Woodside Energy Group Ltd (ASX: WDS) shares have been among the best performers among ASX blue-chip shares over the last year.
Woodside produces significant volumes of LNG and oil from its portfolio of projects worldwide, including Australia, Africa, and North America.
Changing energy prices can have a significant impact on a commodity company’s financials. Production costs don’t usually change much each period, so when commodity prices rise, it can help profit substantially due to operating leverage. But the opposite effect can happen when commodity prices fall.
For Woodside, energy prices have increased amid global events. Let’s take a look at how that has helped the ASX energy share.
Strong Woodside share price performance
Over the past year, the Woodside share price has risen by 49%, as shown in the chart below.
I think the company’s latest financial results were a good indicator of why investors are more excited about the business.
In August, the business reported its 2026 half-year result for the six months to June 2026.
Its average realised (sold) price grew 20% to US$74 per barrel of oil equivalent year over year.
Woodside disclosed that its total production volume fell 13% to 86.5 million barrels of oil equivalent. Despite that, net profit grew 27% to US$1.67 billion and free cash flow surged 159% to US$352 million. This allowed the board of directors to increase the interim dividend by 8% to 57 cents per share.
I think Woodside’s production and earnings can increase as its new projects are completed and ramp up production.
The business said in its half-year results that the Scarborough project was 98% complete and was on track to deliver its first LNG cargo in the fourth quarter of 2026. The Trion project offshore Mexico was 64% complete, and the Louisiana LNG foundation development was 28% complete.
Additionally, the company has set an annual cost-savings target of $350 million from 2028, which will be delivered after a structured review of its business.
How $10,000 performed for a shareholder of the ASX energy share
If someone invested $10,000 in Woodside a year ago, that would have risen 49% and now be worth approximately $14,900. The sizeable dividends would be a very useful bonus on top of that.
Could the Woodside share price keep climbing? Analysts have had their say.
According to CMC Invest, there have been 10 broker ratings on the business in the last three months, with an average price target of $32.90. That implies a slight decline over the next year, so I’d probably look at other ASX shares as better opportunities.
The post $10,000 invested in Woodside shares 12 months ago is now worth… appeared first on The Motley Fool Australia.
Wondering where to invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…
* Returns as of 6 March 2025
More reading
- 5 things to watch on the ASX 200 on Monday
- 5 things to watch on the ASX 200 on Friday
- Origin Energy vs Woodside Energy: Which ASX 200 share is more likely to beat the market?
- 5 things to watch on the ASX 200 on Thursday
- Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
Motley Fool contributor Tristan Harrison 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.