Major oil and gas producers Woodside Energy Group Ltd and Santos Ltd are currently under scrutiny as investors evaluate whether these companies are a buy, hold, or sell for 2026. As of Wednesday afternoon, Woodside’s shares are trading at $22.94, down 2.47% for the day and 3.53% for the year. In comparison, Santos shares are priced at $5.92, reflecting a decrease of 2.78% today and 14.97% year-over-year.
The broader S&P/ASX 200 Index is performing slightly better, up 0.39% on the day and 5.21% higher than the same time last year.
Woodside’s Year in Review
Woodside has experienced significant volatility in its share price throughout 2026. The company’s performance has been heavily influenced by fluctuating oil prices, which have suppressed potential gains. In late October, Woodside shares surged nearly 20% over a four-week period, driven by a notable increase in crude oil prices. However, the stock fell approximately 7% in mid-December following the unexpected resignation of CEO Meg O’Neill.
In its latest quarterly update, Woodside reported an increase in both revenue and production. The company is optimistic about its prospects, having upgraded its full-year production guidance to between 192 and 197 million barrels of oil equivalent (MMboe). Woodside plans to advance its global project pipeline throughout the year.
Santos Faces Challenges and Opportunities
Santos shares took a significant hit in late August, following the company’s half-year results and the collapse of a potential takeover bid by a consortium led by ADNOC. Concerns regarding governance and regulatory issues led to the abandonment of the bid. The decline in oil prices also negatively impacted Santos in the latter months of 2026, particularly after WTI crude oil prices fell in late December due to supply concerns.
Despite these challenges, Santos announced positive developments in mid-December, including the early repayment of $363 million under the PNG LNG project finance facility. This repayment was completed six months ahead of the June 2026 deadline. Additionally, Santos executed a conditional sale agreement to divest its 42.86% interest in the Mahalo Joint Venture to Comet Ridge Ltd.
Analysts remain divided on the outlook for both companies in 2026. According to data from TradingView, among 16 analysts covering Woodside, seven have a buy or strong buy rating while nine recommend holding the stock. The average target price for Woodside shares is $26.21, suggesting a potential upside of 14.64% for investors. Some analysts project the shares could rise as high as $33.49, indicating a more optimistic 46.54% upside.
Santos shares show a similar trend, with 10 out of 15 analysts recommending a buy or strong buy. The average target price for Santos is $7.37, implying a potential upside of 24.34%. Some analysts even foresee the stock climbing to $8.71, which would represent a 46.91% increase.
Investors considering options in the oil and gas sector should closely monitor these developments as both Woodside and Santos navigate a challenging landscape in 2026.
