December quarter results were largely in line. Macquarie was surprised by the flat expectations for production in 2019 of 88-94 mmboe.
The broker suspects this could be beaten if Greater Enfield and Vincent are online early and/or Wheatstone runs above nameplate.
The broker believes the company is well placed for higher capital expenditure on future growth projects and maintains a Neutral rating, reducing the target to $33.20 from $33.30.
Target price is $33.20.Current Price is $33.89. Difference: ($0.69) – (brackets indicate current price is over target). If WPL meets the Macquarie target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).