25 Aug 2017director officer appointment● Neutral
Non-executive director Greg Martin retired from the Board on 25 August 2017 after eight years, citing personal reasons and his other executive responsibilities at Prostar Capital.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
24 Aug 2017half year report● NeutralMajor
Half-year 2017: sales revenue US$1.45bn (up 22%), EBITDAX US$718m, underlying profit US$156m, but net loss US$506m after US$920m net impairments. No interim dividend, so the dividend stays suspended. Production 29.5 mmboe, sales 40.1 mmboe.
24 Aug 2017investor presentation● Neutral
Half-year results presentation repeating known figures: US$302m first-half free cash flow, US$33/bbl breakeven, net debt US$2.9bn, target US$2bn by end-2019, US$4.2bn liquidity and no interim dividend. No new information.
24 Aug 2017half year report● Neutral
Half-year 2017 media release: underlying profit US$156m versus a US$5m underlying loss a year earlier; net loss US$506m after US$689m after-tax impairment. Sales guidance lifted to 77-82 mmboe, net debt US$2.9bn, no interim dividend. Repeats the earlier 24 August result.
23 Aug 2017debt financing▲ GoodMajor
Santos will redeem its Euro 1 billion subordinated notes on the 22 September 2017 call date, funded from existing liquidity of US$4.2bn (cash US$2.2bn, undrawn facilities US$2bn). It expects to raise new debt at significantly lower interest cost soon. This resolves the hybrid call thread.
15 Aug 2017other▼ BadMajor
Santos expects a non-cash net impairment of about US$690m after tax in its half-year result, after cutting its oil price forecasts. GLNG is impaired about US$870m and AAL (Indonesia) about US$150m, partly offset by a roughly US$330m Cooper Basin write-back. No cash impact.
14 Aug 2017contract award▲ GoodMajor
Santos signed a 15 PJ gas supply contract with ENGIE for the Pelican Point Power Station in South Australia, starting January 2018, using GLNG and Santos portfolio gas. It says further domestic supply contracts will be announced in coming months. Price not stated.
2 Aug 2017drilling result▲ Good
Beach's July report: in Santos-operated Queensland JV, Okotoko North-1 is a new gas field discovery with about 8m net gas pay, cased as a producer, completing the six-well campaign. Irtalie East-6 found about 9m net oil pay and was cased. Other results are Beach's own.
26 July 2017director officer appointment● Neutral
Philip Byrne, ex-Nido Petroleum CEO, joins as Executive Vice President Marketing and Trading from 14 August 2017, heading a new division. He replaces John Anderson, who is retiring.
5 July 2017drilling result● Neutral
Beach's June report: in Santos-operated Queensland JV, Cougar-1 was plugged and abandoned for lack of commercial pay, while Snefru-1 found about 3m net gas pay and was cased as a producer. In SA, Dullingari-42 DW1 found about 62m net gas pay and was cased.
3 July 2017other● Neutral
Santos moved its share registry from Computershare to Boardroom from 3 July 2017. Issuer-sponsored holders' reference numbers gain a '7' prefix; CHESS holders' HINs are unchanged. Administrative only.
29 June 2017director officer appointment● Neutral
Christian Paech and Amanda Devonish became Company Secretaries on 29 June 2017, as David Lim resigned from the role. No reason is given.
28 June 2017drilling result▲ GoodMajor
The two-well Barossa appraisal (Barossa-5 and -6) confirmed a gas-saturated Elang reservoir; Barossa-6 flowed 65 mmscf/day, constrained by test facilities. This strengthens Barossa as lead Darwin LNG backfill candidate, with a FEED entry decision in early 2018. Santos holds 25%.
27 June 2017material agreement● NeutralMajor
Santos signed a strategic relationship with shareholders ENN and Hony, who together hold 15.1%. ENN and Hony intend Santos to be their primary vehicle for Australian and PNG upstream gas investment, and ENN nominee Eugene Shi joins the Board. It lasts while they hold at least 15%.
14 June 2017well test result▲ GoodMajor
Muruk 1ST3 flowed gas and condensate at 16 mmscf/day, constrained by test facilities, confirming a potentially significant new gas field 21km from Hides. Santos holds 20%. Well site preparation is scheduled for late 2017 ahead of a possible 2018 appraisal programme.
7 June 2017drilling result● Neutral
Beach's May report: in Santos-operated Cooper JVs, Dullingari-43 DW1 found about 25m net gas pay and was cased as a producer, in line with estimates. Lepard-3 was cased as a gas producer, with a preliminary low-side outcome. Cougar-1 was drilling.
1 June 2017drilling progress report▲ Good
Oil Search's May report: Muruk 1ST3 confirmed the whole Toro reservoir is gas saturated, with no gas-water contact. Cores were cut, total depth reached 4,251m, and a roughly week-long production test is underway. Santos' 20% farm-in still awaits regulatory approval.
26 May 2017director officer appointment● Neutral
Dr Vanessa Guthrie, former Toro Energy CEO and current Minerals Council of Australia chair, joins the Santos Board as an independent non-executive director from 1 July 2017. She replaces Scott Sheffield, who retired at the recent AGM, as part of board renewal.
15 May 2017drilling result▲ GoodMajor
Santos confirms Muruk 1ST3 found the entire Toro reservoir gas saturated, with no hydrocarbon contact down to 4,130m, confirming a potentially significant new gas field 21km from Hides. This builds on December's discovery; Santos' 20% farm-in still awaits regulatory approval.
15 May 2017material agreement● Neutral
Real Energy signed a non-binding MOU with Santos for processing its Windorah gas at Moomba and transporting it through the Cooper Basin network. Terms are confidential and a binding agreement, including Santos' JV partners, is still needed. Minor for Santos.
15 May 2017drilling progress report▲ Good
Oil Search reports Muruk 1ST3 confirmed the whole Toro reservoir is gas saturated, with no gas-water contact reached at 4,130m. Production tests are planned subject to JV approval, with an appraisal programme possible in 2018. Santos is farming in at 20%.
4 May 2017drilling progress report● Neutral
Oil Search's April report: Antelope 7ST1 (Antelope Deep) was plugged and abandoned, as the 510m of carbonate is unlikely to hold producible hydrocarbons. At Muruk, 1ST3 drilled into the Toro reservoir with elevated gas readings, pending validation. Santos' 20% interest awaits approval.
4 May 2017other● NeutralMajor
Hony Capital bought 48 million Santos shares (2.3%) at A$3.84 after the close on 3 May, taking Hony, ENN and affiliates to 15.1%, as Santos understands it. The price was a 6% premium to the prior close of A$3.63. This follows the earlier ENN purchase of Hony's stake.
3 May 2017drilling result● Neutral
Beach's April report: in the Santos-operated Queensland JV, Gallan-1 was dry, while Hector South-1 found 6.7m of net gas pay and was cased as a producer, in line with estimates. Inca-1 was also cased as a gas producer. Other results are Beach's own.
27 Apr 2017regulatory community update● Neutral
Santos responded to the Government's new Australian Domestic Gas Security Mechanism, saying it will supply more gas to the domestic market than it buys for its LNG exports. It will seek clarity on how the policy will work. No detail on cost or impact is given.
13 Apr 2017joint venture update● Neutral
The Mahalo JV (Comet Ridge 40%, Santos 30%, APLNG 30%) unanimously approved the 2017 work programme: stimulating four Mira pilot wells and drilling one step-out corehole. This follows the agency deal of 3 April; field work is expected to start in the second quarter.
11 Apr 2017debt financing▲ GoodMajor
Santos will repay US$250m of its 2019 export credit facility early, leaving US$950m and saving about US$5.5m a year in interest. It also extended US$810m of undrawn bilateral loans from 2018 to 2022. This continues the debt-reduction push after December's raising.
6 Apr 2017drilling progress report● Neutral
Oil Search's March report on Muruk, where Santos is farming in at 20%: the second sidetrack (1ST2) found the reservoir folded and likely water-bearing, so a third (1ST3) began to define the southern flank and lowest known gas. Santos' interest still awaits regulatory approval.
5 Apr 2017drilling result● Neutral
Beach's March report: its own Western Flank gas campaign ended with three discoveries from four wells, none Santos-operated. Santos' only link is the Cooper JV, which is not mentioned here. Little new for Santos shareholders.
3 Apr 2017joint venture update● Neutral
Comet Ridge, a 40% partner in the Mahalo block (Santos 30%, APLNG 30%), was appointed Santos' agent to manage 2017 subsurface exploration work until end-2018. The programme costs up to A$5m gross, with no cash call on Santos until a 2P upgrade of at least 334PJ.