Woodside Energy’s Big Win: A Game-Changer for Its Share Price

Woodside Energy just got the green light it’s been chasing for years, the extension of its Northwest Shelf gas project through to 2070. The market didn’t waste time reacting as its shares climbed on the news. But this rise may not be just a one-day rally, rather this could be the ignition for a long-overdue rerating of the stock.

Let’s be honest, Woodside Energy has puzzled investors for quite some time. Solid fundamentals? Check. A good dividend yield? Check. A P/E ratio that screams value? Also check. And yet, for too long, Woodside has been a stock full of potential that has underperformed. But that might be about to change.

Woodside Energy’s vote of confidence

The recent low near $18.60 appears to have formed a firm base, and with resistance overhead around $28, there's serious potential for this stock. But beyond the technical aspect, this recent approval means the story has just shifted. What we’re seeing isn’t just regulatory success, it’s a renewed vote of confidence in Woodside’s long-term relevance in a changing energy landscape.

Despite polarising thoughts on fossil fuels, the macro trend is clear and that is, gas remains vital. While it may not be a forever fuel, it’s buying time as the world ramps up renewables and nuclear.

And that matters, especially in Asia, where energy demand is exploding. Woodside isn’t just in the game, it’s strategically located, well-equipped, and now has the regulatory backing to lead the charge. This extension keeps it in the driver's seat well into the middle of this century.

Why Santos and Woodside Energy are ready to lead

Another deep value play in this area is Santos. After bouncing from lows around $5.20, it’s now making a move toward $9. Like Woodside, it offers a low P/E, strong dividend yield, and exposure to the same powerful themes.

So, what’s the bottom line for investors. Woodside’s approval might just turn out to be the spark that lights a fire under a stock that’s been unfairly ignored. Combine strong fundamentals, shifting sentiment, and now regulatory momentum and you’ve got a stock that’s ready to run.

In a market hungry for dependable, scalable energy solutions, Woodside and Santos look like they’re not only part of the answer, but they might also just be about to lead it.

What are the best and worst-performing sectors last week?

The best-performing sectors included Information Technology, up 3.85 per cent followed by Energy, up 2.61 per cent and Financials, up 1.44 per cent. The worst-performing sectors included Utilities, down 0.68 per cent followed by Materials down 0.21 per cent and Consumer Staples, down 0.14 per cent. 

The best performing stocks in the ASX top 100 included Light & Wonder, up 10.41 per cent followed by Paladin Energy, up 8.15 per cent and WiseTech Global, up 7.10 per cent. The worst-performing stocks included Pilbara Minerals down 10.14 per cent followed by ALS, down 9.16 per cent and IGO, down 7.84 per cent.

What's next for the Australian stock market?

The All-Ordinaries Index posted another gain this week, rising just under one per cent, marking its eighth consecutive week it has closed above where it opened for the week. While this is bullish, we need to be cautious as markets and stocks rarely rise for this long without a pull back. There are signs of slowing momentum as the last four weeks momentum is around half of the first four weeks in this current bull run.

This is no surprise given the current volatile global trade environment where last week’s proposed 50 per cent tariff on Europe was followed by its swift pause. With investors on edge, it’s no wonder the market has stalled and that the 8,600 point level remains a critical resistance level.

It’s likely the ‘big end of town’ set themselves up for the next move during the pullback earlier this year, capitalising on undervalued opportunities. To sustain this current rally, the market must break decisively above the 8,600 level, signalling further upside potential.

Until that happens, the probability of a pullback continues to grow, with 8,375 as the first key support level to watch. If selling pressure increases, a deeper retreat to 8,170 or even 8,000 could unfold in the weeks ahead.

For now, caution is paramount as the market is highly likely to fall for one or more weeks. As such chasing the market rally at these levels comes with elevated risks, especially if sellers start to emerge. That said, a pullback would be perfect right now as it could offer a much-needed reset, creating fresh opportunities for patient investors.

As always, the best opportunities tend to emerge when others are stepping back. Stay disciplined and keep the bigger picture in mind.

For now, good luck and good trading.

Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of the bestselling and award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good bookstores and online.