Key highlights

  • Santos reported 1H 2026 production of 45.6 mmboe, up 3%, with sales Revenue of US$2.6 billion and EBITDAX of US$1.6 billion in its 19 August 2026 release.
  • Net profit after tax was US$355 million, Underlying Profit was US$397 million and an unfranked Interim Dividend of US 11.6 cents per share was declared.
  • Pikka first oil was achieved in May 2026 and Barossa had loaded 12 LNG cargoes year to date, with Papua LNG FID targeted for Q4 2026.

Santos Ltd (ASX:STO) shares were changing hands at $9.275, up 0.16%, during the Trading session on 21 October 2026. Across the broader market, the S&P/ASX 200 Energy [XEJ] index stood at 11,167.20, a gain of 0.014% (1.60 points), while the S&P/ASX 200 [XJO] was at 8,806.90, lower by 0.11% (10.00 points), as at 2:32 pm GMT+11. In Commodity markets, Brent Crude rose 0.60% to US$109.48 per barrel as tensions in the Middle East involving Iran, Saudi Arabia and Yemen’s Houthis persisted, and a reported fall in US oil inventories pointed to tighter Supply conditions. Santos is an Australian oil and gas company with LNG, domestic gas and oil operations across Australia, Papua New Guinea and Alaska.

What Santos does

Santos Limited explores for, develops, produces and sells natural gas, LNG and liquids. Its portfolio spans Australian domestic gas in the Cooper Basin, Queensland, New South Wales and Western Australia, the GLNG and Darwin LNG export facilities, the PNG LNG project in Papua New Guinea, the Barossa gas project offshore northern Australia and the Pikka oil project in Alaska. The company reports in US dollars and is based in Adelaide.

Revenue comes mainly from LNG, which made up 67% of first-half 2026 product sales revenue, followed by gas and ethane at 18%, Crude Oil at 7%, condensate and naphtha at 7% and LPG at 1%.

Half-year 2026 financial results

In an ASX and media release dated 19 August 2026, Santos reported first-half production of 45.6 mmboe, 3% higher than the prior corresponding period. Sales revenue was US$2.6 billion, EBITDAX was US$1,555 million compared with US$1,758 million, net profit after tax was US$355 million compared with US$439 million, and underlying profit was US$397 million compared with US$508 million.

Free Cash Flow from operations was US$378 million, down from US$1,086 million. The company attributed the lower figure to commissioning activities at Barossa and Pikka, the timing of cargo movements around 30 June and a PNG under-lift position of about 1.3 million barrels of oil equivalent, which it expects to unwind early in the second half. Unit production cost was US$7.53 per boe.

Dividend, gearing and liquidity

The Board declared an interim dividend of US 11.6 cents per share, unfranked, totalling US$377 million, compared with 13.4 cents in the prior first half. Gearing was 23.2% excluding operating leases and 28.1% including leases. Liquidity was US$3.8 billion, consisting of US$1,129 million in cash and US$2,645 million of undrawn committed facilities, and the company reported no Debt maturities before September 2027. Net debt was US$6,124 million, compared with US$5,764 million at 31 December 2025, and Santos has a target to reduce net debt by US$2.5 billion by 2030.

Pikka and Barossa

At Pikka in Alaska, first oil was achieved in May 2026, continuous production began in June and output was about 23,000 bbl/d gross at the end of the half. A first crude cargo of 450,000 barrels was lifted in August 2026. Production is targeting a plateau of about 80,000 bbl/d gross in late Q3 2026, and the release noted that production was held pending start-up of the Seawater Treatment Plant.

At Barossa, seven LNG cargoes were loaded in the first half and a further five since 1 July. Production was about 550 mmscf/d, with a plan to lift it to around 600 mmscf/d by the end of the quarter. Santos said second-half production is expected to be around 20% to 30% higher than the first half.

Other project decisions

Santos reported final Investment decisions on Moomba Central Optimisation, which targets more than US$600 million of Capital and operating cost savings over the life of the Central Fields, as well as on the Agogo Production Facility tie-in and a PNG LNG oil infill drilling campaign. A gas sales agreement to supply 200 PJ to the South Australian Strategic Gas Reserve from 2030 to 2040 includes a prepayment of about US$200 million. Papua LNG is targeting an FID in Q4 2026, with at least 60% of project costs targeted to be funded through project financing.

2026 guidance is production of 99–105 mmboe, sales volumes of 102–108 mmboe, Capital Expenditure of about US$1.95–2.15 billion, unit production cost of US$6.95–7.45 per boe and depreciation, depletion and Amortisation of about US$2,200 million.

Sector context

Oil and LNG realisations follow commodity benchmarks. Santos reported realised LNG prices of US$10.95 per mmBtu and crude at US$92 per barrel for the first half, with LNG priced on oil with a three-month lag. During the session, Brent crude was at US$109.48 per barrel, up 0.60%, and the S&P/ASX 200 Energy index was at 11,167.20 amid Middle East tensions and a reported draw in US oil inventories.

Risks and uncertainties

Earnings and free cash flow were lower than a year earlier, and cash flow was affected by commissioning and cargo timing. Pikka production was held pending seawater treatment start-up, and its plateau depends on that plant, water injection and well inventory. Barossa is still in commissioning. The Papua LNG FID and its project financing are not yet complete, and net debt rose over the half. Commodity prices, currency, weather, approvals and joint venture decisions can affect outcomes, and the company recorded costs linked to Barossa and DLNG start-up.

Catalysts to watch

Items referenced in the release include the Pikka plateau targeted for late Q3 2026, Barossa output of around 600 mmscf/d, the Papua LNG FID in Q4 2026, the start of PNG LNG oil infill drilling from Q4 2026, the unwinding of cargo-timing effects in the second half and the progress of the Beetaloo and Bedout appraisal programs.

Final word

Santos’ 19 August 2026 release combined lower first-half profit and cash flow with higher production, new project start-ups and a clear set of second-half milestones. Further updates will show how Pikka, Barossa and Papua LNG progress.