FourthQuarterActivitiesReport
Forperiodending31December2018
ASX:STO|ADR:SSLZY
24January2019
Recordsalesrevenueandstrongproduction
Recordquarterlysalesrevenueof$1,043million,up7%andincludingrecordquarterlyLNGsalesrevenue
of$449million,up11%
Recordannualsalesrevenueof$3,696million,up19%
Fourthquarterproductionup6%to15.9mmboeduetosustainedstrongperformancefromthecore
portfolioandacquisitionofQuadrantEnergy,partiallyoffsetbythesaleofthenon-coreAsianassets
Onshoreactivitylevelsincreasingwithindisciplinedoperatingmodel
Arecord305wellsinGLNGdrilledin2018,up77%.Expecttodrill350-400wellsin2019
85wellsdrilledintheCooperBasinin2018,up40%.Expecttodrill~100wellsin2019,includingupto
16explorationwells
CooperBasinexplorationandappraisalsuccess
TheCooperBasinexplorationprogramresultedinfivenewfielddiscoveries(fourgasandoneoil)andat
MoombaSouth,fourappraisalwellstargetingasignificant2Cresourcehavebeenbroughton-line
TheMoombaSouthprogramalsodiscoverednewplaysintheGraniteWashandTirrawarrasandstone
whicharebeingassessedforfurtherappraisal
QuadrantEnergyacquisitioncompletedon27November2018
Oncompletion,Santospaidanamountof$1.93billion,comprisingthepurchasepriceof$2.15billionless
completionadjustmentsandcashacquired
Cashgenerativecoreportfolio.Balancesheetsupportiveofgrowthprofile
Asat31December2018,Santoshadcashandcashequivalentsof$1.3billionandtotaldebtof
$4.9billion,resultinginnetdebtof$3.6billionandgearingofapproximately33%
SantosManagingDirectorandChiefExecutiveOfficerKevinGallaghersaid:“In2018,Santosdeliveredhigher
productionintheonshorebusinessandacquiredQuadrantEnergywhichwillprovideasignificantboosttoourproduction
in2019.”
“Ourcashgenerativeassetportfoliosetnewrecordsforquarterlyandannualsalesrevenues,notwithstandingthe
divestmentofournon-coreAsianassetsduringtheyear,whileourlowcostanddisciplinedoperatingmodelenabled
moreinvestmentinexplorationandappraisaltoimproveongoingorganicresourceandreservereplacement.”
“WiththecompletionofthevalueaccretiveQuadrantEnergyacquisitioninNovember,wearenowfocusedonintegrating
theselowcost,long-lifeconventionalassetsandrealisingthe$30-50millioncombinationsynergiesperannum.”
“IampleasedthatBrettDarley,previouslyQuadrant’sCEO,hasjoinedSantostoleadourAustralianoffshorebusiness.”
“In2019,wewillfocusonourdisciplinedgrowthportfolio,includingPNGLNGexpansion,BarossabackfilltoDarwin
LNG,appraisaloftheexcitingDoradooildiscoveryandliftingthedrillingactivitytogrowproductionandappraisalactivity
inouronshorebusiness.”
“Santosispositionedforgrowthacrosseachofourfivecoreassetsandwearetargetingproductionofmorethan
100mmboeby2025,almostdouble2018’slevel,”MrGallaghersaid.
Comparativeperformance(SantosshareincludingQuadrantEnergy)1
Santosshare Units Q42018 Q32018 Change 2018 2017 Change
Production mmboe 15.9 15.0 6% 58.9 59.5 -1%
Salesvolume mmboe 20.9 20.3 3% 79.2 83.4 -5%
Ave.realisedoilprice $/bbl 68.8 81.1 -15% 75.1 57.9 30%
Salesrevenue $million 1,043 973 7% 3,696 3,107 19%
Capitalexpenditure2 $million 272 180 51% 759 682 11%
1QuadrantEnergyincludedfromcompletionoftheacquisitionon27November2018.
2Capitalexpenditureincludingrestorationexpenditureandacquisitionofexplorationassetsbutexcludingcapitalisedinterest.
Mediaenquiries Investorenquiries SantosLimitedABN80007550923
DanielaRitorto AndrewNairn GPOBox2455,AdelaideSA5001
+61881165167/+61(0)455319770 +61881165314/+61(0)437166497 T+61881165000F+61881165131
daniela.ritorto@santos.com andrew.nairn@santos.com www.santos.com
Salesvolumes(SantosshareincludingQuadrantEnergy)1
Product Unit Q42018 Q32018 Q42017 2018 2017
LNG 000t 779.3 738.6 839.5 2,791.2 3,066.9
Domesticsalesgasðane PJ 54.6 55.7 56.5 216.4 224.4
Crudeoil 000bbls 2,493.9 2,296.7 2,639.9 10,088.4 10,000.5
Condensate 000bbls 1,226.7 1,063.3 1,064.2 4,179.5 4,304.8
LPG 000t 51.6 41.3 51.7 158.2 183.9
Sale
