9 Nov 2015admin correction● Neutral
Correction: the entitlement offer record date is 7.00pm Thursday 12 November 2015, not the date given in the earlier release. Offer terms are 1 new share per 1.7 held, with the retail offer closing 30 November.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
9 Nov 2015director officer appointment● NeutralMajor
Kevin Gallagher, CEO of Clough, is appointed Santos Managing Director and CEO, starting early 2016 and no later than 31 May 2016. This resolves the succession open since August. David Knox steps down; Peter Coates stays Executive Chairman until then.
6 Nov 2015drilling result● Neutral
Drillsearch reports Maroochydore-1 was plugged and abandoned at 2,874 m, with the Hutton Sandstone water saturated. Beach drilled it under its farm-in. Washington-1 was fracture stimulated across five stages and gas reached surface, with a 28-day test under way.
4 Nov 2015drilling progress report● Neutral
Beach's October report: Santos-operated Tirrawarra-87 beat pre-drill estimates, Cougar East-1 is a third Windorah gas discovery, and new Moomba campaigns started. Maroochydore-1 was dry (water-saturated Hutton). Windorah pipelines were completed.
29 Oct 2015security holder rights change● Neutral
Santos amended its dividend reinvestment plan rules, effective 29 October. The company says the changes reflect current market practice and administrative updates. No financial terms are stated.
23 Oct 2015quarterly activities report▼ BadMajor
Q3 production was 14.5 mmboe (+4% on a year earlier), sales revenue A$808m (-24%) at A$71/bbl. 2015 capex guidance is cut to A$1.8bn and production guidance narrowed to 57-59 mmboe from 57-64, citing lower GLNG domestic gas nominations and FPSO outages.
22 Oct 2015business combination● NeutralMajor
Santos rejected an unsolicited, conditional, non-binding cash proposal from Scepter Partners at A$6.88 per share received 20 October, calling it opportunistic and not reflecting fair underlying asset value. The strategic review continues.
16 Oct 2015production update▲ GoodMajor
The first GLNG cargo has left Curtis Island for South Korea, on time and within the US$18.5bn budget, following first LNG in September. Train 2 is expected ready for start-up by year-end, with first LNG in Q2 2016.
8 Oct 2015drilling result▲ Good
Drillsearch reports Washington-1 (PEL 570, Santos 35% operator) reached 3,660 m with 103.4 m net of gassy Permian source rock. It is cased for fracture stimulation this quarter. Maroochydore-1 spudded 5 October; Drillsearch is free carried.
7 Oct 2015drilling progress report▲ Good
Beach's September report: Santos-operated Tirrawarra-86 cased as a gas producer, Jena-23 found about 2 m net oil pay, Calamia East-1 found 1.7 m and 5.5 m net oil pay, and Whanto South West-1 is a new gas discovery. Campaigns continue.
30 Sept 2015capital raising announcement● NeutralMajor
Santos issued 9.65m DRP shares at A$4.4288 and 23.69m underwritten shares at A$4.5424 for the interim dividend. It says the strategic review is weighing asset sales, structured finance, restructurings and capital markets deals, with talks ongoing with several parties.
24 Sept 2015production update▲ GoodMajor
GLNG started producing its first LNG from Train 1 on Curtis Island, on schedule and within budget, with the first cargo due in coming weeks. Train 2 is expected ready for start-up by year-end. Contracts cover over 90% of capacity.
14 Sept 2015dividend declaration● Neutral
The DRP issue price for the 15c interim dividend is set at A$4.4288, a 2.5% discount to the average market price. This compares with A$7.4192 for the March DRP, showing how far the share price has fallen.
7 Sept 2015director officer appointment● Neutral
Peter Coates' terms as Executive Chairman, effective 24 August: an extra A$45,000 per month, outside the director fee pool, and no incentive plan participation. Ken Dean becomes Senior Independent Director. Follows the 21 August strategic review announcement.
3 Sept 2015drilling spud● Neutral
Drillsearch reports Washington-1 spudded 24 August in PEL 570, where Santos is operator with 35%. It tests Permian source rocks to a proposed 3,686 m and was at 1,376 m. Part of the Cooper unconventional work.
2 Sept 2015drilling progress report● Neutral
Beach's August report: Santos-operated Cooper wells Tirrawarra-88, Hobbes-3 (6.0 m net oil pay), Beanbush-2 (high-side gas), Bolah-2 and Whanto-4 were cased as future producers. Senex's Fulcrum-1 was dry. Continuing campaigns.
1 Sept 2015asset acquisition disposition● NeutralMajor
Central Petroleum completed its purchase of Santos' 50% of Mereenie and took over as operator, completing the sale agreed on 4 June 2015. Santos' A$35m closing payment is not stated in this text.
21 Aug 2015investor presentation● Neutral
Half-year results presentation repeating the release: production up 13% to 28.3 mmboe, unit costs A$13.7/boe, net profit A$37m, GLNG on track within US$18.5bn budget. It adds an expected exploration expense of about A$100m in 2H 2015.
21 Aug 2015director officer appointment▼ BadMajor
CEO David Knox will step down once a successor is found, and Chairman Peter Coates becomes Executive Chairman to run a full strategic review of all options, advised by Deutsche Bank and Lazard. Reasons given: pressure on the share price and approaches from other parties.
21 Aug 2015half year report▼ BadMajor
Santos reported first-half net profit of A$37m (down 82%) on a realised oil price of US$60/bbl versus US$115, with EBITDAX down 5% to A$900m. Interim dividend 15c, capex down 55%, liquidity about A$2.2bn; GLNG still on track for first LNG around end-Q3.
21 Aug 2015half year report▼ Bad
Half-year report: net profit A$37m (down 82%), revenue A$1,631m, production 28.3 mmboe (+13%), and a 15c interim dividend. Cost cuts and PNG LNG volumes were offset by lower oil prices (A$77/bbl). Asset divestments are being considered.
17 Aug 2015price query● Neutral
After a steep share price fall on 14 August and media talk of an equity raising, Santos said it has no current intention to raise equity. It cited over A$2bn of cash and undrawn debt facilities. This contradicts the earlier 'no equity raising' position only if later changed.
5 Aug 2015drilling progress report● Neutral
Beach's July report: in Santos-operated Cooper work, Tirrawarra-85, Whanto-3 and Mt Howitt-3 DW1 were cased as future producers, and the JV dropped the final Mt Howitt-4 well after a low-side result. Cocinero-3 found 7.4 m net Hutton oil pay and was cased.
1 July 2015drilling progress report● Neutral
Beach's June report on Santos-operated Cooper work: Swan Lake-14 and -15 and Tirrawarra-84 cased as future gas producers, though Swan Lake-14 showed low-side gas pay. Whanto-3 reached depth and Mt Howitt-3 was side-tracked. Continues existing campaigns; no major news.
11 June 2015drilling result▲ Good
Moonanga South-1 in PEL 513 (Santos 60% op, Drillsearch 40%) found about 4.3 m net Patchawarra pay and was cased as a future producer. It completes the campaign with seven discoveries from eight wells; Aquamarine-1 was the sub-commercial one.
4 June 2015asset acquisition disposition● NeutralMajor
Central Petroleum agreed to buy Santos' 50% of the Mereenie field and its operatorship for A$45m cash (A$35m at closing, A$10m in June 2016), plus a A$10m free-carried work program. A further A$15m is due if the NEGI pipeline proceeds. Subject to approvals and financing.
3 June 2015drilling progress report● Neutral
Beach's May report: in Santos-operated Cooper work, Barrolka's four-well campaign finished with all wells cased, Swan Lake-13 and -16 were cased as producers, and the Windorah-Marama program began. No major Santos news.
25 May 2015asset acquisition disposition▲ GoodMajor
Cooper Energy completed its 50% purchase of the Sole field and Orbost Gas Plant from Santos, resolving the pending conditional deal from December 2014. Santos keeps 50% and operatorship; FEED has begun, with FID likely in the September quarter 2016.
25 May 2015resource reserve update● Neutral
Cooper Energy booked 106 PJ net 2C contingent gas at the Sole field (211 PJ gross) after completing its 50% purchase from Santos. Santos remains operator with 50%. Sole resource was assessed by Santos as operator.
8 May 2015drilling progress report▲ Good
Drillsearch's April report confirms Spinel-1 and Emery-1 as Santos joint venture gas discoveries, making six from seven wells in the FY2015 campaign. One well remains. Repeats Emery-1 news from 4 May.