The Woodside Energy Group Ltd (ASX: WDS) share price was on course to record a small gain until the release of an announcement late in the afternoon.

The energy producer’s shares are now down 1.5% to $36.14.

What’s going on with the Woodside share price?

This afternoon, Woodside released a small update on a few items to expect in its upcoming full year results release.

Following a review of the year-end carrying values of its assets, the company expects to recognise a non-cash, post-tax asset value impairment reversal of approximately $630 million (pre-tax value of approximately $900 million) for the Wheatstone asset. This is primarily due to a revision in short and long term LNG price assumptions.

The company also expects to recognise a Pluto petroleum resource rent tax (PRRT) deferred tax asset (DTA) of approximately $1,360 million. This is primarily due to higher 2022 income, improved future price assumptions, and additional volumes processed through the Pluto-KGP Interconnector.

The release also notes that these will be excluded from underlying net profit after tax (NPAT) for the purposes of calculating the 2022 full year dividend. This is consistent with prior practice.

Production disruption

The real drag on the Woodside share price this afternoon is likely to be an update on its planned maintenance.

Management explained that the Pluto LNG operation will have four weeks of maintenance in the second quarter. The North West Shelf LNG train 1 will have four weeks of maintenance in the third quarter and the Ngujima-Yin FPSO dry dock will have four month of maintenance during the first half.

However, Woodside’s full year production guidance remains unchanged at 180MMboe to 190MMboe despite this. Though, investors appear to believe the lower end of the range is more likely now judging by the share price reaction.

The post Woodside share price turns red following production update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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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