How Woodside shares just got a $206 million cash boost

Woodside Energy Group Ltd (ASX: WDS) shares can't escape the broader market sell off today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed up 0.9% on Friday at $23.81. In early afternoon trade on Monday, shares are changing hands for $23.43 apiece, down 1.6%.

For some context, the ASX 200 is down 1.7% at this same time.

That's today's market action for you.

Now, here's how Woodside shares just got a big cash flow boost.

Woodside shares shrinking Caribbean exposure

In an announcement released after market close on Friday, and deemed non-price sensitive to Woodside shares, the company reported on a major divestment.

Woodside said it had entered into an agreement with Perenco to divest its Greater Angostura assets in Trinidad and Tobago for $206 million.

This includes Woodside's interest in the shallow water Angostura and Ruby offshore oil and gas fields, associated production facilities and the onshore terminal.

The transaction does not include the deepwater Calypso field. Woodside said it will continue to work with Trinidad and Tobago's government and its joint venture partner to "progress the Calypso opportunity".

Woodside said the asset sale will provide near-term cash flow to support ongoing investments and future dividend payouts.

The ASX 200 energy stock expects the transaction to close in the third quarter of 2025 with an effective date of 1 January 2025. Completion of the transaction remains subject to customary conditions.

Woodside reported that it will continue to operate the Greater Angostura assets until the transaction is closed.

What did management say?

Commenting on the $206 million divestment that could offer longer-term support for Woodside shares, CEO Meg O'Neill said, "Greater Angostura has been a valuable contributor to the economy of Trinidad and Tobago, providing economic and community benefits."

O'Neill continued:

As a result of operations over the past two decades, Woodside has paid more than $2 billion in taxes to Trinidad and Tobago and invested over $1 billion in major capital shallow water developments.

The Greater Angostura field produces approximately 12% of Trinidad and Tobago's gas supply. Woodside is proud of our employees and their commitment to safe and reliable operations in Trinidad and Tobago. Their efforts will continue under the stewardship of Perenco.

Addressing the rationale for the asset sale, O'Neill said:

The divestment accelerates the realisation of value from Greater Angostura and proceeds from the sale will be used to support ongoing investment in core priorities across Woodside's portfolio.

This transaction is another demonstration of Woodside's disciplined approach to portfolio management and optimisation, aimed at delivering sustainable returns to shareholders over the long term.

Pressured in part by slumping oil prices and concerns over a pending oversupply, Woodside shares are down 6% year to date.

The post How Woodside shares just got a $206 million cash boost appeared first on The Motley Fool Australia.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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