In delivering a full year profit of US$868 million, Woodside Petroleum reaffirmed Perennial Value’s view that it is best in class in the Australian oil and gas sector. Underpinning this was the delivery of its second highest annual production to date, highlighted by record LNG production and reduced unit costs. Woodside anticipates a 15% increase in production from this year through to 2020, thus allaying unjustified market concerns that it has no growth profile. Indeed, at a time when resource companies globally have significantly cut exploration programmes, Woodside is heading in the opposite direction with an exciting global exploration program with twelve holes planned for this year. The balance sheet remains conservative, an important ingredient in a cyclical industry. Many industry peers wallow under weaker balance sheets and lesser growth opportunities.