The Woodside Energy Group Ltd (ASX: WDS) share price is up 1% after the energy ASX share announced a weaker quarterly update for 2023 Q2.
Woodside produces large quantities of both oil and liquefied natural gas (LNG).
Weak 2023 Q2 update
The ASX energy share said that it delivered quarterly production of 44.5 million barrels of oil equivalent (MMboe), which was down 5% from the first quarter of 2023 because of “planned turnaround and maintenance activities.”
Despite that, the full year production guidance remained unchanged at between 180 MMboe to 190 MMboe.
Unsurprisingly, delivered sales volume was down by 4% compared to the first quarter of 2023, because of the lower production.
Revenue fell by 29% quarter on quarter to $3.08 billion, because of the lower energy prices and the lower production. Woodside saw a portfolio average realised price of $63 per barrel of oil equivalent (BOE).
Project progress
The upcoming projects could have an important influence on the Woodside share price in the future as they start producing.
Woodside said that Mad Dog phase 2 successfully achieved its first production at the Argos platform in April 2023, increasing production in the US Gulf of Mexico.
The Scarborough development was 38% complete by the end of the period, and the Pluto train 2 module fabrication “ramping up”.
At the end of the quarter, the Sangomar project was 88% complete, with 12 of 23 wells drilled and completed. The floating production storage and offloading topsides integration and pre-commissioning works continued in Singapore.
The Sangomar project is now targeting first oil in mid-2024. The total cost of the project is expected to be between US$4.9 billion to US$5.2 billion, which is an increase of between 7% to 13% from the previous estimate of US$4.6 billion.
Woodside also made a final investment decision approval for the Trion resource in Mexico, as well as the Julimar-Brunello phase 3 project.
The ASX energy share also said that it had progressed contracting activities for the plant construction scope and schedule-critical packages for H2OK, a hydrogen project in Oklahoma.
Final thoughts on the Woodside share price
The Woodside share price is at a higher level than most of the last 12 months. I don’t think this is the best time to think about buying, considering how the oil price can be cyclical.
Oil and gas demand may end being stronger for longer than expected (particularly by ESG-focused investors), but I like to choose businesses that could achieve capital growth, which I can’t see for the oil and gas ASX share.
