What's Going On Woodside Energy Shares Premarket Friday?
Portfolio Pulse from Lekha Gupta
Woodside Energy Group Ltd (NYSE:WDS) shares dropped in premarket trading after announcing a sale and purchase agreement with JERA for a 15.1% stake in the Scarborough Joint Venture for $1.4 billion. The deal includes a purchase price of approximately $740 million and reimbursement for JERA's share of expenses since January 2022. The transaction is expected to close in the second half of 2024, leaving Woodside with a 74.9% interest in the venture. Additionally, Woodside and JERA agreed on a non-binding deal for the sale of six LNG cargoes annually for ten years starting 2026 and a collaboration on new energy initiatives to support decarbonization.
February 23, 2024 | 11:53 am
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Woodside Energy's shares declined after announcing a significant transaction with JERA, involving the sale of a stake in the Scarborough JV and agreements on LNG cargoes and decarbonization efforts.
The immediate negative reaction in Woodside Energy's stock price can be attributed to the market's response to the sale of a significant stake in the Scarborough JV, which might be perceived as a reduction in future revenue potential. However, the long-term agreements for LNG cargoes and collaboration on decarbonization could offset initial concerns by opening new revenue streams and enhancing the company's sustainability profile.
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IMPORTANCE 90
RELEVANCE 100