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Barossa Gas Project: Learn more

Record annual sales revenue, production and free cash flow

  • Delivered sales revenue of US$1.9 billion in the fourth quarter, bringing 2022 sales revenue to a record US$7.8 billion, up 65 per cent on the prior year
  • Record annual free cash flow of approximately US$3.6 billion, more than double the level in 2021
  • Fourth quarter production of 25.6 mmboe was slightly lower than the third quarter primarily due to reduced domestic gas volumes in Western Australia following unplanned maintenance at John Brooke
  • Record annual production of 105.4 million barrels of oil equivalent (mmboe), reduced to 103.2 mmboe following including Bayu-Undan volumes on a net PSC entitlement basis

Strong balance sheet supportive of disciplined growth

  • Free cash flow of ~US$930 million in the quarter reduced gearing to approximately 18.7 per cent
  • In December 2022, Santos announced a simplified capital management framework including a further US$350 million increase in the on-market share buyback to up to US$700 million
  • Binding conditional offer from Kumul Petroleum to acquire a five per cent interest in PNG LNG for asset value of US$1.4 billion, including a proportionate share of project finance debt, extended to 30 April 2023
    Barossa project 55 per cent complete, drilling activities currently suspended awaiting re-submission of drilling activity environment plan
  • Pikka Phase 1 contracting and early works activities progressing on schedule

Decarbonising the energy supply chain

  • Moomba CCS project is 40 per cent complete and progressing on schedule and budget
  • Trials of direct air capture technologies in the Cooper Basin planned to commence first half 2023
  • Front end engineering design work on the Bayu-Undan CCS project is nearing completion

On track to deliver toward upper end of Oil Search merger synergy guidance

  • US$122 million in sustaining annual synergies achieved, toward upper end of the $110-125 million guidance range

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record annual production and sales revenue in 2022, as strong base business performance positioned the company to benefit from higher commodity prices.

Free cash flow of around US$3.6 billion was also a record and reduced gearing to approximately 18.7 per cent at the end of the year. This strong free cash flow positions the company to provide higher returns to shareholders and in December, we announced a further US$350 million increase in the on-market share buyback to up to US$700 million.

“Our increased LNG position in Papua New Guinea following the Oil Search merger has driven our record performance. The LNG business is expected to remain strong with energy security being a top priority for our trading partners in the region,” Mr Gallagher said.

“We remain committed to supplying the domestic market at reasonable prices. Average realised price for east coast domestic gas for the quarter was US$7.74/GJ, less than half the average realised price for LNG.

“Given the strong customer demand for our product now and into the future, we will seek to backfill and sustain our core assets to deliver the critical fuels the world needs into the 2040s. But we will also seek to decarbonise these critical fuels, in-line with our emissions reductions targets, and produce clean fuels as customer demand evolves.”