- Joined
- 19 October 2005
- Posts
- 4,347
- Reactions
- 6,421
Looks like local support giving way but added 250 @ $26.51 anyway for LT hold
Held
Holding
Held
Holding
WDS - Woodside Energy Group
- Thread starter markrmau
- Start date
- Joined
- 20 July 2021
- Posts
- 11,280
- Reactions
- 15,650
UMike
Klutzing in Thai
- Joined
- 16 January 2007
- Posts
- 1,451
- Reactions
- 1,791
Under normal circumstances I might but the last two days..... If it continues...... Might see this drop further.
As well as..
As well as..
UMike
Klutzing in Thai
- Joined
- 16 January 2007
- Posts
- 1,451
- Reactions
- 1,791
Sorry Cant fine the article.
EPA rejected something of theirs.
Found it
One of the country’s biggest gas projects could be at risk after the Western Australian Environmental Protection Agency knocked back Woodside Energy’s $30 billion Browse development north of Broome.
But the agency’s decision is preliminary, and Woodside will continue negotiating for approval. A final rejection would mark a dramatic intervention by the EPA, and be a major blow to Labor’s strategy to shore up gas supplies to 2050 and beyond.
EPA rejected something of theirs.
Found it
Woodside’s $30b Browse LNG project faces EPA knock-back threat
Ben Potter and Tom RabeOne of the country’s biggest gas projects could be at risk after the Western Australian Environmental Protection Agency knocked back Woodside Energy’s $30 billion Browse development north of Broome.
But the agency’s decision is preliminary, and Woodside will continue negotiating for approval. A final rejection would mark a dramatic intervention by the EPA, and be a major blow to Labor’s strategy to shore up gas supplies to 2050 and beyond.
UMike
Klutzing in Thai
- Joined
- 16 January 2007
- Posts
- 1,451
- Reactions
- 1,791
Going off to a Buddhist temple now to pray/repent/reflect and general humblenesses
- Joined
- 20 July 2021
- Posts
- 11,280
- Reactions
- 15,650
WOODSIDE TO ACQUIRE OCI’S CLEAN AMMONIA PROJECT
▪ World’s first ammonia plant paired with auto thermal reforming with 95%+ CO2 capture
▪ Provides early-mover advantage in growing lower carbon ammonia market1
▪ Exceeds capital allocation target of 10% internal rate of return2
▪ Free cash flow accretive from 2026 and earnings per share accretive from 2027
▪ Capacity to abate 3.2 Mtpa CO2-e at full development; over 60% of Woodside’s Scope 3abatement target3
Woodside has entered into a binding agreement to acquire 100% of OCI Clean Ammonia HoldingB.V., and its lower carbon ammonia project in Beaumont, Texas (Project) for an all-cash consideration of approximately $2,350 million.
The Project is under construction and targets production of first ammonia from 2025 and lower carbon ammonia from 2026.
The consideration is inclusive of capital expenditure through completion of the first phase (Phase 1).Woodside CEO Meg O’Neill said the acquisition supports Woodside’s strategy to thrive through the energy transition
.“This transaction positions Woodside in the growing lower carbon ammonia market.
The potential applications for lower carbon ammonia are in power generation, marine fuels and as an industrial
feedstock, as it displaces higher-emitting fuels
.“Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of total demand.4“
This Project exceeds our capital allocation framework targets for new energy projects. Both phases are expected to achieve an internal rate of return above 10 percent and payback of less than 10years.
“This acquisition is a material step towards delivering our Scope 3 investment and abatement targets.
Phase 1 has the capacity to abate 1.6 Mtpa of CO2-e and with the addition of Phase 2 the Project has the capacity to abate 3.2 Mtpa CO2-e, or over 60 percent of our Scope 3 abatement target.”1
See disclaimer for information on “lower carbon ammonia”.2
Refer to “Returns” section for assumptions.3
Phase 1 emissions abatement capacity of 1.6 Mtpa CO2-e conditional on supply of carbon abated hydrogen and ExxonMobil’s CCS facility becoming operational. Woodside will market ammonia volumes into the global ammonia market, which in 2023 represented ~200 Mtpa. Phase 2subject to FID. Woodside has made the assumption to estimate avoided emissions through displacement of conventional marine fuel.
Actual displaced emissions may differ based on actual use case. Page 2 of 6OCI Clean Ammonia Project
The Project is located on the US Gulf Coast (Beaumont, Texas) and can serve customers domestically and internationally. Phase 1 has a design capacity of 1.1 Mtpa and is under construction.First ammonia production, derived from natural gas, is targeted for 2025.
Lower carbon ammonia production, derived from natural gas paired with carbon sequestration, is targeted for 2026 following commencement of CCS operations.5
Agreements for the feedstock and CCS capacity are in place.
The nitrogen and lower carbonhydrogen feedstock will be sourced primarily from Linde.
The Linde feedstock facility is currently under construction, targeting completion in early 2026.
Ahead of completion, early supply of feedstock for the Project will come from multiple suppliers, including Linde, from available capacity in the Gulf Coast.
The CCS services will be provided to Linde by ExxonMobil and are expected to be available in 2026.
The Project will target conventional ammonia customers at start-up and will target lower carbon ammonia customers in Europe and Asia when CCS is operational.
The facility is designed to accommodate a second 1.1 Mtpa production train (Phase 2). Phase 2 remains pre-final investment decision (FID).
Woodside will target FID-readiness for Phase 2 in 2026 with an expected gross capital expenditure range of $1.2 - 1.4 billion.The Project’s competitive advantages include:
• World’s first ammonia plant paired with auto thermal reforming with 95%+ CO2 capture. This results in an emissions intensity of 0.8 tCO2-e/t NH3 relative to an unabated ammonia emissions intensity of 2.3 tCO2-e/t NH3;6
• Early-mover advantage in the growing lower carbon ammonia market;
• Utilises proven ammonia synthesis design incorporating learnings from OCI’s otheroperational sites;
• Advantaged location on the US Gulf Coast with access to multiple sources of feedstock and a deep-water port for international export;• Capital efficient business model leveraging third-party feedstocks for hydrogen paired withCCS, and nitrogen;
• Gross equity Scope 1 and 2 emissions of less than 0.1 Mtpa CO2-e, with potential to further lower emissions with renewable power;
• Advantaged transaction terms that reduce project cost and schedule risk; and
• Scalability for a second train in Phase 2, with economics that benefit from common infrastructure installed during Phase 1.
Returns Phase 1 is expected to exceed Woodside’s capital allocation target of a 10% internal rate of return(IRR) for new energy projects, including acquisition and construction costs.
It is also expected to achieve payback in less than 10 years. Phase 2 is expected to achieve improved returns leveraging common infrastructure.The Project returns benefit from:• Lower cost - the Project was an early mover and secured attractive feedstock supply and CCS services;4 Source: Wood Mackenzie Global Ammonia Strategic Planning Outlook 2024, published 31 May 2024.5 The supply of carbon abated hydrogen is dependent on ExxonMobil’s CCS facility becoming operational.6 EU proposed standards calculation method for carbon intensity.Page 3 of 6
• High-confidence project cost - advantaged transaction terms reduce the project cost and schedule risk;
• Property tax abatements - the Project has secured local tax abatement agreements;
• Regulatory incentives - the Project is positioned to deliver to markets in Europe and Asia which are incentivised to source lower carbon ammonia; and
• Scalability - a
future Phase 2 development that benefits from common infrastructure installed in Phase 1.Forecast IRR and payback period are a look forward from July 2024 and assume Woodside equity of100% and include the acquisition price.
Lower carbon ammonia price assumes an uplift to Woodside’s internal unabated ammonia cost assumption. In 2025 the uplift is $0/t increasing to~$120/t in 2034 (real terms 2024) aligned with the phase-in of the EU carbon border adjustment mechanism (CBAM). Payback period is calculated from undiscounted cash flows from ready for startup (RFSU).
Ammonia market
Lower carbon ammonia demand is forecast to grow through the energy transition. The current ammonia market is nearly 200 Mtpa, of which approximately 80% is used for fertiliser applications with the remainder used for various industrial applications.
Lower carbon ammonia demand will be driven by the decarbonisation of traditional end-use sectors and emerging applications in marine fuels, power generation and as a hydrogen carrier.7
Europe and Asia are forecast to be the largest demand centres for lower carbon hydrogen and ammonia driven by supportive policies.
The EU CBAM imposes a levy on imports of carbon intensive goods based on carbon intensity. This results in a carbon tax saving for lower carbon ammonia relative to unabated ammonia. In Japan and South Korea, demand is expected to be driven by supportive ‘contract for difference’ subsidy schemes, which aim to cover the difference between the prices of lower carbon fuels and conventional fossil fuels.
The Project’s designed carbon intensity is expected to qualify for these schemes.
Transaction details
Under the transaction, Woodside will acquire 100% of the equity of OCI Clean Ammonia Holding B.V.,which indirectly wholly owns the Project, from OCI N.V. (together with its affiliates: “OCI”).
The Project is subject to cost, schedule and performance guarantees from OCI.
This means that OCI will manage the construction of the Project through provisional acceptance, will fund Project costs through Project completion and has agreed to liquidated damages for certain delays, reducing cost and schedule risk.
The transaction includes the transfer of experienced personnel with start-up, operational,maintenance and technical capabilities for the operation of the asset.The transaction is targeted to complete in the second half of the 2024 and is subject to OCI N.V.’s shareholder vote and satisfaction of customary conditions precedent.
i hold WDS
awesome timing , that just slashed $4 off my target price to add more ( i would have been SO annoyed to have added and this ann. came out after i bought
sorry if my editing of this is bad but i was laughing so much my eyes are tearing up
will the punters fall for this ? ( maybe i should set an exit price )
▪ World’s first ammonia plant paired with auto thermal reforming with 95%+ CO2 capture
▪ Provides early-mover advantage in growing lower carbon ammonia market1
▪ Exceeds capital allocation target of 10% internal rate of return2
▪ Free cash flow accretive from 2026 and earnings per share accretive from 2027
▪ Capacity to abate 3.2 Mtpa CO2-e at full development; over 60% of Woodside’s Scope 3abatement target3
Woodside has entered into a binding agreement to acquire 100% of OCI Clean Ammonia HoldingB.V., and its lower carbon ammonia project in Beaumont, Texas (Project) for an all-cash consideration of approximately $2,350 million.
The Project is under construction and targets production of first ammonia from 2025 and lower carbon ammonia from 2026.
The consideration is inclusive of capital expenditure through completion of the first phase (Phase 1).Woodside CEO Meg O’Neill said the acquisition supports Woodside’s strategy to thrive through the energy transition
.“This transaction positions Woodside in the growing lower carbon ammonia market.
The potential applications for lower carbon ammonia are in power generation, marine fuels and as an industrial
feedstock, as it displaces higher-emitting fuels
.“Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of total demand.4“
This Project exceeds our capital allocation framework targets for new energy projects. Both phases are expected to achieve an internal rate of return above 10 percent and payback of less than 10years.
“This acquisition is a material step towards delivering our Scope 3 investment and abatement targets.
Phase 1 has the capacity to abate 1.6 Mtpa of CO2-e and with the addition of Phase 2 the Project has the capacity to abate 3.2 Mtpa CO2-e, or over 60 percent of our Scope 3 abatement target.”1
See disclaimer for information on “lower carbon ammonia”.2
Refer to “Returns” section for assumptions.3
Phase 1 emissions abatement capacity of 1.6 Mtpa CO2-e conditional on supply of carbon abated hydrogen and ExxonMobil’s CCS facility becoming operational. Woodside will market ammonia volumes into the global ammonia market, which in 2023 represented ~200 Mtpa. Phase 2subject to FID. Woodside has made the assumption to estimate avoided emissions through displacement of conventional marine fuel.
Actual displaced emissions may differ based on actual use case. Page 2 of 6OCI Clean Ammonia Project
The Project is located on the US Gulf Coast (Beaumont, Texas) and can serve customers domestically and internationally. Phase 1 has a design capacity of 1.1 Mtpa and is under construction.First ammonia production, derived from natural gas, is targeted for 2025.
Lower carbon ammonia production, derived from natural gas paired with carbon sequestration, is targeted for 2026 following commencement of CCS operations.5
Agreements for the feedstock and CCS capacity are in place.
The nitrogen and lower carbonhydrogen feedstock will be sourced primarily from Linde.
The Linde feedstock facility is currently under construction, targeting completion in early 2026.
Ahead of completion, early supply of feedstock for the Project will come from multiple suppliers, including Linde, from available capacity in the Gulf Coast.
The CCS services will be provided to Linde by ExxonMobil and are expected to be available in 2026.
The Project will target conventional ammonia customers at start-up and will target lower carbon ammonia customers in Europe and Asia when CCS is operational.
The facility is designed to accommodate a second 1.1 Mtpa production train (Phase 2). Phase 2 remains pre-final investment decision (FID).
Woodside will target FID-readiness for Phase 2 in 2026 with an expected gross capital expenditure range of $1.2 - 1.4 billion.The Project’s competitive advantages include:
• World’s first ammonia plant paired with auto thermal reforming with 95%+ CO2 capture. This results in an emissions intensity of 0.8 tCO2-e/t NH3 relative to an unabated ammonia emissions intensity of 2.3 tCO2-e/t NH3;6
• Early-mover advantage in the growing lower carbon ammonia market;
• Utilises proven ammonia synthesis design incorporating learnings from OCI’s otheroperational sites;
• Advantaged location on the US Gulf Coast with access to multiple sources of feedstock and a deep-water port for international export;• Capital efficient business model leveraging third-party feedstocks for hydrogen paired withCCS, and nitrogen;
• Gross equity Scope 1 and 2 emissions of less than 0.1 Mtpa CO2-e, with potential to further lower emissions with renewable power;
• Advantaged transaction terms that reduce project cost and schedule risk; and
• Scalability for a second train in Phase 2, with economics that benefit from common infrastructure installed during Phase 1.
Returns Phase 1 is expected to exceed Woodside’s capital allocation target of a 10% internal rate of return(IRR) for new energy projects, including acquisition and construction costs.
It is also expected to achieve payback in less than 10 years. Phase 2 is expected to achieve improved returns leveraging common infrastructure.The Project returns benefit from:• Lower cost - the Project was an early mover and secured attractive feedstock supply and CCS services;4 Source: Wood Mackenzie Global Ammonia Strategic Planning Outlook 2024, published 31 May 2024.5 The supply of carbon abated hydrogen is dependent on ExxonMobil’s CCS facility becoming operational.6 EU proposed standards calculation method for carbon intensity.Page 3 of 6
• High-confidence project cost - advantaged transaction terms reduce the project cost and schedule risk;
• Property tax abatements - the Project has secured local tax abatement agreements;
• Regulatory incentives - the Project is positioned to deliver to markets in Europe and Asia which are incentivised to source lower carbon ammonia; and
• Scalability - a
future Phase 2 development that benefits from common infrastructure installed in Phase 1.Forecast IRR and payback period are a look forward from July 2024 and assume Woodside equity of100% and include the acquisition price.
Lower carbon ammonia price assumes an uplift to Woodside’s internal unabated ammonia cost assumption. In 2025 the uplift is $0/t increasing to~$120/t in 2034 (real terms 2024) aligned with the phase-in of the EU carbon border adjustment mechanism (CBAM). Payback period is calculated from undiscounted cash flows from ready for startup (RFSU).
Ammonia market
Lower carbon ammonia demand is forecast to grow through the energy transition. The current ammonia market is nearly 200 Mtpa, of which approximately 80% is used for fertiliser applications with the remainder used for various industrial applications.
Lower carbon ammonia demand will be driven by the decarbonisation of traditional end-use sectors and emerging applications in marine fuels, power generation and as a hydrogen carrier.7
Europe and Asia are forecast to be the largest demand centres for lower carbon hydrogen and ammonia driven by supportive policies.
The EU CBAM imposes a levy on imports of carbon intensive goods based on carbon intensity. This results in a carbon tax saving for lower carbon ammonia relative to unabated ammonia. In Japan and South Korea, demand is expected to be driven by supportive ‘contract for difference’ subsidy schemes, which aim to cover the difference between the prices of lower carbon fuels and conventional fossil fuels.
The Project’s designed carbon intensity is expected to qualify for these schemes.
Transaction details
Under the transaction, Woodside will acquire 100% of the equity of OCI Clean Ammonia Holding B.V.,which indirectly wholly owns the Project, from OCI N.V. (together with its affiliates: “OCI”).
The Project is subject to cost, schedule and performance guarantees from OCI.
This means that OCI will manage the construction of the Project through provisional acceptance, will fund Project costs through Project completion and has agreed to liquidated damages for certain delays, reducing cost and schedule risk.
The transaction includes the transfer of experienced personnel with start-up, operational,maintenance and technical capabilities for the operation of the asset.The transaction is targeted to complete in the second half of the 2024 and is subject to OCI N.V.’s shareholder vote and satisfaction of customary conditions precedent.
i hold WDS
awesome timing , that just slashed $4 off my target price to add more ( i would have been SO annoyed to have added and this ann. came out after i bought
sorry if my editing of this is bad but i was laughing so much my eyes are tearing up
will the punters fall for this ? ( maybe i should set an exit price )
- Joined
- 19 October 2005
- Posts
- 4,347
- Reactions
- 6,421
Is that AU$2,350m or U.S.D?
Because share price has written off about AU$2.4B today at this time (down -4.8%)
Dona Ferentes
Abrió la caja, vio al gatito, y sonrió
- Joined
- 11 January 2016
- Posts
- 15,584
- Reactions
- 21,187
I'm glad I sold all my BHP-bequeathed WDS a while ago. It went higher, but has since come down with a thud.
Thanks to the everyone who provided input / insight.
- Joined
- 19 October 2005
- Posts
- 4,347
- Reactions
- 6,421
It's US$2.35B or A$3.7B
"Australia’s largest oil and gas company announced late Monday that it would purchase the under-construction OCI clean ammonia plant for $US2.35 billion ($3.7 billion)."
Stuff is being posted of cost analyses of WDS projects like Browse that say low return while acquisition costs of other projects are well over par with below average expected returns. Also poor returns on its own exploration budget. Says board is ignoring shareholders' votes on green decarb initiatives. Who knows? It's under current book value now - that's my level of fundamental analysis and now the chart's acting kinda funny and that was my mainstay. Greg Canavan (fat tail) contacted subscribers and he's maintaining his buy on it while warning that a turnaround will take time. More in depth from him to follow.
Held
Holding
"Australia’s largest oil and gas company announced late Monday that it would purchase the under-construction OCI clean ammonia plant for $US2.35 billion ($3.7 billion)."
Stuff is being posted of cost analyses of WDS projects like Browse that say low return while acquisition costs of other projects are well over par with below average expected returns. Also poor returns on its own exploration budget. Says board is ignoring shareholders' votes on green decarb initiatives. Who knows? It's under current book value now - that's my level of fundamental analysis and now the chart's acting kinda funny and that was my mainstay. Greg Canavan (fat tail) contacted subscribers and he's maintaining his buy on it while warning that a turnaround will take time. More in depth from him to follow.
Held
Holding
- Joined
- 20 July 2021
- Posts
- 11,280
- Reactions
- 15,650
i don't believe i saw that declaration ( of currency ) , i assumed ( dangerously ) that it was in USD
i AM surprised that the market took the ann. as negatively as i did ( well half as negatively to be precise )
- Joined
- 19 October 2005
- Posts
- 4,347
- Reactions
- 6,421
FWIW - maybe others can derive something from it. Got the link from 'another' forum. I only skimmed it and probably won't do more than that.
www.accr.org.au
New research: What’s next for Woodside? - ACCR
Woodside’s peers are adding value to shareholders by increasing returns - especially through buybacks. With Woodside’s poor pre-FID portfolio it has a strong incentive to follow this trend.
www.accr.org.au
UMike
Klutzing in Thai
- Joined
- 16 January 2007
- Posts
- 1,451
- Reactions
- 1,791
"The majority of Woodside’s investors don’t support its current climate strategy, and the only way for the company to properly address this is by reforming its flawed company strategy."FWIW - maybe others can derive something from it. Got the link from 'another' forum. I only skimmed it and probably won't do more than that.
New research: What’s next for Woodside? - ACCR
Woodside’s peers are adding value to shareholders by increasing returns - especially through buybacks. With Woodside’s poor pre-FID portfolio it has a strong incentive to follow this trend.
Not even worth the Scan.
Go Trump and Go Drill Drill Drill.
The world is going broke on woke activism. Sanity will prevail as the "majority" realise the cost damage being done
- Joined
- 12 January 2008
- Posts
- 7,215
- Reactions
- 17,879
Price hit my target zone today (closed 25.12) and looks likely to go much lower without Gov't intervention.
Management pandering to the ESG idiots is going to destroy this company. Until we don't need oil or gas, let this company do what it does efficiently. Not a company I'll ever own.
Garpal Gumnut
Ross Island Hotel
- Joined
- 2 January 2006
- Posts
- 13,467
- Reactions
- 9,756
I believe that Little Richard G. is to blame. Sometimes retiring early contributes more to a company than hanging about.
Trouble seems to follow him, QAN, WES, now WDS and the AFL . I've gotten out of the first three because of poor performance in the last 3 years. I prefer Football to the other codes.
gg
Craton
Mostly passive, contrarian.
- Joined
- 6 February 2013
- Posts
- 1,723
- Reactions
- 2,423
Oh man, what a difference a day makes!
Anyways, a quick squiz at the after market orders and looks like the pile on is $25.00 then not-so-much at $24.90
- Joined
- 20 July 2021
- Posts
- 11,280
- Reactions
- 15,650
the board seem to be desperate to get rid of money ( or go nose-deep in debt )
i wonder if they planned a cap. raise to follow this acquisition
i wonder if they planned a cap. raise to follow this acquisition
- Joined
- 20 July 2021
- Posts
- 11,280
- Reactions
- 15,650
i reduced mine in April 2023 @ $34.25
most of the holding now courtesy of the BHP offloading the petroleum arm
took a BIG step back from considering to add here , the failed STO deal kept me nervous after years of being disappointed when it was WPL , but at least the current cash risk ( in WDS ) is trivial
i was still waiting for the BHP deal to prove to be 'transformational ' ,
most of the holding now courtesy of the BHP offloading the petroleum arm
took a BIG step back from considering to add here , the failed STO deal kept me nervous after years of being disappointed when it was WPL , but at least the current cash risk ( in WDS ) is trivial
i was still waiting for the BHP deal to prove to be 'transformational ' ,
- Joined
- 14 February 2005
- Posts
- 15,175
- Reactions
- 17,145
A key to good management is sorting out who has a valid point about something that could be improved, or which is worth looking for ways to improve, versus who's acting for their own self interest.
I don't hold the stock but have done in the past.
- Joined
- 8 June 2008
- Posts
- 12,764
- Reactions
- 18,665
A stock i would like to own: Australian, energy, oil and gas but can not reasonably own anymore due to wokeness/esg..a bhp in waiting..A key to good management is sorting out who has a valid point about something that could be improved, or which is worth looking for ways to improve, versus who's acting for their own self interest.
I don't hold the stock but have done in the past.
My super still has a packet of less than $3k after i divested when they last went green.. will get out completely when they will recover at the next oil jump.
UMike
Klutzing in Thai
- Joined
- 16 January 2007
- Posts
- 1,451
- Reactions
- 1,791
Picked up some more today. Hope fully it is the last parcel
