Santos (ASX:STO) Up Roughly 40% Over a Year: Reviewing the Climb and the Quarter That Followed

Sonal Goyal

25 October 2026 10:30 AM AEDT

Santos (ASX:STO) Up Roughly 40% Over a Year: Reviewing the Climb and the Quarter That Followed

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Key Highlights

Santos (ASX:STO) closed at A$9.05 on 23 October 2026, down 1.52%, and is up approximately 40% over a year.
The 22 October 2026 Q3 report showed record quarterly production of 26.3 mmboe and sales revenue of about $2,006 million.
Pikka production was curtailed on two occasions during the quarter, according to the report.

Santos Ltd (ASX:STO) closed at A$9.05 on 23 October 2026, down 1.52% (A$0.14) on the day, and the shares are approximately 40% higher than a year earlier. Santos is an Australian oil and gas company with interests in Australia, Papua New Guinea and Alaska. It released its third quarter report on 22 October 2026, one day before the session discussed here.

About Santos

Santos produces and sells natural gas, LNG and oil. Its assets include the Barossa gas project supplying Darwin LNG, the GLNG and PNG LNG ventures, the Pikka project in Alaska, the Moomba carbon capture and storage project, and Cooper Basin and Beetaloo exposure.

Latest development: third quarter report (22 October 2026)

Santos reported record quarterly production of 26.3 mmboe, up almost 14% on the prior quarter and 23% on the prior corresponding period, taking year-to-date production to 71.9 mmboe. Sales volumes were 26.4 mmboe. Sales revenue was about $2,006 million, up 49% on the prior quarter and 78% on the prior corresponding period. Free cash flow from operations was about $1,069 million for the quarter, with year-to-date free cash flow from operations about $1,447 million.

Barossa achieved steady production during the quarter, with Darwin LNG at 98.5% reliability and ten LNG and two condensate cargoes lifted. Pikka briefly reached its minimum expected plateau rate before quarter end, but production was curtailed twice, after a weather event affected the Seawater Treatment Plant and after the Kuparuk pipeline operator shut the line following a road accident. Production is planned to be held at about 70,000 barrels per day for a short period. Early results from the Jibera South 1 appraisal well in the Beetaloo sub-basin showed shale layers running consistently across the area.

Earlier result for context (19 August 2026)

In its half-year result, Santos reported first-half production of 45.6 mmboe, net profit after tax of $355 million, underlying profit of $397 million, free cash flow from operations of $378 million and an unfranked interim dividend of US 11.6 cents per share. Gearing was 23.2% excluding operating leases.

Risks to weigh

Pikka's start-up has already involved curtailments, and the report noted production would be held below plateau for a period. The half-year free cash flow was affected by commissioning activities and cargo timing. The share price fell 1.52% on 23 October, and the move has not been linked to the report.

What lies ahead

Items to watch include Pikka's return to plateau production, Barossa's progress, Jibera South appraisal results, the Agogo Production Facility tie-in construction and future dividend declarations.

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