May 4, 2025

Woodside’s Credit Outlook Cut to Negative After $17.5B LNG Bet 💸

S&P Global Ratings revised Woodside Energy’s credit outlook from “stable” to “negative” after the Australian energy company greenlit a massive $17.5 billion LNG project in Louisiana without fully offloading its offtake risk.

🔹 What Happened:

  • Project: $17.5B LNG investment in Louisiana
  • Outlook: Cut to “negative” due to increased financial exposure
  • Rating: Affirmed at ‘BBB+’

🔹 Key Risks: S&P said Woodside is now more exposed to market risk because it retains a 60% economic interest, even after selling a 40% stake to U.S. investor Stonepeak.

CEO Meg O’Neill said further sell-downs are being considered, but the timing remains unclear.

🔹 Financial Pressure: S&P forecasts Woodside’s funds from operations to debt ratio will hover around 50%, noting:

“The company has very limited capacity to absorb weaker oil prices or project cost overruns.”

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