Woodside Energy Group Ltd (ASX: WDS) shares pushed to a new 52-week high of $31.96 during Monday trading. Woodside shares have risen 2.44% to $31.50 at the time of writing, bringing the total gain in 2026 to a massive 33%.
When energy prices start climbing, investors often turn quickly to companies that produce the fuel that powers the global economy. That appears to be happening again with Woodside shares that have been soaring while much of the broader market struggles to keep pace.
Rising geopolitical tensions
The main catalyst for Woodside shares has been a rebound in oil and liquefied natural gas prices. On Friday, the WTI crude oil price surged 12.2% to US$90.90 a barrel, and the Brent crude oil price was up 8.5% to US$92.69 a barrel.
Rising geopolitical tensions in the Middle East have unsettled energy markets and driven crude prices higher. It has been lifting the wider ASX energy sector and helping propel Woodside’s share price.
Australia’s largest oil and gas producer
Operationally, the ASX energy company has also been delivering. Woodside recently reported record full-year production of 198.8 million barrels of oil equivalent. That’s exceeding its guidance range and reinforcing its position as Australia’s largest independent oil and gas producer.
That production strength helped the company generate roughly US$13 billion in annual revenue while maintaining solid operating performance across its global portfolio of assets.
Large LNG pipeline
A key part of Woodside’s long-term story is its large pipeline of LNG developments. Major projects such as the Scarborough gas project and Pluto Train 2 are approaching completion and are expected to support production growth over the coming years.
At the same time, the company is expanding its global footprint. One of its most significant long-term developments is the Louisiana LNG project in the United States, which could eventually position the company as a major supplier to international gas markets.
Income investors are also drawn to the stock. Woodside has long built a reputation for generous shareholder returns, with the shares offering a dividend yield of around 6% in recent periods. Those payouts have been supported by strong operating cash flow generated from its energy assets.
Delays and cost overruns
Of course, investing in energy stocks always comes with risks. The biggest challenge for Woodside shares is commodity price volatility. Woodside’s earnings can rise and fall significantly depending on movements in global oil and gas prices, which are influenced by geopolitical events, economic growth, and shifts in global supply.
Large capital projects also carry execution risks. The company is investing billions of dollars into new LNG developments, and delays or cost overruns could weigh on profitability. Credit rating agencies have also warned that large-scale investments could put pressure on balance sheets if energy prices weaken.
What next for Woodside shares?
Even so, analysts generally remain constructive on the $58 billion Woodside shares. Some market watchers believe the stock could climb further if oil and LNG prices remain elevated through 2026.
In a favourable energy cycle, some bullish forecasts suggest Woodside shares could eventually challenge previous highs near $38. That points to a potential 20% upside over 12 months.
The post Here’s why Woodside shares are demolishing the stock market appeared first on The Motley Fool Australia.
Should you invest $1,000 in Woodside Petroleum Ltd right now?
Before you buy Woodside Petroleum Ltd shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Petroleum Ltd wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- 5 things to watch on the ASX 200 on Monday
- 7 ASX 200 stocks racing higher in this week’s sinking market
- Oil prices rocket 8%. Here’s where I’d put my money
- $10,000 invested in Woodside shares at the start of 2026 is now worthâ¦
- 5 things to watch on the ASX 200 on Friday
Motley Fool contributor Marc Van Dinther 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.