Each one in plain English, with the numbers worked through for a shareholder.
30 Mar 2012capital raising announcement● Neutral
Santos issued 4,689,506 shares at A$13.6693 to dividend reinvestment participants and 5,509,612 shares at A$14.0198 to the plan's underwriter, for the 2011 final dividend. Routine share issue notice, small relative to the share base.
What it means for a shareholder
4.7m new shares at A$13.67 to raise about A$64.1m. That's 0.49% dilution: every existing holder's slice gets 0.49% smaller. If you held A$1,000 of shares (73 at the issue price), your slice goes from 0.00000768% to 0.00000764% of the company. To keep it you'd need 0 more shares - about A$0 at the issue price.
2011 Sustainability Report covering environment, community, people and economic performance, with a map of Santos's assets. The visible text is mostly descriptive and carries no new financial or operating results.
Full 2011 annual report, restating known results: production 47.2 mmboe, 2P reserves about 1,364 mmboe, sales revenue A$2,530m and net profit A$753m. Describes first LNG from PNG LNG in 2014 and GLNG in 2015. Text truncated; no new figures seen.
Santos sets the dividend reinvestment plan price at A$13.6693 for the 15c franked final dividend payable 30 March. This is the average market price over seven days, less a 2.5% discount. Administrative follow-up to the February results.
Partner Carbon Minerals (35% of PELs 1 and 12, Santos 65% operator) says field work in the Gunnedah Basin remains curtailed. NSW released draft land use plans on 6 March with tougher rules for coal seam gas; Carbon hopes work can resume. Continues the NSW permitting uncertainty.
Partner Cue says Wortel in the Sampang PSC (Santos 45% operator) is now stable at about 50 BBTU/d. Combined with Oyong it meets the 90 BBTU/d contract quantity. Oyong-11 infill well lifted field oil output above 3,000 barrels a day. Follows first gas on 31 January.
Text is truncated, so only the visible part is covered: David Knox's CERA Houston speech on Australia as a major LNG supplier. It says Asian LNG demand nearly doubles to 300 mtpa by 2025 and about $180bn of Australian LNG projects are sanctioned. No new Santos results visible.
Beach's February drilling report covers Cooper Basin wells where Santos operates the joint venture (Beach 20.21%). Tindilpie-14 and Durham Downs North-3 gas wells were cased as future producers and Charo-8 and Charo-9 oil wells hit the target, the first of nine planned. Santos's own stake is not stated.
Martyn Eames conference speech on Asian LNG demand and Australia's coal seam gas-to-LNG growth. General industry outlook; no new Santos figures or results visible in the text.
Citi conference roadshow deck in London restating known points: 2P reserves of 1,364 mmboe, 80-90 mmboe production by 2020, 2012 capex A$3.75bn and 51-55 mmboe guidance. No new announcements.
Full-year report: net profit A$753m (up 50.6%) on revenue of A$2,530m, with a final dividend of 15 cents fully franked. Covers the same result as the separate results release.
Corrects the ex-dividend date for the 15c final dividend to 24 February 2012 from 23 February. Payment on 30 March and the 1 March record date are unchanged.
2011 net profit rose 51% to A$753m, including A$408m after-tax gains from asset sales (15% of GLNG, Evans Shoal) and A$102m of impairments. Underlying profit was A$453m (up 20%), with A$7.5bn funding capacity and a 15c final dividend. Evans Shoal sale to ENI completed; Kipper first gas deferred beyond 1H 2012 for mercury removal.
Results presentation repeating the A$753m profit, A$453m underlying profit and A$7.5bn funding capacity. Adds that Wortel finished on budget but 30 days behind schedule; 2012 guidance of 51-55 mmboe and A$3.75bn capex is unchanged.
Santos's 2P reserves ended 2011 at 1,364 mmboe, 81 mmboe below 2010's 1,445, after 82 mmboe of organic additions (173% replacement) were outweighed by 116 mmboe net from sales (GLNG stakes, permit transfers) and ESG. Contingent resources fell to 2.2 billion boe.
Conference address by a Santos technical vice president comparing Australian coal seam gas with North American shale gas, and discussing Cooper Basin shale potential as at an early exploration stage. Background talk; no new results or figures.
Partner Octanex says the Winchester well (WA-323-P/330-P, Santos 75% operator) slips from Q3 to Q4 2012 because the Ensco 109 rig will arrive later than negotiated. Delays the earlier Q3 2012 plan.
First gas flowed from Wortel in Indonesia's Sampang PSC, on budget, with Oyong and Wortel combined expected at 90 TJ/day gross. Santos (45%, operator) calls it the fourth base-business start-up in eight months; the long-awaited Wortel gas is now delivered.
Beach's January report is mostly its own wells. In Santos-operated Cooper work, four gas development wells were drilled (Merrimelia-62, Leleptian-4, Tindilpie-13, Durham Downs-5); three were cased as future gas producers, and the fourth was logging. Routine.
Clough Curtain JV won work orders of about A$145m under the PNG LNG upstream infrastructure contract. A contractor announcement; Santos's 13.5% interest is only listed and no cost change is stated.
Operator ExxonMobil reports a landslide in the Hides area of PNG's Southern Highlands. Work in Hides and Komo is shut down and the road is blocked. Impact on the PNG LNG schedule (Santos 13.5%) is not stated.
2011 production was 47.2 mmboe (down 5% on 2010, within guidance) and revenue A$2.5bn (up 14%). December quarter production fell to 11.7 mmboe; 2012 guidance of 51-55 mmboe is held, while 2011 depreciation guidance rises to A$13.50-14/boe.
Tap Oil is selling its 8.2% of WA-191-P (Fletcher Finucane) to Santos for A$21.7m after failing to agree processing terms at Mutineer Exeter. Santos is the buyer, building on the May 2011 Finucane South discovery.
Santos approved the A$490m Fletcher Finucane oil project, first oil in 2H 2013 at about 15,000 bopd gross, 14 million barrels 2P. Santos becomes operator with an effective 48% after buying Tap's interest for A$18m; its capex share is A$236m.
Cue says both Wortel wells are completed as gas producers and the platform deck installs mid-January, with first gas still expected by end-January 2012 and budget held at US$105.1m. Santos operates Sampang with 45%.
Drillsearch says wet gas from the Middleton-Brownlow pilot has begun flowing into the Santos-led Cooper JV's Moonanga facilities at about 25 MMscf/d raw gas. Implements the November gas sale agreement; the project is Drillsearch and Beach's.
Beach confirms first gas from Middleton, sold as raw gas to the Santos-led Cooper JV at Moonanga, ramping to 25 MMscf/d. Duplicates the Drillsearch release; Santos is only the buyer.
Beach's December report is mostly its own wells. In Santos-operated Cooper work, Moomba-191, Andree-4, Roti-4 and Galex-3 were cased as future gas producers, and Moomba-191 was deepened to core shale intervals. Routine development drilling.
