Oil & Gas: Value on offer wanes in big oils

About the author:

Author name:

By Adrian Prendergast

Job title:

Senior Analyst

Date posted:

09 August 2023, 7:00 AM

Sectors Covered:

Mining, Energy

• Over the last 12-months Woodside Energy Group (ASX:WDS) (+21%) and Santos (ASX:STO) (+12%) have both posted market-beating gains despite the oil price steadily losing ground over that time (-11%).
• WDS selling down a 10% non-op stake in Scarborough does little to shift project risk but will help inject some extra capital into its balance sheet.
• We preview both WDS and STO’s upcoming 1H’CY23 results. Expecting both to maintain solid group margins and healthy interim dividends.
• We maintain a Hold rating on WDS, while lowering STO to Hold (from Add) following recent share price strength.

Find out more

If you would like more information, please contact your adviser or nearest Morgans office.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.