23 Dec 2022asset acquisition disposition● Neutral
Kumul extends its binding offer for 5% of PNG LNG (US$1.4bn asset value) from 31 December 2022 to 30 April 2023, with Santos still dealing exclusively with it. The sale has not yet completed.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
20 Dec 2022regulatory community update▲ Good
The National Native Title Tribunal determines that Narrabri petroleum production leases 13-16 may be granted, on condition that an Additional Research Program is completed before Phase 2. This clears a native title step for the Narrabri project.
14 Dec 2022material agreement▲ Good
Santos agrees to buy 36.5 PJ of gas from the Walyering joint venture in the Perth Basin over five years from 1H 2023, for its WA domestic sales portfolio.
13 Dec 2022material agreement● Neutral
Mayur and Santos extend exclusivity to 1 December 2023 to negotiate a joint PNG nature-based carbon offset portfolio, covering 1.4 million hectares of rainforest. Santos' US$3m June 2022 loan stands. This extends the earlier 180-day exclusivity. Announced by the partner.
7 Dec 2022capital raising announcement▲ GoodMajor
Santos adopts a simplified capital framework of at least 40% of free cash flow returned annually, with gearing target 15-25% unchanged. It adds a further US$350m on-market buyback, bringing 2022's total to US$700m. The earlier US$350m is about 98% complete.
2 Dec 2022regulatory community update▼ BadMajor
The Full Federal Court dismisses Santos' appeal against the September ruling that set aside the Barossa drilling environment plan approval. Santos is revising the plan and will seek remaining approvals. It expects no material cost or schedule impact, with first gas still 1H 2025.
29 Nov 2022material agreement▲ Good
Santos agrees binding terms to supply Brickworks up to 35 PJ of gas over 11 years from January 2025, at CPI-linked prices, with an option to extend. Santos says it supports funding Cooper Basin, Queensland and Narrabri development.
29 Nov 2022production update▼ Bad
A small gas leak in a subsea flange on the John Brookes trunkline to Varanus Island forced a platform shutdown. Repairs are expected to take four to six weeks; Varanus Island continues at reduced rates, and no change to production guidance is anticipated.
8 Nov 2022investor presentation● NeutralMajor
At its Investor Briefing Day, Santos announces a new purpose and strategy (backfill and sustain, decarbonisation, clean fuels) and splits into two divisions, keeping net zero by 2040. 2023 production guidance is 91-98 mmboe, below 2022's 103-106 mmboe (guidance raised from 100-110 earlier context).
7 Nov 2022other● Neutral
Santos publishes its 2022 Sustainability Report covering safety, environment, climate, Indigenous partnerships and governance. The visible text is introductory and truncated; no new financial or project facts can be confirmed from it.
29 Sept 2022regulatory community update● Neutral
Santos welcomes the Australian Government's Heads of Agreement with east coast LNG exporters, saying it has no adverse impact on Santos or GLNG. Uncontracted LNG gas is to be offered domestically first. GLNG has provided a 2023 seasonal shaping plan.
29 Sept 2022drilling result▲ Good
Red Sky says drilling at Yarrow 3 is complete: casing set at 2,744.5m, well suspended and rig released. Gas is indicated in both target formations on preliminary data, and the results will now be evaluated to set the forward plan. Largely repeats the 26 September result.
27 Sept 2022asset acquisition disposition▲ GoodMajor
Santos receives a binding conditional offer from PNG state company Kumul for 5% of PNG LNG at US$1.4bn asset value, including about US$0.3bn of project debt. Kumul paid US$55m into escrow. Open until 31 Dec 2022, subject to pre-emption waivers. This follows the earlier sell-down talks; Santos would keep 37.5%.
26 Sept 2022asset acquisition disposition▲ Good
Comet Ridge says Santos exercised its option for a further 12.86% of the Mahalo Gas Project, moving interests to Santos 42.86% and Comet Ridge 57.14%. The loan is largely settled, and Santos takes on US$3.43m of deferred consideration to APLNG. Announced by the partner.
26 Sept 2022drilling result▲ GoodMajor
Partner Red Sky reports Santos' Yarrow 3 appraisal well in PRL17 (Innamincka Dome, Cooper Basin) reached 2,748m and found gas in the Tirrawarra Sandstone and Patchawarra Formation on preliminary logs. The well will be cased and suspended as a potential producer. Announced by the partner.
26 Sept 2022investor presentation● Neutral
Santos' US and UK investor roadshow deck repeats the 2022 half-year results and known projects. The visible text is a disclaimer and cover; the rest was truncated, so no new information can be confirmed.
21 Sept 2022regulatory community update▼ BadMajor
The Federal Court sets aside the regulator's acceptance of Barossa's drilling environment plan, finding Tiwi Islanders were not properly consulted, so drilling is suspended. Santos will appeal or seek a fresh plan. It says the project is 46% complete and drilling is not on the critical path.
12 Sept 2022price query● Neutral
Santos responds to media speculation about ENN selling a 9.97% stake, noting ENN lodged a notice on 22 April 2022 saying its holding had fallen below 5%. It does not confirm or comment on the speculated sale.
5 Sept 2022regulatory community update▲ GoodMajor
Santos wins two offshore CO2 storage appraisal permits: G-9-AP in the Carnarvon Basin (Santos 50% op, Chevron 50%) and G-11-AP in the Bonaparte Basin (Santos 40% op, Chevron 30%, SK E&S 30%). They extend its CCS plans beyond Reindeer and Bayu-Undan.
30 Aug 2022debt financing▲ GoodMajor
Santos extends two syndicated bank facilities totalling US$1.25bn: US$250m maturing August 2025 and US$1bn maturing February 2028. Proceeds first refinance loans due 2024 and 2026, leaving no significant corporate debt maturities until 2027, excluding PNG LNG project finance.
29 Aug 2022material agreement● NeutralMajor
Santos, as Barossa operator, approves the Darwin Pipeline Duplication, extending the Barossa export pipeline to Darwin LNG and freeing the old Bayu-Undan pipeline for carbon storage. It adds about US$311m to Santos' Barossa capex. First gas stays targeted for 1H 2025.
17 Aug 2022dividend declaration▲ GoodMajor
Santos announces US$605m of first-half returns: interim dividend up 38% to US7.6c unfranked (US$255m), and buyback raised from US$250m to US$350m. Synergy target lifts to US$110-125m. It is in advanced talks to sell 5% of PNG LNG, keeping 37.5%.
17 Aug 2022half year report▲ GoodMajor
Santos' half-year report shows net profit of US$1,167m, up 230%, on revenue of US$3,766m, with underlying profit of US$1,267m and free cash flow of US$1,708m. An unfranked interim dividend of 7.6 US cents is payable, with record date 23 August.
17 Aug 2022drilling result▲ GoodMajor
Santos takes final investment decision on Alaska's Pikka Phase 1 (Santos 51%, Repsol rest): US$1.3bn Santos-share capex, 80,000 bbl/d gross, first oil 2026. 2P reserves 397 mmbbl gross; ~19% IRR at US$60 oil. This meets the 1H 2022 FID target.
15 Aug 2022flow test result▲ Good
Partner Tamboran reports Tanumbirini 3H flowing at an eight-day average of 4.4 mmscfd (7.4 normalised per 1,000 m) and 2H at 2.8 mmscfd after tubing was installed, higher than January. This follows the revised flow rates in EP 161, where Santos holds 75%.
11 Aug 2022asset acquisition disposition▲ GoodMajor
Santos buys Hunter Gas Pipeline Pty Ltd, which holds an approved underground route from Wallumbilla, Queensland to Newcastle, to carry Narrabri gas to the domestic market. Construction is expected to start early 2024 subject to approvals. Narrabri appraisal drilling is planned later this year.
20 June 2022material agreement● Neutral
Santos signs a non-binding expression of interest with Mayur Resources to jointly develop nature-based carbon offsets protecting 1.4 million hectares of PNG rainforest. Santos gets 180 days exclusivity and lends US$3m, convertible to Mayur shares if no deal. Supports its stated offsets plans.
9 June 2022regulatory community update● Neutral
Partner Bounty Oil & Gas says Western Australia's regulator extended the Cerberus permits (EP 490, 491, TP 27) to May 2026. Bounty expects Santos to drill Yoorn-1, on trend from Cerberus prospects, around Q4 2022. Santos' role is mentioned by a partner, not Santos.
1 June 2022contract award▲ Good
Santos signs new gas supply agreements with Yara Pilbara Fertilisers, supplying over 120 petajoules over five years from 2023 to its Burrup Peninsula ammonia plant. The two will also explore decarbonisation options, including carbon capture and storage. It extends an existing Yara contract.
17 May 2022asset acquisition disposition▲ Good
State Gas says its joint venture with Santos was named preferred tenderer for two new central Queensland gas areas covering 1,035 km2. Santos would hold 65% and operate, State Gas 35%. It is a preferred-tenderer status, not yet a final grant.