BAKU, Azerbaijan, November 5. Woodside Energy has announced a new shareholder distribution policy of 20-40% of adjusted operating cash flow (AOCF), according to the company's Capital Markets Day 2026 presentation.
Under the new policy, Woodside will prioritise 20% of AOCF as a base dividend, with up to another 20% available for additional dividends, share buybacks, or a combination of both.
"We announced a new distribution policy of 20-40% of adjusted operating cash flows. We will prioritise 20% of adjusted operating cash flow as a base dividend, with up to another 20% available for additional dividends and/or buybacks," CEO Liz Westcott said.
The company said the cash-flow-based approach is more predictable, removes non-cash volatility and is in line with energy peers. Woodside previously paid dividends of 80% of underlying net profit after tax (NPAT). The company said this was equivalent to about 31% of AOCF.
In an illustrative look-back from the second half of 2024 to the first half of 2026, Woodside said distributions at 40% of AOCF would have reached $5.4 billion, compared with $4.2 billion actually paid under the old policy.
The Board retains discretion to make special distributions exceeding the 40% threshold if circumstances allow.
Woodside Energy, headquartered in Perth, is Australia's largest independent oil and gas company and is listed on the Australian Securities Exchange and the New York Stock Exchange. Until now, Woodside has paid dividends based on underlying net profit after tax (NPAT), with a payout range of 50-80%, and in recent periods has paid at the top of that range. The company has returned nearly $13 billion to shareholders since 2022. Woodside held its Capital Markets Day 2026 in Sydney on November 5 and will hold a second event in New York on November 12. At last year's Capital Markets Day, in November 2025, the company set out its growth plans to 2032.
