Hi All,
Why I'm long Woodside for the short-to-medium term.
\- Oil rising to the 90's range is very bullish for mid-cap oil stocks. Oil staying at this level will be very positive for their cashflow. Your conviction about the length of the conflict in the middle-east, or any further geopolitical escalations in the near future will determine your bullishness for this stock
\- Woodside has little exposure to the Middle-East
\- Regardless of the middle-east conflict, they have new projects coming online mid-year (Scarborough project) that will increase the volume of oil and gas produced by this company over the next 3-5 years.
\- Multiple catalysts at the same time (new projects, higher oil and gas prices) can have an outsized effect
Prior to the start of this year, Woodside was very beatdown on the prospect of an oil glut in the near future, and on the departure of their recent CEO. They say don't own a stock for 10 minutes that you wouldn't be comfortable holding for 10 years. Since energy can have such a large effect on the global economy, hedging your portfolio with oil stocks can be sensible. The mid-cap sector can be a sector where you still find decent value despite recent momentum.