Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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 2018agm notice● Neutral
Chairman Keith Spence's AGM address says the Board expects the Harbour due diligence and engagement to conclude within a few weeks, with no certainty of a binding offer. He acknowledges the lack of a 2017 dividend and says cash flow now allows more focus on shareholder returns.
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.
19 Apr 2018quarterly activities report▲ Good
March quarter free cash flow was US$246m and net debt fell 8% to US$2.5bn. 2018 production guidance is cut to 55-58 mmboe after the PNG outage. The end-2019 debt target could be met in the second half of 2018 if oil prices hold. Harbour talks are ongoing.
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 2018agm notice● Neutral
Santos received two shareholder resolutions for the 3 May 2018 AGM from 116 holders (about 0.015% of shares), promoted by Market Forces: a constitutional amendment and a methane emissions report. The Board opposes them and will respond in the Notice of Meeting.
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.
23 Feb 2018joint venture update● Neutral
Comet Ridge (40% of Mahalo) said Santos re-appointed it to run the 2018 Mahalo exploration work programme as agent, after the 2017 programme (including the Humboldt South 1 corehole) was completed. Budget approval expected next week.
21 Feb 2018annual report● Neutral
Santos' 2017 Annual Report repeats the results already released: underlying profit US$336m, net loss US$360m, net debt US$2.7bn, free cash flow US$618m. No final dividend; target is US$2bn net debt by end-2019. Includes the reserves statement and the Transform-Build-Grow strategy.
21 Feb 2018annual report● Neutral
Corporate governance statement for 2017: eight directors, six independent non-executive, one shareholder nominee and the CEO. Notes three new directors, including the new Chairman, were appointed in 2017, and an external board review is due in Q1 2018. Administrative.
21 Feb 2018annual report▲ GoodMajor
2017 results: underlying profit up to US$336m from US$63m, net loss narrowed to US$360m, and net debt fell to US$2.7bn. Free cash flow was US$618m. No final dividend, as the Board prioritises debt reduction. Keith Spence has taken over as Chairman from Peter Coates.
21 Feb 2018admin correction● Neutral
Appendix 4G, the ASX checklist pointing to Santos' corporate governance statement for 2017. Administrative filing with no new substance.
21 Feb 2018annual report● Neutral
Appendix 4E for 2017: revenue up 21% to US$3,172m and net loss narrowed 66% to US$360m. No final dividend, and none for the interim either. Details are in the results release and annual report.
