Woodside Petroleum's September quarter production was in line with forecasts albeit revenues were weaker than expected due to a combination of lower LNG pricing and less trading, suggesting a skew to the December quarter.
Wheatstone's reserves have been reduced by -27% following drilling, which represents 6% of Woodside's total or 3% when Scarborough comes on line. While this downgrade was a surprise, the broker still expects the merger with BHP Petroleum to be transformational.
Target falls to $25.90 from $27.15, Neutral retained.
Sector: Energy.
Target price is $25.90.Current Price is $23.27. Difference: $2.63 - (brackets indicate current price is over target). If WPL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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