Santos Ltd (ASX:STO): How Barossa and Pikka Are Reshaping 2026 Production

Aditi Sarkar

10 November 2026 07:44 PM AEDT

Santos Ltd (ASX:STO): How Barossa and Pikka Are Reshaping 2026 Production

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Highlights

Santos (ASX:STO) reported Q3 2026 production of 26.3 million barrels of oil equivalent.
Third-quarter sales Revenue reached approximately USD 2.006 billion, with quarterly free Cash Flow of approximately USD 957 million.
Barossa reached steady production during Q3, while Pikka began exporting oil cargoes.
Santos narrowed 2026 production guidance to 99–102 million barrels of oil equivalent.

Santos Ltd (ASX:STO) produces and supplies natural gas, liquefied Natural Gas (LNG) and oil through operations in Australia, Papua New Guinea, Timor-Leste and the United States. Santos Ltd (ASX:STO) shares closed at AUD 8.60 on 10 November 2026. During 2026, the company advanced production from its Barossa LNG and Pikka oil developments while maintaining output from established gas and liquids assets.

Third-Quarter Production and Revenue

Santos (ASX:STO) reported production of 26.3 million barrels of oil equivalent (mmboe) for the September 2026 quarter, almost 14% above the June quarter and 23% higher than the corresponding quarter. Production for the first nine months reached 71.9 mmboe, almost 10% higher year on year.

Quarterly sales volumes totalled 26.4 mmboe, up 11% quarter on quarter. Santos recorded approximately USD 2.006 billion in third-quarter sales revenue, representing increases of 49% from the June quarter and 78% from the prior corresponding quarter.

Barossa and Pikka Operational Progress

Barossa achieved steady production during the September quarter. Darwin LNG recorded 98.5% reliability, with ten LNG cargoes and two condensate cargoes lifted during the period. Feed gas to the plant reached a peak of approximately 600 million standard cubic feet per day. Santos (ASX:STO) also reported operational reliability exceeding 98% at PNG LNG and more than 99% at Moomba.

At Pikka in Alaska, seawater injection commenced during the quarter, and the first Crude Oil cargo was lifted in August 2026. Five Pikka cargoes were lifted in the September quarter, including two carrying Santos Equity volumes. Thirty-two development wells had been drilled by the quarterly reporting date. Gross production reached 69,000 barrels per day at quarter-end after briefly exceeding 80,000 barrels per day.

Pikka output was temporarily curtailed following a weather-related effect on its seawater treatment plant and a separate pipeline shutdown after a road accident. Santos indicated that production would be held around 70,000 barrels per day temporarily to support reservoir pressure management before a further ramp-up.

Cash Flow, Financial Position and Guidance

Santos (ASX:STO) generated approximately USD 1.069 billion in free cash flow from operations during the September quarter and approximately USD 957 million in free cash flow after relevant expenditure. For the first nine months, these measures were approximately USD 1.447 billion and USD 839 million, respectively.

For H1 2026, Santos reported sales revenue of USD 2.6 billion, EBITDAX of USD 1.6 billion and net profit after tax of USD 355 million. Its Underlying Profit was USD 397 million. At the half-year reporting date, gearing excluding operating leases was 23.2%, and the company reported USD 3.8 billion in Liquidity with no Debt maturities before September 2027.

Following the third-quarter result, Santos (ASX:STO) narrowed its full-year 2026 production guidance to 99–102 mmboe, compared with the previous 99–105 mmboe range. The company also described an intended increase in its Papua LNG interest to 21% after the state back-in, with a final Investment decision targeted for the fourth quarter of 2026.

Key Insights

Santos (ASX:STO) entered the final quarter of 2026 with higher production and cash generation supported by Barossa and Pikka. Investors assessing operating performance can monitor Pikka reservoir management, LNG reliability, cargo timing, project expenditure and whether full-year output remains within the revised guidance range. Commodity pricing and execution requirements continue to affect future financial outcomes.

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