Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
30 Oct 2019contract award▲ GoodMajor
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.
23 Oct 2019director officer appointment● Neutral
Janine McArdle joins the Santos board as an independent non-executive director from 23 October 2019. She has over 30 years' energy experience, including senior roles at Apache.
17 Oct 2019quarterly activities report▲ Good
Q3 2019 production of 19.8 mmboe was a record, up 32% on a year earlier, with sales revenue of US$1,030m and free cash flow of US$214m. Dorado test results support FEED entry in early 2020. The ConocoPhillips acquisition is restated, subject to consents.
14 Oct 2019asset acquisition disposition▲ GoodMajor
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.
8 Oct 2019flow test result▲ GoodMajor
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.
3 Oct 2019farm in farm out agreement● Neutral
Melbana extended by one month, to 4 November 2019, the deadline for Santos and Total to exercise options on 40% each of Beehive (WA-488-P). Both have finished technical work and need time for commercial analysis and approvals. Partner's announcement; no decision yet.
26 Sept 2019contract award▲ Good
The Barossa 260 km gas export pipeline contract went to Allseas, the second major Barossa contract after the May subsea award. FPSO and drilling tenders are well progressed. FID is still targeted for early 2020; Santos holds 25%.
23 Sept 2019flow test result▲ GoodMajor
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.
12 Sept 2019joint venture update▲ Good
Comet Ridge says the Mahalo joint venture (Comet 40%, APLNG 30%, Santos 30%) lodged two petroleum lease applications for the northern development area. This is the first Queensland approval step toward the development with FID targeted June 2020. Partner's announcement.
22 Aug 2019half year report▲ GoodMajor
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.
22 Aug 2019half year report▲ Good
Duplicate of the 22 August half-year results release: net profit US$388m, underlying profit US$411m, free cash flow US$638m, interim dividend US6.0c. New detail: 2019 breakeven oil price cut to ~US$31/bbl, synergy target raised to US$50-60m a year, Dorado gross 2C up 68% to 310 mmboe.
13 Aug 2019drilling result● Neutral
Dukas-1 met much higher pressure than predicted at 3,704 m and will be suspended short of the target. Santos says drilling on needs a higher-specification rig. Gas to surface suggests a working petroleum system. A forward plan will follow within months; Santos is carrying the cost to earn 70%.
23 July 2019drilling progress report● Neutral
Central reports that Dukas-1, which Santos operates, hit a stuck liner hanger that paused drilling. The equipment has since been recovered and drilling to total depth is planned. The update also covers Central's separate Project Range wells with Incitec Pivot.
18 July 2019quarterly activities report▲ Good
First-half 2019 production was a record 37 mmboe, up 32%; Q2 free cash flow was US$300m and net debt fell to US$3.1bn. Santos expects a significant resource upgrade at Dorado and a reserve upgrade at Moomba South. Q2 production was hit by maintenance.
8 July 2019joint venture update▲ Good
Comet Ridge says the Mahalo joint venture (Comet 40%, Santos 30%, APLNG 30%) has agreed an initial development: dual-lateral wells, an 80 TJ/d modular plant and a roughly 65 km pipeline. A final investment decision date of June 2020 is agreed. Partner's announcement.
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 2019agm notice● Neutral
Chairman and CEO addresses to the 2 May 2019 AGM restate 2018 record results, the 9.7c full-year dividend, 20% reserves growth and the 100 mmboe by 2025 target. Confirms Eugene Shi retires and Guan Yu replaces him as ENN's nominee. Mostly known facts.
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.
17 Apr 2019quarterly activities report▲ Good
Q1 2019 production was a record 18.4 mmboe, up 33% on a year earlier, helped by the Quadrant acquisition. Revenue was US$1,015m and free cash flow a record US$327m. Net debt fell to US$3.4bn; 2019 guidance of 71-78 mmboe is maintained.
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.
