Santos Ltd

First-half results: production 45.6 mmboe, revenue US$2.6bn, underlying profit US$397m, free cash flow US$378m. Interim dividend 11.6c unfranked (US$377m); gearing 23.2% ex leases, up from 21.5% at end-2025. Papua LNG FID is still targeted for Q4 2026.

half year report

Santos signed the full gas sale agreement with the South Australian Government: 200 PJ over 10 years from 1 March 2030, with indexed pricing and prepayment. This meets the 30 June condition set in the February term sheet and supports funding of the Moomba Central Optimisation project.

material agreement

Investor day sets a net debt reduction target of about US$2.5bn by 2030 and the outcome of its strategic review: the Australian domestic business is repurposed, with ~US$300m cumulative capex cuts for 2027-2030. Barossa is at 75% of planned 2026 rates.

investor presentation

First oil flowed from Pikka phase 1 in Alaska (Santos 51%, Repsol 49%). Output is to ramp to 20,000 bbl/d gross, with 80,000 bbl/d plateau expected in Q3 2026. First sales revenue is expected two to three months out.

production update

Santos took a final investment decision on the PNG Agogo Production Facility tie-in. Its share of capex is about US$160m, with first gas targeted for Q2 2028. The project adds ~54 mmscf/d net, with an expected IRR above 50%.

material agreement

Quokka-1 appraisal well in Alaska found about 143 feet of net oil pay and flowed 2,190 bopd, supporting a possible two-drill-site development. Santos holds 51%. Pikka is mechanically complete with first oil expected in weeks; Barossa restart is expected around 18 April.

drilling result

Santos and Beach Energy took a final investment decision on the Moomba Central Optimisation project in the Cooper Basin. Santos's share is US$357m over three years, targeting over US$600m savings and an IRR above 15%. Funding is planned from the South Australia gas prepayment, subject to a final agreement.

material agreement

Santos signed a binding term sheet to supply the South Australian government 20 PJ a year for 10 years from March 2030, for Whyalla Steelworks. Prepayment pricing is included. It is conditional on a full gas supply agreement by 30 June 2026 and approvals.

material agreement

FY2025 results: underlying profit US$898m, free cash flow US$1.8bn, final dividend 10.3c (23.7c total). Santos also targets a ~10% headcount cut as Barossa and Darwin LNG complete. 2026 guidance unchanged at 101-111 mmboe.

half year report

Year-end 2025 2P reserves are 1,484 mmboe, down from 1,559. Additions of 13 mmboe before production of 88 mmboe were mainly from the Cooper Basin and PNG. 2C contingent resources fell to 3,212 mmboe after the Petrel and Tern sale.

resource reserve update

The first Barossa LNG cargo was loaded and sailed from Darwin LNG on 25 January, bound for Japan. Santos says the project came in within the original budget, about six months after the planned start date, without using the extra contingency.

production update

Fluor paid A$1.073bn following the August court judgment on the GLNG construction claim. Santos's net share is about A$240m (~US$160m). Fluor appealed in October, and if it succeeds some or all of the funds may have to be returned. The appeal hearing is scheduled for July 2026.

other

The PNG LNG joint venture repaid its project finance facility in full, six months early. Santos's share of the final payment was US$363m. There are no scheduled debt maturities in 2026, and liquidity is about US$4.0bn.

debt financing

Santos agreed to sell its 42.86% Mahalo interest to Comet Ridge for A$40m upfront plus up to A$20m contingent. It also completed the sale of its Petrel and Tern interests to Eni, for cash and contingent consideration, cutting decommissioning exposure.

asset acquisition disposition

Santos priced a US$1bn 10-year senior unsecured bond at a 5.75% coupon, maturing November 2035. Proceeds are for general corporate purposes, adding long-dated debt alongside the 2033 bond and the 2028 and 2030 facilities.

debt financing

Barossa's BW Opal FPSO received first gas after reaching ready for start-up on 16 September. All six wells found excellent reservoir, with about 300 mmscf/d expected per well. Darwin LNG's licence was renewed. The FPSO lease adds about US$665m of liabilities and about 2.4 points to gearing.

production update

The XRG Consortium withdrew its non-binding takeover proposal, which had been announced in June. Santos says XRG would not agree acceptable terms on timing, regulatory risk and a domestic gas commitment. The bid is over, with no deal, and Santos stays listed.

business combination

Santos reports first-half free cash flow of US$1.1bn and an interim dividend of 13.4 US cents, 10% franked, totalling US$435m. Pikka first oil guidance is brought forward to Q1 2026. Barossa is over 98% complete with first gas imminent, and Darwin LNG is ready for start-up.

half year report

Santos and XRG have not agreed binding deal terms, and XRG says it still needs final internal approvals, expected to take about four weeks. Santos does not expect a binding agreement by 22 August, though talks continue. Half-year results are deferred to 25 August.

business combination

The Queensland Supreme Court ruled for Santos against Fluor over costs on the GLNG construction contract, ordering Fluor to pay at least A$692m to Santos and its co-venturers, with further sums, interest and costs to be determined. Santos's own share is not stated.

other

Santos signed a process and exclusivity deed giving the XRG Consortium six weeks of exclusive due diligence on its US$5.76 (A$8.89) per share proposal. A fiduciary exception lets the board consider a superior rival proposal from four weeks in. No binding deal is certain.

material agreement

Santos received a non-binding cash proposal from the XRG Consortium (ADNOC subsidiary XRG, ADQ, Carlyle) at US$5.76 (A$8.89) per share, a 28% premium to A$6.96. It follows earlier offers of US$5.04 and US$5.42. The board intends to recommend it if a binding deal is agreed, subject to due diligence and approvals.

business combination

Full-year 2024: free cash flow US$1.9bn, revenue US$5.4bn, net profit US$1.2bn. Final dividend 10.3c (23.3c total, 40% of free cash flow); gearing 23.9%. Santos targets US$100-150m annual structural savings. Barossa is 91% complete with first gas Q3 2025; 2025 guidance unchanged.

annual report

Santos's proved-plus-probable (2P) reserves fell to 1,559 mmboe at end-2024 from 1,661 mmboe. Production of 87 mmboe and the 30 mmboe PNG LNG sale to Kumul outweighed organic additions of 15 mmboe. 2C resources edged up to 3,338 mmboe; Cooper Basin CO2 storage resources rose to 178 Mt.

resource reserve update

Santos signs a binding 12-year LNG supply agreement with Japan's Shizuoka Gas for 0.35 to 0.4 Mtpa at plateau, starting in 2032. It is another long-term Japanese buyer after Hokkaido Gas.

contract award

At its Investor Day Santos sets a new capital allocation framework: from 2026, at least 60% of all-in free cash flow returned to shareholders, up from 40%. It also targets storing about 14 Mtpa of third-party CO2e by 2040. Barossa is 84% complete, Pikka about 70%.

investor presentation

Santos completes the 2.6% PNG LNG sale to Kumul, receiving the final US$241m for total cash of US$602m. Kumul also assumes about US$90m of project debt. Santos's interest falls from 42.5% to 39.9%; 2024 guidance is unchanged.

farm in farm out completion

Moomba CCS is online at full injection rate, while Pikka phase one development capital is now expected to rise about 20% after inflation and faster pipelay. Q3 production was 21.6 mmboe, free cash flow about US$400m, gearing 21.7%. Barossa is 82% complete; 2024 capex guidance is unchanged.

quarterly activities report

The Darwin LNG joint venture, in which Santos holds 43.43%, closes US$800m of bank loans: US$350m maturing 2031 and US$450m maturing 2036. They fund the plant's life extension works, scheduled to complete mid-2025 ahead of Barossa gas.

debt financing

Santos refinances its syndicated bank loan, which was due August 2025, raising it from US$250m to US$850m. It is a fully revolving facility maturing January 2030, at a margin of 1.55% over SOFR. This extends debt maturities and adds liquidity.

debt financing

Santos and the Bayu-Undan partners execute the deed transferring 16% to TIMOR GAP, taking Santos from 43.4% to 36.5%. This follows the 2 September terms announcement. Completion is subject to customary closing conditions; the production sharing contract ends by 30 June 2026.

farm in farm out agreement

CFO Anthea McKinnell retires, returning to Perth for family reasons, and Sherry Duhe is appointed CFO from mid-October 2024. Duhe was Newcrest's interim CEO and Woodside's CFO until early 2022.

director officer appointment

Santos agrees terms to transfer 16% of Bayu-Undan to TIMOR GAP, cutting Santos from 43.4% to 36.5%. The production sharing contract is extended to 30 June 2026. Execution is planned for mid-September; no price is stated in the text.

asset acquisition disposition

Santos reports first-half 2024 free cash flow of US$1.07bn (down 5%) and underlying profit of US$654m. Interim dividend is 13 US cents unfranked, a record US$422m (up 49%). Production was 44 mmboe, guidance is unchanged, and Barossa is nearing 80% complete.

half year report

Santos signs a binding 10-year LNG supply deal with Japan's Hokkaido Gas for up to about 0.4 million tonnes a year, starting in 2027. It adds a long-term customer for the LNG portfolio, including Barossa and PNG LNG volumes. The parties will also explore carbon storage and e-methane.

contract award

Santos posts 2023 free cash flow of US$2.128bn and underlying profit of US$1.423bn, with a record US$852m cash dividend (26.2c per share). Barossa is 67% complete with first gas expected in Q3 2025. Pikka first oil is expected in H1 2026. 2024 guidance is unchanged.

annual report

2P reserves fell to 1,661 mmboe at end-2023 from 1,745, as 92 mmboe of production outweighed an 8 mmboe addition. The replacement ratio was 9%. 2C contingent resources rose to 3,325 mmboe, helped by a 108 mmboe revision to Tanumbirini.

resource reserve update

Santos confirms the Woodside merger talks have ended. After an initial information exchange, it says sufficient combination benefits were not identified to support a merger in its shareholders' best interests. It continues to review options to unlock value.

business combination

The PNG LNG sale to Kumul is only partly completed. Kumul paid US$352m on 31 January 2024 (about a 1.6% interest), and gets more time to pay the remaining US$241m. Until then Santos keeps control of the entity holding the 2.6%.

asset acquisition disposition

Federal Court rules for Santos in Munkara v Santos, dismissing the application and lifting the injunction that blocked Barossa pipelay beyond KP86. Santos will continue pipelaying, resolving the challenge that began in October 2023.

regulatory community update

The PNG regulator has approved the sale of 2.6% of PNG LNG to Kumul, satisfying the only condition. Kumul has paid about US$250m into escrow and has binding funding for the rest, available by 31 January 2024. Terms are unchanged.

asset acquisition disposition

NOPSEMA accepts the revised Barossa drilling and completions environment plan on 15 December 2023. This follows fresh consultation with Tiwi people after the earlier approval was set aside in 2022. Santos is now seeking the remaining approvals, which should let drilling resume.

regulatory community update

Santos confirms preliminary merger talks with Woodside, while also assessing alternative structural options to unlock value, as flagged at Investor Day. Talks are early, with no agreement and no certainty of a deal.

business combination

Investor Day reaffirms strategy and net zero by 2040. 2023 production guidance is tightened to 89-93 mmboe (previously 91-98), with 2024 guidance of 84-90 mmboe. Management is disappointed with the share price and reviewing alternatives. Pikka is 29% complete, Barossa 64% and Moomba CCS 75%.

investor presentation

Federal Court lets Barossa pipelay proceed on the first 86km section but bars work beyond KP86 pending a hearing starting 4 December 2023. Santos will keep defending the case and remains committed to the project.

regulatory community update

Federal Court grants an interim injunction stopping Barossa pipelay until 13 November 2023. The pipelay vessel waits in Darwin. Guidance is unchanged for now, but will be reassessed if the injunction is extended. This continues the Munkara challenge.

regulatory community update

Santos will fight Federal Court proceedings brought on behalf of Simon Munkara over Tiwi cultural heritage along the Barossa export pipeline. Barossa cost and schedule guidance holds if pipelay finishes in 2023 and drilling starts by year end; an injunction would force a reassessment.

regulatory community update

Santos farms down half its interest in 148 Alaska North Slope exploration leases (over 270,000 acres) to APA and Armstrong's Lagniappe, leaving it with 25%. Early exploration costs fall to the partners. Subject to government approvals; focuses Alaska on Pikka.

farm in farm out agreement

Santos prices a US$850m 10-year senior unsecured bond at a 6.875% fixed coupon, maturing September 2033, for general corporate purposes. Settlement is expected 19 September 2023.

debt financing

Santos signs a binding sale of 2.6% of PNG LNG to Kumul for US$576m cash plus about US$160m of assumed debt, not subject to financing. Kumul also gets an option on a further 2.4% for US$524m by 30 June 2024. This restructures the earlier 5% offer, which has expired.

asset acquisition disposition

First-half 2023 results: free cash flow US$1,129m (down 34%), underlying profit US$801m (down 37%) and production 45 mmboe (down 13%). Interim dividend rises 14% to US8.7c unfranked (US$283m). 2023 guidance is unchanged.

half year report

Papua LNG joint venture enters full FEED for up to 6 mtpa: four electric trains (4 mtpa) at the PNG LNG site plus up to 2 mtpa of existing PNG LNG capacity. First production end-2027/early 2028; FID planned end-2023/early 2024. Santos holds 22.8%.

material agreement

Santos reports 2022 underlying profit of US$2,461m (up 160%), net profit US$2,112m and free cash flow US$3,641m. Gearing is 18.9%. The final dividend rises 78% to US15.1c, with the US$700m buyback taking total 2022 returns to US$1,455m.

annual report

NOPSEMA accepts the Dorado Offshore Project Proposal, so Dorado now holds its primary development approvals following the April 2022 production licence. Santos must still finalise the concept and obtain remaining approvals before FID. Dorado and Pavo combined hold 189 million barrels of liquids and 401 PJ of gas (2C, gross).

regulatory community update

Santos reports record 2P reserves of 1,745 mmboe at end-2022, up 171 mmboe before production, with 166% replacement. Pikka Phase 1 sanction added 165 mmboe, offset by a 26 mmboe WA cut from Spar/Halyard water ingress. Expected impairments are about US$147m plus US$181m pre-tax.

resource reserve update

Santos adopts a simplified capital framework of at least 40% of free cash flow returned annually, with gearing target 15-25% unchanged. It adds a further US$350m on-market buyback, bringing 2022's total to US$700m. The earlier US$350m is about 98% complete.

capital raising announcement

The Full Federal Court dismisses Santos' appeal against the September ruling that set aside the Barossa drilling environment plan approval. Santos is revising the plan and will seek remaining approvals. It expects no material cost or schedule impact, with first gas still 1H 2025.

regulatory community update

At its Investor Briefing Day, Santos announces a new purpose and strategy (backfill and sustain, decarbonisation, clean fuels) and splits into two divisions, keeping net zero by 2040. 2023 production guidance is 91-98 mmboe, below 2022's 103-106 mmboe (guidance raised from 100-110 earlier context).

investor presentation

Santos receives a binding conditional offer from PNG state company Kumul for 5% of PNG LNG at US$1.4bn asset value, including about US$0.3bn of project debt. Kumul paid US$55m into escrow. Open until 31 Dec 2022, subject to pre-emption waivers. This follows the earlier sell-down talks; Santos would keep 37.5%.

asset acquisition disposition

Partner Red Sky reports Santos' Yarrow 3 appraisal well in PRL17 (Innamincka Dome, Cooper Basin) reached 2,748m and found gas in the Tirrawarra Sandstone and Patchawarra Formation on preliminary logs. The well will be cased and suspended as a potential producer. Announced by the partner.

drilling result

The Federal Court sets aside the regulator's acceptance of Barossa's drilling environment plan, finding Tiwi Islanders were not properly consulted, so drilling is suspended. Santos will appeal or seek a fresh plan. It says the project is 46% complete and drilling is not on the critical path.

regulatory community update

Santos wins two offshore CO2 storage appraisal permits: G-9-AP in the Carnarvon Basin (Santos 50% op, Chevron 50%) and G-11-AP in the Bonaparte Basin (Santos 40% op, Chevron 30%, SK E&S 30%). They extend its CCS plans beyond Reindeer and Bayu-Undan.

regulatory community update

Santos extends two syndicated bank facilities totalling US$1.25bn: US$250m maturing August 2025 and US$1bn maturing February 2028. Proceeds first refinance loans due 2024 and 2026, leaving no significant corporate debt maturities until 2027, excluding PNG LNG project finance.

debt financing

Santos, as Barossa operator, approves the Darwin Pipeline Duplication, extending the Barossa export pipeline to Darwin LNG and freeing the old Bayu-Undan pipeline for carbon storage. It adds about US$311m to Santos' Barossa capex. First gas stays targeted for 1H 2025.

material agreement

Santos announces US$605m of first-half returns: interim dividend up 38% to US7.6c unfranked (US$255m), and buyback raised from US$250m to US$350m. Synergy target lifts to US$110-125m. It is in advanced talks to sell 5% of PNG LNG, keeping 37.5%.

dividend declaration

Santos' half-year report shows net profit of US$1,167m, up 230%, on revenue of US$3,766m, with underlying profit of US$1,267m and free cash flow of US$1,708m. An unfranked interim dividend of 7.6 US cents is payable, with record date 23 August.

half year report

Santos takes final investment decision on Alaska's Pikka Phase 1 (Santos 51%, Repsol rest): US$1.3bn Santos-share capex, 80,000 bbl/d gross, first oil 2026. 2P reserves 397 mmbbl gross; ~19% IRR at US$60 oil. This meets the 1H 2022 FID target.

drilling result

Santos buys Hunter Gas Pipeline Pty Ltd, which holds an approved underground route from Wallumbilla, Queensland to Newcastle, to carry Narrabri gas to the domestic market. Construction is expected to start early 2024 subject to approvals. Narrabri appraisal drilling is planned later this year.

asset acquisition disposition

At the AGM the remuneration report got 25.3% votes against, which is a first strike under the Corporations Act. The climate advisory vote passed with about 37% against. The shareholder constitution amendment was defeated with about 95% against. All directors, including Utsler, were elected.

agm notice

Santos completes the sale of a 12.5% Barossa interest to JERA for US$327m cash, leaving Santos at 50% and operator. Barossa is 33% complete, on schedule and budget for first production in the first half of 2025. This completes the sell-down expected for the first half of 2022.

asset acquisition disposition

Santos adopts a new capital management framework: 10-30% free cash flow payout up to US$65 Brent, at least 40% of incremental free cash flow above that, and 15-25% target gearing (26% at March). It starts an on-market buyback of up to US$250m from May, acting on the planned review.

capital raising announcement

Pavo-1 (Santos 70% operator, Carnarvon 30%) found a 60 m oil column with 46 m net pay, 46 km east of Dorado. 2C contingent resource is 43 mmbbl gross (Santos 30 mmbbl). It resolves the pending Pavo result and may allow a low-cost Dorado tie-back; drilling continues toward about 4,200 m.

drilling result

Tamboran says Santos-operated Tanumbirini 2H and 3H flow rates were revised up about 17% after gas recalibration, to 2.0 and 1.7 mmscfd (3.0 and 2.9 per 1,000 m). This revises the 1 February figures, now at the 3.0 commerciality level cited earlier.

flow test result

Santos enters front-end engineering and design for Bayu-Undan CCS, which could store up to 10 million tonnes of CO2 a year. Santos holds 43.4% and operates. A final investment decision is targeted for 2023, subject to Timor-Leste and Australian agreements.

regulatory community update

Santos joined the PNG Government and P'nyang participants (ExxonMobil and JX Nippon affiliates) in signing a gas agreement setting the fiscal framework for P'nyang. Santos holds 38.5%. Development still needs a final investment decision and would follow Papua LNG.

material agreement

Santos reports record 2021 free cash flow of US$1.5bn and underlying profit of US$946m, with only three weeks of Oil Search included. Final dividend is 8.5 US cents, 70% franked. 2022 production guidance is 100-110 mmboe; AGM set for 3 May 2022.

annual report

Santos's 2P reserves rose 80% to 1,676 mmboe at end-2021, helped by Barossa's FID (373 mmboe) and Oil Search (416 mmboe). 2C resources rose 41% to 3,219 mmboe. It also booked 100 million tonnes of Cooper Basin CO2 storage.

resource reserve update

Tamboran reports initial 30-day flow rates for the Tanumbirini 2H and 3H wells in EP 161. After stabilising, the wells averaged 1.7 and 1.5 mmscfd, about 2.6 and 2.5 mmscfd per 1,000 metres. That is below the 3 mmscfd per 1,000 metres Tamboran cited as its commerciality threshold.

flow test result

Tamboran raised EP 161 contingent resources following the Tanumbirini flow tests. Net to Tamboran (25%), 2C rises 428% to 153 Bcf (610 Bcf gross) and 1C to 48 Bcf. This is a modest resource booking from the Santos-operated Beetaloo wells.

resource reserve update

Santos implemented the Oil Search merger on 17 December 2021 and now owns 100% of Oil Search. Eligible holders received 0.6275 new Santos shares each, with normal trading from 20 December. This completes the deal approved earlier in December.

business combination

Anthea McKinnell, Santos's deputy CFO since 2019, becomes CFO from 1 January 2022, replacing Anthony Neilson (CFO since December 2016). Neilson becomes Chief Commercial Officer, overseeing the Oil Search transition.

director officer appointment

The Santos–Oil Search merger is now effective. Oil Search holders get 0.6275 new Santos shares each (record date 14 December), with a combined market cap of about A$22bn, pro forma 2021 production ~117 mmboe and 4,867 mmboe 2P+2C. Three Oil Search directors join the Santos board.

business combination

The PNG National Court approved the Oil Search scheme, following the 7 December shareholder vote. The scheme becomes effective once court orders are lodged, expected 10 December. This was the last court step before completion.

business combination

Santos signed a binding agreement to sell 12.5% of Barossa to JERA for about US$300m at completion, expected 1H 2022. This finalises the sell-down flagged earlier, taking Santos to 50% alongside SK E&S 37.5%. First LNG remains 1H 2025, on schedule and budget.

farm in farm out agreement

Oil Search shareholders approved the Santos merger, with 95.07% of votes cast in favour. Court approval was sought for 9 December, and the scheme could become effective on 10 December. This clears the main shareholder hurdle for Santos's deal.

business combination

The PNG court approved the Oil Search scheme booklet and set the shareholder vote for 7 December 2021. The independent expert found the merger in Oil Search holders' best interests, absent a superior proposal. The Oil Search board continues to unanimously recommend it.

business combination

Santos and Beach Energy took final investment decision on the US$165m (A$220m) Moomba carbon capture project, with first injection targeted for 2024. It was registered with the Clean Energy Regulator, resolving the earlier pending condition. Santos holds 66.7% and operates.

drilling scheduled

The NSW Land and Environment Court dismissed the appeal against the Narrabri Gas Project, upholding the planning approval. Santos says the legal process delayed the project about 12 months, and it can now proceed to the appraisal drilling phase.

regulatory community update

Santos and Oil Search signed a binding Merger Implementation Deed at 0.6275 Santos shares per Oil Search share, resolving the earlier proposal stage. Santos holders would own about 61.5%. Santos expects US$90-115m a year of pre-tax synergies; Oil Search holders, PNG court and regulators must approve.

business combination

Santos awarded the Dorado FPSO FEED contract to Altera Infrastructure, the project's largest contract. It continues the FEED phase begun in June; the project is oil first, with later gas to backfill WA domestic supply. Santos holds 80%.

contract award

Oil Search disclosed Santos's improved proposal of 0.6275 Santos shares per Oil Search share (A$4.52 on 24 June prices, a 19.7% premium), giving Oil Search holders about 38.5%. Its board intends to recommend it subject to due diligence and agreement of a binding implementation deed.

business combination

Santos and Oil Search agreed a merger ratio of 0.6275 Santos shares per Oil Search share, resolving the earlier rejection. Santos holders would own about 61.5% of the group. About four weeks of due diligence precede a binding deal; Oil Search's board intends to recommend, conditionally.

business combination

First Phase 3C infill well at Bayu-Undan came online at 178 mmscfd of gas and 11,350 bbl/d of liquids, better than expected, lifting field liquids above 25,000 bbl/d. Two more wells follow, finishing early 2022. Santos holds 43.4%.

production update

First oil from the Van Gogh Phase 2 infill, with the first of three wells peaking at 23,200 bbl/d, the field's highest single-well rate. The two remaining wells follow, with start-up expected before year-end. Santos holds 52.5% and operates.

production update

Santos disclosed a non-binding all-scrip merger proposal for Oil Search: 0.589 Santos shares per Oil Search share, about A$4.25 each, giving Oil Search holders 37% of the combined group. Oil Search's board rejected it as undervaluing the company.

business combination

Santos launched FEED for Dorado Phase 1, an oil project with gross capex of about US$2bn and initial output of 75,000-100,000 bbl/day. FID is targeted around mid-2022. Santos holds 80% and is seeking partners for non-operated equity.

drilling scheduled

Santos completed the sale of 25% of Bayu-Undan and Darwin LNG to SK E&S for US$390m, netting US$186m at completion. Its interest falls to 43.4%. The JERA 12.5% Barossa sale remains in progress.

asset acquisition disposition

Santos priced a US$1.0bn senior unsecured 10-year bond at a 3.649% fixed coupon, maturing April 2031, its debut 144A issue. It extends average debt term to over five years and lowers the average cost of debt.

debt financing

Santos took final investment decision on the US$3.6bn Barossa gas project, with a US$600m Darwin LNG life extension extending the plant about 20 years. First gas is targeted 1H 2025; about 380 mmboe moves to 2P reserves. Resolves the long-awaited FID.

drilling result

Santos awarded the Barossa FPSO services contract to BW Offshore, subject to FID, cutting capital expenditure by about US$1bn on the roughly US$3.6bn project. Santos calls it the final milestone before FID, expected within weeks, with first gas targeted 1H 2025.

contract award

ENN sold about 107.1m shares (5.14%) at A$7.33, cutting its stake to 9.97%, still the largest single holder. The 2017 relationship agreement lapses, so ENN's nominee director Eugene Shi resigns, ending ENN's board seat.

director officer appointment

2020 results: record 89 mmboe production, free cash flow US$740m, underlying profit US$287m, net loss US$357m after impairments. Final dividend 5.0c, total 7.1c (20% of free cash flow). SK E&S sell-down is now binding subject only to Barossa FID; JERA SPA still being progressed.

annual report

Santos reported 2P reserves of 933 mmboe at end-2020, up 34 mmboe before production; three-year replacement was 138%. Reindeer (WA) and PNG Juha downgrades trigger an expected US$98m goodwill impairment, plus US$41m other charges, on top of the earlier US$756m.

resource reserve update

Santos took FID on the US$235m Bayu-Undan Phase 3C infill program: three wells adding over 20 mmboe gross reserves, first spud 2Q 2021 and first production 3Q 2021. SK E&S sell-down has JV and Timor-Leste consent and completes at Barossa FID in 1H 2021.

drilling scheduled

Santos signed a binding 10-year SPA to sell 1.5 mtpa of Barossa LNG to Mitsubishi's Diamond Gas International at JKM-linked prices, over 80% of its expected equity volume. Barossa FID is now targeted for the first half of 2021.

material agreement

At its Investor Day, Santos raised 2020 production guidance to 87-89 mmboe (from 83-88) and acquisition synergies to US$90-105m a year. It set net-zero by 2040 and approved Darwin LNG tolling for Barossa gas, a step toward FID.

investor presentation

Federal Environment Minister approved the Narrabri Gas Project under the EPBC Act, completing the federal step after the NSW approval. Santos will run a 12-18 month appraisal program before a Final Investment Decision on the next phase.

regulatory community update

Santos signed a new US$750m syndicated bank loan, about three times oversubscribed, maturing January 2026. It refinances the two-year US$750m facility raised for the ConocoPhillips deal, leaving no material maturities until 2024.

debt financing

NSW Independent Planning Commission approved the Narrabri Gas Project with conditions, which Santos accepts, resolving the Q3 decision awaited. Federal EPBC approval is still needed; workovers start now, followed by a 12-18 month appraisal drilling program.

regulatory community update

H1 2020 statutory loss of US$289m (vs US$388m profit) after the previously flagged impairment; underlying profit fell 48% to US$212m on revenue down 16% to US$1,668m. Interim dividend 2.1 US cents, down 65%.

half year report

Santos expects a non-cash impairment of US$700-800m before tax in half-year results, mainly GLNG (US$640-700m) plus Cooper and Amadeus exploration assets. Cause: long-term Brent assumption cut over 10% to US$62.50. Gearing rises about 1.5%; reserves unaffected.

other

Santos completed the ConocoPhillips northern Australia acquisition at a reduced upfront price of US$1.265bn (from US$1.39bn), with the Barossa-FID contingent payment raised from US$75m to US$200m. Net settlement was US$655m; Bayu-Undan/Darwin LNG interest rises to 68.4%, Barossa to 62.5%.

asset acquisition disposition

Santos signed a non-binding letter of intent to sell a 12.5% Barossa interest to JERA, which already holds 6.1% of Darwin LNG. After sell-downs Santos would hold 50% of Barossa. Barossa FID is now expected to be deferred until conditions improve (previously targeted Q2 2020).

farm in farm out agreement

Santos cut 2020 capex by US$550m (38%) and cash costs by US$50m, targeting a US$25/bbl free cash flow breakeven, responding to COVID-19 and lower oil prices. Barossa and PNG LNG spend is rephased. Liquidity is US$3.1bn; ConocoPhillips completion now expected in the first half.

other

Santos agreed to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390m, firming up the October letter of intent. It is conditional on the ConocoPhillips completion, consents and Barossa FID. Net funding need for the acquisition is about US$775-825m.

asset acquisition disposition

Santos approved a final investment decision on Van Gogh Infill Phase Two in WA-35-L: three new horizontal wells tied back to existing infrastructure. First oil is targeted for late 2021, with drilling from early 2021. Santos holds 52.5% and operates.

drilling scheduled

At its Investor Day Santos lifted its 2025 production target to 120 mmboe from 100 mmboe. It targets Barossa FID around end Q1 2020 and Dorado FEED entry in Q2 2020. 2019 breakeven falls to ~US$29/bbl; 2020 production guidance is 79-87 mmboe including the ConocoPhillips assets.

investor presentation

The Barossa FPSO contract, the project's largest, went to MODEC after a FEED competition. Santos says FID is close, early in the new year. Drilling and subsea contracts are still to come. After the ConocoPhillips deal and SK E&S sell-down, Santos would hold 62.5% of Barossa.

contract award

Santos agreed to buy ConocoPhillips' northern Australia interests (Darwin LNG, Bayu-Undan, Barossa, Poseidon) for US$1.39bn plus a US$75m payment contingent on Barossa FID. Funded from cash and new debt. SK E&S signed a letter of intent for 25% of Bayu-Undan and Darwin LNG; Santos targets 40-50% in Darwin LNG and Barossa. Subject to approvals.

asset acquisition disposition

The Caley oil test in Dorado-3 flowed about 11,100 bbl/d of oil and 21 mmscf/d of gas, limited by surface equipment. Santos says single wells could deliver around 30,000 bbl/d. This completes Dorado appraisal testing and supports entering FEED in early 2020.

flow test result

Dorado-3's Baxter gas and condensate test reached about 48 mmscf/d of gas and 4,500 bbl/d of condensate, limited by surface equipment. Reservoir quality and condensate ratio are better than expected. A Caley oil test follows. Santos holds 80% of Dorado.

flow test result

First-half 2019 net profit was US$388m, up from US$104m, with underlying profit US$411m and free cash flow US$638m. Sales were US$1,974m on 45.2 mmboe. An interim dividend of US6.0c, record date 28 August, was declared, up from US3.5c.

half year report

The Barossa joint venture entered exclusive negotiations with the Darwin LNG joint venture to agree a processing agreement and tariff for backfill gas, ahead of a final investment decision early next year. Santos holds 25% of Barossa. Bids for the FPSO, pipeline and drilling are being evaluated.

material agreement

Dorado-2, drilled two kilometres down-dip from the July 2018 Dorado-1 discovery, found 40 m of net oil pay and further pay in other zones. Santos says Dorado is larger than expected and gas resources should rise significantly. The rig moves to Roc South-1, then Dorado-3.

drilling result

Santos signed a binding letter of intent to buy 14.3% of PRL 3 (P'nyang gas field, PNG) for US$187m total, about US$120m on signing a sale agreement and the rest contingent. P'nyang holds about 4.4 tcf of 2C resource, advancing the PNG LNG expansion.

farm in farm out agreement

Barossa awarded its first EPC contract, the subsea production system, to Technip Oceania, committing long-lead items ahead of a final investment decision targeted for early 2020. Santos holds 25%. Management calls Barossa the leading candidate to backfill Darwin LNG.

contract award

Corvus-2 appraisal well, in permit WA-45-R (Santos 100%), reached 3,998 m and found 245 m of net hydrocarbon pay in a 638 m gross interval. Santos says the resource is bigger and richer in liquids than expected. It could be tied back to Devil Creek or Varanus Island. The rig now moves to Dorado.

drilling result

All eight Moomba South phase 1 appraisal wells hit gas-bearing Patchawarra sandstone. Seven are online, with a peak stabilised rate of 8.7 mmscf/d, and one was plugged and abandoned. Two new plays, Granite Wash and Fractured Granite, flowed gas. More drilling is planned for late 2019. Santos holds 66.6% and operates.

drilling result

Santos priced a US$600m 10-year bond at a 5.25% coupon, about five times oversubscribed. Proceeds refinance the US$500m bridge facility used for the Quadrant acquisition, plus general purposes. With the Uncovered ECA Facility repayment, management says all significant near-term debt maturities are addressed.

debt financing

Santos reported record 2018 underlying profit of US$727m and free cash flow of US$1,006m, with net profit US$630m versus a US$360m loss in 2017. Final dividend is US6.2c (full-year 9.7c). 2P reserves rose 20% to over 1bn boe; 2019 production target is 71-78 mmboe.

annual report

Santos and Beach Energy will hold 50/50 interests across four Bonaparte Basin permits (NT/P82, NT/P85, NT/P84, WA-454-P), with Santos operating all. Separate Neptune agreements move Santos to 100% of Tern and Frigate and 40.25% of Petrel, subject to approvals. Drilling is possible within a few years.

joint venture update

Carnarvon says the Noble Tom Prosser rig is secured for two firm Dorado appraisal wells, the first around April 2019. Santos is shown as 80% operator and Carnarvon 20% of WA-437-P. Carnarvon hopes for a development decision ideally in 2020.

drilling scheduled

Santos completed the Quadrant acquisition, paying US$1.93bn (the US$2.15bn price less adjustments and cash acquired), funded from cash and US$1.2bn of new debt. Year-end gearing is now expected at about 33%, versus the earlier target of under 30% by end-2019.

asset acquisition disposition

Santos says the ACCC clearance satisfies the condition for completing its US$2.15bn Quadrant acquisition, with completion expected within weeks. This removes the main outstanding approval hurdle for the deal announced on 22 August.

asset acquisition disposition

Santos finished seismic (1,337 line km) in the Southern Amadeus farmout and elected to drill Dukas in EP112 (expected Q1 2019) to earn 70% there, with Central carried. It stays at 40% in EP82, EP105 and EP106. Resolves the earlier open question on lifting its stake.

farm in farm out agreement

At its Investor Day Santos targeted production above 100 mmboe by 2025, almost double current levels. Growth is to come from Barossa backfill (FID targeted end-2019), PNG LNG expansion and P'nyang farm-in, onshore Australian growth and the Quadrant acquisition.

investor presentation

Santos completed the sale of its producing Asian assets (Indonesia Sampang and Madura, Vietnam 12W) to Ophir, receiving US$144m cash from the US$221m price after adjustments. Net debt was about US$2.2bn at 31 August; the US$2bn target is expected by October. Some exploration assets still await approvals.

asset acquisition disposition

Half-year report: sales revenue US$1,680m (up 16%), underlying profit US$217m (up 99%), net profit US$104m versus a US$506m loss. Net debt US$2.4bn. An interim dividend of US3.5c was declared, the first since 2016. Production fell 5% on the PNG earthquake outage.

half year report

Santos announced a fully franked US3.5c interim dividend, payable 27 September, its first since 2016, as underlying profit doubled to US$217m. It says the net debt target will be reached shortly, over a year early. Resolves the June dividend-restoration thread.

dividend declaration

Santos agreed to buy 100% of Quadrant Energy for US$2.15bn plus possible Bedout Basin (Dorado) contingent payments and a royalty. It adds 220 mmboe of 2P reserves (~26%) and 19 mmboe production, with US$30-50m annual synergies. Completion expected by end-2018, subject to approvals.

asset acquisition disposition

Barikewa-3 in PNG's PRL9 (Santos 40%, Oil Search operator) found 25 metres of net gas pay and flowed 35 mmscf/d on test. The gas is dry with about 20% nitrogen. The well is about 10 km from the PNG LNG pipeline, so it may help future expansion.

drilling result

Santos adopted a new dividend policy targeting payouts of 10-30% of free cash flow each year, with possible extra returns. It expects to hit its debt target in the second half of 2018 and may restore dividends at the August half-year result. Ends the dividend suspension.

dividend declaration

The Board unanimously rejected Harbour's 'best and final' US$5.21 offer as not reflecting full value, and ended all talks. It cited the higher oil price, currency risk, a leveraged structure and unequal treatment of ENN/Hony. Ends the takeover thread.

business combination

Harbour lifted its binding conditional offer to US$5.21 (A$6.95) per share, after US$5.12 on 19 May. It is conditional on extra oil hedging, and would rise to A$7.00 if Santos hedges 30% of 2020 oil-linked production. Shareholders take no action.

business combination

After five weeks of due diligence, Harbour made a binding, conditional scheme proposal at the same US$4.98 per share. It is now all US-dollar cash, with ENN and Hony alone offered a rollover. Independent directors will consider it; shareholders take no action.

business combination

Santos agreed to sell its non-core Asian portfolio to Ophir Energy for US$221m, exiting Vietnam, Indonesia, Malaysia and Bangladesh. This includes its Sampang 45% and Madura 67.5% interests. Completion is expected in the second half of 2018, with proceeds going to debt. The North West Natuna 50% is excluded.

asset acquisition disposition

Santos completed commissioning of the Scotia CF1 gas project in Queensland, delivered for A$416m against an A$493m estimate, with initial output above 40 TJ/day. It also sold its Denison Trough assets for up to A$43m, with A$22m received in cash.

asset acquisition disposition

Santos and its partners agreed to enter FEED for the Barossa project to backfill Darwin LNG. Final investment decision is targeted for the end of 2019. Santos (25%) says success would more than double its Northern Australia production.

joint venture update

PNG LNG restarted LNG production ahead of the operator's eight-week estimate, with one train running and the second to follow. Santos (13.5%) says it carries property and business interruption insurance. Resolves the February earthquake shutdown.

production update

Santos received a non-binding Harbour Energy proposal of US$4.98 (A$6.50) per share, a 28% premium, after earlier approaches including A$4.55 in August 2017. The Board granted due diligence; no certainty of an offer. Shareholders should take no action.

business combination

The offshore regulator NOPSEMA accepted the Barossa-Caldita project proposal, its first ever acceptance of one. Santos (25%) says this makes Barossa the lead candidate to backfill Darwin LNG and allows FEED to start soon.

regulatory community update

The PNG LNG operator estimates about eight weeks to complete repairs and restore production after the earthquakes. Pipeline is undamaged and major processing equipment looks largely unaffected, though some equipment and foundations are damaged. Santos (13.5%) will donate US$200,000 to relief. Follows the 27 February shutdown.

production update

Gas production at the PNG LNG Hides plant and Kutubu facilities was shut down as a precaution after a major PNG highlands earthquake. No injuries reported; the shutdown lasts until damage is assessed. Santos holds 13.5% of PNG LNG, which had been running at record rates.

production update

2017 results: underlying profit up to US$336m from US$63m, net loss narrowed to US$360m, and net debt fell to US$2.7bn. Free cash flow was US$618m. No final dividend, as the Board prioritises debt reduction. Keith Spence has taken over as Chairman from Peter Coates.

annual report

Santos and Total will fully fund a 3D seismic survey over Melbana's Beehive prospect (WA-488-P) in return for an option to take 80% of the permit. Survey is planned for mid-2018 and is subject to approvals. Gives Santos a possible new exploration play.

farm in farm out agreement

Santos agreed to acquire a 20% interest in PNG licence PPL 339 from Kina Petroleum, which keeps 10%. Oil Search operates; drilling is expected in 2019. Santos can return the interest after pre-drilling seismic. Subject to approvals and licence extension.

farm in farm out agreement

Santos confirmed it is not in talks with Harbour Energy, but disclosed that on 14 August 2017 it rejected a non-binding A$4.55-per-share scheme proposal as inadequate, with uncertain funding. The bid had not been previously disclosed.

other

At its Investor Day Santos said its strategy has cut 2017 free cash flow breakeven to US$32/bbl and net debt 40% to US$2.8bn. It farmed into 20% of five PNG licences, prepaid a further US$350m of ECA debt, and moved Narrabri into the core portfolio. 2018 capex guided US$825-875m.

investor presentation

Keith Spence, ex-Woodside and Shell and retiring from Oil Search's Board, joins the Santos Board on 1 January 2018 and succeeds Peter Coates as Chairman in February 2018. Coates had flagged his departure at the May AGM.

director officer appointment

Santos priced a US$800m 10-year senior unsecured bond at a 4.125% coupon, six times oversubscribed, maturing 2027. It replaces the Euro hybrid notes being redeemed, cutting interest costs and the free cash flow breakeven; settlement is 14 September.

debt financing

Half-year 2017: sales revenue US$1.45bn (up 22%), EBITDAX US$718m, underlying profit US$156m, but net loss US$506m after US$920m net impairments. No interim dividend, so the dividend stays suspended. Production 29.5 mmboe, sales 40.1 mmboe.

half year report

Santos will redeem its Euro 1 billion subordinated notes on the 22 September 2017 call date, funded from existing liquidity of US$4.2bn (cash US$2.2bn, undrawn facilities US$2bn). It expects to raise new debt at significantly lower interest cost soon. This resolves the hybrid call thread.

debt financing

Santos expects a non-cash net impairment of about US$690m after tax in its half-year result, after cutting its oil price forecasts. GLNG is impaired about US$870m and AAL (Indonesia) about US$150m, partly offset by a roughly US$330m Cooper Basin write-back. No cash impact.

other

Santos signed a 15 PJ gas supply contract with ENGIE for the Pelican Point Power Station in South Australia, starting January 2018, using GLNG and Santos portfolio gas. It says further domestic supply contracts will be announced in coming months. Price not stated.

contract award

The two-well Barossa appraisal (Barossa-5 and -6) confirmed a gas-saturated Elang reservoir; Barossa-6 flowed 65 mmscf/day, constrained by test facilities. This strengthens Barossa as lead Darwin LNG backfill candidate, with a FEED entry decision in early 2018. Santos holds 25%.

drilling result

Santos signed a strategic relationship with shareholders ENN and Hony, who together hold 15.1%. ENN and Hony intend Santos to be their primary vehicle for Australian and PNG upstream gas investment, and ENN nominee Eugene Shi joins the Board. It lasts while they hold at least 15%.

material agreement

Muruk 1ST3 flowed gas and condensate at 16 mmscf/day, constrained by test facilities, confirming a potentially significant new gas field 21km from Hides. Santos holds 20%. Well site preparation is scheduled for late 2017 ahead of a possible 2018 appraisal programme.

well test result

Santos confirms Muruk 1ST3 found the entire Toro reservoir gas saturated, with no hydrocarbon contact down to 4,130m, confirming a potentially significant new gas field 21km from Hides. This builds on December's discovery; Santos' 20% farm-in still awaits regulatory approval.

drilling result

Hony Capital bought 48 million Santos shares (2.3%) at A$3.84 after the close on 3 May, taking Hony, ENN and affiliates to 15.1%, as Santos understands it. The price was a 6% premium to the prior close of A$3.63. This follows the earlier ENN purchase of Hony's stake.

other

Santos will repay US$250m of its 2019 export credit facility early, leaving US$950m and saving about US$5.5m a year in interest. It also extended US$810m of undrawn bilateral loans from 2018 to 2022. This continues the debt-reduction push after December's raising.

debt financing

Santos posted a 2016 net loss of US$1,047m, driven by the GLNG impairment booked at the half-year, and underlying profit of US$63m. Net debt was US$3.5bn and free cash flow breakeven US$36.50/bbl. No final dividend; the Board will next review it at the 2017 half-year results.

annual report

The Share Purchase Plan closed with about A$201m of applications, all accepted without scaleback at A$3.94 per share. With the December placement, total raised is about A$1,241m, short of the roughly A$500m SPP target. Shares issue 7 February 2017.

capital raising announcement

Cooper Energy completed buying Santos' Victorian gas assets, except the 10% Minerva stake, paying A$61m plus adjustments, with A$20m more on Sole FID or a sell-down. This completes the sale announced in October 2016. Operatorship transfer is expected by mid-2017.

asset acquisition disposition

Oil Search, operator, reports Muruk-1 reached 3,130m with reservoir sandstone in the Toro Formation. Early log interpretation shows gas with condensate and no water contact seen. A sidetrack is planned to find the gas-water contact. Santos' 20% awaits regulatory approval.

drilling result

Santos confirms a gas and condensate discovery at Muruk-1 in PNG's PPL 402, total depth 3,130m, in line with pre-drill expectations. It follows the November farm-in for 20%, which still needs regulatory approvals. A sidetrack will try to locate the gas-water contact.

drilling result

Central Petroleum says Santos has agreed to sell its 50% of the Mereenie oil and gas field and pipeline to a Macquarie subsidiary, effective 1 January 2017. Central stays operator with the other 50%. Price not stated in this notice.

asset acquisition disposition

Santos launches a fully underwritten A$1,040m placement of about 256m shares at A$4.06, roughly 15% of issued capital, plus an ununderwritten Share Purchase Plan of up to A$500m. This follows the strategy day and lowers gearing to about 32% after the placement.

capital raising announcement

At its Investor Day Santos set a new strategy: focus on five core gas assets (Cooper, GLNG, PNG, Northern Australia, WA Gas), run the rest as a standalone business under Bruce Clement, and cut net debt by US$1.5bn to under US$3bn by end-2019. Free cash flow breakeven now US$39/bbl.

investor presentation

Santos farms into PNG's PPL 402 for a 20% interest, bought from Oil Search and ExxonMobil, with terms confidential. It joins the Muruk-1 well, targeting about 2 tcf of mean gas at roughly 3,450m. Completion needs regulatory approvals.

farm in farm out agreement

Santos sells its Victorian assets to Cooper Energy for up to A$82m: A$62m at completion plus A$20m on Sole FID or a sell-down. This includes its 50% of Sole and Orbost and exits offshore Victoria after the Kipper sale. Completion is expected in early 2017.

asset acquisition disposition

Q3 production was 15.5 mmboe (+7%) and sales 21.3 mmboe (+31%). Santos started oil hedging, with 7.3m barrels of 2017 covered. 2016 capex guidance is cut to US$700m, production narrowed to 60-62 mmboe and cost guidance cut to US$9-9.50/boe.

quarterly activities report

Anthony Neilson, currently CEO of Roc Oil, is appointed Santos CFO, starting in December 2016. He fills the role from retiring CFO Andrew Seaton, who stays on for an orderly handover. This resolves the successor search.

director officer appointment

Santos reports a first-half net loss of US$1,104m, driven by the previously flagged GLNG impairment (net impairment US$1,516m pre-tax). Underlying loss was US$5m. Production was a record 31.1 mmboe and no interim dividend will be paid.

half year report

Santos expects a non-cash GLNG impairment of about US$1,050m after tax (US$1,500m before tax) in its half-year accounts. It cites slower equity gas ramp-up and higher third-party gas prices. Santos says off-take commitments and debt facilities are unaffected.

asset acquisition disposition

CFO Andrew Seaton, in the role six years and with Santos over eleven, will retire by the end of 2016. He stays to hand over, and a search for his successor has begun. This continues the executive changes under CEO Gallagher.

director officer appointment

AAL-4XST1 is finished and plugged. The G Sand flowed 828 bopd; a K Sand test started at 1,120 bopd but a sand screen failed before it stabilised. The joint venture says data is sufficient, and will use it for G Sand development planning. Within budget.

drilling result

The AAL-4XST1 sidetrack flow-tested the G Sand at 828 barrels a day, 58% above the earlier AAL-3X test (525). It confirms the oil in the 36 mmbbl gross G Sand resource (Santos 50% op) and supports a possible development decision, per AWE.

well test result

GLNG train 2 produced its first LNG on 26 May 2016, completing the two-train project (Santos 30% op). The project has made over two million tonnes of LNG and shipped 32 cargoes. This meets the Q2 2016 start-up target.

production update

CEO Kevin Gallagher named a new six-member executive team, moving Santos from geographic business units to an asset-focused model, with corporate functions to be consolidated to cut costs. CFO Andrew Seaton stays.

director officer appointment

ENN Group's listed subsidiary plans to buy Hony Capital's 11.7% Santos stake for US$750m, subject to its shareholder approval. Santos consented to the transfer; the shares stay escrowed until 9 November 2016. Hony took its stake in the 2015 raising.

security holder rights change

The sale of Santos' 35% Kipper gas interest to Mitsui E&P Australia has completed, with the A$520m cash received. This finishes the last pending piece of the November 2015 A$3.5bn balance-sheet plan.

asset acquisition disposition

Full-year report: 2015 net loss of A$2,698m on revenue of A$3,294m, after A$3.9bn pre-tax impairments. Final dividend 5c, for 20c total for the year. Kevin Gallagher joined the board on 16 February 2016.

annual report

Year-end 2P reserves fell 24% to 945 mmboe and 1P 22% to 485 mmboe, from 1,245 and 622 mmboe a year earlier. Gunnedah reserves (133 mmboe) were reclassified as contingent resources; 2C resources rose 8% to 1,853 mmboe.

resource reserve update

Santos reports a 2015 net loss of A$2.7bn, driven by A$2.8bn after-tax impairments mainly on Cooper Basin, GLNG and Gunnedah assets. Underlying profit was A$50m. 2016 capex guidance is cut to A$1.1bn; production guidance is 57-63 mmboe; the final dividend is 5c.

half year report

GLNG participants (Santos 30%) signed a deal to buy 254 PJ of gas from AGL over 11 years from January 2017, oil-linked, adding to GLNG's supply. Train 1 is running above nameplate with six cargoes shipped; Train 2 first LNG is on track for Q2 2016.

contract award

The retail shortfall bookbuild cleared at A$4.10, a 6.5% premium to the A$3.85 offer price. This completes the A$2.5bn entitlement offer, with new shares trading 11 December. Non-participating retail holders receive A$0.25 per entitlement around 14 December.

capital raising announcement

The retail entitlement offer received valid acceptances for 201 million new shares (about A$775m), 57% of those available. About 152 million entitlements (about A$585m) go to the retail shortfall bookbuild on 3 December. New shares are issued 10 December.

capital raising announcement

Cooper Energy raised its net 2C contingent resource in the Sole field (VIC/RL3, Santos 50% operator) by 15 PJ to 121 PJ, after reinterpreting core analysis. Front-end engineering is on schedule, with a final investment decision targeted for the September quarter 2016.

resource reserve update

The institutional part of the entitlement offer raised about A$1.17bn, with 86% of entitlements taken up. The shortfall bookbuild cleared at A$4.60, A$0.75 above the A$3.85 offer price. The retail offer, expected to raise about A$1.35bn, opens 17 November.

capital raising announcement

Santos completed its strategic review with A$3.5bn of net debt reduction: a A$2.5bn entitlement offer (1 for 1.7 at A$3.85), a A$500m Hony Capital placement at A$6.80, and the A$520m Kipper sale to Mitsui. This reverses the August stance of no current intention to raise equity.

capital raising announcement

Kevin Gallagher, CEO of Clough, is appointed Santos Managing Director and CEO, starting early 2016 and no later than 31 May 2016. This resolves the succession open since August. David Knox steps down; Peter Coates stays Executive Chairman until then.

director officer appointment

Q3 production was 14.5 mmboe (+4% on a year earlier), sales revenue A$808m (-24%) at A$71/bbl. 2015 capex guidance is cut to A$1.8bn and production guidance narrowed to 57-59 mmboe from 57-64, citing lower GLNG domestic gas nominations and FPSO outages.

quarterly activities report

Santos rejected an unsolicited, conditional, non-binding cash proposal from Scepter Partners at A$6.88 per share received 20 October, calling it opportunistic and not reflecting fair underlying asset value. The strategic review continues.

business combination

The first GLNG cargo has left Curtis Island for South Korea, on time and within the US$18.5bn budget, following first LNG in September. Train 2 is expected ready for start-up by year-end, with first LNG in Q2 2016.

production update

Santos issued 9.65m DRP shares at A$4.4288 and 23.69m underwritten shares at A$4.5424 for the interim dividend. It says the strategic review is weighing asset sales, structured finance, restructurings and capital markets deals, with talks ongoing with several parties.

capital raising announcement

GLNG started producing its first LNG from Train 1 on Curtis Island, on schedule and within budget, with the first cargo due in coming weeks. Train 2 is expected ready for start-up by year-end. Contracts cover over 90% of capacity.

production update

Central Petroleum completed its purchase of Santos' 50% of Mereenie and took over as operator, completing the sale agreed on 4 June 2015. Santos' A$35m closing payment is not stated in this text.

asset acquisition disposition

CEO David Knox will step down once a successor is found, and Chairman Peter Coates becomes Executive Chairman to run a full strategic review of all options, advised by Deutsche Bank and Lazard. Reasons given: pressure on the share price and approaches from other parties.

director officer appointment

Santos reported first-half net profit of A$37m (down 82%) on a realised oil price of US$60/bbl versus US$115, with EBITDAX down 5% to A$900m. Interim dividend 15c, capex down 55%, liquidity about A$2.2bn; GLNG still on track for first LNG around end-Q3.

half year report

Central Petroleum agreed to buy Santos' 50% of the Mereenie field and its operatorship for A$45m cash (A$35m at closing, A$10m in June 2016), plus a A$10m free-carried work program. A further A$15m is due if the NEGI pipeline proceeds. Subject to approvals and financing.

asset acquisition disposition

Cooper Energy completed its 50% purchase of the Sole field and Orbost Gas Plant from Santos, resolving the pending conditional deal from December 2014. Santos keeps 50% and operatorship; FEED has begun, with FID likely in the September quarter 2016.

asset acquisition disposition

Santos issued 5.4m DRP shares at A$7.4192 and 14.3m shares to the underwriter at A$7.53. The notice also discloses a significant Bestari-1 oil discovery in Malaysia's Block R, with 67 m net oil pay; Santos acquired 20% in January 2015. Appraisal is being planned.

resource reserve update

Kyanite-1 in PEL 513 (Santos 60% op, Drillsearch 40%) was a wet gas discovery with 24.2 m net Patchawarra pay, cased as a future producer near existing infrastructure. It is the fourth discovery from five wells in the campaign; Spinel-1 is next.

drilling result

New Guinea Energy completed the sale of its 50% of PPL 269 to Santos' subsidiary Barracuda, for US$32m cash on completion plus up to US$8m if retention or development licences are granted. This completes the deal pending since February.

asset acquisition disposition

Santos signed a contract to supply 82 PJ of gas from the John Brookes field to Alcoa of Australia, starting 2018, over an initial five years with two five-year extension options by mutual agreement. Adds a domestic WA customer; no contract value is stated.

contract award

Hides F1 (Hides Deep) reached 4,633 m but the Koi-Iange Formation exploration target lacked reservoir quality. Santos (24% in the exploration component) will abandon that part; the development section will be completed as a PNG LNG gas producer.

drilling result

Chairman Ken Borda will retire at the 30 April 2015 AGM. Peter Coates, a director who was chairman from December 2009 to May 2013, will resume as chairman.

director officer appointment

Santos reported a 2014 net loss of A$935m after previously advised A$1,563m impairments, but underlying profit rose 6% to A$533m. Final dividend held at 15c (35c for the year), with a DRP underwritten at a 1.5% discount; about A$2.9bn cash and undrawn facilities at year-end.

annual report

Santos' 2P reserves fell 9% to 1,245 mmboe at end-2014 (from 1,368), mainly a 62 mmboe cut in Gunnedah Basin as flagged in November. 1P reserves rose slightly to 622 mmboe; reserves life 23 years. GLNG 2P reserves rose 4%.

resource reserve update

Santos expects a non-cash impairment of about A$1.6bn after tax in its 2014 accounts due to lower oil prices, including A$482m for Cooper Basin oil and A$566m for Gunnedah Basin. GLNG is not impaired; investment grade rating and debt facilities are not expected to be affected.

other

Santos secured an additional three-year A$1bn bilateral bank loan facility with ANZ. Management says it adds a buffer over funding needs while oil prices are uncertain. Adds to the roughly A$2bn of cash and undrawn facilities reported at 30 November.

debt financing

Cooper Energy agreed to buy 50% of the Sole gas field and Orbost Gas Plant from Santos, which keeps 50% and operates. Cooper pays A$2.5m and funds the first A$50m of costs; FEED is due to start, with first gas targeted late 2018/early 2019. Conditions apply.

farm in farm out agreement

Drillsearch says Yarowinnie South-1 in PEL 513 (Santos 60% op) found almost 15 m net gas pay in the Patchawarra, to 3,142 m, and was cased as a future producer. A second wet gas discovery for the joint venture after Varanus South-1.

drilling result

Santos cut 2015 capex 25% to A$2.0bn from A$2.7bn (growth ~A$1.4bn, sustaining ~A$600m) after the oil price fall. 2015 production guidance stays at 57-64 mmboe, no equity raising is intended, and asset sales remain under consideration.

other

S&P cut Santos' senior unsecured rating from BBB+ to BBB, outlook still negative, ending the CreditWatch placed in 2013. Santos says it remains investment grade with about A$2bn cash and undrawn facilities at 30 November.

debt financing

Santos deferred a possible European hybrid issue after the oil price fell following OPEC's decision to hold output. It has no current intention to raise equity, has about A$2bn liquidity, and expects to significantly cut 2015 capital and operating spending.

capital raising announcement

Varanus South-1 in PEL 513 (Santos 60% op, Drillsearch 40%) found 18 m net gas pay in the Patchawarra plus 9 m net hydrocarbon pay in the Tirrawarra, to 3,154 m. Cased as a future wet gas producer; first well of the 2013 joint venture.

drilling result

New Standard says the PEL 570 farm-out completed: Santos paid A$7.5m for an operated 35% interest and has agreed to meet 75% of remaining earn-in commitments. Government approvals are done. This resolves the 23 October deal; Santos now operates PEL 570 alongside Drillsearch.

farm in farm out completion

New Standard Energy is selling Santos a 35% operated interest in PEL 570 in the Cooper Basin for A$7.5m cash, with Santos also meeting 75% of New Standard's remaining A$42.5m earn-in commitments. Operatorship moves to Santos; completion awaits government approvals. It extends Santos' Cooper unconventional position.

farm in farm out agreement

Santos' Lasseter-1 in the Browse Basin (WA-274-P, Santos 30% operator) found a gas-condensate column with 78 m of net pay, reaching 5,329 m. It follows the 2012 Crown discovery and will now be plugged and abandoned as planned.

drilling result

First-half 2014 net profit fell 24% to A$206m after a A$67m impairment; underlying profit rose 3% to A$258m on sales revenue of A$1,887m (+25%). Interim dividend is 20c, up from 15c. The detailed report repeats the same-day results release.

half year report

Santos reports first-half underlying profit up 3% to A$258m and raised the interim dividend 33% to 20c. PNG LNG is at full capacity and first cash arrived in July; GLNG is over 85% complete. 2014 guidance is maintained.

half year report

Central says Santos will proceed to Stage 2 of the Southern Amadeus farm-in, earning a 40% interest (up from 25%) by funding about 1,300 km of 2D seismic (~A$12m). Pedirka Basin is dropped. Santos decides on further Mt Kitty testing around end-August.

farm in farm out agreement

First oil has flowed from the Dua subsea tie-back at Chim Sáo in Vietnam, sanctioned August 2012, at an estimated gross 8,000 barrels a day for 12 months. Santos holds 31.875%. This delivers the mid-2014 first oil expected earlier.

production update

Santos (40%) and operator GDF SUEZ (60%) will not take the Bonaparte floating LNG project into FEED, as it does not currently meet their commercial requirements. They will study other options, including a pipeline to Darwin. This reverses the earlier expected FEED entry.

joint venture update

The first PNG LNG cargo has shipped, bound for Japan, with the second train also now producing. Santos (13.5%) says this starts its transformational growth, following first LNG production announced on 29 April.

production update

PNG LNG began producing LNG ahead of schedule, with the first cargo expected before mid-year and the second train due to start within weeks. Santos holds 13.5% of the US$19bn project, which it says will quadruple its LNG production at full output.

production update

Santos' Mt Kitty-1 in the Amadeus Basin (Santos 70%, Central 30%) reached 2,295 m and flowed gas on test, up to ~530,000 cfd, with helium up to 5.8%. A rig incident on 13 April stopped operations; no injuries reported and the well is secure.

drilling result

GLNG participants signed a binding heads of agreement with the Meridian SeamGas JV for 20 years of gas from 2015, oil-linked priced from 2016. This adds to GLNG's gas supply; the project is approaching 80% complete, with first LNG still due in 2015.

material agreement

First gas flowed from the Peluang tie-back to Maleo, offshore East Java, ahead of schedule and on budget, as flagged for 1H 2014. Gross peak output is expected at 25 mmscf/d. Santos holds 67.5% and operates the Madura PSC.

production update

Santos appointed Scott Sheffield, chairman and CEO of US shale producer Pioneer Natural Resources, as an independent non-executive director from 24 February 2014. Director Mike Harding will retire at the 2014 AGM after ten years on the board.

director officer appointment

Year-end 2013 2P reserves were 1,368 mmboe, down 2.7% from 1,406 mmboe as 2013 production of 51 mmboe was not fully replaced. Contingent resources fell about 5% to roughly 1.9 billion boe, partly from new reporting guidelines trimming about 150 mmboe.

resource reserve update

Santos reported 2013 net profit of A$516m, in line with 2012, on record sales revenue of A$3.6bn (+12%). Underlying profit fell 17% to A$504m. Final dividend is 15c (30c for the year), and a progressive dividend policy was announced. PNG LNG is over 95% complete and GLNG 75%, with costs unchanged.

annual report

New Guinea Energy agreed to sell its 50% of PNG licence PPL 269 to Santos subsidiary Barracuda for up to US$40m, with US$32m cash at completion. Completion depends on government approvals and Santos on-selling part of the interest.

asset acquisition disposition

Moomba-194 shale gas well is flowing at an average 3 mmscf/d from five zones, following Moomba-191 (~2.5 mmscf/d). Santos calls it a potentially material extension of Moomba North and a step toward commercialising the Nappamerri Trough. Santos holds 66.6%.

flow test result

GLNG partners signed a deal to buy 100 PJ of gas from Origin over five years from January 2016, oil-linked, with options for up to 94 PJ more. Adds to earlier supply deals; GLNG is over 72% complete with first LNG in 2015.

material agreement

Investor seminar cut 2013 production to about 51 mmboe, below the earlier 52-55 range, and guided 2014 to 52-57 mmboe on PNG LNG start-up. GLNG is 72% complete for first LNG in 2015; PNG LNG over 90%, costs unchanged.

investor presentation

AWE says the sale of 50% of the Northwest Natuna PSC (Ande Ande Lumut, about 101 mmbbl) to Santos is complete for US$188m, with Indonesian approval received. Santos is now operator. Resolves the 22 August deal; FID is still expected in 2014.

asset acquisition disposition

Drillsearch says due diligence conditions are satisfied on the 4 July deal. Santos now holds 60% of Western Cooper Wet Gas (PEL 106A, PEL 513) and funds a A$100-120m work program, and bought Drillsearch's 25.8% of PEL 100. Drillsearch lifts its Tintaburra stake to 40%.

farm in farm out completion

Santos is buying 50% of Indonesia's Northwest Natuna PSC from AWE, which holds the undeveloped Ande Ande Lumut oil field (about 100 mmbbl 2P gross). It pays US$100m at completion plus up to US$88m carry after final investment decision, expected 2014, and takes operatorship, subject to approval.

asset acquisition disposition