Key Highlights

  • Santos reported third-quarter 2026 production of 26.3 mmboe and sales revenue of about US$2,006 million, as stated in its 22 October 2026 report.
  • Full-year 2026 production guidance was narrowed to 99 to 102 mmboe from 99 to 105 mmboe.
  • The company said a final investment decision on Papua LNG is planned for the fourth quarter of 2026.

Santos Ltd (ASX:STO) shares closed at $9.18 on 27 October 2026, up 0.11% on the day. The S&P/ASX 200 closed at 8,850.1 (+0.46%) and the energy sector index finished at 11,074.7 (+0.63%). Brent crude slipped 0.60% to US$115.15 as diplomatic efforts around the U.S.-Israeli war with Iran eased concerns about further regional escalation. Santos is an energy company with listings on the ASX and PNGX and an ADR programme, operating gas and oil assets including Barossa and Darwin LNG, PNG LNG, GLNG, the Cooper Basin and the Pikka project in Alaska.

Latest Development: Third Quarter Report

In its report for the period ending 30 September 2026, Santos reported production of 26.3 mmboe for the quarter, up almost 14% on the prior quarter and 23% on the prior corresponding period. Year-to-date production was 71.9 mmboe. All values are in US dollars unless stated.

  • Sales revenue was about US$2,006 million, up 49% on the prior quarter, and sales volumes were 26.4 mmboe.
  • Free cash flow from operations was about US$1,069 million, and free cash flow was about US$957 million.
  • The average LNG price was US$16.22 per mmBtu, compared with US$11.21 in the prior quarter.
  • Barossa achieved steady production, with feed gas to Darwin LNG reaching a peak of about 600 mmscf per day.
  • Pikka production was 69,000 barrels per day (gross) at quarter end after two temporary curtailments; the company plans to hold output near 70,000 barrels per day briefly for water injection before ramping toward 80,000.

Latest Development: Guidance and Growth Agreements

Santos narrowed 2026 production guidance to 99 to 102 mmboe and sales volume guidance to 102 to 105 mmboe, citing Pikka commissioning delays and the third-quarter curtailment. Capital expenditure, unit production cost and depreciation guidance were unchanged. The company also reported a binding agreement to lift its Papua LNG interest by 3.3 percentage points to 21% (post State back-in), a binding agreement with GLNG partners to acquire the Greater Meridian project in which Santos would hold 30% and become operator, and the completed Mahalo divestment. In the Beetaloo sub-basin, the company reported early Jibera South 1 results, with the pilot hole drilled to 3,457 metres. Moomba carbon capture and storage was reported to have stored more than 2.5 million tonnes (gross) of CO2e since start-up in September 2024.

Latest Development: Half-Year 2026 Results

On 19 August 2026, Santos announced first-half production of 45.6 mmboe, up 3% on the prior corresponding period, with sales revenue of US$2.6 billion and EBITDAX of US$1.6 billion. Net profit after tax was US$355 million and underlying profit was US$397 million. The Board declared an unfranked interim dividend of US 11.6 cents per share, totalling US$377 million. Gearing was 23.2% excluding operating leases, liquidity was US$3.8 billion, and the company reported no debt maturities until September 2027. The company said free cash flow of US$378 million reflected commissioning activities and cargo timing effects that it expected to unwind in the second half. It also reported first Pikka oil in May, seven Barossa cargoes delivered by end of June, and a final investment decision on the Moomba Central Optimisation project.

Risks and Catalysts on Watch

Items identified in the company's reports include:

  • A final investment decision on Papua LNG is planned for the fourth quarter of 2026, with at least 60% targeted to be funded through project financing.
  • The additional Papua LNG interest is conditional on regulatory approvals and on the project reaching FID.
  • The Greater Meridian acquisition is targeted for late 2026 and remains subject to regulatory approvals.
  • The POSCO and Western LNG arrangements are non-binding or subject to definitive agreements and corporate approvals.
  • Santos said wireline logging at Jibera South 1 is to be completed before the 3,000-metre lateral production hole is drilled.
  • Pikka production is planned to be held near 70,000 barrels per day for a short period before ramping up to 80,000.

Final Word

Santos' two releases cover a half-year result in August and a third-quarter operating report in October. The October report details production, cash flow, narrowed guidance and the planned timeline for Papua LNG.