What Has Driven Santos (ASX:STO) Shares Higher Over the Past Year? A Look at the 2026 Half-Year Results

Sonal Goyal

20 October 2026 12:47 PM AEDT

What Has Driven Santos (ASX:STO) Shares Higher Over the Past Year? A Look at the 2026 Half-Year Results

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Key highlights

Santos (ASX:STO) the shares closed at $9.32, up approximately 2.31% on 19 October 2026, and the shares are up approximately 47.24% over the past year.
The 19 August 2026 release reports first-half production of 45.6 mmboe, net profit after tax of US$355 million and an interim dividend of US11.6 cents.
Pikka reached first oil in May 2026 and Papua LNG has a final investment decision targeted for the fourth quarter of 2026.

Santos (ASX:STO) is an Australian oil and gas producer with operations in Australia, Papua New Guinea and Alaska. On 19 October 2026, the shares closed at $9.32, up approximately 2.31%. Over the longer term, the shares are up approximately 47.24% over the past year. On 19 August 2026, the company reported its half-year 2026 results, covering production, earnings, cash flow, projects and its dividend.

Half-year results

All values are in US dollars. Production was 45.6 million barrels of oil equivalent, up 3%, sales revenue was $2.6 billion, EBITDAX was $1.6 billion, net profit after tax was $355 million and underlying profit was $397 million. Free cash flow from operations was $378 million, affected by commissioning at Barossa and Pikka, cargo timing around 30 June and a PNG under-lift of about 1.3 mmboe that is expected to unwind early in the second half. The interim dividend is US11.6 cents per share, unfranked, totalling $377 million, and gearing was 23.2% excluding leases.

Pikka and Barossa

Pikka achieved first oil in May, moved to continuous production in June and lifted its first crude cargo in August, with production expected to build towards its 80,000 barrel a day gross plateau late in the third quarter. Barossa delivered seven cargoes by the end of June and five more since 1 July, currently producing around 550 mmscf/d and planned to rise to about 600 mmscf/d by the end of the quarter.

Outlook and other projects

Santos expects second-half production to be about 20% to 30% higher than the first half. A final investment decision on Papua LNG is targeted for the fourth quarter of 2026 with at least 60% project financing, and it took a final investment decision on the Moomba Central Optimisation project targeting more than $600 million of savings. Liquidity was $3.8 billion with no debt maturities until September 2027, and it targets reducing net debt by $2.5 billion by 2030.

Santos also reports safety and operating items: its best personal safety result on record with no lost-time injuries and no Tier 1 process safety incidents, Darwin LNG plant reliability of 100% in the first half and about 2.3 million tonnes of CO₂ equivalent stored at Moomba since start-up. It says peak major project capital expenditure for Barossa and Pikka is behind it, and that a gas prepayment supports its Moomba investment.

Reading the share price change

The share price of Santos is up approximately 47.24% over the past year. That figure measures price movement only. It does not include dividends or franking credits, and the exact amount depends on the start and end dates used, which is why it is described as approximate here. A share price that is approximately 47.24% higher over the period reflects market expectations and conditions across many factors at once, not only the company’s most recent results.

On 19 October 2026 the shares moved approximately 2.31% on the day, which is one session within that longer period. The results referred to in this article cover a period that ended before 19 October 2026 and were released on a different date to the share price figures quoted. For that reason, this article does not treat the share price change as a response to the announcement.

Sector backdrop

The S&P/ASX 200 (ASX: XJO) stood at 8,845.70 at 4:25 pm (GMT+11) on 19 October 2026, up 0.44%, or 39.00 points, for the day. On the sector map, Energy rose 2.16%, the largest gain among the labelled segments. On the sector map for the session, Energy rose 2.16%, Industrials 0.93%, Financials 0.85%, Utilities 0.38% and Consumer Staples 0.25%, while Information Technology fell 1.35%, A-REIT 0.34%, Consumer Discretionary 0.18%, Telecommunication Services 0.16% and Health Care 0.13%.

Risks shareholders should weigh

First-half free cash flow was affected by commissioning and cargo timing, and Barossa and Pikka are still ramping up. The dividend is unfranked, and the company’s results depend on oil and gas prices.

What’s next

Santos will build Pikka and Barossa production, target a Papua LNG decision in Q4 2026 and progress Moomba Central Optimisation.

FAQs

Q: What was first-half production?

A:45.6 mmboe, up 3%.

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