Woodside to Take Over Bass Strait Assets from Exxon Mobil, Unlocking $60mln Savings

Woodside Energy will take over operations of Exxon Mobil's Bass Strait assets in Australia, aiming to unlock $60 million in savings and produce more natural gas for sale. The deal includes offshore production assets, gas plants, and pipeline infrastructure, with potential for up to 200 petajoules of additional gas for the east coast market.

Woodside Energy Group (WDS) has announced it will take over operations of Exxon Mobil's Bass Strait assets in Australia, aiming to unlock $60 million in savings and produce more natural gas for sale. The deal includes offshore production assets, gas plants, and pipeline infrastructure, with potential for up to 200 petajoules of additional gas for the east coast market [3].

The agreement comes amidst a backdrop of shifting market dynamics and investor sentiment. RBC Capital analyst Gordon Ramsay CFA maintained a Buy rating on Woodside Energy Group, setting a price target of A$32.50 [1]. Despite this positive outlook, corporate insider sentiment on Woodside Energy Group remains negative, with an increase in insider selling activity over the past quarter [1].

Exxon Mobil Corp. (XOM), the largest U.S. oil producer, is also facing market scrutiny ahead of its second-quarter earnings on Friday. The company saw a 150% increase in retail user message count, reflecting investor interest in the impact of lower crude oil and natural gas prices on its margins [2]. Exxon's forecast suggests that lower oil and gas prices could reduce its second-quarter earnings by about $1.5 billion from the prior quarter's level [2].

The deal between Woodside Energy and Exxon Mobil underscores the strategic importance of the Bass Strait assets. The region is a significant source of natural gas for the Australian market, and the additional gas production could meet growing demand on the east coast [3].

Investors should closely monitor the developments surrounding this deal and the broader market trends affecting both companies. As the energy sector continues to evolve, the strategic moves of major players like Woodside Energy and Exxon Mobil will be crucial factors in shaping future market dynamics.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/WDS-N/pressreleases/33637226/rbc-capital-keeps-their-buy-rating-on-woodside-energy-group-wds/
[2] https://newsable.asianetnews.com/markets/exxon-sees-surge-in-retail-chatter-ahead-of-q2-earnings-investors-eye-impact-of-lower-crude-and-gas-prices-on-margins-articleshow-np7u5eg
[3] https://www.instagram.com/p/DMjkbFgtPOv/