Dividend information

Latest dividend information

Santos dividend approach

Santos’ strategy is to maintain a disciplined, low-cost operating model that is designed to deliver strong cash flows through the commodity price cycle. The capital management framework seeks to maintain an appropriate capital structure that enables Santos to balance the allocation of capital between investment in the business to develop backfill projects, decarbonisation projects, the development of strategic growth and low carbon fuels projects, and the provision of sustainable returns to shareholders based on the generation of free cash flow.

The capital management framework includes:

• A policy of at least 40 per cent payout of free cash flow from operations[1] (excluding major growth) generated per annum.
• Shareholder returns to be effected by way of cash dividends and/or share buybacks, subject to market conditions and Board discretion.
• A target gearing[2] range of 15 per cent to 25 per cent.

[1]  Free cash flow from operations is defined as operating cash flows less investing cash flows net of acquisitions and disposals and major growth capital expenditure, less lease liability payments. The Board will have the discretion to adjust free cash flow for individually material items.

[2]  Gearing is defined as net debt / (net debt + equity).