Woodside Energy jumps 6% on Exxon Mobil buyout exploration

Exxon Mobil Corp. is exploring potential acquisition targets including Australia's Woodside Energy Group Ltd., Bloomberg News reported Friday, citing people familiar with the matter, in a move that would further consolidate the global liquefied natural gas market.

"Any acquisition of Woodside would represent a strategic pivot toward LNG at a time when major oil companies are increasingly betting on gas to meet rising power demand," said Saul Kavonic, an energy analyst at MST Marquee. "Exxon's interest signals that the LNG race is intensifying."

U.S.-listed shares of Woodside rose 6% in morning trading Friday, while Exxon shares gained 0.7%. The development comes just a day after Woodside exercised its pre-emptive right to acquire PetroChina's 10.67% stake in the Browse gas fields off Western Australia for $225 million, blocking a deal with Japan's Inpex and boosting its own interest to 41.27%.

A tie-up between Exxon and Woodside would create one of the world's largest LNG producers, combining Exxon's massive portfolio in the U.S. Gulf Coast and Papua New Guinea with Woodside's position in Australia's North West Shelf and the Browse project — the country's largest undeveloped conventional gas resource. The deal would also give Exxon access to Asian buyers that underpin long-term LNG contracts, a key advantage as global competition for supply heats up.

Woodside's Browse acquisition this week underscored its commitment to preserving the project as a future development option, with a contingent payment of $175 million tied to a final investment decision by June 2032. UBS energy analyst Tom Allen said the pre-emption price implied a "materially softer valuation" than the $1.63 billion PetroChina paid for the same stake in 2012, reflecting the shifting economics of large-scale gas developments.

The potential Exxon bid also comes amid a broader realignment in global energy markets. The recent closure of the Strait of Hormuz following the Iran conflict has disrupted crude flows and pushed LNG prices higher, making secure, long-term gas supply agreements more valuable. Exxon's move for Woodside would mirror a wave of consolidation among energy majors seeking to lock in LNG capacity ahead of expected demand growth from data centers and industrial electrification.

Woodside declined to comment on the report. Exxon did not immediately respond to a request for comment.

This article is for informational purposes only and does not constitute investment advice.