Record quarterly production
Drilling activity levels increasing within disciplined Operating Model
Strong free cash flow generation and gross debt reduced
Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “Santos’ first quarter delivered record production volumes and a record free cash flow for a single quarter.”
“Our brownfield growth strategy and disciplined Operating Model continue to drive strong free cash flow to support our growth ambitions across our five long-life natural gas assets. This disciplined approach to capital allocation has now delivered positive free cash flow for twelve consecutive quarters.”
“Highlights of the quarter included strong onshore drilling success rates, completion of phase 1 of the Moomba South appraisal project, and drilling success with the Muruk-2 and Corvus-2 appraisal wells.”
“We also commenced the drilling of pilot wells for our carbon capture, utilisation and storage project in the Cooper Basin.”
“Our operations were however impacted by cyclone activity in Western Australia towards the end of the quarter and also by facility outages in the Cooper Basin.”
“The integration of the Quadrant business is proceeding well and we are on track to deliver the integration synergies promised.”
“In the second quarter, we look forward to continued drilling success, including commencing appraisal of the exciting Dorado oil discovery offshore Western Australia,” Mr Gallagher said.
Production guidance is maintained at between 71 and 78 mmboe and sales volumes between 88 and 98 mmboe.