Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
9 Aug 2018regulatory community update● Neutral
Melbana says the regulator credited the Beehive 3D seismic survey, now being acquired, against a later work commitment in WA-488-P. Total and Santos fund the survey and hold an option for 80% of the permit. The survey is expected to finish shortly.
8 Aug 2018drilling result▲ GoodMajor
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.
20 July 2018material agreement▲ Good
The PNG LNG partners signed a three-year LNG supply deal with PetroChina for about 0.45 mtpa from July 2018, taking contracted volumes to 7.0 mtpa. It replaces spot sales. Santos holds 13.5% of the project.
28 June 2018dividend declaration▲ GoodMajor
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.
27 June 2018regulatory community update▼ Bad
Octanex says the Winchester JV (Santos 75% operator) will not seek a retention lease. Santos could not find a commercial development concept within 15 years, so permit WA-323-P expires on 5 July 2018 and the Winchester gas discovery is left undeveloped.
26 June 2018well test result▲ Good
Comet Ridge reports the Mira 6/2 pilot well at Mahalo now flows above 1.4 million scf/d, up from over 840,000 in March. Santos QNT holds 30% of the project. The partners plan a September drilling program.
18 June 2018contract award▲ Good
Three major FEED engineering contracts were awarded for Barossa, in which Santos holds 25%. MODEC and a TechnipFMC/Samsung group will compete on the FPSO design, and INTECSEA won the subsea work. A final investment decision is still targeted for end-2019.
6 June 2018drilling progress report▲ Good
Beach's May report covers Santos-operated Cooper JV wells. Watkins-2, Watkins-3 and Minos-3 oil appraisal wells found oil pay, and Hobgoblin-1 had gas shows. Moomba-224 and Whanto-5 were cased as future producers. A six-well Moomba North campaign started.
23 May 2018regulatory community update▲ Good
The regulator approved the environmental plan for the Beehive 3D seismic survey in WA-488-P. Acquisition is expected to start in July and finish by end-August 2018, fully funded by Total and Santos. Santos operates the survey and holds an option on 80% of the permit.
22 May 2018business combination● NeutralMajor
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.
21 May 2018business combination▲ GoodMajor
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.
17 May 2018business combination● NeutralMajor
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.
16 May 2018business combination● Neutral
ENN told Santos that media reports were mistranslated: it intends to engage with Harbour, but no agreement exists. The 2017 agreement still requires ENN and Hony to vote and sell in line with a majority Board recommendation. Shareholders take no action.
15 May 2018business combination● Neutral
Santos says it has no notice of any agreement between Harbour and ENN, its largest shareholder, despite media speculation about an ENN trading suspension. There is no certainty the Harbour proposal becomes an offer; shareholders should take no action.
3 May 2018asset acquisition disposition▲ GoodMajor
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.
2 May 2018drilling progress report● Neutral
Beach's April drilling report covers Santos-operated Cooper JV wells: Mountain Goat-1 found gas pay and Tigris-1 was dry. Tirrawarra-94 and the Marabooka wells were cased as future producers. Beach's Lady Bay-1 was dry.
30 Apr 2018production update▲ Good
PNG LNG train 2 has restarted and the plant is at normal rates, with exports resumed. The operator expects full capacity in May. This closes out the earthquake outage that began 26 February.
26 Apr 2018asset acquisition disposition▲ GoodMajor
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.
23 Apr 2018joint venture update▲ GoodMajor
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.
13 Apr 2018production update▲ GoodMajor
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.
4 Apr 2018drilling progress report● Neutral
Beach's March drilling report finishes the Stunsail and Tirrawarra-Gooranie campaigns and brings Growler-15 online. In the Santos-operated Cooper JV, Bantam-1 and Wackett-17 were cased as future producers. Beach's Lady Bay-1 was still drilling.
3 Apr 2018business combination▲ GoodMajor
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.
3 Apr 2018business combination● Neutral
Harbour Energy's own release repeats the US$4.98 (A$6.50) proposal and says Santos granted due diligence. It adds US$7.75bn of underwritten debt, Mercuria equity, no planned staff cuts and Adelaide headquarters staying. Same proposal as the Santos announcement.
21 Mar 2018regulatory community update▲ GoodMajor
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.
12 Mar 2018joint venture update▲ Good
Comet Ridge said its Mira 6/2 pilot well at Mahalo passed 840,000 scf/d and is still rising toward about 1 TJ/d. It says this supports the recent reserves upgrade. Santos holds 30% of Mahalo.
7 Mar 2018drilling progress report● Neutral
Beach's February drilling report (Santos operates the Cooper JVs) lists a successful first horizontal Birkhead well at Stunsail and Cocinero-7/-8 oil pay, but Cocinero-5 was dry. Gooranie-9 and -10 hit gas pay, and Napowie-3 found gas. Continues the Cocinero and Tirrawarra-Gooranie campaigns.
6 Mar 2018resource reserve update▲ Good
Comet Ridge reported upgraded Mahalo reserves: its 40% net 2P up 473% to 172 PJ, with a maiden 1P of 18 PJ. Gross 2P is 430 PJ, so Santos (30%) must refund A$1.348m of 2017 work costs. Follows the Humboldt South 1 corehole in the context.
5 Mar 2018production update▼ BadMajor
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.
27 Feb 2018joint venture update▲ Good
Melbana said the regulator granted a six-month extension, to 21 September 2018, of the WA-488-P permit year. This gives time to secure the environmental permit for the Beehive 3D seismic, still targeted for mid-2018. It continues the Total/Santos funded option to take 80%.
27 Feb 2018production update▼ BadMajor
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.
