Woodside Petroleum Limited (WPL) is an independent oil and gas company with a portfolio of liquefied natural gas trains, offshore platforms, oil floating production storage and off-loading vessels.
WPL produces and sells LNG, pipeline gas, oil condensate and LPG, with ITS landmark Australian project being the North West Shelf.
WPL also holds interests in operating assets located in Australia and overseas.
While we remain fans of the company on a long-term basis, we feel that the stock has likely reached a ceiling in terms of its fundamental valuation in the near term given the median 12-month price target of $36.02.
The company is currently trading around $38.90 and we will be looking to take profits around the $40 mark given the strong oil price at present.
In addition to WPL being fully valued at current levels according to most analysts, the current strength in the WPL share price is partly attributable to events in Syria.
History shows that the oil price tends to run up before a potential conflict and then gives back most, if not all, of its prior gains as soon as the conflict commences or when it has become clear whom the victor will be.
Last but not least, from a historical viewpoint, the oil price tends to record a seasonal top in September.
For more information on Woodside (WPL) please contact us on 07 4771 4577.