Third Quarter Report | Santos

Record revenue and free cash flow

  • Record year-to-date revenue of $5.9 billion, up 86%, and record free cash flow of $2.7 billion, up 194% year over period corresponding
  • Third quarter production of 26.1 mboe was slightly higher than the second quarter, mainly due to higher domestic gas demand and reduced production downtime

A solid balance sheet supporting disciplined growth

  • Free cash flow of over US$1 billion in the quarter reduced to 20.8% at the end of September
  • Received a binding conditional offer to acquire a 5% stake in PNG LNG for an asset value of
    $1.4 billion, including a proportionate share of project finance debt
  • Drilling operations at Barossa are suspended following the Federal Court’s decision to overturn the regulator’s acceptance of the Environmental Plan for Drilling and Completion Activities. Santos is appealing the decision with an appeal hearing scheduled for mid-November
  • Following IDF on the Pikka Phase 1 project in Alaska in August, contracting activities are well advanced with drilling expected to commence in the second quarter of 2023

Decarbonize the energy supply chain

  • Moomba CCS project 25% complete and progressing on schedule and on budget
  • The Bayu-Undan CCS project continues to gain momentum with the award of onshore and offshore FEED packages and engagement with the Australian and Timorese governments
  • Direct air capture technology trials in the Cooper Basin are expected to begin in the first half of 2023

On track to provide updated guidance on merger integration synergies

  • US$112 million of sustainable annual synergies realized in the first nine months of integration1

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered another strong quarter with record revenue and free cash flow, demonstrating strong performance from our LNG portfolio and our domestic gas activity.

Santos’ disciplined operating model generated strong production which, combined with higher raw material prices, resulted in record third quarter free cash flow of over US$1 billion, driving cash flow available for the first nine months of 2022 at US$2.7 billion.

“Energy security is a top priority for countries in our region. Given the strong current and future customer demand for our product, Australia’s role as a major energy producing nation has never been more important,” said Mr Gallagher.

Santos is committed to maintaining supply to the Australian domestic market, while remaining a leading, reliable and low-cost LNG supplier in Asia.

“As the world experiences strong demand for our products, we continue to focus on the essential twin goals of providing the energy the world needs while investing to decarbonize the energy supply chain.”

Comparative performances

Share Santos Unity Q3 2022 Q2 2022 To change 2022 cumulative since the beginning of the year 2021 cumulative since the beginning of the year To change
Production mmboe 26.1 25.5 2% 77.6 69.2 12%
Sales volume mmboe 29.9 27.4 9% 85.4 78.2 9%
Turnover millions of dollars 2,150 1,869 15% 5,906 3,182 86%
Capital expenditure millions of dollars 505 453 11% 1,394 894 56%

1 Excluding integration and other one-off costs.

2 Investments including restoration expenses but excluding capitalized interest.

About Myra R.

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