Woodside's first shipment of LNG from its Wheatstone project and record production at the Pluto facility was not enough for the miner to lift production levels for 2017.
Woodside has significantly lifted its LNG guidance for 2018 to between 69 and 71 million barrels (MMboe) of oil equivalent, up from its 2017 actual figures of 61.7 MMboe.
This is due to increased production expected from the Wheatstone project, which has begun ramping up to full capacity.
Its full-year guidance - across all assets - has lifted only slightly from 84.4 MMboe in 2017 to between 85 and 90 MMboe.
The miner put this down to lower production levels expected at its NSW Pipeline Gas operations and reduced output of liquids -oil and condensate. Its actual production levels dropped 11 per cent year on year.
Woodside chief executive Peter Coleman said the drop was caused by a change in its share of domestic gas for the North West Shelf.
Mr Coleman told Fairfax Media the equity amount of gas received from the project shifted from half to only one sixth of gas, impacting its overall production levels.
Operating revenues fell 4 per cent for the year ending December 2017 compared with the previous corresponding year, dropping from $4.075 billion in 2016 to $3.9081 billion in 2017.
While sales revenues jumped 7 per cent quarter on quarter, from $914 million to $939 million, it was a 7 per cent drop compared with the previous corresponding quarter.
Still, the fourth quarter marked a highlight for Woodside, with the first shipment from its Wheatstone LNG project.
"Wheatstone LNG train 1 commenced production in October, with the first cargo delivered to Japanese buyers in November," Mr Coleman said.
"This was a significant achievement for the project and our attention is now focused on supporting the operator with the completion of train 2 and the domestic gas facility.
"Once it ramps up it will account for 15 per cent of our total production volumes. It is coming at a great time as the market is starting to firm up," he told Fairfax Media.
The first LNG shipment from Wheatstone Train 2 is forecast in the second quarter of 2018, with domestic gas production slated to start in the second half of 2018.
The company's Pluto field also had higher production rates, reaching a fourth quarter record.
"Pluto has been a tremendous asset considering it got off to a troubled start," Mr Coleman said.
"We consider it a jewel in the crown of Woodside."
An extremely strong oil price is forecast to play a major role in continued positive performance for the first quarter of 2018; the Brent Crude price is hovering around $US70 a barrel.
"Looking ahead to 2018, we can expect a significant increase in annual LNG production and we anticipate we will be cash flow neutral at $US35 a barrel," Mr Coleman said.
RBC Capital Markets analyst Ben Wilson said the results were unsurprising.
"It is a solid production quarter from Woodside with production in line with our expectation and sales, and sales revenue slightly lower largely due to lower ramp up at Wheatstone than our forecasts," Mr Wilson said.
However, he remained unimpressed with Woodside's development in the near future.
"We retain our underperform rating on Woodside due to lack of medium-term growth."
Citi research noted that Woodside, with its forecast breakeven price of $US35 a barrel, "remains the best-positioned company to thrive in extended low oil prices".
Despite this, Citi rates Woodside as a sell, and believes it is overvalued.
Woodside's share price opened at $33.55, but fell 0.45 per cent to $33.40 by mid-afternoon.
