Business SummaryWoodside Petroleum Limited (WPL) is an Australian oil and gas companyinvolved in hydrocarbon exploration, evaluation, development, production andmarketing. WPL also has a portfolio of offshore platforms, oil floatingproduction storage and off-loading vessels. WPL also holds operating assetsboth in Australia and internationally.

North West Shelf (NWS) Australia: The project is located in the CarnarvonBasin about 190km NW of Karratha, WA. This is a standalone deep waterLNG development. NWS pipeline gas was 12.9 MMboe and, from mid-2017,our equity share of NWS pipeline gas will reduce from 50% under theDomestic Gas Joint Venture to 16.67%

Pluto Australia: The project is located in the Carnarvon Basin about 190kmNW of Karratha, WA. Plutos average annualised capacity has increased from4.3 Mtpa to 4.7 Mtpa. In 2016, Pluto produced 5.0 mt at a production cost of$3.3/boe.

Australia Oil: WPL owns and operates a number of oil developmentsoffshore WA and in the Timor Sea. These projects include Enfield which isplanning for cessation potentially from Q4 2017.Vincent for which the annualproduction were down due to low reliability and natural reservoir decline.

Acquisition: WPL exploration continues to grow in Australia,Asia-Pacific,Atlantic Margins and Africa.

Latest ResearchModel Update

This model update focuses on capital expenditure revisions anddepreciation

modeling for Pluto T-2.

For more information see research 16 Sept 2020.

GICS - Energy

Woodside Petroleum Limited

ASX Code: WPL Price: $18.38 12 Mth Target Price: $21.64 Rating: Neutral - High

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Snapshot

DateMarket Cap.Shares on issue12 Month High12 Month Low

11 October 2020$17,686m962.2m$36.28$14.93

RatingRating12 Mth Target Price

Capital GainGross Yield

Implied Total Return

Neutral - High Risk$21.6418.4%6.6%25.0%

Investment FundamentalsFYE 31 Dec 2019A 2020F 2021F 2022F

Profit $m 1,529.0 896.0 1,442.0 1,068.0Profit (norm)* $m 1,529.0 896.0 1,442.0 1,068.0

EPS* ¢ 162.0 94.0 150.0 110.0EPS Growth % -22.1 -42.0 59.6 -26.7P/E* x 11.3 19.4 12.2 16.6P/E Relative % 0.0 0.0 0.0 0.0

DPS ¢ 131.0 76.0 120.0 87.0Yield % 7.2 4.2 6.6 4.8Franking % 100.0 100.0 0.0 100.0* Adjusted for goodwill and unusual itemsSource: Based on Citi estimates

Share Price Chart

Total Return on $10,000 Investment

Profit & Loss ($M)2015A 2016A 2017A 2018A 2019A

Sales Revenue 6,885 5,716 5,050 7,536 7,141Total Revenue ex. Int. 6,935 5,716 5,050 7,536 7,141EBITDA 2,680 3,742 3,638 5,341 3,991Depreciation & Amort. -2,076 -1,824 -1,523 -2,056 -2,409Goodwill Amortisation -- -- -- -- --EBIT 604 1,918 2,115 3,286 1,582Net Interest -116 -66 -108 -259 -327Profit Before Tax 487 1,852 2,008 3,026 1,255Income Tax -333 -507 -572 -890 -685Outside Equity Int. -119 -145 -123 -146 -56Profit after Tax 36 1,200 1,313 1,991 514Significant Items after Tax -- -- -- -58 -24Reported Profit after Tax 36 1,200 1,313 1,933 490Preferred Dividends -- -- -- -- --

Cash Flow ($M)2015A 2016A 2017A 2018A 2019A

Receipts from Customers -- -- -- -- --Funds from Operations -- -- -- -- --Net Operating Cashflow 3,252 3,575 3,077 4,670 4,717Capex -2,490 -2,242 -1,782 -2,519 -1,731Acquisitions & Investments -4,978 -965 -- -- --Sale of Invest. & Subsid. -- -- -- -- --Net Investing Cashflow -7,468 -3,418 -2,010 -2,511 -1,767Proceeds from Issues -- -- -- 2,761 --Dividends Paid -2,368 -391 -1,059 -1,288 -1,516Net Financing Cashflow -79 70 -1,032 -225 452Net Increase Cash -4,295 228 35 1,934 3,403Cash at Beginning 4,473 169 365 451 2,389Exchange Rate Adjust. -11 -3 8 -13 --Cash at End 167 394 408 2,372 5,792

Ratios and Substantial Shareholders2015A 2016A 2017A 2018A 2019A

Profitability RatiosEBITDA Margin % 38.93 65.47 72.05 70.88 55.89EBIT Margin % 8.77 33.56 41.89 43.60 22.15Net Profit Margin % 0.52 20.99 26.00 26.41 7.20Return on Equity % 0.18 5.85 6.80 8.03 2.17Return on Assets % 0.38 3.79 4.44 5.93 2.04

Debt/Safety RatiosNet Debt/Equity % 28.75 29.93 29.89 13.45 16.19Interest Cover x 5.19 28.92 19.64 12.67 4.84

Top 5 Substantial ShareholdersBlackRock Group 6.1%Vanguard Group 6.0%

Balance Sheet ($M)2015A 2016A 2017A 2018A 2019A

Cash & Equivalent 167 394 408 2,372 5,792Receivables 669 616 618 690 490Inventories 233 206 238 220 251Other Current Assets 209 28 35 120 100Current Assets 1,477 1,244 1,299 3,416 6,633Prop. Plant & Equipment 26,433 26,873 25,050 27,009 27,723Intangibles -- -- -- -- --Other Non-Current Assets 337 265 233 415 450Non-Current Assets 31,152 32,964 31,267 34,963 35,264Total Assets 32,629 34,208 32,565 38,379 41,897Interest Bearing Debt 6,079 6,873 6,494 5,864 9,814Other Liabilities 5,985 5,691 5,713 6,556 7,234Total Liabilities 12,064 12,564 12,206 12,420 17,048Net Assets 20,565 21,645 20,359 25,959 24,849Share Capital 8,961 9,562 8,871 12,581 12,860Reserves 1,281 1,311 1,233 1,352 1,360Retained Earnings 9,229 9,634 9,191 10,846 9,498Outside Equity Int. 1,094 1,137 1,064 1,180 1,130Total Shareholders Equity 20,565 21,645 20,359 25,959 24,849

Current Analyst Recommendations *

* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.

Principals & DirectorsPrincipals

Company Secretary Mr Andrew CoxMr Warren Baillie

Directors

Mr Christopher (Chris) Michael Haynes(Non-Executive Director)Mr Gene Thomas Tilbrook(Non-Executive Director)Mr Richard James Barr Goyder(Non-ExecutiveDirector,Non-Executive Chairman)Mr Frank Charles Cooper(Non-Executive Director)Mr Peter John Coleman(Chief Executive Officer,Managing Director)Ms Ann Darlene Pickard(Non-Executive Director)Dr Sarah Elizabeth Ryan(Non-Executive Director)Mr Ian Elgin Macfarlane(Non-Executive Director)Mr Larry Archibald(Non-Executive Director)Ms Swee Chen Goh(Non-Executive Director)

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Woodside Petroleum Limited

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