said that, and I caveat, there's still a lot of work to do between now and then. And so maybe it's worth elaborating on Graham's answer. We've said our target gearing range is 10 to 20%, but it's not hard guardrails. It's a target range, and we may be above or below at periods in time. And, you know, you'd be well aware that we were below its last year when market conditions were in our favor. We, again, with the investment in drift would may go above it for a period of a couple of years. But again, they're not hard and fast rules. It's more targets range. Thanks.

Speaker Change #105: and when we extrapolate that forward for the full year position, also very comfortable that we are tracking above that as you hit on the prices generally higher.

Graham Tiver: And so maybe it's worth elaborating on Graham's answer. We've said our target gearing range is 10 to 20%, but it's not hard guardrails. It's a target range, and we may be above or below at periods in time. And, you know, you'd be well aware that we were below its last year when market conditions were in our favor. We, again, with the investment in drift would may go above it for a period of a couple of years. But again, they're not hard and fast rules. It's more targets range. Thanks.

Speaker Change #105: and what we've received to the mid-taste of 17, we put forward in the IBD.

Graham Tiver: So, yeah, we can go into the detail and happy to take that offline. But in terms of yes, there are swings around about in regards to prices, timing of capex, tax payments, etc. But when you stand back and look at it, the business is performing extremely strongly, and that's evidence in our cash flow generation and the ability to pay strong dividends. We are in line with what we put forward at the November IBD and will likely exceed it. And from a production perspective, so the guidance we put out, I think at that point in time we would have said Sangamar startup was expected in quote-unquote mid-24, which is what we've delivered.

Speaker Change #105: So, yes, I think you can.

Speaker Change #105: Like we can go into the detail and happy to take that offline, but in terms of yes, there are swings around about in regards to prices.

Tommy: Tommy of Capac, Tax Payment, etc. But when you stand back and look at it, the business is performing extremely strongly and that's evidence in our cash flow generation and the ability to pay strong dividends.

Saul Kavonic: And I guess the follow-up to that is in the absence of a drift would sell down, are you still comfortable? You can maintain this modeled 80% payout policy within the various scenarios you look at, or is the pressure really on to have a sell-down to maintain that recent payout or a ratio? So what we said about drift would is we really want to put together the dream team. We've had more in-bounds than we can check a stick at.

Graham Tiver: And I guess the follow-up to that is in the absence of a drift would sell down, are you still comfortable? You can maintain this modeled 80% payout policy within the various scenarios you look at, or is the pressure really on to have a sell-down to maintain that recent payout or a ratio? So what we said about drift would is we really want to put together the dream team. We've had more in-bounds than we can check a stick at.

Tommy: We are in line with what we've put forward at the November IBD and we'll likely exceed it.

Speaker Change #107: And from a production perspective, so the guidance we put out, I think at that point in time we would have said, Sangamar startup was expected in quote-unquote mid-24, which is what we've delivered.

Graham Tiver: So yes, very pleased with how it's ramping up, but again in any business there, there's a number of different assets, and we still feel pretty well. We still believe and stand by the guidance we've put out for a total production.

Speaker Change #107: So, yes, very pleased with how it's ramping up, but again in any business, there's a number of different assets and we still feel pretty, well, we still believe and stand by the guidance we've put out for total production.

Saul Kavonic: And so we've got the luxury of being able to really pick the partners we want to work with. And our intention as we progress towards an investment decision there is we want to have line of sight to the partnership that we want. Once we may not have everything signed sealed and delivered, but we do want to have line of sight to the partnership. If we didn't have anybody interested, it would not be our intention to go forward at 100% with nobody queued up. All right. Thanks.

Graham Tiver: And so we've got the luxury of being able to really pick the partners we want to work with. And our intention as we progress towards an investment decision there is we want to have line of sight to the partnership that we want. Once we may not have everything signed sealed and delivered, but we do want to have line of sight to the partnership. If we didn't have anybody interested, it would not be our intention to go forward at 100% with nobody queued up. All right. Thanks.

James Byrne: Okay, second question, just back around the gearing, to have the gearing go to sort of that low mid-20s percent, I'm actually getting credit investors that write to me with our concerns, along with equity investors that are similarly concerned. And my fear is that if the bondholders are pitted against the shareholders, then equity that's likely to lose out. Now if I pick up Graham on what you mentioned in your opening remarks, you mentioned you have various levers that you can pull and you know you sound quite intent on maintaining that strong dividends, payout ratio. What levers would you describe as being able to pull in that instance that you know, a normal oil price environment is still getting into that mid-gearing mid-20s percent gearing range, let alone a bear market for oil? I'm just very interested in what levers you think you have to pull, because it appears to me that, and many in the market, by the way, that the path of least resistance is in fact the dividends.

Speaker Change #107: It took to have a gear in go to about low mid 20s to sense.

Speaker Change #108: I'm actually getting this very anecdotal. I'm getting credit investors that write to me with their concerns along with equity investors that are similarly concerned. And my fear is that if the bondhold is a pitted against the shareholders then equity that is likely to lose out.

Saul Kavonic: I also just have a question on drift good. It could be for you. I don't know if Mark's on the call, maybe he's better to address it, but just looking at the steps you provided here to show how this can go from an infrastructure return to the 12-plus percent rate of return. And you highlight the bottlenecking and want the life, et cetera, but just one of the kind of holding them through elements, you talk about woodside achieving greater than 95% reliability. Could you provide some guidance on what the average US LNG plan achieves versus what you think woodside can achieve?

Saul Kavonic: I also just have a question on drift good.

Saul Kavonic: It could be for you. I don't know if Mark's on the call, maybe he's better to address it, but just looking at the steps you provided here to show how this can go from an infrastructure return to the 12-plus percent rate of return. And you highlight the bottlenecking and want the life, et cetera, but just one of the kind of holding them through elements, you talk about woodside achieving greater than 95% reliability.

Speaker Change #109: Now, if I pick up Graham on what you mentioned in your opening remarks, you mentioned you have various levers that you can pull and you sound quite in turn on maintaining that strong pivot ends.

Graham Tiver: Hey, out ratio. What levers would you describe as being able to pull?

Graham Tiver: Could you provide some guidance on what the average US LNG plan achieves versus what you think woodside can achieve?

Speaker Change #110: in that instance, a normal or price environment is still getting spent mid 20% year in range, then low-naked bear market for oil. I'm just very interested in what levers you think you have to pull because it appears to me that a many in the market, by the way, that...

Saul Kavonic: Yeah, thanks for the question, Saul. We actually tried to get that hard and fast data, and unfortunately it's a bit all over the map. There are some very high quality operators in the US who operate in that 95-ish-percent range reliability. There are other operators that struggle to keep their plants online. What we can speak to is our track record, and part of why we highlight our LNG reliability every half year and full year is just to kind of confirm with the market the capability that we have in our organization to get the maximum value through the facilities that we have.

Graham Tiver: Yeah, thanks for the question, Saul. We actually tried to get that hard and fast data, and unfortunately it's a bit all over the map. There are some very high quality operators in the US who operate in that 95-ish-percent range reliability. There are other operators that struggle to keep their plants online. What we can speak to is our track record, and part of why we highlight our LNG reliability every half year and full year is just to kind of confirm with the market the capability that we have in our organization to get the maximum value through the facilities that we have. Thanks, and just the second point to touch on the, I guess the upside from the marketing position.

Graham Tiver: Thanks James, and always good questions. I think if we can go back to the wording at OCI where we spoke around about the strength of the balance sheets and our gearing, I think it was sort of, as I touched on with Saul's question, in our mid-price scenario we will be above 20 and at the stress price, I'm not sure if that's what you mean by subdued; it was more around the mid-20s. What I would say when we look at the levers, the first and foremost, is just continue strong operational performance. We must continue for the underlying business to perform well and generate strong cash flows to support the balance sheet.

Speaker Change #111: the Pothalase Resistance is in fact the difference.

Speaker Change #111: Thanks, James, and always good questions and...

Speaker Change #112: I think if we can go back to the wording and I'll see what we spoke around about the strengths of the balance sheets.

Speaker Change #113: and Aghearing, I think it was sort of...

Speaker Change #114: As I touched on with souls question, at our mid-process scenario, we will be above 20 and at the stress price, I'm not sure if that's what you mean by subdued, it was more around around the mid-20s.

Saul Kavonic: Thanks, and just the second point to touch on the, I guess the upside from the marketing position. Do you expect, for example, if you were to sign an FOB contract from Driftwood that you'll achieve a premium toll value versus kind of the more recent tolls that have been signed and I'll push, is it just like a five cent an M&B-2 premium or a 50 cent an M&B-2 premium? So, so one of the things that we're working on as we put together our dream team is making some of those decisions around how much equity LNG we want to maintain, how much equity in the plant we want to maintain, and how much equity LNG we want to maintain.

Speaker Change #115: What I would say when we look at the levers, the first and foremost is just continue strong operational performance. We must continue the underlying business to perform well and generate strong cash flows to support the balance sheet.

Graham Tiver: Do you expect, for example, if you were to sign an FOB contract from Driftwood that you'll achieve a premium toll value versus kind of the more recent tolls that have been signed and I'll push, is it just like a five cent an M&B-2 premium or a 50 cent an M&B-2 premium? So, so one of the things that we're working on as we put together our dream team is making some of those decisions around how much equity LNG we want to maintain, how much equity in the plant we want to maintain, and how much equity LNG we want to maintain.

Graham Tiver: You know, we've always got opportunities around phasing of capital spend; we've got opportunities around cost reductions, tightening up on the OPEX and CAPEX, going to discretionary spend, etc. We've already touched on the hedging program. We've touched on earlier on around our willingness or our plan to sell down a portion of Driftwood, and that's a core part of it. So look, there's many levers, and we will assess them on their merits, and it's all a part of the work that has to take place over the next six months or so. But James, at a high level, it's probably reinforcing that over the period, you would have seen that Woodside has a track record of taking care of close our debt holders and our equity holders.

Speaker Change #115: You know we've always got opportunities around facing a capital spend, we've got opportunities around cost reductions, tightening up on the Olympics and capex in a discretionary spend etc.

Speaker Change #115: We've already touched on the hedging program. We've touched on earlier on around our willingness or our plan to sell down a portion of pre-foot and that's a core part of it. So look, there's many levers.

Saul Kavonic: If, look, it'd be premature for us to speculate on how we would structure any contracts. There may be circumstances where we would sign FOB contracts, but in some ways that really is linked to the infrastructure kind of model where you get that high confidence in the revenue stream, where we think we can really add value is actually by taking more of that into our portfolio. So, our starting point is, is whatever equity position we take we're going to take it into our portfolio because we think we can access better pricing by being able to sell it at either oil indexation, TTS indexation or JKM. Okay, sorry, just one more. My understanding is the approval. Oh, we've got a few others in the queue. If we can, if I can keep the back in, thanks all. Thank you.

Graham Tiver: If, look, it'd be premature for us to speculate on how we would structure any contracts. There may be circumstances where we would sign FOB contracts, but in some ways that really is linked to the infrastructure kind of model where you get that high confidence in the revenue stream, where we think we can really add value is actually by taking more of that into our portfolio. So, our starting point is, is whatever equity position we take we're going to take it into our portfolio because we think we can access better pricing by being able to sell it at either oil indexation, TTS indexation or JKM.

Speaker Change #116: and we will assist them on their merits and it's all a part of the work that has to take place over the next six months or so.

Speaker Change #116: The James at an high level is probably reinforcing that over the period you would have seen that Woodside has a track record of taking care of both our debt holders and our equity holders.

Graham Tiver: You would have seen we've been in and out of the debt market for, you know, probably the last 20 or 30 years, and we pay our debts as and when they do. And for the last decade, we've continued to provide very healthy returns to our shareholders, so we've certainly got the ability to do both.

Speaker Change #116: and you would have seen we've been in and out of the debt market for

Speaker Change #116: You know, probably the last 20 or 30 years. And we pay our debts as in when they're due. And for the last decade we've continued to provide very healthy returns to our shareholders. So we've certainly got the ability to do both.

Unknown Executive: Okay, sorry, just one more. My understanding is the approval. Oh, we've got a few others in the queue. If we can, if I can keep the back in, thanks all. Thank you.

Graham Tiver: So, can I perhaps ask it a different way, though? So, some of those levers sound very much business as usual, right? Like operational performance, selling down driftwood, that things that I think both equity and credit would expect management to undertake. But some Graham in your conversations with debt investors and rating agencies, would you say that they're comfortable with the trajectory of the balance sheet given the extension of the Capek cycle? Yes.

Speaker Change #117: So, could I perhaps ask it a different way though? So, some of those leaders sound very much business as usual, right? Like operational performance, telling down Drift to add that things that I think by equity and credit would expect management to undertake, but Graham, in your conversations with you.

Speaker Change #118: Dead Investors and Writing Agency.

Graham Tiver: and I think that's what would you say that that comes with the trajectory of the balance shape given the extension of the capex cycle.

Graham Tiver: Yes.

Adam Martin: Thanks, James. So from Adam. Thank you.

Graham Tiver: Ok.

Marguerite ONeill: Your next question comes from Adam Martin with E&P. Please go ahead. Yeah, morning, Mick Graham. Obviously a pretty strong market reaction, you know, post year two recent deals. Just perhaps to sort of summarise investor feedback in differences in anything that surprised you. And I suppose what the market might be missing here. Sure. Well look, what I think we've had a couple of thematic questions, which we tried to address in this presentation with driftwood. There's been a lot of desire to understand what's different about how Woodside would do a US LNG project from how other US LNG players have done their projects.

Graham Tiver: Thanks James, so for me.

Speaker Change #119: Thank you. Your next question comes from Adam Martin with ENP. Please go ahead.

Gordon Ramsay: Yeah, thanks for the question. Gordon, I appreciate your commentary. I know you've studied that quite closely and you appreciate the complexities of the asset that we have there. We're really pleased with the well performance that we've seen to date. What we haven't done yet is gotten water injection or gas injection up and running. And as you would well appreciate, we need those secondary recovery mechanisms to maintain the flow rates from the wells. So it's going to take us a bit of time to really understand how the field is plumbed together and how effective.

Adam Martin: Yeah, morning, Graham, obviously I'm a pretty strong market reaction, you know, post your two recent deals, just sort of summarise and best of feedback in differences in anything that surprised you and I suppose what the market might be missing here.

Speaker Change #121: Sure, we'll look over what I think we've had a couple of thematic questions which we tried to address in this presentation.

Speaker Change #122: with Striftwood, there's been...

Speaker Change #123: A lot of desire to understand what's different about how Woodside would do a U.S.

Gordon Ramsay: The secondary recovery mechanisms are going to be, so I'd say we're still in the two-related to say stage, but very pleased with the well performance today.

Graham Tiver: The secondary recovery mechanisms are going to be, so I'd say we're still in the two-related to say stage, but very pleased with the well performance today.

Speaker Change #124: LNG projects from how other U.S. LNG players have done their projects and so that's why we put that slide in showing the sorts of activities that we believe we bring to the opportunity to create additional value and why we think it's compelling.

Marguerite ONeill: And so that's why we put that slide in showing the sorts of activities that we believe we bring to the opportunity to create additional value and why we think it's compelling. And with OCI, look, I think there was an element of surprise. You know, we've been saying for three years that we would spend; that our intention was to profitably invest $5 billion in new energy products and services. I think the market just wasn't expecting us to do $2.3 billion this year. I think a lot of folks had probably built into their model that we would back end weight that and look to be fair.

Gordon Ramsay: Okay, and just one other operational question, just on the unit production cost of bringing that down by 6% to $8.30 in a lower production compared to first half 2023. What were the drivers to that and could that be sustained going forward? It's a lot of hard work on a lot of different fronts as I'm sure you'd appreciate, you know, to manage unit production cost, you know, a lot of focus in base cost management through the business, just taking a look at everything we do and how we do our work.

Speaker Change #124: With OCI, look, I think there was an element of surprise, we've been saying for three years that we would spend that our intention was to profitably invest $5 billion in new energy products and services.

Speaker Change #124: I think the market just wasn't expecting us to do.

Speaker Change #124: 2.3 billion dollars this year. I think a lot of folks said.

Speaker Change #124: is probably built into their model that we would back in to wait that. And look to be fair, we had probably signal that as we had been focused on pursuing organic growth opportunities, which would have at a slower ramp up of the spend. So those are probably the key themes that we've been hearing at them.

Marguerite ONeill: We had probably signaled that as we had been focused on pursuing organic growth opportunities, which would have had a slower ramp up of spend.

Marguerite ONeill: So those are probably the key themes that we've been hearing, Adam. Okay, thank you.

Gordon Ramsay: It's looking at things like how efficiently we're managing our turn-arounds, how efficiently we're executing maintenance, looking for synergies and things like helicopters and boats, making sure we're efficient in our above-field support, so there's no silver bullets. It's a lot of hard work on a lot of different fronts. Thank you. Thanks Gordon. Thank you.

Marguerite ONeill: And just a second question around the commissioning sort of any update to around what you're thinking for Northward shelf, and then also just on the back straight. I think X on recently pulled the EP around 13 platforms that think there's an issue around sort of leaving everything below 55 meters in the water. Just talk through what's going on in the back straight, but also northward shelf, please.

Speaker Change #125: Thank you and a second question around the commissioning.

Speaker Change #126: So at any update to ram what you think you can know where's shelf and then also just on the best road I think.

Speaker Change #127: Exxonness recently pulled the AP around that A-Platforms that is the issue around sort of.

Speaker Change #128: Leaving everything below 55 metres in the water just to talk through what's going on in the best stripe but also North of the shelf place.

Tom Allen: Your next question comes from Tom Allen with DBS, please go ahead.

Tom Allen: Your next question comes from Tom Allen with DBS, please go ahead. Good morning, Meg Graham and the broader team. Are you comfortable looking following the two big deals recently announced with Delurian and OCI ammonia that Woodside's now added sufficient growth to the outlook or given that these deals haven't added upstream production, should we expect more? Woodside said that it wants to add growth in LNG, new energy and deep water oil. You've hit the first two parts of that plan with recent deals, so he's adding further scale investment in deep water oil, still a near-term key growth ambition.

Marguerite ONeill: Sure, let me speak more broadly about decommissioning. We have a very significant decommissioning campaign underway this year. And this builds on activities we started last year with the end builds plug and abandonment campaign. We've got a large plug and abandonment campaign for Stibero this year. And we're taking steps to remove subsea flow lines, riser dirt, mooring systems from a number of legacy assets, things like Griffin, as well as Stibero. As we go to best rates, the operator and joint venture has been working for many years on decommissioning there; initial focus on plug and abandonment. So basically dealing with the well so that the platforms can subsequently be removed safely.

Tom Allen: Good morning, Meg Graham and the broader team. Are you comfortable looking following the two big deals recently announced with Delurian and OCI ammonia that Woodside's now added sufficient growth to the outlook or given that these deals haven't added upstream production, should we expect more? Woodside said that it wants to add growth in LNG, new energy and deep water oil. You've hit the first two parts of that plan with recent deals, so he's adding further scale investment in deep water oil, still a near-term key growth ambition.

Speaker Change #129: So, let me speak more broadly about decommissioning. We have a very significant decommissioning campaign underway this year.

Speaker Change #129: and this builds on activities we started last year with the again-filled plug-in abandonment campaign. We've got a large plug-in abandonment campaign for Stybarrow this year and we're taking steps to remove.

Tom Allen: What time I'd say we already are taking steps to add growth in deep water LNG with Sangamara and Trion, so we've got a project that's now in the operational phase and then the Trion projects 10% complete. We actually have taken steps to increase our deep water oil portfolio. If you're trying to fish more generally, are we looking at other M&A opportunities?

Speaker Change #129: Substance Lowlines, Riser dirt mooring systems for a number of like a C-assets things like Griffin as well as Stybaro.

Speaker Change #129: As we go to the best rates, the operator and joint venture has been working for many years on decommissioning there, initial focus on plug-in abandonments, so basically dealing with the well so that the platforms can subsequently be removed safely.

Marguerite ONeill: We have been working with the operator on a plan forward for removing a number of the steel pile jackets that are in place. And the work that we've done thus far would support that a better safety and environmental outcome would be to leave the parts of the steel pile jackets that are in deeper water in place. Now, Australian law today requires full removal, and that's why the joint venture has pulled that EP with the intention of continuing to do the scientific work to document the positive environmental impacts associated with leave and place.

Speaker Change #129: We have been working with the operator on a plan forward for removing a number of the steel pile jackets that are in place.

Speaker Change #129: and the work that we've done thus far would support that a better safety and environmental outcome would be to leave.

Marguerite ONeill: Look, nothing at this point in time. We're very pleased with the quality of the Driftwood and OCI clean ammonia project acquisitions and we'll be very focused on finding a pathway to make the Driftwood FID decision in a way that delivers value for our shareholders.

Speaker Change #129: the parts of the steel pile jackets that are in deeper water in place.

Speaker Change #129: Now, Australian law today requires full removal, and that's why the Joint Venture has pulled that EP with the intention of continuing to do the scientific work to document the positive environmental impacts associated with leaving place.

Tom Allen: Thanks, Meg. Just following an earlier question on Sangamara, the initial world performance outcomes read well and so based on those initial outcomes and to guide how we think about cash flows over the next six to 12 months, can you please comment on when should we expect peak plateau production and are the initial flows that you're seeing recognizing its early days? Are these supportive of around that 75,000 barrel a day plateau production level or is risk to the upside or downside from those levels based on what you're seeing so far?

Marguerite ONeill: At Northwest Shelf, I assume you're asking about train retirement dates, so we continue to monitor production from Northwest Shelf. The offshore is doing quite well. We're processing a fair amount of Pluto gas at the Cross of Gas plant today, and do expect to see ramp up from Waitia in due course. So we are continuing with our planning to take one LNG train offline, either late this year or in the first half of the year. So next year, like tonight, thanks for the coven response, Mike. Thank you.

Speaker Change #130: Northwest Health. I assume you're asking about train retirement dates, so we continue to.

Speaker Change #131: Monitor production from Northwest Shelf, the offshore is doing quite well.

Speaker Change #132: We're processing a fair amount of Pluto gas at the cross-a-gas plant today and do expect to see ramp up from WACIA in due course. So we are continuing with our planning to take one LNG train offline either late this year or the first half of next year.

Tom Allen: Look, Tom, as I said, really pleased with how the wells are performing. It's a new facility and every time you start up a new facility, you always have to work through a few, we'll call it upsets. And the team's been doing actually a fantastic job of, you know, as we bring new equipment on as we learn things responding to those learning. But it really is too early to draw any conclusions around the long term reservoir performance.

Speaker Change #133: Thanks for the data for the SunSmeak.

Dale Koenders: Your next question comes from Dale Koenders with Baron Joey. Please go ahead. Morning, Meg Graham and team. It's just wondering about Singapore now that you started up. There's been obviously a lot of cost inflation in industry. Yeah, there's a little bit of uncertainty and depreciation rates. Do you think that we need to get guidance as a market on those numbers going forward? Are you comfortable with how the consensus is forecasting those costs?

Speaker Change #134: Thank you.

Speaker Change #135: Thank you. Your next question comes from Dale Kondez with Baron Joey. Please go ahead.

Dale Kondez: Morning, make Graham and team. Just worry about the thing about now that you start it up, there's been obviously a lot of contemplation and industry.

Tom Allen: Again, the key kind of challenge or question with Sangamara is the connectivity within the reservoir and we need to get the water injection wells up and running and the gas injection wells up and running to understand our ability to sweep oil through the reservoir.

Dale Kondez: There's a little bit of uncertainty around depreciation rates. Do you think that we need to get guidance as a market on those numbers going forward or are you comfortable with how the consensus is forecasting those costs?

Graham Tiver: All right, Graham filled that. Yeah, so Dale, we don't normally provide that level of detail, you know, asset by all operational level. Here, your question, I think the key point is to, as Meg touched on, is around the ramp up, and we get a feel for the ramp up, how the connectivity is across the world, and then we can look to consensus and see how we're traveling.

Tom Allen: Okay, thanks, Max.

Dale Kondez: All right, Graham Tiver, Graham Tiver.

Tom Allen: Thanks Tom.

Graham Tiver: Yeah, so don't normally provide that level of detail.

Operator: Thank you.

Nick Burns: Thank you.

Nick Burns: Your next question comes from Nick Burns with Jordan, Australia. Please go ahead. Oh yeah, thanks, Megan Graham.

Speaker Change #137: You know, asset model by operational level. Here your question, I think the key point is to make touch on is around the ramp up and we get a feel for the ramp up, how the connectivity is across the world and then we can look to consensus and see how we're traveling.

Nick Burns: Look, I'm going to risk trying to ask another M&A question, but talk about risk management instead. I'm assuming you do complete both the Tolerian and ammonia plant acquisitions and move ahead with the driftwood allergy project. By the time driftwood comes online, you'll have considerable exposure to Henry Hub gas prices and input cost. Just wondering whether you're comfortable with that long-term exposure to Henry Hub, or should we expect you might look to try and remove or mitigate that risk via the acquisition of more U.S, gas production assets such as, such as Shell Gas.

Graham Tiver: Look, I'm going to risk trying to ask another M&A question, but talk about risk management instead. I'm assuming you do complete both the Tolerian and ammonia plant acquisitions and move ahead with the driftwood allergy project. By the time driftwood comes online, you'll have considerable exposure to Henry Hub gas prices and input cost. Just wondering whether you're comfortable with that long-term exposure to Henry Hub, or should we expect you might look to try and remove or mitigate that risk via the acquisition of more U.S, gas production assets such as, such as Shell Gas.

Graham Tiver: I'll leave there. Thanks, Dale.

Speaker Change #138: Okay, thank you very much for that. I'll leave there.

Unknown Executive: Thank you.

Henry Meyer: Your next question comes from Henry Mayo with Goldman Sachs. Please go ahead. Morning, all. Just a question on the inclusion of asset sale of proceeds and underlying earnings and dividends. Can you share how you determine the amount of sale of proceeds that are included in underlying earnings and what we could assume going forward? For example, the 1.4 billion from Scarborough this off. Yes, so Henry, just for clarity, the 1.4 billion is the cash proceeds that will go into the cash flow statement once received, and that's estimated at this point in time. What we're talking about in the net profit after tax calculation is the profit or loss on the sale, which for both LNG, Japan, and for Jira, Southam, it will be a profit.

Dale Kondez: Thanks, Dale.

Speaker Change #139: Thank you. Your next question comes from Henry Mayo with Goldman Sachs. Please go ahead.

Henry Mayo: Morning all just a question on the inclusion of asset cell proceeds and underlying earnings and dividends. Can you share your term in the amount of cell proceeds that are included in underlying earnings and what we could assume going forward? For example, the 1.4 billion from Scarborough this off.

Nick Burns: Thank you. Yeah, thanks Nick. Look, I appreciate a lot of interest in this topic. As we think about putting together our dream team, one of the capabilities we're going to be looking at our partners as you can bring a connection to that upstream gas world, because as you know, it will be incredibly important for us to understand the U.S, onshore gas market and to have ability to ensure we get the gas feeding into the plant that we need at a price that remains affordable.

Graham Tiver: Thank you. Yeah, thanks Nick. Look, I appreciate a lot of interest in this topic. As we think about putting together our dream team, one of the capabilities we're going to be looking at our partners as you can bring a connection to that upstream gas world, because as you know, it will be incredibly important for us to understand the U.S, onshore gas market and to have ability to ensure we get the gas feeding into the plant that we need at a price that remains affordable.

Speaker Change #141: Yes, so Henry, just for clarity, the 1.4 billion is the cash proceeds.

Speaker Change #142: That will go into the cash flow statement once received and that's estimated at this point in time.

Nick Burns: But at this point in time, you know, we have no intentions of going into the upstream. We would be very cautious if we were to do so. Again, recognizing the skills and capabilities for onshore U.S. Shell gas is quite different from the skills and capabilities we have. So in due course, we will continue to look at ways we can manage that upstream risk, but it is not a priority for us to get into upstream U.S, at this point in time. Right, that's clear. Thank you.

Graham Tiver: But at this point in time, you know, we have no intentions of going into the upstream. We would be very cautious if we were to do so. Again, recognizing the skills and capabilities for onshore U.S. Shell gas is quite different from the skills and capabilities we have. So in due course, we will continue to look at ways we can manage that upstream risk, but it is not a priority for us to get into upstream U.S, at this point in time. Right, that's clear.

Speaker Change #143: and what we're talking about in the net profit.

Graham Tiver: Thank you.

Speaker Change #144: After Tax Calculation, is the profit or loss on the sale, which for both LNG, Japan, and for Gira Cell Dam will be a profit and for LNG, Japan I think it was 110 million, 120 million LNG's

Graham Tiver: And for LNG, Japan, I think it was 110 million, 120 million. Apologies. So I want to be very clear, it's not the full cash amount that's going into the underlying dividend calculation; it's the profit on the sale.

Speaker Change #144: So I don't want to be very clear. It's not the full cash amount that's going into the underlying dividend calculation. It's the profit on the sale.

Henry Meyer: Yeah, absolutely. Thanks, Grant. And so that 120 million for LNG, Japan, is that proportional to what we'd expect from the Jira sale as well? Roundabouts. Great. Okay, thanks.

Nick Burns: And then just a question on Scarborough. You recently increased the cost there by 500 million, and that was primarily associated with train one mods. Just run if you can talk through your confidence in the current cost estimates now and did the 500 million dollar increase allow you to replenish your contingency budget and just sort of looking ahead. How should we think about what are the residual key risks in the project understand.

Graham Tiver: And then just a question on Scarborough. You recently increased the cost there by 500 million, and that was primarily associated with train one mods. Just run if you can talk through your confidence in the current cost estimates now and did the 500 million dollar increase allow you to replenish your contingency budget and just sort of looking ahead. How should we think about what are the residual key risks in the project understand. It's quite complex, but if you can talk to that and maybe the risk to the risk to cost and schedule from here. Thank you.

Speaker Change #145: Yeah, absolutely thanks Graham. And so that that 120 mil for guaranteed your band, is that proportional to what we'd expect from the geracell as well.

Speaker Change #145: Roundabout.

Henry Meyer: And last one from me at Sangamar. We're continuing to see headlines in the press from the Senegalese government looking to renegotiate. We will contract. Understand the flow through.

Speaker Change #146: Okay, thanks and last one for me at Sangamah. We're continuing to see headlines in the first from the San Diego League government looking to renegotiates, where we'll contract.

Nick Burns: It's quite complex, but if you can talk to that and maybe the risk to the risk to cost and schedule from here. Thank you. Sure. We've worked very hard before we put out that cost update to really understand the vulnerabilities of the Scarborough project to understand where we've spent the money today and where we're tight and where we needed a bit of support. I have a very high level of confidence that we will deliver the project within that 12.5 billion dollars.

Marguerite ONeill: The confidential, but could you share Woodside's perspective on any of these contents, any potential risks, changes, time on for any resolution that you see from here? At this point, Henry, we're very pleased with the relationship we've built with Petrison and the relationship we've built with the government of Senegal. You would have seen in the past the photo of myself and the President of Senegal out on the FPSO, celebrating first oil. Look, we know every government all around the world has the rights to determine the framework that governs resource development in their nations. In Senegal, we have a contract; we have a production sharing contract; we have a host government agreement. These were fairly negotiated with the government of that nation.

Speaker Change #147: Understand of course there will be confidential but could the issue would sort of suspect if on any of these contents any potential risks changes time on for any resolution but you see from here.

Unknown Executive: Sure. We've worked very hard before we put out that cost update to really understand the vulnerabilities of the Scarborough project to understand where we've spent the money today and where we're tight and where we needed a bit of support. I have a very high level of confidence that we will deliver the project within that 12.5 billion dollars. I guess just for the markets understanding I am personally keeping a couple hundred million of that in my pocket.

Henry Mayo: At this point, Henry, we're very pleased with the relationship we've built with Petra Sen and the relationship we've built with the government of Senegal.

Speaker Change #148: and you would have seen in the pack the photos for myself and the president of Senegal out on the FPSO celebrating first-oil. Look, we know every government all around the world has the rights to determine the framework that governs resource development in their nations.

Nick Burns: I guess just for the markets understanding I am personally keeping a couple hundred million of that in my pocket. So the project team doesn't have that so they've been challenged to deliver it for 12.3 billion. As we think about ongoing risks, so very pleased with particularly how the onshore work is going with Pluto train to please with how the offshore pipeline installation is going. The FPU always has been critical path and that remains on critical path.

Unknown Executive: So the project team doesn't have that so they've been challenged to deliver it for 12.3 billion. As we think about ongoing risks, so very pleased with particularly how the onshore work is going with Pluto train to please with how the offshore pipeline installation is going. The FPU always has been critical path and that remains on critical path. As you saw in the deck, the top slides is structurally complete, but there's still many hours to go to get everything ready to go before we made it with the whole.

Speaker Change #149: In Senegal, we have a contract, we have a production sharing contract, we have a host government agreement, these were fairly negotiated with the government of that nation.

Marguerite ONeill: And look, we're happy to have a conversation with the government, but we need to make sure that we're protecting the thesis, the investment thesis on that. So, at this point in time, we'll continue to have open discussions. I would note that the president's, around the time of his appointment or his election, he made some very positive comments welcoming private investment to the nation of Senegal, and the Senegal art development is one of the nation's largest private investments.

Speaker Change #149: and we're happy to have a conversation with the government but we need to make sure that we're protecting the investment thesis on which we entered the project.

Nick Burns: As you saw in the deck, the top slides is structurally complete, but there's still many hours to go to get everything ready to go before we made it with the whole. So we watch, you know, from a project execution perspective at the key item to watch the second thing that we are watching very closely and working very closely with the regulator on is the Scarborough operations environment plan. We have already passed the completeness check with noxima.

Speaker Change #149: So, at this point in time, we'll continue to have open discussions. I would note that the president around the time of his...

Unknown Executive: So we watch, you know, from a project execution perspective at the key item to watch the second thing that we are watching very closely and working very closely with the regulator on is the Scarborough operations environment plan. We have already passed the completeness check with noxima. So we are continuing to work through their questions, but given the evolving rules around consultation, we wanted to make sure we got that into noxima well in advance of needing it.

Speaker Change #151: Employment or his election, he made some very positive comments welcoming private investment to the nation of Senegal and the Sengamar Development is one of the nation's largest private investments.

Marguerite ONeill: So, I'll leave it there.

Marguerite ONeill: Okay, thanks, Luke.

Speaker Change #151: Um...

Speaker Change #151: So I'll clean it there.

Nick Burns: So we are continuing to work through their questions, but given the evolving rules around consultation, we wanted to make sure we got that into noxima well in advance of needing it. To make sure that we are robust and have the approvals we need by the time we bring the FPU into Australian water. That's great, thanks, mate. Thank you.

Sarah Kerr: Thank you.

Speaker Change #152: Okay, thanks Luke.

Marguerite ONeill: Your next question comes from Sarah Kerr with Morgan Stanley. Please go ahead. Thanks very much, and congratulations on the result. I was just wondering if there was any updates for the timing of the pertinent contract and if there's any impact towards the changes with the WA domestic gas policy. Luke, you're probably better off asking pertinent for the timeline. We need to be ready to supply them in 2026, and we will be as to the pace of their ramp up. That's really pertinent to communicate to the market. And in terms of the WA domestic gas inquiry, look, we recognize this is an important matter for the state.

Speaker Change #153: Thanks, Henry.

Speaker Change #153: Thank you. Your next question comes from Sarah Kerr with Morgan Stanley. Please go ahead.

Unknown Executive: To make sure that we are robust and have the approvals we need by the time we bring the FPU into Australian water. That's great, thanks, mate. Thank you. I reminder to please limit your questions to two per person.

Speaker Change #154: Thanks so much, and congratulations on the result. I was just wondering if there was any update for the timing of the Pertamin contract, and if there was any impact towards side from the changes with the WA domestic gas policy.

Speaker Change #155: Um, it's like you're probably better off asking Pertiment for the timeline we need to be ready to supply them in.

Operator: I reminder to please limit your questions to two per person.

Speaker Change #156: In 2026, and we will be as to the pace of their ramp up that's really for Pardeman to communicate to the market.

James Byrne: Your next question comes from James Byrne with City. Please go ahead.

James Byrne: Good morning. I wanted to ask about the outlook for cash flows and whether the performance of the business has deteriorated at all relative to the prior expectations and just bear with me like I'm just going to side a few things here. So the IBD last year, 2024 free cash flow at $70 oil was sort of being indicated at around 600 million. If we take that up to $84 oil using your own sensitivity, we can kind of get to a number of about one and a half billion for 2024.

Speaker Change #157: and in terms of the WA domestic gas inquiry, look we recognize this is an important matter for the state. We recognize that domestic gas.

Marguerite ONeill: We recognize that domestic gas, largely from the Northwest Shelf, has underpinned a tremendous amount of economic prosperity in Western Australia. We intend to continue to work with the government on how to continue to get those positive benefits. Probably worth Sarah noting that I know Browse has also received quite a bit of recent media attention as we think about the state's gas needs in the 2030s. Browse is going to be an important part of solving what appears to be a growing supply-demand gap. So we'll continue to work with the government's, both state and Commonwealth, on browse to ensure that the state doesn't end up in a similar situation as these East Coast states.

Speaker Change #158: Largely from the North West Shelf has underpinned a tremendous amount of economic prosperity in Western Australia, and we intend to continue to work with the government on how to continue to get those positive benefits.

Speaker Change #159: It's probably worth Sarah noting that a Nobel Prize has also received quite a bit of recent media attention as we think about the states' gas needs in the 2030s.

James Byrne: Assuming second half or prices is the same as the first capex, five and a half billion. So that kind of gets us to operating cash flow is $7 billion for 2024. We have to adjust then for the asset South LNG Japan. So probably more like $6 billion. First half achieves less than $2.4 billion of operating cash flows. There's a big delta there to get up to what you'd loosely guided to at the IBD next year.

Speaker Change #160: of Browse is going to be an important part of solving what appears to be a growing supply demand gap. So we'll continue to work with the government's both state and Commonwealth on Browse to ensure that the state doesn't end up in a similar situation as these east coast dates.

Marguerite ONeill: Great. Thank you.

Marguerite ONeill: And just staying on browse. You have the fund rise development concept to in the fourth quarter of this year. So I was just wondering how would I be thinking about and what takes priority over Browse versus Fund Rise for possibly the next organic development in Australia. I look; I'd say that both of those developments have their challenges. So, browse, as you know, we've been working on environmental approvals for six years and continue to seek them. We're not going to make any significant capital investments until we have confidence in those approvals. Sunrise has a lot of complexities straddling the border of both Australia and Timor Leste, trying to get all of the governing documents negotiated has complexities and then getting to the point where we've got an investable project.

Speaker Change #161: Great, thank you, and the staying on browse. You have the fundraise development concept you in the fourth quarter of this year. So I was just wondering how would I be thinking about what takes priority over browse versus fundraise for possibly the next organic development industry.

James Byrne: And yes, Sangamara is ramping up. But nonetheless, it's a very big delta. Secondly, at the Beaumont acquisition call, it was stated that gearing would go to the low 20s to mid 20s in a subjude oil price environment. And today it sounds like it will go to the low to mid 20s in a, you know, at woodside's internal assumption of oil as opposed to necessarily a subjude stress test or price environment. And lastly, Sangamara is ramping up really well and yet the production guidance is unchanged.

Speaker Change #162: Look, I'd say that both of those developments have their challenges, so Browse, as you know, we've been working on environmental troubles for six years and continue to seek them. We're not going to make any significant capital investments until we have confidence in those approvals.

Speaker Change #162: Sunrise has a lot of complexities straddling the border of the Australia and T. More

Speaker Change #163: Trying to get all of the governing documents negotiated has complexities and then getting to the point where we've got an investible project. We've got a bit of work to do. So no priority. There are two horses that want to get into the race, but they're both in the training track right now.

James Byrne: So by triangulate those things, it kind of feels like there are parts of the business that might have deteriorated versus prior expectations. And I just wanted you to explicitly be able to say that that was not the case. Thanks, James.

Marguerite ONeill: We've got a bit of work to do. So, no priority, there are two horses that want to get into the race, but they're both in the training track right now.

Marguerite ONeill: Great, thank you so much, and congratulations again.

Speaker Change #163: Thank you for watching, congratulations again.

Marguerite ONeill: Thank you.

Matt Chalmers: Your next question comes from Matt Chalmers with Bank of America. Please go ahead. Thanks and good morning. Meg, just a quick question on Trion, just with regards to Pemex and some of the, you know, the world documented challenges that they're facing. Just to keep to get your thoughts in terms of how you're thinking about how that may impact the other development timeline at Trion, given the fact that they're, you know, your major partner in the project. So, we've, over the past few years, established a very constructive working relationship with Pemex. They have quite a bit of deep expertise, having been the sole proponents of the Mexican oil and gas sector for many years.

Speaker Change #163: Thanks, sir.

Speaker Change #163: Thank you. Your next question comes from Matt Chalmas with Bank of America. Please go ahead.

Matt Chalmas: Thanks, and good morning. May you just a quick question on Trey on just with regards to PIMX and some of the world documented challenges of their facing. Just keen to get your thoughts in terms of how you're thinking about the harm that may impact the other or the benefits harm line at Trey on given the fact that you know you're major partner in the project.

Matt Chalmas: We've over the past few years established a very constructive working relationship with MX.

Graham Tiver: Well, what we've received to the mid case of 70 that we put forward in the IBD. So yeah, we can go into the detail and happy to take that offline. But in terms of yes, there are swings around about in regards to prices, timing of capex, tax payments, etc. But when you stand back and look at it, the business is performing extremely strongly and that's evidence in our cash flow generation and the ability to pay strong dividends.

Speaker Change #165: They have quite a bit of deep expertise having been there.

Marguerite ONeill: They do have financial challenges, and that's part of why the Trion contract was structured with the carry. So, we continue to carry Pemex for their share of investments through this calendar year. We've worked very closely with both Pemex and the government to ensure there's clarity around Pemex's needs to pay their fairway starting in 2025. And at this point in time, we've received all assurances from the government and Pemex that they will do so.

Speaker Change #166: The old proponents of the Mexican oil and gas sector for many years, and they do have financial challenges, and that's part of why the TREON contract was structured with the carry. So we continue to carry Pemex for their share of investments through this calendar year.

Speaker Change #167: We've worked very closely with both Pemex and the government to ensure there's clarity around Pemex's needs to pay their fairway, starting in 2025, and at this point in time we've received all the assurances from the government and Pemex that they will do so.

Graham Tiver: We are in line with what we put forward at the November IBD and will likely exceed it. And from a production perspective, so the guidance we put out, I think at that point in time we would have said Sangamar Startup was expected in quote-unquote mid-24, which is what we've delivered. So yes, very pleased with how it's ramping up, but again in any business there, there's a number of different assets and we still feel pretty well we still believe and stand by the guidance we've put out for a total production.

Marguerite ONeill: Got it.

Matt Chalmers: Okay, and just one last question from I and just with regards to the lower production unit costs during the year. I noted from relatively speaking compared to the H123, you know, those costs were allocated and understand that royalties were lower and duties and the likelihood and the lower energy prices in this half. Just keeps understanding, you know, if there's any further cost start that you manage to take out of those Australian operations that can speak to, you know, that cost discipline during the course of this year. Yeah, thanks, Matt. A couple of things: the unit costs are really just focused on the production costs.

Speaker Change #168: God, okay, and just one last question for May, and just with regards to the low production unit costs during the year, I noted from relatively speaking compared to H123, you know those costs were elevated and understand that roll fees were lower and duties of the like given the lower LNG prices in this house.

Speaker Change #169: Just keep to understand if there is any further cost start that you manage to take out of those Australian operations that can speak to that cost discipline during the course of this year.

Graham Tiver: Okay, second question, just back around the gearing, to have the gearing go to sort of that low mid-20s percent, I'm actually getting, this is very anecdotal, I'm getting credit investors that write to me with our concerns along with equity investors that are similarly concerned. And my fear is that if the bondholders are pitted against the shareholders, then equity that's likely to lose out. Now if I pick up Graham on what you mentioned in your opening remarks, you mentioned you have various levers that you can pull and you know you sound quite intent on maintaining that strong dividends, payout ratio, what levers would you describe as being able to pull in that instance that you know, a normal all price environment is still getting into that mid-gearing mid-20s percent gearing range, let alone a bear market for oil, I'm just very interested in what levers you think you have to pull, because it appears to me that, and many in the market, by the way, that the path of least resistance is in fact the dividends.

Speaker Change #169: Yeah, thanks Matt. A couple of things, the Unicosts are really just focused on the production cost. So we're not necessarily, we don't include Royalty's et cetera, but you're right, Royalty's our lower. This is the Raw Production Costs.

Graham Tiver: So we're not necessarily, we don't include royalties, etc., but you're right; royalties are lower. This is the raw production costs of producing our product. When you normalize across the two years, the two half years, whether, you know, turn around for the interconnector, it doesn't matter how you look at it, our costs for the first half of 24 are below those of FY23 for the first half. And, you know, as Meg touched on, is there one particular point that stands out where we press the button and it all unfolded? No, it is hard work; it's a constant process, you know, an energy plugging away at the underlying cost base and just really strong alignment across our businesses.

Speaker Change #169: of producing our product.

Speaker Change #170: When you normalise across the two years, the two half years, whether you know turn around for the Interconnector, it doesn't matter how you look at it across for the first half of 24 below those if I 23 for the first half.

Speaker Change #170: Um...

Speaker Change #171: And, yeah, has made touch on. It's their one particular point that stands out where we press the button and it all unfolded. No, it is hard work, it's constant progress process, you know.

Speaker Change #172: and Energy, plugging away at the underlying cost-based and just really strong alignment across our businesses and focus on cost scrutiny in the business.

Graham Tiver: And focus on cost scrutiny in the business. So there are actual costs out there; it's not just because it's coming off a higher base than its one, 22, right? Absolutely, the underlying costs have decreased across Woodside. Obviously, ups and downs between operations depend on what's going on, but across the business, a very broad theme of strong cost improvement.

Speaker Change #172: So there is actual cost out there, it's not just because it's coming with a higher base than H1, 2, 2, 2, 1.

Graham Tiver: Thanks James, and always good questions, and I think if we can go back to the wording at OCI where we spoke around about the strength of the balance sheets and our gearing, I think it was sort of, as I touched on with Saul's question, in our mid-price scenario we will be above 20 and at the stress price, I'm not sure if that's what you mean by subdued, it was more around the mid-20s. What I would say when we look at the levers, the first and foremost, is just continue strong operational performance, we must continue for the underlying business to perform well and generate strong cash flows to support the balance sheet.

Speaker Change #173: I salute that the underlying costs have decreased across, across, would side. Obviously, ups and downs between operations depends on what's going on. But across the business, a very broad theme of strong cost improvement.

Graham Tiver: Thank you.

Rob Koh: Your next question comes from Rob Koh with Morgan Stanley. Please go ahead. Good morning, Morgan Stanley's way of getting more than two questions in at a time, I guess. Just a question about your climate transition action plan, which you acknowledge you continue and reflect. Can you give us a sense of whether the feedback came from, with people looking for more ambition or less ambition, or was it technical issues around offsets? And then, as a subsidiary question, does the Future Made in Australia program help with H2 Perth?

Speaker Change #173: for the thanks for our appreciate it.

Speaker Change #174: Thank you. Your next question comes from Rob Co with Morgan Stanley. Please go ahead.

Rob Co: Good morning and we'll install these ways of getting more than two questions in at the time, I guess.

Speaker Change #176: Just a question about your climate transition action plan, which you've acknowledged, you've continued and reflect.

Graham Tiver: You know, we've always got opportunities around phasing of capital spend, we've got opportunities around cost reductions, tightening up on the OPEX and CAPEX, going to discretionary spend, etc. We've already touched on the hedging program. We've touched on earlier on around our willingness or our plan to sell down a portion of driftwood, and that's a core part of it. So look, there's many levers, and we will assess them on their merits, and it's all a part of the work that has to take place over the next six months or so.

Speaker Change #177: Can you give us a sense of whether the feedback came from people looking for more ambition or less ambition, or was there technical issues around offset? And then as a subsidiary question, does the future made in Australia program help with H2 Perth?

Marguerite ONeill: All right, well, thanks, Rob. So look, the themes on the climate transition action plan were probably thematically oriented towards wanting more rather than wanting less. Really a broad range of areas of interest from various investors, though some wanted to see more detail and clarity on scope one, and some expressed concerns around offsets. Some themes around demand resilience for LNG. And you know, part of why we included the chart in this presentation showing coal demand is to make that point around the role for LNG and helping the world decarbonize. Some more questions around our ambition on new energy, which you know, the OCI Clean Ammonia acquisition, I think addresses pretty elegantly.

Speaker Change #178: All right, well, thanks, Rob. So, look, this seems on the climate transition action plan. We're probably thematically oriented towards wanting more, rather than wanting less.

Graham Tiver: But James, at a high level, it's probably reinforcing that over the period, you would have seen that Woodside has a track record of taking care of close our debt holders and our equity holders. You would have seen we've been in and out of the debt market for, you know, probably the last 20 or 30 years, and we pay our debts as and when they do. And for the last decade, we've continued to provide very healthy returns to our shareholders, so we've certainly got the ability to do both.

Speaker Change #179: really a broad range of areas of interest from various investors, though. Someone had to see more detail in Clarity ONe scope one, and some express concerns around offsets.

Speaker Change #180: Some themes around demand resilience for LNG, and part of why we included the chart in this presentation showing cold demand is to make that point around the role for LNG and helping the world decarbonize.

Speaker Change #181: and some more questions around our ambition on new energy, which, you know, the OCI Clean ammonia acquisition, and I think addresses pretty elegantly. That I'm really a wide range of feedbacks.

James Byrne: So, can I perhaps ask it a different way though? So, some of those levers sound very much business as usual, right? Like operational performance, selling down driftwood, that things that I think both equity and credit would expect management to undertake. But some Graham in your conversations with debt investors and rating agencies, would you say that they're comfortable with the trajectory of the balance sheet given the extension of the Capek cycle? Yes. Okay.

Graham Tiver: So, can I perhaps ask it a different way though? So, some of those levers sound very much business as usual, right? Like operational performance, selling down driftwood, that things that I think both equity and credit would expect management to undertake. But some Graham in your conversations with debt investors and rating agencies, would you say that they're comfortable with the trajectory of the balance sheet given the extension of the Capek cycle? Yes. Okay.

Marguerite ONeill: So really a wide range of feedbacks in terms of the future made in Australia look probably less of a connection to H2 Perth. But what I would say, Rob, is if we're thinking about a future made in Australia, just as if we think about it today made in Australia, we need gas. If you look at how the manufacturing sector in Australia has grown over the decades, it's been underpinned by access to reliable and affordable gas. And so, you know, not just a future made in Australia, but it today made in Australia need natural gas.

Operator: Thanks James. So from Adam.

Unknown Executive: Thanks James. So from Adam.

Adam Martin: Thank you.

Unknown Executive: Thank you.

Speaker Change #182: In terms of the future made in Australia, look probably less of a connection to H2PERS. But what I would say, Rob, is if we're thinking about a future made in Australia, just as if we think about it today made in Australia, we need gas.

Speaker Change #183: If you look at how the manufacturing sector in Australia has grown over the decades, it's been underpinned by access to reliable and affordable gas. And so, you know, not just a future-made in Australia, but it's today made in Australia and the natural gas.

Adam Martin: Your next question comes from Adam Martin with E&P. Please go ahead. Yeah, morning, Mick Graham, obviously a pretty strong market reaction, you know, post year two recent deals just perhaps to sort of summarise investor feedback in differences in anything that surprised you. And I suppose what the market might be missing here. Sure. Well look, what I think we've had a couple of thematic questions, which we tried to address in this presentation with driftwood, there's been a lot of desire to understand what's different about how Woodside would do a US LNG project from how other US LNG players have done their projects.

Rob Koh: Okay, great. Thank you.

Marguerite ONeill: And then maybe just a small fly a question. Any update on your thinking on exploration in Namibia? Nothing's changed. So we still have our option to come in as operator on one block there. We continue to look at the opportunity space there. Obviously, a lot of kind of interest across our industry with some of the other discoveries, but we're going to be patient and disciplined as we are with all of our exploration opportunities.

Speaker Change #184: Okay, great, thank you. And then maybe just a small flyer question, any update on your thinking on exploration in the reviewer.

Speaker Change #184: Nothing changed.

Speaker Change #185: So, we still have our option to come in as operator on one block there. We continue to look at the opportunity space there, obviously a lot of...

Speaker Change #185: Kind of interest across our industry with some of the other discoveries, but we're going to be patients and disciplines as we are with all of our exploration opportunities.

Marguerite ONeill: All right, he sounds good. Thank you so much.

Unknown Executive: Thank you. There are no further questions.

Speaker Change #186: Alright, he sounds good, thank you so much.

Marguerite ONeill: At this time, I'll now hand back to Ms. O'Neill for closing remarks. Alright, well thanks everyone for joining the call. I really appreciate your interest in Woodside and appreciate your support of the business. We look forward to engaging with you in future days to further discuss and share with you our strategy of how we're delivering on our goal to thrive through the energy transition. Thank you.

Adam Martin: And so that's why we put that slide in showing the sorts of activities that we believe we bring to the opportunity to create additional value and why we think it's compelling. And with OCI, look, I think there was an element of surprise. You know, we've been saying for three years that we would spend that our intention was to profitably invest $5 billion in new energy products and services. I think the market just wasn't expecting us to do $2.3 billion this year.

Speaker Change #187: Thanks, Rob.

Speaker Change #188: Thank you.

Speaker Change #189: There are no further questions at this time, I'll now hand back to my Zoneel for closing remarks.

Zoneel: Alright, well, thanks everyone for joining the call.

Zoneel: I really appreciate your interest in Woodside and appreciate your support of the business. We look forward to engaging with you in future days to further discuss and share with you our strategy of how we're delivering on our goal to thrive through the energy transition. Thank you.

That does conclude our conference for today. Thank you for participating. You may now disconnect. Thank you.

Adam Martin: I think a lot of folks had probably built into their model that we would back end weight that and look to be fair. We had probably signaled that as we had been focused on pursuing organic growth opportunities, which would have had a slower ramp up of spend.

Unknown Executive: So those are probably the key themes that we've been hearing Adam. Okay, thank you. And just a second question around the commissioning sort of any update to around what you're thinking for northward shelf, and then also just on the back straight. I think X on recently pulled the EP around 13 platforms that think there's issue around sort of leaving everything below 55 meters in the water. Just talk through what's going on in the back straight, but also northward shelf, please.

Marguerite ONeill: So those are probably the key themes that we've been hearing Adam. Okay, thank you. And just a second question around the commissioning sort of any update to around what you're thinking for northward shelf, and then also just on the back straight. I think X on recently pulled the EP around 13 platforms that think there's issue around sort of leaving everything below 55 meters in the water. Just talk through what's going on in the back straight, but also northward shelf, please.

Unknown Executive: Sure, let me speak more broadly about decommissioning. We have a very significant decommissioning campaign underway this year. And this builds on activities we started last year with the end builds plug and abandonment campaign. We've got a large plug and abandonment campaign for Stibero this year. And we're taking steps to remove subsea flow lines, riser dirt, mooring systems from a number of legacy assets, things like Griffin, as well as Stibero. As we go to best rates, the operator and joint venture has been working for many years on decommissioning there, initial focus on plug and abandonment.

Unknown Executive: So basically dealing with the well so that the platforms can subsequently be removed safely. We have been working with the operator on a plan forward for removing a number of the steel pile jackets that are in place. And the work that we've done thus far would support that a better safety and environmental outcome would be to leave the parts of the steel pile jackets that are in deeper water in place. Now, Australian law today requires full removal, and that's why the joint venture has pulled that EP with the intention of continuing to do the scientific work to document the positive environmental impacts associated with leave and place.

Marguerite ONeill: So basically dealing with the well so that the platforms can subsequently be removed safely. We have been working with the operator on a plan forward for removing a number of the steel pile jackets that are in place. And the work that we've done thus far would support that a better safety and environmental outcome would be to leave the parts of the steel pile jackets that are in deeper water in place. Now, Australian law today requires full removal, and that's why the joint venture has pulled that EP with the intention of continuing to do the scientific work to document the positive environmental impacts associated with leave and place.

Unknown Executive: At Northwest Shelf, I assume you're asking about train retirement dates, so we continue to monitor production from Northwest Shelf. The offshore is doing quite well. We're processing a fair amount of Pluto gas at the Cross of Gas plant today, and do expect to see ramp up from Waitia in due course. So we are continuing with our planning to take one LNG train offline, either late this year or in the first half of the year. So next year, like tonight, thanks for the coven response, Mike. Thank you.

Dale Koenders: Your next question comes from Dale Koenders with Baron Joey, please go ahead. Morning, Meg Graham and team. It's just wondering about Singapore now that you started up. There's been obviously a lot of cost inflation in industry. Yeah, there's a little bit of uncertainty and depreciation rates. Do you think that we need to get guidance as a market on those numbers going forward? Are you comfortable with how the consensus is forecasting those costs?

Dale Koenders: All right, Graham filled that. Yeah, so Dale, we don't normally provide that level of detail, you know, asset by all operational level. Here, your question, I think the key point is to, as Meg touched on is around the ramp up, and we get a feel for the ramp up, how the connectivity is across the world, and then we can look to consensus and see how we're traveling. Okay, thank you very much for that. I'll leave there. Thanks Dale.

Zoneel: [inaudible]

Dale Koenders: I'll leave there. Thanks Dale.

Henry Mayo: Thank you. Your next question comes from Henry Mayo with Goldman Sachs. Please go ahead.

Henry Mayo: Morning, all just a question on the inclusion of asset sale of proceeds and underlying earnings and dividends. Can you share how you determine the amount of sale of proceeds that are included in underlying earnings and what we could assume going forward? For example, the 1.4 billion from Scarborough this off. Yes, so Henry, just for clarity, the 1.4 billion is the cash proceeds that will go into the cash flow statement once received, and that's estimated at this point in time.

Henry Mayo: What we're talking about in the net profit after tax calculation is the profit or loss on the sale, which for both LNG, Japan, and for Jira, Southam, it will be a profit. And for LNG, Japan, I think it was 110 million, 120 million apologies. So I want to be very clear, it's not the full cash amount that's going into the underlying dividend calculation, it's the profit on the sale. Yeah, absolutely. Thanks, Grant. And so that 120 million for LNG, Japan, is that proportional to what we'd expect from the Jira sale as well? Roundabouts. Great. Okay, thanks.

Henry Mayo: And last one from me at Sangamar. We're continuing to see headlines in the press from the Senegalese government looking to renegotiate. We will contract. Understand the flow through. The confidential, but could you share Woodside's perspective on any of these contents, any potential risks, changes, time on for any resolution that you see from here? At this point, Henry, we're very pleased with the relationship we've built with Petrison and the relationship we've built with the government of Senegal.

Marguerite ONeill: And last one from me at Sangamar. We're continuing to see headlines in the press from the Senegalese government looking to renegotiate. We will contract. Understand the flow through. The confidential, but could you share Woodside's perspective on any of these contents, any potential risks, changes, time on for any resolution that you see from here? At this point, Henry, we're very pleased with the relationship we've built with Petrison and the relationship we've built with the government of Senegal.

Henry Mayo: You would have seen in the past the photo of myself and the president of Senegal out on the FPSO, celebrating first oil. Look, we know every government all around the world has the rights to determine the framework that governs resource development in their nations. In Senegal, we have a contract, we have a production sharing contract, we have a host government agreement, these were fairly negotiated with the government of that nation. And look, we're happy to have a conversation with the government, but we need to make sure that we're protecting the thesis, the investment thesis on that.

Marguerite ONeill: You would have seen in the past the photo of myself and the president of Senegal out on the FPSO, celebrating first oil. Look, we know every government all around the world has the rights to determine the framework that governs resource development in their nations. In Senegal, we have a contract, we have a production sharing contract, we have a host government agreement, these were fairly negotiated with the government of that nation. And look, we're happy to have a conversation with the government, but we need to make sure that we're protecting the thesis, the investment thesis on that.

Henry Mayo: So, at this point in time, we'll continue to have open discussions. I would note that the president's around the time of his appointment or his election, he made some very positive comments welcoming private investment to the nation of Senegal and the Senegal art development is one of the nation's largest private investments. So, I'll leave it there. Okay, thanks, Luke. Thanks, Henry. Thank you.

Marguerite ONeill: So, at this point in time, we'll continue to have open discussions. I would note that the president's around the time of his appointment or his election, he made some very positive comments welcoming private investment to the nation of Senegal and the Senegal art development is one of the nation's largest private investments.

Marguerite ONeill: So, I'll leave it there. Okay, thanks, Luke. Thanks, Henry. Thank you.

Sarah Kerr: Your next question comes from Sarah Kerr with Morgan Stanley. Please go ahead. Thanks very much, and congratulations on the result. I was just wondering if there was any updates for the timing of the pertinent contract and if there's any impact towards the changes with the WA domestic gas policy. Luke, you're probably better off asking pertinent for the timeline. We need to be ready to supply them in in 2026, and we will be as to the pace of their ramp up.

Sarah Kerr: That's really for pertinent to communicate to the market. And in terms of the WA domestic gas inquiry, look, we recognize this is an important matter for the state. We recognize that domestic gas, largely from the northwest shelf, has underpinned a tremendous amount of economic prosperity in Western Australia. We intend to continue to work with the government on how to continue to get those positive benefits. Probably worth Sarah noting that I know browse has also received quite a bit of recent media attention as we think about the state's gas needs in the 2030s.

Sarah Kerr: Browse is going to be an important part of solving what appears to be a growing supply demand gap. So we'll continue to work with the government's both state and Commonwealth on browse to ensure that the state doesn't end up in a similar situation as these East Coast states. Great. Thank you. And just staying on browse. You have the fund rise development concept to in the fourth quarter of this year. So I was just wondering how would I be thinking about and what takes priority over Browse versus fund rise for possibly the next organic development in Australia.

Sarah Kerr: Great. Thank you. And just staying on browse. You have the fund rise development concept to in the fourth quarter of this year. So I was just wondering how would I be thinking about and what takes priority over Browse versus fund rise for possibly the next organic development in Australia. I look, I'd say that both of those developments have their challenges. So, browse, as you know, we've been working on environmental approvals for six years and continue to seek them.

Sarah Kerr: I look, I'd say that both of those developments have their challenges. So, browse, as you know, we've been working on environmental approvals for six years and continue to seek them. We're not going to make any significant capital investments until we have confidence in those approvals. Sunrise has a lot of complexities straddling the border of both Australia and Timor Lest, trying to get all of the governing documents negotiated has complexities and then getting to the point where we've got an investable project. We've got a bit of work to do.

Sarah Kerr: We're not going to make any significant capital investments until we have confidence in those approvals. Sunrise has a lot of complexities straddling the border of both Australia and Timor Lest, trying to get all of the governing documents negotiated has complexities and then getting to the point where we've got an investable project. We've got a bit of work to do. So, no priority, there are two horses that want to get into the race but they're both in the training track right now. Great, thank you so much and congratulations again. Thanks, Sarah. Thank you.

Sarah Kerr: So, no priority, there are two horses that want to get into the race but they're both in the training track right now. Great, thank you so much and congratulations again. Thanks, Sarah. Thank you.

Matt Chalmers: Your next question comes from Matt Chalmers with Bank of America. Please go ahead. Thanks and good morning. Meg, just a quick question on, on Trion, just with regards to Pemex and some of the, you know, the world documented challenges that they're facing. Just to keep to get your thoughts in terms of how you're thinking about how that may impact the other development timeline at Trion, given the fact that they're, you know, your major partner in the project.

Matt Chalmers: Your next question comes from Matt Chalmers with Bank of America. Please go ahead. Thanks and good morning.

Matt Chalmers: Meg, just a quick question on, on Trion, just with regards to Pemex and some of the, you know, the world documented challenges that they're facing. Just to keep to get your thoughts in terms of how you're thinking about how that may impact the other development timeline at Trion, given the fact that they're, you know, your major partner in the project. So, we've, over the past few years established a very constructive working relationship with Pemex.

Matt Chalmers: So, we've, over the past few years established a very constructive working relationship with Pemex. They have quite a bit of deep expertise having been the sole proponents of the Mexican oil and gas sector for many years. They do have financial challenges and that's part of why the Trion contract was structured with the carry. So, we continue to carry Pemex for their share of investments through this calendar year. We've worked very closely with both Pemex and the government to ensure there's clarity around Pemex's needs to pay their fairway starting in 2025.

Matt Chalmers: They have quite a bit of deep expertise having been the sole proponents of the Mexican oil and gas sector for many years. They do have financial challenges and that's part of why the Trion contract was structured with the carry. So, we continue to carry Pemex for their share of investments through this calendar year. We've worked very closely with both Pemex and the government to ensure there's clarity around Pemex's needs to pay their fairway starting in 2025. And at this point in time, we've received all assurances from the government and Pemex that they will do so. Got it.

Matt Chalmers: And at this point in time, we've received all assurances from the government and Pemex that they will do so. Got it. Okay, and just one last question from I and just with regards to the lower production unit costs during the year. I noted from relatively speaking compared to the H123, you know, those costs were allocated and understand that royalties were lower and duties and the likelihood and the lower energy prices in this half.

Graham Tiver: Okay, and just one last question from I and just with regards to the lower production unit costs during the year. I noted from relatively speaking compared to the H123, you know, those costs were allocated and understand that royalties were lower and duties and the likelihood and the lower energy prices in this half. Just keeps understanding, you know, if there's any further cost start that you manage to take out of those Australian operations that can speak to, you know, that cost discipline during the course of this year.

Matt Chalmers: Just keeps understanding, you know, if there's any further cost start that you manage to take out of those Australian operations that can speak to, you know, that cost discipline during the course of this year. Yeah, thanks Matt. A couple of things, the unit costs are really just focused on the production costs. So we're not necessarily, we don't include royalties, etc, but your right royalties are lower. This is the raw production costs of producing our product.

Graham Tiver: Yeah, thanks Matt. A couple of things, the unit costs are really just focused on the production costs. So we're not necessarily, we don't include royalties, etc, but your right royalties are lower. This is the raw production costs of producing our product. When you normalize across the two years, the two half years, whether, you know, turn around for the interconnector, it doesn't matter how you look at it, our costs for the first half of 24 are below those of FY23 for the first half.

Matt Chalmers: When you normalize across the two years, the two half years, whether, you know, turn around for the interconnector, it doesn't matter how you look at it, our costs for the first half of 24 are below those of FY23 for the first half. And, you know, as Meg touched on, is there one particular point that stands out where we press the button and it all unfolded? No, it is hard work, it's constant process, you know, an energy plugging away at the underlying cost base and just really strong alignment across our businesses.

Graham Tiver: And, you know, as Meg touched on, is there one particular point that stands out where we press the button and it all unfolded? No, it is hard work, it's constant process, you know, an energy plugging away at the underlying cost base and just really strong alignment across our businesses. And focus on cost scrutiny in the business. So there is actual costs out there, it's not just because it's coming off a higher base than it's one, 22, right? Absolutely, the underlying costs have decreased across Woodside, obviously ups and downs between operations depends what's going on, but across the business, a very broad theme of strong cost improvement. Thank you.

Matt Chalmers: And focus on cost scrutiny in the business. So there is actual costs out there, it's not just because it's coming off a higher base than it's one, 22, right? Absolutely, the underlying costs have decreased across Woodside, obviously ups and downs between operations depends what's going on, but across the business, a very broad theme of strong cost improvement. Thank you.

Rob Koh: Your next question comes from Rob Koh with Morgan Stanley, please go ahead.

Robert Koh: Your next question comes from Rob Koh with Morgan Stanley, please go ahead. Good morning, Morgan Stanley's way of getting more than two questions in at a time, I guess. Just a question about your climate transition action plan, which you acknowledge, you continue and reflect. Can you give us a sense of whether the feedback came from, with people looking for more ambition or less ambition, or was it technical issues around offsets? And then as a subsidiary question, does the future made in Australia program help with H2 Perth? All right, well, thanks Rob.

Rob Koh: Good morning, Morgan Stanley's way of getting more than two questions in at a time, I guess. Just a question about your climate transition action plan, which you acknowledge, you continue and reflect. Can you give us a sense of whether the feedback came from, with people looking for more ambition or less ambition, or was it technical issues around offsets? And then as a subsidiary question, does the future made in Australia program help with H2 Perth?

Rob Koh: All right, well, thanks Rob. So look, the themes on the climate transition action plan were probably thematically oriented towards wanting more rather than wanting less. Really a broad range of areas of interest from various investors though, some wanted to see more detail and clarity on scope one and some expressed concerns around offsets, some themes around demand resilience for LNG. And you know, part of why we included the chart in this presentation showing coal demand is to make that point around the role for LNG and helping the world decarbonize.

Marguerite ONeill: So look, the themes on the climate transition action plan were probably thematically oriented towards wanting more rather than wanting less. Really a broad range of areas of interest from various investors though, some wanted to see more detail and clarity on scope one and some expressed concerns around offsets, some themes around demand resilience for LNG. And you know, part of why we included the chart in this presentation showing coal demand is to make that point around the role for LNG and helping the world decarbonize.

Rob Koh: Some more questions around our ambition on new energy, which you know, the OCI clean ammonia acquisition, I think addresses pretty elegantly. So really a wide range of feedbacks in terms of the future made in Australia look probably less of a connection to H2 Perth. But what I would say Rob is if we're thinking about a future made in Australia, just as if we think about it today made in Australia, we need gas.

Marguerite ONeill: Some more questions around our ambition on new energy, which you know, the OCI clean ammonia acquisition, I think addresses pretty elegantly. So really a wide range of feedbacks in terms of the future made in Australia look probably less of a connection to H2 Perth. But what I would say Rob is if we're thinking about a future made in Australia, just as if we think about it today made in Australia, we need gas.

Rob Koh: If you look at how the manufacturing sector in Australia has grown over the decades, it's been underpinned by access to reliable and affordable gas. And so, you know, not just a future made in Australia, but it today made in Australia need natural gas.

Marguerite ONeill: If you look at how the manufacturing sector in Australia has grown over the decades, it's been underpinned by access to reliable and affordable gas. And so, you know, not just a future made in Australia, but it today made in Australia need natural gas. Okay, great. Thank you.

Rob Koh: Okay, great. Thank you. And then maybe just a small fly a question. Any update on your thinking on exploration in Namibia? Nothing's changed. So we still have our option to come in as operator on one block there. We continue to look at the opportunity space there. Obviously a lot of kind of interest across our industry with some of the other discoveries, but we're going to be patient and disciplined as we are with all of our exploration opportunities. All right, he sounds good. Thank you so much. Thanks Rob. Thank you.

Operator: There are no further questions.

Unknown Executive: And then maybe just a small fly a question. Any update on your thinking on exploration in Namibia? Nothing's changed. So we still have our option to come in as operator on one block there. We continue to look at the opportunity space there. Obviously a lot of kind of interest across our industry with some of the other discoveries, but we're going to be patient and disciplined as we are with all of our exploration opportunities. All right, he sounds good. Thank you so much. Thanks Rob. Thank you.

Unknown Executive: There are no further questions.

Marguerite ONeill: We look forward to engaging with you in future days to further discuss and share with you our strategy of how we're delivering on our goal to thrive through the energy transition. Thank you.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect. Thank you. [inaudible] to show you guys.

Unknown Executive: That does conclude our conference for today. Thank you for participating. You may now disconnect. Thank you. [inaudible] to show you guys.

Operator: And I'm going to show you guys a little bit of what I'm going to show you guys

Unknown Executive: And I'm going to show you guys a little bit of what I'm going to show you guys

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