Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
6 Sept 2021business combination● Neutral
Oil Search announced the exclusive due diligence period with Santos is extended one week to 13 September 2021. Its board still intends to recommend the 0.6275 proposal, subject to a binding deal and an independent expert. A transaction is still not certain.
2 Sept 2021drilling spud▲ Good
Tamboran reports Santos-operated Tanumbirini 3H in the Beetaloo (Santos 75%) spudded 23 August and is ahead of schedule at 1,080 m. It will be drilled to about 3,800 m, then roughly 1,000 m horizontal. Both 2H and 3H are to be fracked and flow tested before year-end.
26 Aug 2021contract award▲ Good
Santos awarded the Dorado wellhead platform FEED contract to Sapura Energy, calling it the project's last significant commitment before an FID around mid-2022. Pavo and Apus prospects are to be drilled early next year.
23 Aug 2021contract award▲ GoodMajor
Santos awarded the Dorado FPSO FEED contract to Altera Infrastructure, the project's largest contract. It continues the FEED phase begun in June; the project is oil first, with later gas to backfill WA domestic supply. Santos holds 80%.
17 Aug 2021admin correction● Neutral
Santos corrected the record date for the US5.5c interim dividend to 23 August 2021, not 20 August as stated in the half-year report. No other changes.
17 Aug 2021drilling result▲ Good
Tamboran reports Tanumbirini 2H in the Beetaloo, operated by Santos (75%), reached 4,598 m total depth with strong gas shows and pressures. Tanumbirini 3H is next, then both wells will be fracture-stimulated and flow-tested, with results expected before end-2021. No flow rates yet.
17 Aug 2021half year report▲ Good
First-half 2021 net profit was US$354m versus a US$289m loss a year earlier, on revenue of US$2,040m and underlying profit of US$317m. Free cash flow was US$572m, and a 5.5 US cent interim dividend was declared.
17 Aug 2021half year report▲ Good
Santos announced record half-year production of 47.3 mmboe and free cash flow of US$572m, with an interim dividend of US5.5c (20% of free cash flow). The CEO expects a binding Oil Search merger deed in the coming weeks and targets Dorado FID in mid-2022.
6 Aug 2021business combination● Neutral
Oil Search confirmed that confidentiality arrangements are agreed and mutual due diligence with Santos has started, expected to take about four weeks on an exclusive basis. No new terms; a merger deal is still not certain.
3 Aug 2021joint venture update● Neutral
Comet Ridge is buying APLNG's 30% of the Mahalo gas project for A$20m, lifting it to 70%. Santos is lending A$13.15m to fund it in exchange for an option on 12.86% and a right to negotiate up to 50%. Santos's current Mahalo interest is 30%.
2 Aug 2021business combination▲ GoodMajor
Oil Search disclosed Santos's improved proposal of 0.6275 Santos shares per Oil Search share (A$4.52 on 24 June prices, a 19.7% premium), giving Oil Search holders about 38.5%. Its board intends to recommend it subject to due diligence and agreement of a binding implementation deed.
2 Aug 2021business combination▲ GoodMajor
Santos and Oil Search agreed a merger ratio of 0.6275 Santos shares per Oil Search share, resolving the earlier rejection. Santos holders would own about 61.5% of the group. About four weeks of due diligence precede a binding deal; Oil Search's board intends to recommend, conditionally.
28 July 2021production update▲ GoodMajor
First Phase 3C infill well at Bayu-Undan came online at 178 mmscfd of gas and 11,350 bbl/d of liquids, better than expected, lifting field liquids above 25,000 bbl/d. Two more wells follow, finishing early 2022. Santos holds 43.4%.
26 July 2021production update▲ GoodMajor
First oil from the Van Gogh Phase 2 infill, with the first of three wells peaking at 23,200 bbl/d, the field's highest single-well rate. The two remaining wells follow, with start-up expected before year-end. Santos holds 52.5% and operates.
22 July 2021quarterly activities report▲ Good
Second quarter production was 22.5 mmboe, down 9% on Q1 mainly because of the Bayu-Undan sell-down to SK E&S, with record quarterly revenue of US$1.1bn and free cash flow of US$270m. Net debt fell to US$3.4bn; 2021 production guidance narrowed to the upper part of the range.
20 July 2021business combination● Neutral
Oil Search, the target, responded to Santos's proposal, agreeing there is strategic logic but calling the terms not fair, a premium of only 6.8% on Friday's closes. It says it is open to a revised proposal; none has been received.
20 July 2021business combination● NeutralMajor
Santos disclosed a non-binding all-scrip merger proposal for Oil Search: 0.589 Santos shares per Oil Search share, about A$4.25 each, giving Oil Search holders 37% of the combined group. Oil Search's board rejected it as undervaluing the company.
5 July 2021drilling progress report● Neutral
Tamboran reports the Tanumbirini 2H well in the Beetaloo, where Santos operates with 75%, reached about 3,800 m in the target shale. Horizontal drilling is next, with flow test results expected in the fourth quarter of 2021.
29 June 2021drilling scheduled▲ GoodMajor
Santos launched FEED for Dorado Phase 1, an oil project with gross capex of about US$2bn and initial output of 75,000-100,000 bbl/day. FID is targeted around mid-2022. Santos holds 80% and is seeking partners for non-operated equity.
5 May 2021investor presentation● Neutral
Macquarie conference presentation by the CEO repeating Q1 results (24.8 mmboe production, US$302m free cash flow) and the project pipeline, including Bayu-Undan Phase 3C and Van Gogh infill. Largely known facts; extract truncated.
3 May 2021material agreement● Neutral
Santos and Eni signed a non-binding MOU to cooperate on northern Australia and Timor-Leste, including shared infrastructure around Barossa and Evans Shoal and possible carbon capture and storage at Bayu-Undan. No commitments or figures are stated.
30 Apr 2021asset acquisition disposition▲ GoodMajor
Santos completed the sale of 25% of Bayu-Undan and Darwin LNG to SK E&S for US$390m, netting US$186m at completion. Its interest falls to 43.4%. The JERA 12.5% Barossa sale remains in progress.
23 Apr 2021debt financing▲ GoodMajor
Santos priced a US$1.0bn senior unsecured 10-year bond at a 3.649% fixed coupon, maturing April 2031, its debut 144A issue. It extends average debt term to over five years and lowers the average cost of debt.
22 Apr 2021quarterly activities report▲ Good
First quarter production was 24.8 mmboe, 2% below the December quarter, with free cash flow of US$302m and net debt of US$3.6bn. Santos forecasts more than US$1bn free cash flow for 2021 at current oil prices. Dorado FEED entry is planned in coming months.
21 Apr 2021contract award▲ Good
Santos signed a new gas supply agreement with Rio Tinto for up to 15 PJ of natural gas from late 2021. Rio is a long-term existing buyer, extending Santos's Western Australian domestic gas sales.
19 Apr 2021other▲ Good
Fitch assigned Santos an inaugural BBB rating with stable outlook, a second investment grade rating alongside S&P's BBB-. Santos says it adds flexibility in accessing global debt markets.
15 Apr 2021agm notice● Neutral
Chairman's and CEO's addresses to the 15 April 2021 AGM. Resolution 6(b) was not put to a vote because 6(a) was clearly going to fail on proxies. Extract is truncated, so no further content is confirmed.
14 Apr 2021regulatory community update● Neutral
Santos released its 2021 Sustainability Report, covering targets and performance across seven sustainability pillars. Cover note carries no new business information; the extract is truncated.
12 Apr 2021director officer appointment● Neutral
The board granted CEO Kevin Gallagher a once-off growth projects incentive of Share Acquisition Rights worth A$6m at grant, vesting on delivery of major growth projects and energy transition strategy to 2025, plus continued employment. Share issue approval will be sought at the 2022 AGM.
30 Mar 2021drilling result▲ GoodMajor
Santos took final investment decision on the US$3.6bn Barossa gas project, with a US$600m Darwin LNG life extension extending the plant about 20 years. First gas is targeted 1H 2025; about 380 mmboe moves to 2P reserves. Resolves the long-awaited FID.
