From Yahoo Finance: 2025-04-30 23:34:00

S&P Global Ratings revised Woodside’s credit outlook to “negative” after the company’s $17.5 billion Louisiana LNG project decision. Woodside’s ratings headroom eroded as it proceeded without a sell-down of offtake exposure. Despite this, Woodside’s ‘BBB+’ ratings were affirmed. The company approved the project due to favorable U.S. administration and demand.

Woodside sold a 40% stake in the U.S. project to Stonepeak, retaining a majority stake. S&P highlighted Woodside’s market risk exposure compared to its 60% interest. CEO Meg O’Neill plans further stake dilution. S&P forecasts Woodside’s funds from operations to debt ratio to be around 50% in the coming years.

Future ramp-ups at the Louisiana project may impact cash flow, limiting Woodside’s ability to handle oil price fluctuations or project cost overruns. S&P warns of potential challenges for the energy company. Woodside aims to address these concerns as it moves forward with its LNG project.

Read more: S&P cuts Woodside’s credit outlook to ‘negative’ after LNG investment decision