Strong free cash flow from operations

• Free cash flow from operations for the first half ~$1.1 billion, $620 million for the second quarter.
• Increased production of 22.2 mmboe, up one per cent compared with the prior quarter.
• Sales volumes of 23.9 mmboe, up three per cent compared with the prior quarter.
• Unit production cost guidance narrowed to $7.00 to $7.40 per boe following strong first half performance.
• On track to deliver structural savings of $150 million annually over the next
  ~18 months.

Investment grade credit rating maintained

• Positive credit rating assessments by Moody’s Investors Service (Baa3 with stable outlook), S&P Global Ratings (BBB- with stable outlook) and Fitch Ratings (BBB with stable outlook). 
• Gearing at 20.5 per cent, excluding operating leases (23.7 per cent when included).

 Operating highlights

• PNG LNG achieved strong LNG volumes during the quarter, driven by high facility reliability (>95 per cent). Production from Santos’ operated PNG gas facilities remained strong, with reliability of 99 per cent.  
• Western Australia domestic gas production increased by 15 per cent compared to the first quarter, driven by successful John Brookes well intervention campaign, steady production from Halyard-2, and strong reliability at Varanus Island, averaging 98 per cent for the first half.
• GLNG record daily upstream production from Scotia field of 110 TJ per day and Roma field 215 TJ per day, supporting annual production guidance of approximately 6 million tonnes of LNG.
• Moomba South Granite Wash horizontal well completed, connected and producing at 8 mmscf per day in line with pre-drill estimates.
• Bayu-Undan field production ceased in May 2025. Positive discussions with
  Timor-Leste and Australian governments are continuing to progress the proposed Bayu-Undan Carbon Capture and Storage project and look at opportunities to process third party gas through Bayu-Undan infrastructure.

Moomba CCS - 1 million tonnes of CO2e stored

• Moomba Carbon Capture and Storage phase 1 project (Moomba CCS) continues to perform to expectations and achieved the milestone of one million tonnes (gross) of CO2 stored during the quarter.
• Santos received the Energy Technology Company of the Year Award for its Moomba CCS project at The Energy Council’s prestigious 2025 APAC Energy Awards in Singapore.
• Executed a non-binding Memorandum of Understanding (MOU) with the South Australian Government to explore CO2 import and pipeline infrastructure opportunities in support of CCS and low-carbon fuels ambitions in the Cooper Basin.

Strong major development project cost & schedule performance

• Major development project capital expenditure for the first half of 2025 was
  $650 million, at the lower end of expectations, although full year guidance remains unchanged.
• Barossa LNG is ~97 per cent complete. The BW Opal FPSO (floating production, storage and offloading) vessel arrived at the Barossa gas field and was successfully hooked up to the subsea infrastructure. Final commissioning activities are progressing to plan. All scopes of work, including the Darwin LNG life extension activities, remain on track for first gas this quarter. 
• The Gas Export Pipeline and Darwin Pipeline Duplication to Darwin LNG are complete, tested and tied in, ready to receive gas from Barossa.
• Pikka phase 1 is ~89 per cent complete. Nineteen wells are now drilled and completed at the end of the second quarter. The seawater treatment plant, fabricated in Batam, Indonesia, achieved mechanical completion and is now en route to Alaska. Project guidance is maintained for first oil in mid-2026. An early start-up for the project remains possible, subject to a successful Mackenzie River lift of remaining processing modules from the Hay River Marine Terminal over the northern summer.
• Cooper Basin production was impacted in the second quarter by floods on par with levels not seen since 1974. Over 200 wells and several upstream compressors were shut in. Production recovery is underway and is expected to continue ramping up as flood levels recede during the second half. Guidance has been adjusted to better reflect the latest forecast and will continue to be monitored throughout the year as more certainty develops.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos’ production and cash generation this quarter reflects the strength of our diversified portfolio, disciplined operating model and execution excellence in our major development projects.

“Free cash flow of approximately $1.1 billion in the first half positions the company well as we near the start-up of our major development projects, Barossa and Pikka,” Mr Gallagher said.

“Strong execution this quarter has kept our major development projects on schedule with production growth imminent. The BW Opal FPSO arrived at the Barossa gas field and all activities are progressing to plan, with first gas on track for the third quarter. The Pikka project made excellent progress over the 2024/2025 winter season, with all 120 miles of pipeline installed, and is on track for first production in mid-2026.

“Together, these projects are expected to deliver around a 30 per cent increase in production by 2027.

“Moomba CCS also reached a major milestone in the second quarter, with more than one million tonnes of CO2e stored since project start-up,” Mr Gallagher said.

“Positive credit ratings from Fitch, Moody’s and S&P reflect Santos’ focus on disciplined capital management and low-cost operating model, in place since 2016. Our focus on costs and resilience throughout the commodity price cycle has underpinned a strong balance sheet, strong cash flows and continued investment to support future production and sustainable shareholder returns. The business remains robust, with a free cash flow from operations breakeven oil price under $35 per barrel for 2025.

“We continue to see very strong demand and premia for high heating-value LNG from projects such as Barossa and PNG LNG, as well as for reliable regional supply. Santos’ diversified LNG contract mix provides the flexibility to adapt to evolving market dynamics and capture value-accretive opportunities,” Mr Gallagher said.

“Our recent contract with QatarEnergy Trading LLC demonstrates our ability to leverage the flexibility of our LNG portfolio to achieve great outcomes for Santos and our customers. The contract complements previous mid and long-term LNG Sales and Purchase Agreements with tier one customers.

“As previously announced, Santos has entered into a process and exclusivity deed with XRG P.J.S.C, a subsidiary of Abu Dhabi National Oil Company and lead investor of a consortium including Abu Dhabi Development Holding Company and Carlyle (the XRG Consortium) in relation to the XRG Consortium’s non-binding indicative proposal to acquire 100 per cent of the issued shares of Santos for $5.76[1] (A$8.89)[2] per share in cash,” Mr Gallagher said.

[1] The cash offer price will be adjusted for any dividends paid by Santos
[2] Based on an exchange rate of 0.6480 AUD: 1 USD as at 13 June 2025

KeyFacts Energy: Santos Australia country profile