Sydney, June 18, 2026, 02:12 (AEST)
- Woodside Energy finished Wednesday at A$28.96, falling A$1.08, or 3.60%. About 6.77 million shares changed hands.
- The S&P/ASX 200 picked up 0.54% to close at 8,966.30. Energy shares were lower on the day as oil hovered near US$79 a barrel.
- Woodside said it isn’t in any discussions with Exxon Mobil over a possible deal, knocking back the recent takeover talk.
Woodside Energy Group Ltd slid in Sydney on Wednesday, with shares hit hard while the rest of the Australian market climbed. Traders sold off oil and gas names as crude’s war premium eased.
The shares fell 3.6% to A$28.96. The S&P/ASX 200 rose again, logging a fourth gain. The split stood out. Investors bought stocks on easing inflation worries with oil down, but got out of names most exposed to oil-linked earnings.
Energy was weak. Santos lost ground too, with Karoon Energy taking a bigger hit as selling swept the sector. Tom Wickenden, investment strategist at Betashare, said energy prices dropped 6% after changes in the Middle East and ASX energy stocks had “round-tripped almost the entire conflict,” nearly back to where they started. News
Brent crude held close to its lowest levels in three months on Wednesday, even as prices edged up. Fawad Razaqzada, market analyst at City Index and FOREX.com, told Reuters that “still a bit of uncertainty” around the U.S.-Iran picture supported oil after the latest selloff. Reuters
Deal speculation is another drag on the stock. In an announcement to the ASX on Monday, Woodside said it was unaware of any proposal and isn’t talking to Exxon Mobil Corp about a deal. The company put out the statement after media reports sparked brief buying in the shares.
Woodside’s U.S.-listed shares jumped 8.35% Friday after a Bloomberg report said Exxon was looking at Woodside as a potential takeover play to expand further into LNG and Asia. Exxon wouldn’t comment, according to Reuters.
Woodside just used a pre-emptive right to pick up PetroChina’s 10.67% stake in the Browse gas fields off Western Australia, after news that’s been about more than just M&A. If no other partners step in, Woodside’s interest would rise to 41.27%. UBS energy analyst Tom Allen told Reuters the deal price looked “materially softer” than what PetroChina paid in 2012. Reuters
Browse is seen as strategic, with potential to supply the North West Shelf LNG plants as existing fields fall. At the same time, it means Woodside stays linked to a big, complicated project just as investors focus on capital costs.
Risks run both directions here. Woodside could see an earnings lift if the U.S.-Iran deal breaks down and the Strait of Hormuz recovery slows, pushing oil higher. But if supply comes back quickly and outstrips demand, the effect could reverse. The International Energy Agency said the market might hit a significant surplus in 2027 as supply growth races past demand growth.
Woodside says it’s partly shielded from oil price swings. In the first-quarter report, the company said it has hedged 30 million barrels of 2026 output at an average price of US$74.23 a barrel. Liquidity stood at about US$8.3 billion at March 31. The next update comes with its Q2 report on July 29.
