Live News • Jul 26
Santos Lowers 2026 Output Range Despite Barossa and Pikka Project Progress Santos has narrowed its 2026 production guidance to 99 to 105 million barrels of oil equivalent (MMboe), down from 101 to 111 MMboe, even as Barossa reaches 97% of planned rates and Pikka ramps to about 23,000 barrels per day toward a targeted 80,000 barrels per day plateau by Q3 2026.
The tighter and lower range points to more conservative expectations around future output despite progress at key projects, which could influence revenue potential and capital allocation plans for Santos.
Santos shares trade at A$7.97, with the stock up 29.6% year to date, so the revised guidance comes against a backdrop of strong recent share price performance.
The guidance change puts more focus on execution risk and how efficiently Santos can convert Barossa and Pikka ramp-up into cash flow, especially if volumes track toward the lower end of the new range. Announcement • Jun 18
Santos Limited Appoints Kate Vidgen as Independent Non-Executive Director Effective 17 June 2026 Santos Limited announced that Ms. Kate Vidgen will be appointed as an independent Non-Executive Director effective 17 June 2026. Ms. Vidgen brings extensive experience to Santos as a senior finance executive and non-executive director, with a demonstrated track record across the energy, resources, infrastructure and technology sectors. In addition to 26 years in executive roles at Macquarie Group, Ms. Vidgen has accumulated more than a decade of board-level experience. Notably, Ms. Vidgen served as the Chair of Quadrant Energy Pty Ltd, bringing direct and practical knowledge of the oil and gas operating environment to the Board. Ms. Vidgen currently serves on the board of Bond University, consults as an Operating Partner to Macquarie Asset Management, is an independent Non-Executive Director of Macquarie Technology Group Limited and is the Chair of SkyNRG BV. Ms Vidgen has also served as an independent Non-Executive Director of Aurizon Holdings Ltd, a member of the Clean Energy Regulator and a National Board Member of Chief Executive Women. Ms. Vidgen's appointment follows the retirement of Ms. Yasmin Allen on 21 February 2026. Live News • Jun 12
Santos Targets Higher Oil and LNG Output as Pikka and Barossa Projects Reach Key Milestones Santos is ramping up production from the Pikka Phase 1 oil project in Alaska, which has started at 20,000 barrels per day and is targeting a plateau of 80,000 barrels per day by Q3 2026, with first sales revenue expected 2 to 3 months after first oil.
The Barossa LNG project has shipped its first cargoes, while PNG LNG, GLNG and Alaska assets continue to contribute to higher Q1 2026 production and stable free cash flow, with full-year 2026 guidance unchanged.
The company plans to reduce net debt by US$2.5b by 2030, supported by a 10-year gas sales agreement with the South Australian Government, progress on domestic gas infrastructure, and potential future catalysts from Papua LNG and carbon capture projects.
These updates point to a period in which Santos is bringing large projects online, keeping guidance in place and using cash generation to work toward balance sheet improvement targets.
Investors may want to watch execution risk around the production ramp at Pikka and Barossa, as well as timing on Papua LNG and carbon capture decisions, given their importance to future cash flow and capital allocation. Live News • Jun 05
Santos Reaffirms 2026 Outlook as Key LNG and Oil Projects Hit Crucial Milestones Santos has reaffirmed its 2026 full-year guidance while reporting quarterly production that it describes as higher, supported by stable free cash flow generation.
Key growth projects, including the Barossa LNG and Pikka oil developments in Alaska, are moving toward important milestones that could influence earnings in upcoming quarters.
Operations across PNG LNG, GLNG and Alaska are described as strong, with additional potential from a possible final investment decision on Papua LNG and ongoing carbon capture projects.
The combination of maintained guidance, progressing LNG and oil projects, and stable free cash flow points to a business that is currently leaning on both existing production and a pipeline of future developments.
You should also weigh execution and regulatory risks around Barossa, Pikka, Papua LNG and carbon capture, as delays or cost pressures on any of these projects could affect the timing and scale of future cash flows. Major Estimate Revision • Apr 16
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from US$6.94b to US$7.32b. EPS estimate increased from US$0.54 to US$0.60 per share. Net income forecast to grow 133% next year vs 31% growth forecast for Oil and Gas industry in Australia. Consensus price target up from AU$8.28 to AU$8.56. Share price fell 3.8% to AU$7.65 over the past week. Major Estimate Revision • Mar 25
Consensus EPS estimates increase by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from US$6.14b to US$6.59b. EPS estimate increased from US$0.43 to US$0.494 per share. Net income forecast to grow 79% next year vs 36% growth forecast for Oil and Gas industry in Australia. Consensus price target up from AU$8.13 to AU$8.38. Share price was steady at AU$7.84 over the past week. Announcement • Mar 13
Santos Limited, Annual General Meeting, Apr 16, 2026 Santos Limited, Annual General Meeting, Apr 16, 2026. Location: at meeting hall c, adelaide convention centre, north terrace, adelaide, south australia, 5000., Australia Major Estimate Revision • Mar 08
Consensus EPS estimates increase by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from US$5.53b to US$5.89b. EPS estimate increased from US$0.315 to US$0.40 per share. Net income forecast to grow 56% next year vs 15% growth forecast for Oil and Gas industry in Australia. Consensus price target up from AU$7.59 to AU$7.97. Share price rose 10% to AU$7.46 over the past week. Recent Insider Transactions • Mar 08
MD, CEO & Director recently sold AU$5.6m worth of stock On the 27th of February, Kevin Gallagher sold around 830k shares on-market at roughly AU$6.75 per share. This transaction amounted to 21% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Kevin's only on-market trade for the last 12 months. Declared Dividend • Feb 20
Final dividend of US$0.10 announced Shareholders will receive a dividend of US$0.10. Ex-date: 23rd February 2026 Payment date: 25th March 2026 Dividend yield will be 4.4%, which is lower than the industry average of 8.8%. Sustainability & Growth Dividend is not adequately covered by earnings (94% earnings payout ratio) nor is it covered by cash flows (101% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 4.3% to bring the payout ratio under control. EPS is expected to grow by 64% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Feb 19
Full year 2025 earnings released: EPS: US$0.25 (vs US$0.38 in FY 2024) Full year 2025 results: EPS: US$0.25 (down from US$0.38 in FY 2024). Revenue: US$4.94b (down 8.2% from FY 2024). Net income: US$818.0m (down 33% from FY 2024). Profit margin: 17% (down from 23% in FY 2024). Oil reserves Proven reserves: 138 MMbbls Gas reserves Proven reserves: 4510.493 Bcf Combined production Oil equivalent production: 87.7 MMboe (87.1 MMboe in FY 2024) Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Oil and Gas industry in Australia. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Major Estimate Revision • Jan 23
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from US$6.04b to US$5.59b. EPS estimate also fell from US$0.374 per share to US$0.326 per share. Net income forecast to shrink 2.6% next year vs 8.1% decline forecast for Oil and Gas industry in Australia. Consensus price target broadly unchanged at AU$7.45. Share price was steady at AU$6.38 over the past week. Announcement • Dec 20
Santos Limited Appoints Lachlan Harris as Chief Financial Officer, Effective 19 December 2025 Santos Limited announced the appointment of Lachlan Harris as Chief Financial Officer, effective 19 December 2025. Mr. Harris has been responsible for overseeing the company's financial stewardship since his appointment as Acting Chief Financial Officer in October. In his 15 years with the business, Mr. Harris has held a range of leadership positions including across treasury, finance systems and risk. Most recently, he held the roles of Deputy Chief Financial Officer and Treasurer and previously acted in the Chief Financial Officer role. Mr. Harris is a Fellow of the Chartered Accountants Australia and New Zealand and holds a Bachelor of Commerce (Accounting & Finance). Announcement • Sep 17
XRG P.J.S.C, Abu Dhabi Developmental Holding Company PJSC and The Carlyle Group Inc. (NasdaqGS:CG) cancelled the acquisition of Santos Limited (ASX:STO). XRG P.J.S.C, Abu Dhabi Developmental Holding Company PJSC and The Carlyle Group Inc. (NasdaqGS:CG) proposed to acquire Santos Limited (ASX:STO) for AUD 28.8 billion on June 13, 2025. The offer per share value for Santos is AUD 8.89 per share. This acquisition is via a scheme of arrangement. Santos Board confirms that, subject to reaching agreement on acceptable terms of a binding SIA, it intends to unanimously recommend that Santos Shareholders vote in favour of the Potential Transaction, in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the Potential Transaction is fair and reasonable and in the best interests of Santos Shareholders. As of June 27, 2025, XRG P.J.S.C, Abu Dhabi Developmental Holding Company PJSC and The Carlyle Group Inc. has entered into a process and exclusivity deed to acquire Santos Limited.
The Indicative Proposal is subject to the satisfactory completion of confirmatory due diligence by the XRG Consortium and the negotiation and execution of an agreed scheme implementation agreement (SIA) with Santos on customary terms and conditions. Implementation of the scheme under the SIA would be conditional on (among other things) customary approval from the Foreign Investment Review Board, Australian Securities and Investments Commission, National Offshore Petroleum Titles Administrator, PNG Securities Commission, PNG Independent Consumer and Competition Commission and Committee on Foreign Investment in the United States. As of July 1, 2025, the consortium has been granted exclusive due diligence access for a period of six weeks from June 27, 2025. The exclusivity provisions include customary “no shop”, “no talk”, “no due diligence” and “notification” obligations that apply during the exclusivity period. The transaction also requires approval from regulators in Papua New Guinea and the United States. As on August 11, 2025, The XRG Consortium has now substantially completed due diligence in relation to the Potential Transaction under the Process and Exclusivity Deed dated June 27, 2025. Santos has consented to the Extension until August 22, 2025 to enable the XRG Consortium to finalise due diligence and progress a scheme implementation agreement (SIA). Santos Shareholders do not need to take any action in relation to this announcement. Santos notes that there is no certainty that the XRG Consortium will enter into a binding SIA on terms acceptable to Santos or that the Potential Transaction will proceed. Santos will continue to keep its shareholders informed in accordance with its continuous disclosure obligations. As on August 19, 2025, The XRG Consortium has indicated that these approvals are expected to take four weeks to obtain (assuming an expedited process, potentially longer without) from the time that both due diligence is complete and the terms of an SIA are agreed in principle. As on August 25, 2025, The Consortium has requested an extension of the exclusivity period to conclude due diligence and to allow the Consortium to obtain all necessary approvals to enter into a binding transaction. Santos has agreed to an extension of the Process Deed September 19, 2025.
The Goldman Sachs Group, Inc. (NYSE:GS) and J.B. North & Co Pty Ltd acted as financial advisor and Herbert Smith Freehills Kramer acted as legal advisor to Santos. Rothschild & Co is acting as independent board adviser.
XRG P.J.S.C, Abu Dhabi Developmental Holding Company PJSC and The Carlyle Group Inc. (NasdaqGS:CG) cancelled the acquisition of Santos Limited (ASX:STO) on September 17, 2025. Declared Dividend • Aug 27
First half dividend of US$0.12 announced Shareholders will receive a dividend of US$0.12. Ex-date: 2nd September 2025 Payment date: 1st October 2025 Dividend yield will be 3.5%, which is lower than the industry average of 8.8%. Sustainability & Growth Dividend is covered by earnings (75% earnings payout ratio) but not covered by cash flows (109% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 56% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 26
First half 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First half 2025 results: EPS: US$0.14 (down from US$0.20 in 1H 2024). Revenue: US$2.58b (down 4.9% from 1H 2024). Net income: US$439.0m (down 31% from 1H 2024). Profit margin: 17% (down from 24% in 1H 2024). The decrease in margin was primarily driven by lower revenue. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 16%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Oil and Gas industry in Australia. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Aug 25
Santos Limited Announces Ordinary Fully Paid Dividend for A Period of Six Months Ended June 30, 2025, Payable on October 1, 2025 Santos Limited announced ordinary fully paid dividend of USD 0.1340 per security for a period of six months ended June 30, 2025. Record Date: September 3, 2025, Ex Date: September 2, 2025 and Payment Date: October 1, 2025. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to AU$7.72, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 7x in the Oil and Gas industry in Australia. Total returns to shareholders of 23% over the past three years. Announcement • Jun 16
XRG P.J.S.C, Abu Dhabi Developmental Holding Company PJSC and The Carlyle Group Inc. (NasdaqGS:CG) proposed to acquire Santos Limited (ASX:STO) for AUD 28.8 billion. XRG P.J.S.C, Abu Dhabi Developmental Holding Company PJSC and The Carlyle Group Inc. (NasdaqGS:CG) proposed to acquire Santos Limited (ASX:STO) for AUD 28.8 billion on June 13, 2025. The offer per share value for Santos is AUD 8.89 per share. This acquisition is via a scheme of arrangement. Santos Board confirms that, subject to reaching agreement on acceptable terms of a binding SIA, it intends to unanimously recommend that Santos Shareholders vote in favour of the Potential Transaction, in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the Potential Transaction is fair and reasonable and in the best interests of Santos Shareholders.
The Indicative Proposal is subject to the satisfactory completion of confirmatory due diligence by the XRG Consortium and the negotiation and execution of an agreed scheme implementation agreement (SIA) with Santos on customary terms and conditions. Implementation of the scheme under the SIA would be conditional on (among other things) customary approval from the Foreign Investment Review Board, Australian Securities and Investments Commission, National Offshore Petroleum Titles Administrator, PNG Securities Commission, PNG Independent Consumer and Competition Commission and Committee on Foreign Investment in the United States. The Goldman Sachs Group, Inc. (NYSE:GS) and J.B. North & Co Pty Ltd acted as financial advisor and Herbert Smith Freehills Kramer acted as legal advisor to Santos. Rothschild & Co is acting as independent board adviser. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to AU$5.37, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 4x in the Oil and Gas industry in Australia. Total loss to shareholders of 23% over the past three years. Announcement • Mar 07
Santos Limited, Annual General Meeting, Apr 10, 2025 Santos Limited, Annual General Meeting, Apr 10, 2025. Location: at the theatre room, adelaide entertainment centre, 98 port road, hindmarsh 5007, Australia Declared Dividend • Feb 21
Final dividend of US$0.10 announced Shareholders will receive a dividend of US$0.10. Ex-date: 24th February 2025 Payment date: 26th March 2025 Dividend yield will be 4.4%, which is lower than the industry average of 8.8%. Sustainability & Growth Dividend is covered by earnings (62% earnings payout ratio) but not covered by cash flows (168% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 42% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 19
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: US$0.38 (down from US$0.43 in FY 2023). Revenue: US$5.38b (down 8.6% from FY 2023). Net income: US$1.22b (down 14% from FY 2023). Profit margin: 23% (down from 24% in FY 2023). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.3%. Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Oil and Gas industry in Australia. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 3% per year. Announcement • Nov 04
Kumul Petroleum Holdings Limited acquired 2.6% stake in PNG LNG Inc. from Santos Limited (ASX:STO) for approximately $600 million. Kumul Petroleum Holdings Limited entered into an agreement to acquire a 2.6% stake in PNG LNG Inc. from Santos Limited (ASX:STO) for approximately $590 million on September 1, 2023. The transaction is subject to n the approval of the PNG competition regulator. The transaction is expected to closed on or before December 31, 2023.
As on December 29, 2023, Santos is pleased to confirm that further to the announcement on August 31, 2023 for the sale of 2.6% of PNG LNG to Kumul Petroleum Holdings Limited (Kumul), funding for the transaction has been secured by Kumul. Kumul has paid approximately $250 million into escrow with Santos as part payment of the purchase price. Additionally, Kumul has executed binding funding arrangements for the remainder of the consideration, which will be available for drawdown by January 31, 2024. Approval by the PNG independent Consumer and Competition Commission (ICCC) for the transaction has been received, satisfying the only condition precedent to the transaction. The commercial terms of the transaction remain unchanged. As on February 1, 2024, Santos and Kumul have agreed an amendment to the Sale Agreement where Kumul has taken an effective interest in the Santos entity that holds the 2.6% sale interest. Kumul has paid $352 million to Santos (equivalent to a 1.6%) on January 31, 2024 to allow partial completion of the transaction. The amendment provides additional time for Kumul to pay the remaining purchase price of $241 million. Until final completion, Santos retains control of the entity holding the 2.6% and in order to assist with purchase of the remaining interest, future project distributions associated with the interest sold to Kumul will be applied to acquiring the remaining interest.
Kumul Petroleum Holdings Limited completed the acquisition of 2.6% stake in PNG LNG Inc. from Santos Limited (ASX:STO) for approximately $600 million on November 4, 2024. Announcement • Sep 07
Santos Limited Announces Chief Financial Officer Changes Santos announced the retirement of Ms. Anthea McKinnell as Chief Financial Officer and the appointment of Ms. Sherry Duhe to the role. Ms. Duhe joins Santos as a highly skilled and experienced finance executive in the energy sector. During her 28-year career, primarily in the oil and gas industry, Ms. Duhe has held senior finance, commercial, and merger and acquisition roles in Australia, the United States, Europe and the Middle East. Ms. Duhe was most recently interim Chief Executive Officer at Newcrest Limited where she worked closely with Management and the Board to successfully negotiate and complete the sale of the company to Newmont. Ms. Duhe served as Chief Financial Officer at Woodside Energy for four years until early 2022, prior to which she had a 13-year career with Shell, holding varied international finance roles of increasing scope and accountability. She commenced her career with Exxon Mobil. Ms. Duhe holds a Bachelor of Science in Accounting from Louisiana State University and an International Master of Business Administration from the University of South Carolina. She is also a Certified Public Accountant. Announcement • Sep 04
Timor GAP, E.P. agreed to acquire 16% stake in Bayu-Undan upstream project from Santos Limited (ASX:STO), Tokyo Timor Sea Resources Pty Ltd, Eni S.p.A. (BIT:ENI), Inpex Corporation (TSE:1605) and SK E&S Co., Ltd. Timor GAP, E.P. signed a sale and purchase deed to acquire 16% stake in Bayu-Undan upstream project from Santos Limited (ASX:STO), Tokyo Timor Sea Resources Pty Ltd, Eni S.p.A. (BIT:ENI), Inpex Corporation (TSE:1605) and SK E&S Co., Ltd. on September 2, 2024. Execution of the SPD to effect this transaction is planned to occur in mid-September. Declared Dividend • Aug 23
First half dividend of US$0.13 announced Shareholders will receive a dividend of US$0.13. Ex-date: 26th August 2024 Payment date: 25th September 2024 Dividend yield will be 5.4%, which is lower than the industry average of 8.8%. Sustainability & Growth Dividend is covered by earnings (78% earnings payout ratio) but not covered by cash flows (141% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 44% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Aug 23
Santos Limited Announces Estimated Ordinary Dividend for the Six Months Ended June 30, 2024, Payable on September 25, 2024 Santos Limited announced estimated ordinary dividend of USD 0.13000000 per share for the six months ended June 30, 2024. The dividend is payable on September 25, 2024 with record date of August 27, 2024 and ex-date of August 26, 2024. Reported Earnings • Aug 22
First half 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First half 2024 results: EPS: US$0.20 (down from US$0.24 in 1H 2023). Revenue: US$2.71b (down 8.6% from 1H 2023). Net income: US$636.0m (down 20% from 1H 2023). Profit margin: 24% (down from 27% in 1H 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 2.6%. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Oil and Gas industry in Australia. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • May 09
Santos, Repsol Reportedly Explore Sale of Stakes in Alaska Oilfields Oil and gas producers Santos Limited (ASX:STO) and Repsol, S.A. (BME:REP) are exploring a sale of a minority stake in oilfields in Alaska they jointly own and develop in a deal that could be worth about $1 billion, according to people familiar with the matter. The oilfields include the Pikka project, which is one of the largest oil prospects in Alaska and has been valued at about $4.5 billion by consultancy firm Rystad Energy. The companies are working with an investment bank to jointly sell minority stakes in Pikka, alongside partial interests in the Horseshoe and Quokka fields that are located in the North Slope region of Alaska, the sources said, requesting anonymity as the discussions are confidential. Repsol and Santos declined to comment. The stakes are so-called non-operating positions, meaning the owner gets a share of the proceeds from the sale of hydrocarbons without needing to undertake any drilling or be involved in operations. They are required to contribute to their share of costs. Potential buyer interest will likely be impacted by factors including legal and environmental risks, the sources said, cautioning a deal is not guaranteed. Announcement • Mar 01
Santos Limited Announces Actual Ordinary Fully Paid Dividend for the Six Months Ended December 31, 2023, Payable on March 27, 2024 Santos Limited announced actual ordinary fully paid dividend of USD 0.17500000 per share for the six months ended December 31, 2023. The dividend is payable on March 27, 2024 with record date of February 27, 2024 and ex-date of February 26, 2024. Declared Dividend • Feb 23
Final dividend of US$0.17 announced Shareholders will receive a dividend of US$0.17. Ex-date: 26th February 2024 Payment date: 27th March 2024 Dividend yield will be 4.2%, which is lower than the industry average of 8.8%. Sustainability & Growth Dividend is covered by earnings (60% earnings payout ratio) but not adequately covered by cash flows (95% cash payout ratio). The dividend has increased over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 34% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 21
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: US$0.43 (down from US$0.63 in FY 2022). Revenue: US$5.89b (down 24% from FY 2022). Net income: US$1.42b (down 33% from FY 2022). Profit margin: 24% (down from 27% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 3.4%. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in Australia are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 07
Woodside Energy Says Merger Talks with Santos Collapsed Australia's Woodside Energy Group Ltd. (ASX:WDS), opens new tab and Santos Limited (ASX:STO) said they had ended talks to create a possible AUD 80 billion ($52 billion) global oil and gas giant. Woodside, which is more than twice as large as Santos in terms of market value and revenue, said it would only pursue a deal that would add value for its shareholders. The talks fell apart as the two companies could not agree on a valuation level, according to two sources with direct knowledge of the matter who could not be named discussing confidential information. A firm bid did not emerge from Woodside following the almost two months of due diligence and negotiations that the parties undertook, one of the sources said. Woodside declined to comment on those points and Santos did not immediately respond to a request for comment. Santos said in a statement after "an initial exchange of information, sufficient combination benefits were not identified to support a merger that would be in the best interests of Santos shareholders". "We have a strong balance sheet and continue to review options to unlock value for shareholders," it said. If the merger had taken place, it would have created a major global liquefied natural gas (LNG) producer that could attract more offshore investors as gas is seen as a key bridging fuel in the shift to cleaner energy. "While the discussions with Santos did not result in a transaction, Woodside considers that the global LNG sector provides significant potential for value creation," Woodside CEO Meg O’Neill said in a statement. Woodside had faced pressure from some investors not to pay a premium for Santos in what would have been one of the largest corporate takeovers in Australian history. "Woodside's decision to walk away is a relief," said Simon Mawhinney, chief investment officer at Allan Gray which holds A$700 million worth of Woodside stock. The fund last week wrote to management warning against pursuing a deal. "We had hoped this would be the outcome," Mawhinney said. "It was unclear to us where there was much merit in a tie up. It further cements our view about Woodside's capital discipline". Announcement • Jan 25
Santos Limited, Annual General Meeting, Apr 11, 2024 Santos Limited, Annual General Meeting, Apr 11, 2024. Major Estimate Revision • Jan 22
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from US$0.486 to US$0.435 per share. Revenue forecast steady at US$5.97b. Net income forecast to shrink 16% next year vs 13% decline forecast for Oil and Gas industry in Australia. Consensus price target broadly unchanged at AU$8.90. Share price fell 2.2% to AU$7.66 over the past week. Announcement • Jan 09
Santos Limited Announces Company Secretary Changes Santos Limited announced the appointment of Amelia Senneck as Company Secretary effective 9 January 2024. The appointment coincides with Amanda Devonish's resignation as Company Secretary. Announcement • Dec 07
Woodside Energy Response to Media Speculation In response to recent media speculation, Woodside Energy Group Ltd. (ASX:WDS) confirmed it is in discussions regarding a potential merger with Santos Limited (ASX:STO). Discussions remain confidential and incomplete, and there is no certainty that the discussions will lead to a transaction. As a global energy company, Woodside continuously assesses a range of opportunities to create and deliver value for shareholders. Woodside will continue to update the market in accordance with its continuous disclosure obligations. Buying Opportunity • Nov 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 4.9%. The fair value is estimated to be AU$9.50, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 31% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 2.0% per annum. Earnings is also forecast to grow by 3.7% per annum over the same time period. Recent Insider Transactions • Sep 10
MD, CEO & Director recently sold AU$4.7m worth of stock On the 8th of September, Kevin Gallagher sold around 599k shares on-market at roughly AU$7.78 per share. This transaction amounted to 25% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Kevin has been a net seller over the last 12 months, reducing personal holdings by AU$6.7m. Announcement • Sep 01
Santos Limited Announces Dividend for the Six Months Ended June 30, 2023 Payable on September 28, 2023 Santos Limited announced actual ordinary fully paid dividend of USD 0.08700000 per share for the six months ended June 30, 2023. The dividend is payable on September 28, 2023 with record date of August 29, 2023 and ex-date of August 28, 2023. Announcement • Aug 25
CPC Reportedly Set for Dorado Stake CPC Corporation, Taiwan is being tipped as the most likely buyer of an additional stake in the Dorado oil and gas project off the coast of Western Australia. Owner Santos Limited (ASX:STO) is understood to have had four or five parties in a data room, in a process run by investment bank Goldman Sachs. Among them are believed to be Kufpec (Kuwait Foreign Petroleum Exploration Company K.S.C.) and at least one Japanese suitor, with Mitsui & Co., Ltd. (TSE:8031) and Mitsubishi Corporation (TSE:8058) likely candidates. Other likely parties are Tokyo Gas Co.,Ltd. (TSE:9531), Osaka Gas Co., Ltd. (TSE:9532) and Jadestone Energy plc (AIM:JSE). But the latest chatter in the market is that Santos is pinning its hopes on CPC investing further. CPC recently finalised a deal with Carnarvon, the other owner of the project, to buy a 10% interest in Dorado and its Pavo project for an all-up payment of $146 million. Santos has an 80% interest in Dorado and the thinking in the market is that it remains keen to reduce that exposure to about 60%. Azure Capital-advised Carnarvon Energy was the only other holder before CPC bought in. Dorado, once owned by Woodside Petroleum and later Quadrant Energy before it was purchased by Santos, is an integrated oil and gas project that will be developed in two phases. It is located in the Bedout sub-basin, about 140km off the coast of WA's Port Hedland. Reported Earnings • Aug 24
First half 2023 earnings: EPS exceeds analyst expectations while revenues lag behind First half 2023 results: EPS: US$0.24 (down from US$0.35 in 1H 2022). Revenue: US$2.97b (down 21% from 1H 2022). Net income: US$790.0m (down 32% from 1H 2022). Profit margin: 27% (down from 31% in 1H 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 3.2%. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 2.1% decline forecast for the Oil and Gas industry in Australia. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Announcement • Aug 23
Santos Limited Announces Estimated Ordinary Dividend for the Six Months Ended June 30, 2023, Payable on September 28, 2023 Santos Limited announced estimated ordinary fully paid dividend of USD 0.08700000 per share for the six months ended June 30, 2023. The dividend is payable on September 28, 2023 with record date of August 29, 2023 and ex-date of August 28, 2023. Announcement • Jul 25
Santos Reportedly Shortlists Bidders for Dorado Project Santos Limited (ASX:STO) Santos is believed to have shortlisted bidders for round two in the contest for a stake in its Dorado project in Western Australia. It is understood that a stake of about 25%, expected to be worth about $500 million, is on offer through investment bank Goldman Sachs. Among those in the race is Kuwait Foreign Petroleum Exploration Company K.S.C. (Kufpec), and the sale process has drawn interest from Southeast Asia. Santos owns 80% of the project, with Azure Capital-advised Carnarvon Energy the remaining holder. Carnarvon sold a 10% stake to Taiwan's CPC for $146 million in February. Sources have suggested that Taiwan's CPC might increase its interest, and Indian companies could consider an acquisition. Dorado is an integrated oil and gas project that will be developed in two phases. The Dorado and Pavo fields are estimated to contain gross 2C recoverable contingent resources of 189 million barrels of liquids and 401 petajoules of gas. Major Estimate Revision • Jul 21
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$6.16b to US$6.04b. EPS estimate also fell from US$0.569 per share to US$0.509 per share. Net income forecast to shrink 25% next year vs 23% decline forecast for Oil and Gas industry in Australia. Consensus price target broadly unchanged at AU$8.93. Share price was steady at AU$7.73 over the past week. Announcement • Jul 12
Santos Limited Announces Resignation of Jodie Hatherly as Company Secretary, Effective 31 July 2023 Santos Limited announced that Jodie Hatherly has resigned as a company secretary, effective 31 July 2023. Amanda Devonish remains as company secretary. 
