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Record quarterly production, sales revenue and free cash flow

  • Santos achieved record production of 26 million barrels of oil equivalent (mmboe) in the first quarter
  • Stronger commodity prices combined with higher sales volumes delivered record quarterly sales revenue of US$1.9 billion, up 25 per cent compared to the prior quarter and 99 per cent higher than the corresponding period in 2021
  • Santos generated a record US$865 million in free cash flow in the quarter, up 186 per cent on the corresponding period
  • 13 LNG cargoes sold in the first quarter from Santos’ LNG projects on JKM prices

Strong balance sheet supportive of disciplined growth and higher returns

  • Strong free cash flows reduced gearing to 26 per cent at the end of March following payment of the 2021 final dividend, meaning the balance sheet is well positioned to fund disciplined growth and higher shareholder returns
  • Barossa project is 33 per cent complete and progressing on schedule and budget
  • Moomba CCS project is 14 per cent complete and progressing on schedule and budget
  • Bayu-Undan and Darwin LNG joint ventures entered FEED on the Bayu-Undan CCS project
  • Successful oil discovery at Pavo significantly increases resource size and provides a potential low-cost tie-back to Dorado

On track to deliver merger integration synergies

  • US$54 million in ongoing annual synergies achieved in the first three months of integration[1]
  • On track to deliver guidance of US$90-115 million per annum in synergies[1]

Sustainability

  • 2022 Climate Change Report released confirming Santos is well placed to address the risks and seize the opportunities of the global transition to cleaner energy and clean fuels

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record production, sales revenue and free cash flow in the first quarter, demonstrating the strong performance of the base business and strategic benefits of our diverse portfolio.

Strong production combined with higher commodity prices delivered record quarterly free cash flow of US$865 million, an increase of 186 per cent from the corresponding period last year.

“By designing our portfolio to provide strong cash flows throughout the commodity price cycle, our disciplined, low-cost operating model has positioned us to take full advantage of the increase in commodity prices,” Mr Gallagher said.

“Today’s results demonstrate that our business has the size, scale and cash flows to enable Santos to deliver stronger shareholder returns.

“Consistent with our strategy, our next stage of growth will be disciplined and phased appropriately. The Barossa project is 33 per cent complete and making excellent progress, while the Moomba carbon capture and storage project will deliver a step-change in our emissions profile when it comes online in 2024.

“Our goal is to deliver superior shareholder returns while being a global leader in the transition providing cleaner energy and clean fuels that are affordable and reliable.”

 

[1] Excludes integration and other one-off costs.