Woodside Expands Clean Energy Footprint with $2.35B Lower Carbon Ammonia Project Acquisition
Portfolio Pulse from Lekha Gupta
Woodside Energy Group Limited (NYSE:WDS) is acquiring OCI Global’s Clean Ammonia project in Beaumont, Texas, for $2.35 billion. The project aims to produce lower-carbon ammonia, with Phase 1 expected to start in 2025 and Phase 2 in 2026. The acquisition is expected to be accretive to free cash flow starting in 2026 and to earnings per share from 2027. WDS shares are down 3.90% premarket.
August 05, 2024 | 9:45 am
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Tellurian shares have soared on a $1.2 billion deal with Woodside. This news is mentioned in the context of Woodside's broader strategic moves in the energy sector.
Tellurian's share price increase is indirectly related to Woodside's strategic moves, including the Clean Ammonia project acquisition. The $1.2 billion deal with Woodside is a positive development for Tellurian, indicating strong partnerships and potential growth.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 20
POSITIVE IMPACT
Woodside Energy Group Limited (NYSE:WDS) is acquiring OCI Global’s Clean Ammonia project for $2.35 billion. The project aims to produce lower-carbon ammonia, with Phase 1 expected to start in 2025 and Phase 2 in 2026. The acquisition is expected to be accretive to free cash flow starting in 2026 and to earnings per share from 2027. WDS shares are down 3.90% premarket.
The acquisition of the Clean Ammonia project is a significant move for Woodside, positioning it in the growing lower-carbon ammonia market. The project is expected to be accretive to free cash flow starting in 2026 and to earnings per share from 2027, which is positive for the company's financials. However, the current market reaction shows a 3.90% drop in WDS shares premarket, likely due to the immediate financial outlay and market sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100