The main contributors to production growth UBS envisages for the next three years will be Wheatstone and Greater Enfield, followed by Canadian pipeline gas. The combined increase in volumes is around 24mmboe, which will be partly offset by lower pipeline gas and liquids from the North West Shelf.
UBS forecast 2018 production to increase to 90.9mmboe. Beyond 2020 the broker looks to Pluto expansion, Senegal and Myanmar to drive the next wave of growth. Buy retained. Target rises to $35.30 from $35.10.
Target price is $35.30.Current Price is $30.88. Difference: $4.42 – (brackets indicate current price is over target). If WPL meets the UBS target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).