3 Aug 2020other● Neutral
Santos issued a revised Securities Dealing Policy, effective 3 August 2020, restricting trading by directors and staff to set windows and banning speculative dealing. Administrative only, no business impact.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
27 July 2020farm in farm out agreement● Neutral
Armour Energy and Santos amended the South Nicholson Basin farm-in: Santos pays A$6m now in place of up to A$15m contingent permit payments and takes over pursuing outstanding permit applications. Its A$64.9m free carry is unchanged.
23 July 2020quarterly activities report▲ Good
Q2 2020 production of 20.6 mmboe was a record, helped by the Bayu-Undan stake from the ConocoPhillips completion. First-half free cash flow was US$431m and cash US$1.3bn. Narrabri was referred to the Independent Planning Commission, with a decision expected in Q3.
21 July 2020other▼ BadMajor
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.
7 July 2020regulatory community update▲ Good
Mahalo received 30-year petroleum leases, the final regulatory approval needed. Santos holds 30%; the joint venture now moves toward the FID planned for June 2020 in earlier context (no new date given here).
16 June 2020contract award▲ Good
Santos signed a new gas supply deal with Gold Fields for its three Western Australian mines: nearly 5.5 PJ from Varanus Island over three years from 1 July 2020. Small contract; Gold Fields is returning after a short break.
9 June 2020regulatory community update▲ Good
Queensland state environmental approval was granted for the Mahalo Gas Project (Comet Ridge 40%, Santos 30%, APLNG 30%), following federal approval in May. Petroleum leases are the last step before the planned FID.
28 May 2020asset acquisition disposition▲ GoodMajor
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%.
5 May 2020investor presentation● Neutral
Macquarie conference presentation repeating known points: US$550m capex cut, US$25/bbl breakeven, ConocoPhillips completion expected H1, Barossa FID deferred, and sell-downs to SK E&S and JERA. No new announcements.
23 Apr 2020quarterly activities report▲ Good
Q1 2020: production 17.9 mmboe (4% down), free cash flow US$265m, liquidity over US$3bn, gearing 29%. Cooper Basin gas hit a nine-year high. About 70% of remaining 2020 volumes are fixed-price, with 14m bbl oil hedged at a US$39 floor.
16 Apr 2020farm in farm out agreement● NeutralMajor
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).
3 Apr 2020other● Neutral
Chairman and CEO addresses at the 3 April AGM, held online. Chair says requisitioned climate resolution 5(a) will not reach the 75% needed, so 5(b) and 5(c) were not voted. Restates 11c full-year dividend and pressure from COVID-19 and the oil price collapse.
1 Apr 2020agm notice● Neutral
The 3 April AGM will be held from Santos's Perth office, because the Adelaide Oval is closed, and webcast live. Shareholders still cannot attend in person; proxies lodged by 1 April will be counted. Logistics only.
25 Mar 2020other▲ Good
S&P reaffirmed Santos's BBB- credit rating with a stable outlook, saying it has a buffer against current oil prices and can fund the ConocoPhillips acquisition. This confirms the rating held in the context.
23 Mar 2020agm notice● Neutral
Because of COVID-19 gathering limits, shareholders cannot attend the 3 April 2020 AGM in person. All resolutions will be decided on proxy votes, due 1 April, with a live webcast.
23 Mar 2020other● NeutralMajor
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.
12 Mar 2020asset acquisition disposition▲ GoodMajor
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.
3 Mar 2020contract award▲ Good
Subsea 7, Aker Solutions and NOV won the last major Barossa facilities contracts (subsea umbilicals, risers, flowlines). Drilling contract still to come. Santos now says FID is in Q2 2020; Santos holds 25%, rising to 62.5% before any sell-down.
2 Mar 2020drilling scheduled▲ GoodMajor
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.
20 Feb 2020annual report▲ Good
Appendix 4E for 2019: revenue up 10% to US$4,033m and net profit up 7% to US$674m. Dividends were an interim 6.0c and a final 5.0c per share, both fully franked. Explanatory detail sits in the separate release and annual report.
20 Feb 2020half year report▲ Good
Full-year 2019 results: record free cash flow of US$1,138m (+13%), net profit up 7% to US$674m, EBITDAX US$2.5bn. Final dividend 5.0c, full-year 11.0c (+13%). Barossa FID now targeted for Q2 2020 (earlier: end Q1); ConocoPhillips deal still expected around end Q1.
20 Feb 2020annual report● Neutral
Corporate Governance Statement for 2019: describes board framework and policies, notes one new independent director appointed in the year. Administrative disclosure with no new business information.
20 Feb 2020admin correction● Neutral
Appendix 4G governance checklist, lodged with the annual report and pointing to the governance statement. Administrative filing only, with no new information.
20 Feb 2020annual report● Neutral
Shareholder Review 2019 repeats the year's highlights (production 75.5 mmboe, free cash flow US$1,138m, 11c dividends) and the ConocoPhillips acquisition, still expected to complete around end Q1 2020. Nothing new.
20 Feb 2020annual report● Neutral
The 2019 Annual Report restates the results already released: production 75.5 mmboe, free cash flow US$1,138m, net profit US$674m and net debt shown in the charts. No new announcements in the extract.
20 Feb 2020regulatory community update● Neutral
Santos's third annual Climate Change Report restates its net-zero 2050 aspiration, carbon capture and storage focus and gas-as-transition-fuel case. It excludes the ConocoPhillips assets. Published before the AGM, where a climate requisition is pending.
30 Jan 2020agm notice● Neutral
Santos received a requisition for its 3 April 2020 AGM seeking a constitutional change allowing advisory resolutions, Paris-aligned emissions reporting and a lobbying review. Santos is assessing its validity. This repeats the 2019 climate resolution challenge, which was ruled invalid.
22 Jan 2020quarterly activities report▲ Good
2019 production was a record 75.5 mmboe, up 28%, with revenue of US$4,033m and free cash flow over US$1.1bn. Q4 production of 18.7 mmboe was down 5% on domestic gas customer outages in WA. The ConocoPhillips acquisition is expected to complete in Q1 2020.
3 Dec 2019investor presentation▲ GoodMajor
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.
8 Nov 2019investor presentation● Neutral
Presentation for a 10-12 November site visit to Varanus Island and Darwin LNG. It restates the portfolio, the Quadrant and ConocoPhillips acquisitions, the ~US$31/bbl breakeven and 2019 production guidance of 73-77 mmboe. No new announcements in the extract.