Australian energy giant Woodside Energy reported a sharp rebound in production during the third quarter of 2026, supported by stronger liquefied natural gas (LNG) output and improved gas prices, even as the company lowered the upper end of its annual production forecast.

Woodside produced 46.2 million barrels of oil equivalent (MMboe) during the quarter ending September 30, an increase of 12% from the previous quarter. Production was nevertheless 9% below the same period last year.

Quarterly operating revenue reached $4.28 billion, up 2% from the second quarter and 27% year-over-year, reflecting higher LNG sales and stronger realized gas prices.

The company’s average realized LNG price climbed 27% quarter-over-quarter to $84 per barrel of oil equivalent, benefiting from stronger international gas markets and LNG trading activities undertaken earlier in the year.

The production recovery was largely driven by the Pluto LNG facility in Western Australia, which resumed higher output following planned maintenance during the second quarter.

Operational reliability remained strong, reaching 99.8% at Pluto LNG, 99.3% at the North West Shelf Project and 99.2% at Senegal’s Sangomar oil development.

Despite the quarterly improvement, Woodside narrowed its full-year production forecast to 174 million–181 million barrels of oil equivalent, compared with its previous guidance of 174 million–185 million barrels.

The revision reflects lower anticipated volumes from the Beaumont New Ammonia facility, reduced production at the Okha offshore oil operation and changes associated with project commissioning activities.

The company maintained its annual capital expenditure guidance of $4 billion–$4.5 billion.

Woodside also reported quarterly capital expenditure of $722 million, down 8% from the previous quarter.

Woodside’s $12 billion Scarborough Energy Project in Western Australia remains on schedule to deliver its first LNG cargo in the fourth quarter of 2026.

The Scarborough and Pluto Train 2 developments were 99% complete at the end of September, excluding modifications to the existing Pluto Train 1 facility.

Commissioning progressed during the quarter, including the introduction of Scarborough gas into offshore production infrastructure and the export pipeline.

The approaching start-up marks an important milestone for Woodside’s LNG expansion strategy and is expected to support future Australian gas exports.

Meanwhile, the company’s Louisiana LNG development in the United States reached 32% completion, with the first production train 41% complete. The project remains on budget and is targeting initial LNG production in 2029.

Woodside’s Trion deepwater oil project in Mexico was 71% complete, with first oil expected in 2028. Construction of its floating production unit was 96% complete.

Together, the developments underpin Woodside’s strategy to expand its global LNG and upstream production portfolio.

Woodside also confirmed plans to reduce its investment in the Beaumont New Ammonia project in Texas following a strategic review.

The company cited the evolving pace of lower-carbon ammonia market development as a factor behind the decision.

Operations at Beaumont were suspended for approximately 30 days during the quarter following a major process safety incident, contributing to lower production.

Woodside continues to target the commencement of lower-carbon ammonia production in 2027, subject to the availability of hydrogen supply and carbon capture infrastructure.

Separately, the company is progressing the sale of its 70% operated interest in the Calypso gas project to BP, with completion targeted for the fourth quarter.

Woodside ended September with approximately $7.8 billion in liquidity and $8.9 billion in net debt, including lease liabilities.

For investors, the latest results highlight the importance of upcoming project start-ups, particularly Scarborough LNG, as Woodside balances its expansion spending with operational performance and portfolio restructuring.

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