Woodside Petroleum Limited (WPL) Update

Submitted by Craig Strzelecki on 23 April, 2007 - 18:17

Woodside Petroleum Limited (WPL) has a maintained Buy 1 broker call and a $45.64 share price target from sharemarket analyst UBS. The company is having their AGM in Perth on 19th April 2007. There is a focus on LNG. With potential portfolio rationalisation: WPL is placing greater emphasis on LNG and its core asset base. Risky places are getting riskier and WPL has forwarned that it will make appropriate changes to its asset portfolio, e.g. Mauritania assets are "under review". Exploration activities will be highgraded. The company has a bullish LNG outlook: LNG demand is set to outstrip supply in the Asia Pacific region to 2015. This provides a significant opportunity for new LNG supply sources, particularly Australian LNG - favoured for portfolio diversity and supply security factors. The LNG pricing outlook is also good, with a trend towards straight line indexation to oil. They believe WPL represents one of Australia's best long term resource sector investments, largely due to its high quality asset base which has potential to support an exceptional production growth profile from a diversified portfolio of mainly WPL operated oil, gas and LNG project developments. Their NAV estimate is based on a DCF (10% nominal discount rate) of WPL forecastcash flow over the 2P reserve life of producing assets and all committed and highly probable projects. The analyst's 12-month share price target for Woodside Petroleum Limited is A$45.64 and is based on our NAV, significant contingent resources and exploration upside.

Woodside Petroleum Limited is listed on the Australian Stock Exchange (ASX) under stock code WPL. You can view their investor website here. WPL was listed on the ASX on 18 November, 1971. Don Voelte is the CEO of Woodside (WPL). The principal activity of WPL is the Management and operation of hydrocarbon exploration, development, production, transportation and marketing; implementation and operation of the North West Shelf Gas Project; exploration and development of gas, oil and condensate reserves. Find out the meaning of the recommendations in this primer. A past recommendation for Woodside Petroleum. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!

Download our FREE App


Signup for Free
Don't miss out on your free share trading articles.


Free Risk Money Management Calculator for those who sign up!