10 Best Australian Stocks To Buy According to Hedge Funds

6. Woodside Energy (NYSE:WDS) 

Number of Hedge Fund Holders: 12  

Market Capitalization as of August 30: $34.76 Billion  

Woodside Energy (NYSE:WDS) is a leading oil and gas company that focuses on hydrocarbon exploration, development, and production. The company is known for its significant contributions to the energy sector in Australia. Woodside Energy (NYSE:WDS) is poised to significantly expand its LNG business. In July 2024, Woodside Energy (NYSE:WDS) acquired Tellurian, a natural gas company headquartered in Houston, Texas, and aims to position itself as a key player in the liquefied natural gas (LNG) market.

The acquisition of Tellurian and Driftwood LNG project, which is an approximately 27.6 mtpa LNG export facility presents a massive growth opportunity. Although Tellurian struggled with capital constraints, Woodside Energy’s (NYSE:WDS) robust financial position and proven expertise in LNG development make it well-suited to bring Driftwood to full fruition. Once operational, Driftwood is expected to generate up to $11 billion in annual operating cash flows, positioning Woodside Energy (NYSE:WDS) as one of the largest LNG producers globally.

Woodside Energy’s (NYSE:WDS) existing LNG portfolio, including its flagship projects like the North West Shelf and Pluto LNG in Australia, underscores the company’s leadership in the LNG sector. The addition of Driftwood could push Woodside Energy’s (NYSE:WDS) LNG capacity to over 40 Mtpa, putting it on par with sovereign energy giants like Qatar and Russia. This expanded capacity aligns with global trends favoring LNG as a cleaner alternative to coal, particularly in high-demand regions such as Asia-Pacific.

Woodside Energy (NYSE:WDS) is not only expanding its LNG operations but is also investing in the future of clean energy. The company is advancing projects in hydrogen and ammonia which positions it to benefit from the global energy transition. Woodside Energy’s (NYSE:WDS) Scarborough LNG project, which is 67% complete and on track for first cargo in 2026, and the Trion oil project in the Gulf of Mexico, on schedule for first oil in 2028, are also key drivers of future revenue. The successful execution of these projects will further solidify Woodside Energy’s (NYSE:WDS)position as a global energy leader.

Woodside Energy’s (NYSE:WDS) expansive global LNG portfolio and clean energy projects will contribute to its growth strategy and position the company to capitalize on the global shift towards cleaner energy sources. In the second quarter, Woodside Energy (NYSE:WDS) stock was held by 12 hedge funds with stakes worth $99.19 million.