The case for selling Woodside

Intelligent Investor

Independent Financial Research

The case for selling Woodside. Profits have never been higher. Dividends, production and cash flow have all hit records while capital-expenditure and debt has plummeted; These aren't the usual conditions to support the argument to sell the largest independent oil and gas business in the land. And yet that's what we're about to do. Why? Because oil and gas fields are finite resources that deplete with production and an energy business that pays out 80% of profits risks under-investing in production growth. Production represents the recycling of one asset - oil and gas - into cash. As production depletes oil reserves, a part of profits must be reinvested to replace and increase oil inventory. Without that, producers risk a slow decline as their assets deplete. This is the worry with Woodside. It appears to have run out of development projects and will find reserve replacement either difficult or expensive. (VIEW LINK)

1 topic

Intelligent Investor
Intelligent Investor
Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Please sign in to comment on this wire.