By David Winning

SYDNEY--Woodside Energy Group Ltd. said it expects annual operating cash flow of between US$7 billion and US$9 billion over the next five years, underpinning returns to shareholders and flexibility to grow its portfolio of projects.

Woodside expects first oil from the Sangomar project in Senegal next year, and natural gas from its integrated Scarborough and Pluto Train 2 project in Australia in 2026. The company also has upcoming decisions to make on developing the Trion project in Mexico and the H2OK hydrogen project in the U.S.

On Thursday, Woodside said it aims to be in a position to make a final investment decision on Trion next year, while also targeting an investment decision on H2OK over the coming 12 months.

Woodside said it continues to target a 50-80% payout ratio of net profit excluding one-off items. It is also targeting 10-20% gearing through the cycle.

Earlier this week, Woodside said it expects to produce between 180 million and 190 million barrels of oil equivalent next year, illustrating the boost to output from its combination with BHP Group Ltd.'s oil and gas unit.

Woodside forecast capital expenditure next year at between US$6.0 billion and US$6.5 billion. Half of the outlay is expected to be on Scarborough.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

11-30-22 1654ET