20 Feb 2015annual report▼ Bad
Santos' audited 2014 accounts show a net loss of A$935m after A$1,563m of impairments, on revenue of A$4,099m. The final dividend is 15c, making 35c for the year, with record date 27 February 2015.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
20 Feb 2015resource reserve update▼ BadMajor
Santos' 2P reserves fell 9% to 1,245 mmboe at end-2014 (from 1,368), mainly a 62 mmboe cut in Gunnedah Basin as flagged in November. 1P reserves rose slightly to 622 mmboe; reserves life 23 years. GLNG 2P reserves rose 4%.
18 Feb 2015asset acquisition disposition● Neutral
New Guinea Energy said Papua New Guinea government approval was received for the sale of its 50% of PPL 269 to Santos' subsidiary Barracuda. Consideration is US$32m on completion, plus up to US$8m more if licences are granted. Completion is still to occur.
12 Feb 2015other▼ BadMajor
Santos expects a non-cash impairment of about A$1.6bn after tax in its 2014 accounts due to lower oil prices, including A$482m for Cooper Basin oil and A$566m for Gunnedah Basin. GLNG is not impaired; investment grade rating and debt facilities are not expected to be affected.
10 Feb 2015drilling progress report● Neutral
Drillsearch's January report is mostly its own wells. In PEL 632 (Santos 60% op), Nulla North-1 spudded 27 January and showed multiple wet gas shows, with a drill stem test under way. Aquamarine-1 and earlier results repeated; no confirmed new Santos discovery.
6 Feb 2015agm notice● Neutral
Santos set its 2015 Annual General Meeting for Thursday 30 April 2015 at 10:00 am at the Adelaide Convention Centre. Administrative notice only.
4 Feb 2015drilling progress report● Neutral
Beach's January report is mostly its own wells. In Santos-operated Cooper work, Big Lake-133 and Nephrite South-11 and -12 were cased as gas producers, Kanowana-11 and Mudera-20 were cased, and Gaschnitz-2 reached total depth. No major Santos news.
23 Jan 2015quarterly activities report▲ Good
Santos reported Q4 2014 production of 15.1 mmboe and full-year 54.1 mmboe (up 6%), with record 2014 sales revenue of A$4,037m. Barossa-3 found a 152 m gross gas interval. GLNG is over 90% complete; 2015 guidance of 57-64 mmboe and ~A$2bn capex unchanged.
14 Jan 2015drilling progress report● Neutral
Senex's December report confirms Jenners-1 in PEL 100 (Santos 25.835%) was plugged and abandoned at 2,525 m with poor oil shows, ending Senex's northern campaign without commercial discovery. Repeats the 2 January dry-hole result; nothing new for Santos.
8 Jan 2015drilling progress report● Neutral
Drillsearch's December report is mostly its own wells. It repeats the Yarowinnie South-1 discovery in PEL 513 (Santos 60% op, ~15 m net gas pay, 3,142 m). Aquamarine-1 in PEL 632 (Santos op) was plugged and abandoned as sub-commercial; Nulla North-1 due late January.
7 Jan 2015drilling progress report● Neutral
Beach's December report is mostly its own wells. In Santos-operated Cooper work, Big Lake-123 and -132 and Nephrite South-10 were cased as gas producers, Tennaperra-4 (Santos 70%) was cased as an oil producer, and Gaschnitz-2 kept drilling. No major Santos news.
2 Jan 2015drilling result▼ Bad
Jenners-1 in PEL 100, Cooper Basin was plugged and abandoned at 2,525 m in basement. Santos holds 25.835%, so it is a dry hole for a non-operated exploration well. Resolves the 15 December spud.
19 Dec 2014debt financing▲ GoodMajor
Santos secured an additional three-year A$1bn bilateral bank loan facility with ANZ. Management says it adds a buffer over funding needs while oil prices are uncertain. Adds to the roughly A$2bn of cash and undrawn facilities reported at 30 November.
16 Dec 2014farm in farm out agreement● NeutralMajor
Cooper Energy agreed to buy 50% of the Sole gas field and Orbost Gas Plant from Santos, which keeps 50% and operates. Cooper pays A$2.5m and funds the first A$50m of costs; FEED is due to start, with first gas targeted late 2018/early 2019. Conditions apply.
15 Dec 2014drilling spud● Neutral
Cooper Energy says Jenners-1 spudded in PEL 100, Cooper Basin, with a planned depth of 2,608 m. Santos holds 25.835% and Senex operates with 55%. Small non-operated exploration well for Santos.
12 Dec 2014drilling result▲ GoodMajor
Drillsearch says Yarowinnie South-1 in PEL 513 (Santos 60% op) found almost 15 m net gas pay in the Patchawarra, to 3,142 m, and was cased as a future producer. A second wet gas discovery for the joint venture after Varanus South-1.
11 Dec 2014other▼ BadMajor
Santos cut 2015 capex 25% to A$2.0bn from A$2.7bn (growth ~A$1.4bn, sustaining ~A$600m) after the oil price fall. 2015 production guidance stays at 57-64 mmboe, no equity raising is intended, and asset sales remain under consideration.
9 Dec 2014debt financing▼ BadMajor
S&P cut Santos' long-term senior unsecured rating from BBB+ to BBB, with the outlook still negative. Santos said it remained investment grade, with about A$2bn in cash and undrawn debt facilities at 30 November 2014.
8 Dec 2014contract award● Neutral
Tempo Australia won a three-year general services contract with Santos for trade labour, focused on the Cooper Basin. It is a small supplier contract for Tempo; no value given and no material effect on Santos.
5 Dec 2014drilling progress report● Neutral
Drillsearch's November report repeats the Varanus South-1 discovery in PEL 513 (Santos 60% op) and notes Yarowinnie South-1 spudded 28 November. Mostly Drillsearch's own wells; no new Santos result beyond the 27 November announcement.
4 Dec 2014capital raising announcement▼ BadMajor
Santos deferred a possible European hybrid issue after the oil price fell following OPEC's decision to hold output. It has no current intention to raise equity, has about A$2bn liquidity, and expects to significantly cut 2015 capital and operating spending.
3 Dec 2014drilling progress report● Neutral
Beach's November report is mostly its own Bauer oil wells. In Santos-operated Cooper work, Big Lake-121, -122 and -131 and Durham Downs North-4 were cased as gas producers, Nephrite South-10 spudded, and Gaschnitz-3 was cased. No major Santos news.
27 Nov 2014drilling result▲ GoodMajor
Varanus South-1 in PEL 513 (Santos 60% op, Drillsearch 40%) found 18 m net gas pay in the Patchawarra plus 9 m net hydrocarbon pay in the Tirrawarra, to 3,154 m. Cased as a future wet gas producer; first well of the 2013 joint venture.
26 Nov 2014investor presentation● Neutral
Santos' investor seminar repeats known points: GLNG 90% complete, first LNG in 2H 2015 within US$18.5bn, first commissioning gas to the plant expected December 2014, and the 80-90 mmboe by 2020 target. The text shown mentions a possible European hybrid issue only via later news.
6 Nov 2014drilling progress report● Neutral
Drillsearch's October report covers its Cooper Basin wells. Santos-operated results: Varanus South-1 (PEL 513, Santos 60% op) being prepared to drill, Ipundu North-5 and -7 (ATP 299) deepened and cased as Murta producers. Mostly Drillsearch's own wells; no major Santos result.
5 Nov 2014drilling progress report● Neutral
Beach's October report mostly covers its own wells. In Santos-operated Cooper work, Balcaminga-2, Durham Downs-8, Leleptian-5 and -6, and Big Lake-120, -126 and -127 were cased as future gas producers, and Tickalara oil wells were cased. No new result of significance for Santos.
29 Oct 2014farm in farm out completion▲ GoodMajor
New Standard says the PEL 570 farm-out completed: Santos paid A$7.5m for an operated 35% interest and has agreed to meet 75% of remaining earn-in commitments. Government approvals are done. This resolves the 23 October deal; Santos now operates PEL 570 alongside Drillsearch.
24 Oct 2014director officer appointment● Neutral
Appendix 3X for new director Yasmin Allen, appointed 22 October 2014, shows she holds no Santos securities or contract interests. Administrative filing that follows the appointment announcement.
23 Oct 2014farm in farm out agreement▲ GoodMajor
New Standard Energy is selling Santos a 35% operated interest in PEL 570 in the Cooper Basin for A$7.5m cash, with Santos also meeting 75% of New Standard's remaining A$42.5m earn-in commitments. Operatorship moves to Santos; completion awaits government approvals. It extends Santos' Cooper unconventional position.
22 Oct 2014director officer appointment● Neutral
Santos appointed Yasmin Allen as an independent non-executive director from 22 October 2014. She has over 20 years in finance and investment banking and sits on the boards of IAG and Cochlear. It adds one director to the board.