Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
4 Mar 2019agm notice● Neutral
Santos received a climate-related shareholder requisition from the ACCR for the 2 May 2019 AGM, covering Paris alignment disclosure and a review of industry advocacy. Santos says the notice is invalid, so the resolutions will not be put to the meeting. It will address the issues in the AGM addresses.
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.
24 Jan 2019quarterly activities report▲ Good
Q4 2018 production rose 6% to 15.9 mmboe, with record quarterly revenue of US$1,043m and record annual revenue of US$3,696m. Net debt was US$3.6bn (gearing ~33%) after the Quadrant purchase. 2019 plans include about 100 Cooper wells and 350-400 GLNG wells.
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.
19 Dec 2018drilling result● Neutral
Sirius Road 1, the third Mahalo vertical well, reached 506 m with 6.9 m net coal; the Castor seam was 3.3 m as expected but Pollux was only 0.9 m, thinner than predicted. Rig moves to Sirius Road 2. Santos holds 30% as exploration operator.
18 Dec 2018well test result● Neutral
Memooloo 2 production testing, running three weeks since 23 November, shows rising water rates with minimal pressure draw down, which Comet Ridge calls encouraging at this early stage. No gas rate is reported. Santos holds 30% as exploration operator.
10 Dec 2018drilling result▲ Good
Struan 3, the first dual lateral well in the Mahalo block, was drilled with 822 m and 1,512 m laterals (88% and 95% in seam) intersecting Struan 2. The rig moves to Sirius Road 1. Santos holds 30% as exploration operator.
4 Dec 2018drilling scheduled▲ GoodMajor
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.
3 Dec 2018farm in farm out agreement▲ Good
Melbana, Total and Santos amended their WA-488-P deal to speed up Beehive-1 well planning for a possible Q3 2020 spud, with Total and Santos funding the work. Further seismic processing is dropped; final data is due early February 2019, and the 6-month option window runs from its receipt.
3 Dec 2018production update▲ Good
Santos announced first gas from the third and final Bayu Undan infill well, with the project delivered about 40% under budget and over three months early. The drilling rig is now contracted for Santos' 2019 program, including Dorado appraisal. Santos holds 11.5%.
27 Nov 2018asset acquisition disposition● Neutral
Wesfarmers confirmed completion of its 13.2% Quadrant sale to Santos for about US$170m net, plus a Dorado contingent value right and Bedout Basin royalty. Counterparty-side confirmation of the Quadrant completion Santos announced the same day.
27 Nov 2018asset acquisition disposition▲ GoodMajor
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.
20 Nov 2018drilling progress report● Neutral
Struan 2 reached 510 m and Struan 3, the first Mahalo dual lateral, spudded 17 November and was drilling at 537 m. Memooloo 2 has been completed and is being readied for production testing. Santos holds 30% as exploration operator.
19 Nov 2018investor presentation● Neutral
Oil Search's PNG investor field trip deck repeats known facts: PNG LNG ran at record ~9.2 mtpa in September after the February earthquake, and 7.5 mtpa is contracted. Santos holds 13.5% of the project. Nothing new for Santos is shown in the readable text.
16 Nov 2018asset acquisition disposition▲ GoodMajor
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.
