Why is the Woodside share price on the slide today?

The Woodside Energy Group Ltd (ASX: WDS) share price is in the red today.

Woodside shares are down 2% and currently fetching $35.91 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is sliding 0.56% today.

Let’s take a look at what is happening with the Woodside share price.

What’s going on?

Woodside is not the only ASX energy share falling today. Santos Ltd (ASX: STO) shares are down 1.41%, while Beach Energy Ltd (ASX: BPT) shares are sliding 0.27%.

The Brent Crude oil price is currently down 0.1% to US$86.88 a barrel, while WTI Crude Oil is falling 0.04% to US$81.19 a barrel at last look.

The natural gas price is up 0.82% to US $6.79 per MMBtu.

Analysts at Morgans have retained a “hold” rating on the Woodside share price, as my Foolish colleague James reported this morning. Morgans cut the price target on the Woodside share price to $34.50. Analysts said:

One thing is for sure, WDS expects less production in 2023 than it or the market had anticipated.

Woodside held an investor briefing on Thursday.

Speaking at the investor briefing day, Woodside chief executive Meg O’Neill raised concerns about potential gas price caps. She said:

One of the things that is important to us is fiscal stability, so if a government changes the rules even for six or 12 months, what it says to us is the government is likely to change the rules again, so it’s a black mark.

The company revealed it expects to deliver a compound annual growth rate (CAGR) of 4% between 2023 and 2027.

Woodside said the “key catalysts” for production growth are the Sangomar oil development, located off Senegal, and Scarborough start-up in Western Australia.

However, in quotes cited by The Australian, O’Neill raised concerns about uncertainty arising from Santos’ court appeal over the Barossa gas project.

Commenting on the potential implications of this case for Woodside’s Scarborough project, O’Neill said:

It is worrying. We are concerned about the uncertainty that the court case has created. That said, we are working very closely with the regulator, and the government to understand what exactly do we need to do to meet their expectations.

On Tuesday, Woodside released an FY 2023 guidance. The company is forecasting it will produce 180 million – 190 million barrels of oil equivalent (MMboe) in FY 2023.

Woodside share price snapshot

The Woodside share price has soared 70% in the last year, while it has gained nearly 64% year to date.

For perspective, the ASX 200 has returned 1.2% in the last year.

Woodside has a market capitalisation of more than $68 billion based on the current share price.

The post Why is the Woodside share price on the slide today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Why CogState, Downer, Temple & Webster, and Woodside shares are dropping
• Woodside share price falls as the ASX 200 giant targets 4% annual growth
• The Woodside share price has dropped for 5 days in a row. What’s going on?
• Is OPEC about to give ASX 200 energy shares a boost?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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