Santos Limited (ASX: STO) reported a stronger operational performance in the second quarter of 2026 as its major growth projects continued to ramp up. Production increased 3% quarter-on-quarter to 23.1 mmboe, while sales revenue rose 6% to US$1.35 billion, supported by stronger LNG pricing and higher output from PNG LNG and Barossa. Barossa reached 97% of planned production rates, and the Pikka Phase 1 project in Alaska commenced production, with plateau output targeted in the third quarter. Although first-half free cash flow was affected by commissioning expenses, cargo timing and PNG under-lift volumes, management expects these temporary factors to reverse in the second half, supporting stronger cash generation.
Operationally, PNG LNG maintained reliability above 98%, while GLNG upstream production remained stable and the Moomba CCS project surpassed two million tonnes of safely stored CO₂ since start-up. Santos also advanced several high-return projects, including the Agogo Production Facility, PNG oil infill drilling and the Moomba Central Optimisation project. Reflecting increased confidence in project ramp-ups, the company narrowed its 2026 production guidance to 99–105 mmboe while maintaining capital expenditure and unit production cost guidance. Management expects higher realised LNG prices and increasing production from Barossa and Pikka to drive stronger earnings and free cash flow during the second half of 2026.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Santos Delivers Stronger Production Momentum
Santos Limited (ASX: STO) reported a stronger operational performance in the second quarter of 2026 as its major growth projects continued to ramp up. Production increased 3% quarter-on-quarter to 23.1 mmboe, while sales revenue rose 6% to US$1.35 billion, supported by stronger LNG pricing and higher output from PNG LNG and Barossa. Barossa reached 97% of planned production rates, and the Pikka Phase 1 project in Alaska commenced production, with plateau output targeted in the third quarter. Although first-half free cash flow was affected by commissioning expenses, cargo timing and PNG under-lift volumes, management expects these temporary factors to reverse in the second half, supporting stronger cash generation.
Operationally, PNG LNG maintained reliability above 98%, while GLNG upstream production remained stable and the Moomba CCS project surpassed two million tonnes of safely stored CO₂ since start-up. Santos also advanced several high-return projects, including the Agogo Production Facility, PNG oil infill drilling and the Moomba Central Optimisation project. Reflecting increased confidence in project ramp-ups, the company narrowed its 2026 production guidance to 99–105 mmboe while maintaining capital expenditure and unit production cost guidance. Management expects higher realised LNG prices and increasing production from Barossa and Pikka to drive stronger earnings and free cash flow during the second half of 2026.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au