Crude above US$100 exposes the cost gap between producers

• OPEC+ left October quotas unchanged on 6 September 2026, and Brent settled at US$101.25 on 10 September, up 13.88% in a month.
• Unit production costs across four of these five producers range from US$7.53 per barrel of oil equivalent to about US$21.
• The OPEC+ capacity review setting 2027 baselines is due by end-September, with ministers meeting again on 4 October 2026.

OPEC+ held October production quotas steady at its 6 September meeting, pausing after completing the rollback of 1.65 million barrels per day of voluntary cuts introduced in 2023.

Higher crude flows straight into the revenue line of producers selling unhedged barrels, which is why a decision taken in Vienna moves Perth-listed stocks.

Woodside Energy (ASX:WDS) is set out first, against three measures: production volume, sales revenue, and unit production cost, with a comparison list of four ASX-listed producers that follow, ordered largest to smallest by output.

The number that separates them is cost, not price - and the spread runs from US$7.53 per barrel of oil equivalent to roughly US$21.

Woodside Energy (ASX:WDS) - The benchmark on scale

Woodside produced 86.5 MMboe in the first half of 2026, more than any other ASX energy producer.

Operating revenue was US$7,446 million for the six months to 30 June 2026, up 13%, reported on 25 August 2026.

Unit production costs were US$8.80 per barrel of oil equivalent, and the average realised price rose 20% to US$74.0/boe.

Woodside reports in US dollars.

Management narrowed full-year 2026 production guidance to 174–185 MMboe and held capital expenditure guidance at US$4,000–4,500 million.

The company reported the Scarborough project at 98% complete, targeting a first LNG cargo in the fourth quarter of 2026, with Trion at 64% and Louisiana LNG at 28%.

Working in its favour: a US$65.20 spread between the H1 2026 realised price of US$74.0/boe and unit production costs of US$8.80/boe.

The pressure point: Woodside had hedged 30 MMboe of 2026 oil-linked production at an average US$74.23 per barrel, capping the benefit of Brent above US$100 on those volumes.

Santos (ASX:STO) - The lowest disclosed cost in the group

Santos produced 45.6 MMboe in the first half of 2026, up 3% on the prior corresponding period.

Sales revenue was US$2.6 billion, generating EBITDAX of US$1.6 billion at a 59% margin and free cash flow from operations of US$378 million.

Unit production cost was US$7.53 per barrel of oil equivalent - US$1.27 below Woodside's US$8.80/boe, and the lowest of the group.

Santos also reports in US dollars.

The company maintained full-year 2026 production guidance of 99–105 MMboe and said second-half output should run 20–30% above the first half as Barossa and Pikka ramp.

Management reported Pikka targeting gross plateau production of about 80,000 barrels per day late in the third quarter, and said Papua LNG remains on track for a final investment decision in the fourth quarter of 2026.

Working in its favour: unit production cost of US$7.53/boe against the benchmark's US$8.80/boe, on production roughly half Woodside's scale.

The pressure point: Santos hedged 11.5 million barrels for the second half through zero-cost collars with an average cap of US$98.59, below the 10 September Brent settlement of US$101.25.

Beach Energy (ASX:BPT) - Gas weighting dilutes the crude move

Beach guided FY27 production to 19.5–23.0 MMboe after a year of lower volumes and a reduced dividend.

Sales revenue was A$1.8 billion for the year to 30 June 2026, with underlying EBITDA of A$983 million and underlying net profit after tax of A$355 million, down 21%, reported on 6 August 2026.

Statutory NPAT was A$281 million. Beach reports in Australian dollars, unlike Woodside and Santos, and does not disclose a unit production cost on the same basis as the others, so that measure cannot be compared directly.

Against Woodside's 86.5 MMboe in a single half, Beach's full-year guidance range is roughly a quarter of that scale.

The company reported the Waitsia gas plant reaching nameplate capacity of 250 terajoules per day.

Working in its favour: Waitsia at 250 TJ/day underpins FY27 guidance of 19.5–23.0 MMboe, above FY26 output.

The pressure point: underlying NPAT fell 21% to A$355 million in FY26, and a revenue mix weighted to domestic gas limits how much of a crude rally reaches the top line.

Karoon Energy (ASX:KAR) - Pure oil exposure at mid-cap scale

Karoon produced 3.17 MMboe on a net working interest basis in the first half of 2026.

Sales revenue was US$244.9 million, with unit production costs of US$18.80 per barrel of oil equivalent - more than double Woodside's US$8.80/boe.

Full-year 2026 unit cost guidance is US$12–15/boe, below the first-half run rate.

Karoon's revenue is almost entirely oil-linked, giving it more direct leverage to Brent than the gas-weighted names, but its scale is roughly a twenty-seventh of Woodside's half-year volume.

Working in its favour: FY26 unit cost guidance of US$12–15/boe implies a reduction from the US$18.80/boe recorded in the first half.

The pressure point: first-half unit costs of US$18.80/boe were more than double the benchmark's US$8.80/boe, leaving a thinner margin if Brent retreats.

Horizon Oil (ASX:HZN) - Smallest scale, fastest volume growth

Horizon produced 2.15 MMboe in FY26, up 33% year on year.

Underlying revenue was US$107.2 million, with portfolio unit cash operating costs averaging about US$21 per barrel of oil equivalent - the highest of the group and roughly US$12 above Woodside's US$8.80/boe.

Following the Cue Energy acquisition completed on 2 July 2026, the company reported combined production running at about 7,300 barrels of oil equivalent per day, lifting the forward base above the FY26 annualised rate.

Against Woodside's 86.5 MMboe in a single half, Horizon's full-year volume is the smallest in the group, but its growth rate is the highest.

Working in its favour: FY26 production up 33%, with a post-acquisition run rate of about 7,300 boe/d.

The pressure point: unit cash operating costs near US$21/boe are the highest of the five, compressing margins fastest if crude falls back toward the August average of US$91.

The bottom line

All five sell into the same benchmark, and all five gained from the same decision: OPEC+ holding October quotas while Brent trades above US$100.

What separates them is cost.

Santos sits lowest at US$7.53/boe and Woodside close behind at US$8.80/boe, while Karoon and Horizon carry costs two to three times higher, so each dollar of crude strength converts to margin at very different rates.

Beach sits outside the cost comparison entirely, reporting in Australian dollars with a gas-weighted book.

The next dated test is the OPEC+ capacity review feeding 2027 baselines, due by end-September, with ministers meeting on 4 October 2026.