Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
27 June 2019material agreement▲ GoodMajor
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.
6 June 2019drilling result▲ GoodMajor
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.
16 May 2019farm in farm out agreement▲ GoodMajor
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.
16 May 2019farm in farm out agreement▲ Good
Oil Search's side of the P'nyang deal: a binding letter of intent for Santos to buy 14.32% of PRL 3, with Oil Search selling 1.65% for US$21.6m. Aligns PRL 3 with PNG LNG ahead of a three-train expansion. Same transaction as Santos's own announcement.
9 May 2019contract award▲ GoodMajor
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.
3 May 2019director officer appointment● Neutral
Jodie Hatherly becomes a Company Secretary from 3 May 2019, as Christian Paech resigns from that role. Administrative change only; no reason is given.
2 May 2019director officer appointment● Neutral
Guan Yu, President of ENN Ecological Holdings, joins the Board from 3 May 2019 as ENN's nominee, replacing Eugene Shi, who resigned at the AGM. ENN may nominate one director while it holds 15% or more of Santos.
16 Apr 2019drilling result▲ GoodMajor
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.
16 Apr 2019drilling spud● Neutral
Dukas-1 spudded in EP112 in the Northern Territory, targeting about 3,600 m. Santos operates and Central is free carried. On completion Central keeps 30% and Santos holds 70%. This is the Dukas well flagged in the Southern Amadeus farm-in.
9 Apr 2019drilling result▲ GoodMajor
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.
3 Apr 2019joint venture update● Neutral
Final Beehive 3D seismic data was accepted, starting a six-month window for Total and Santos to exercise options over WA-488-P. Each can take 40% (80% if only one exercises), with Melbana carried. Drilling Beehive-1 is possible in 2H 2020. Melbana puts Beehive at 388 mmboe best-estimate prospective resource.
2 Apr 2019material agreement▲ Good
The PNG LNG co-venturers signed a four-year mid-term sale agreement with Unipec for about 0.45 mtpa from April 2019. This lifts contracted volumes to 7.9 mtpa, up from the 7.5 mtpa previously noted. Santos holds 13.5%.
25 Mar 2019investor presentation● Neutral
The March 2019 company update repeats known facts: 2018 production of 58.9 mmboe, a >100 mmboe target for 2025, a 2019 free cash flow breakeven below US$35/bbl, and a market capitalisation of US$10.5bn at 19 March. It includes a 4-well offshore program in 2019.
11 Mar 2019material agreement● Neutral
Key Petroleum signed a non-binding MoU with Santos and Beach for processing its Tanbar Gas Project gas at the Santos-operated Moomba plant. Terms are confidential, and a binding agreement is still to be negotiated. Santos is the service provider, not a project owner.
7 Mar 2019debt financing▲ GoodMajor
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.
21 Feb 2019annual report▲ GoodMajor
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.
21 Feb 2019admin correction● Neutral
Appendix 4G, the required key to where Santos's corporate governance disclosures can be found, lodged with the annual report. It is signed off by the Company Secretary, with the statement current as at 20 February 2019. Administrative only.
21 Feb 2019annual report▲ Good
The 2018 Shareholder Review repeats the record results already announced: US$727m underlying profit, US$1,006m free cash flow, US$3,660m sales, and 9.7c dividends. It recaps the Quadrant acquisition and the Board's rejection of the April 2018 private equity proposal.
21 Feb 2019annual report▲ Good
Appendix 4E for 2018: revenue US$3,660m, up 18%, and net profit US$630m, up 275%. Final dividend of US6.2c fully franked, on top of the 3.5c interim. It reverses the US$360m loss reported for 2017.
21 Feb 2019annual report● Neutral
Santos's 2018 Corporate Governance Statement describes its board and committee framework and says it meets the ASX Principles (3rd Edition). Highlights include a new Chair and a new formal risk appetite framework. No new commercial information.
21 Feb 2019regulatory community update● Neutral
Santos's second annual Climate Change Report announces medium-term (2025) emissions targets, which look to reduce emissions from operated activities. It excludes the Quadrant assets acquired 27 November 2018. This follows the net-zero 2050 aspiration and the medium-term targets promised by end-2018.
21 Feb 2019annual report▲ Good
The 2018 Annual Report repeats the results already announced: US$630m net profit, US$727m underlying profit, US$1,006m free cash flow, and net debt of US$3,492m shown in the highlights. It includes the reserves statement and the Transform, Build, Grow strategy. The readable text shows little that is new.
21 Feb 2019investor presentation▲ Good
The full-year results presentation repeats the announced record results and 2P reserves of 1,022 mmboe. It targets 2019 production of 71-78 mmboe and a free cash flow breakeven below US$35/bbl.
18 Feb 2019joint venture update▲ GoodMajor
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.
1 Feb 2019other● Neutral
Santos lodged a statement ENN made to the Shanghai exchange about its expected 2018 results, which includes its estimate of its return on its Santos stake. Santos says it is not endorsed and is not guidance; full results are due 21 February.
29 Jan 2019drilling scheduled▲ Good
Carnarvon says Roc South-1, a prospect estimated at 74 mmboe (Pmean, gross) with a 63% chance of success, will be drilled in WA-437-P right after Dorado-2, with Dorado-3 to follow. Santos holds 80% and operates; Carnarvon 20%.
29 Jan 2019flow test result● Neutral
Real Energy's Tamarama 3 flowed 2.5 mmcf/d in an initial test, and it applied for a pipeline to Santos-operated Mt Howitt, about 14 km away. This builds on the October 2018 tie-in agreements with Santos and Beach. Santos is not an owner of the well.
22 Jan 2019production update▲ Good
First oil from the two-well Van Gogh infill project lifts output from the field, tied to the Ningaloo Vision FPSO. This is a Quadrant-acquired asset, now operated by Santos with a 52.5% interest. No production figure is given.
9 Jan 2019drilling result● Neutral
Sirius Road 2 was drilled to 1,990 m with 1,437 m in the Castor seam (96% in seam), and the rig left site. Memooloo 2 testing is on expectations; Struan 2 and Sirius Road 1 are about to start production testing. No gas rates yet.
24 Dec 2018drilling spud● Neutral
Sirius Road 2 spudded 21 December as a single lateral aimed at the 3.3 m Castor seam, intersecting Sirius Road 1. Pollux testing is deferred because the thin 0.9 m intersection is not considered representative. Santos holds 30% as exploration operator.
