Key Highlights

  • Santos (ASX:STO) closed at $9.17, up 1.33%, on 26 October 2026.
  • Third-quarter production was a record 26.3 mmboe, up almost 14% on the prior quarter.
  • Free Cash Flow from operations was about $1,069 million for the quarter, and sales Revenue was about $2,006 million.

Santos Ltd (ASX:STO) closed at $9.17, up 1.33%, in the Trading session on 26 October 2026, while the S&P/ASX 200 closed at 8,809.9, up 0.17%, and the S&P/ASX 200 Energy index gained 0.92%. Santos is an Adelaide-based oil and gas company with operations in Australia, Papua New Guinea and Alaska.

Third Quarter Report Dated 22 October 2026

Santos reported record quarterly production of 26.3 mmboe for the third quarter, up almost 14% on the prior quarter and 23% on the prior corresponding period. Year-to-date production was 71.9 mmboe, almost 10% higher than a year earlier. Sales volumes were 26.4 mmboe, up 11% on the prior quarter, and 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 and about $1,447 million year to date. Free cash flow was about $957 million for the quarter, taking the year-to-date figure to about $839 million.

Pikka, Barossa and Base Business

At Pikka in Alaska, seawater injection began during the quarter and the first oil cargo was lifted in August. Five cargoes were lifted in the quarter, two carrying Santos Equity volumes, and 32 development wells have been drilled. Production briefly reached the minimum expected plateau rate before quarter end but was curtailed twice, after a weather event affected the seawater treatment plant and after the operator of the Kuparuk pipeline shut it down following a road accident. Santos plans to hold production at around 70,000 barrels per day for a short period to allow water injection to replenish reservoir voidage.

Barossa produced steadily, with Darwin LNG at 98.5% reliability and feed gas reaching a record peak of about 600 mmscf per day; ten LNG cargoes and two condensate cargoes were lifted. PNG LNG reliability was above 98%, supporting an annualised run rate of 8.7 Mtpa. GLNG Upstream production held at 697 TJ per day gross, and the Halyard 2 well produced about 85 TJ per day.

Santos' report adds that the Jibera South 1 appraisal well in the Beetaloo sub-basin showed shale layers running consistently across the area, with the Velkerri C shales better than expected and the A and B shales in line with pre-drill expectations. The company said this supports a cube approach, developing all three layers simultaneously, and that the pilot hole reached total depth early in the fourth quarter. Construction began on the Agogo Production Facility tie-in project, and Moomba carbon capture and storage has stored more than 2.5 million tonnes of CO2e since September 2024.

Earlier Results and Corporate Items

On 19 August 2026 Santos reported first-half production of 45.6 mmboe, sales revenue of $2.6 billion, EBITDAX of $1.6 billion, net profit after tax of $355 million and Underlying Profit of $397 million. An Interim Dividend of US 11.6 cents per share, unfranked and totalling $377 million, was declared, with gearing at 23.2% excluding operating leases. In the September quarter report, Santos also announced a binding agreement to acquire an additional 3.3% in the Papua LNG project from TotalEnergies, taking its interest to 21% after the State back-in.

The August release also said Barossa had delivered seven cargoes by the end of June and was producing about 550 mmscf per day at the time, and that free cash flow of $378 million for the half reflected commissioning activities, cargo timing and a PNG under-lift position of about 1.3 million barrels of oil equivalent that were expected to unwind in the second half.

About Santos

Santos Ltd (ABN 80 007 550 923) is listed on the ASX, on PNGX and through an American depositary receipt program. Its portfolio includes Barossa, GLNG, PNG LNG, Pikka, Moomba carbon capture and storage, and exploration in the Beetaloo sub-basin, where early Jibera South 1 appraisal results were reported.

Risks and Catalysts on Watch

Pikka's plateau rate depends on resolving start-up issues at the seawater treatment plant and on third-party pipeline operations, and Santos said production would be held near 70,000 barrels per day for a short period. Items on the horizon in the reports include the Papua LNG interest acquisition, construction of the Agogo tie-in project and further Beetaloo appraisal results.

Wrapping Up

Santos' reports show record production and cash flow for the third quarter, alongside a managed ramp-up at Pikka. The shares closed up 1.33% on 26 October.92%.