Fourth Quarter Activities Report
For period ending 31 December 2019
ASX: STO | ADR: SSLZY
22 January 2020
Record annual production, sales volumes and sales revenue
Annual production of 75.5 mmboe was a record for Santos and 28% above the prior year
Record annual sales revenue of over $4 billion, up 10%, generated from sales volumes of 94.5 mmboe
Fourth quarter production of 18.7 mmboe was 5% lower than the prior quarter primarily due to domestic
gas customer outages in Western Australia
Disciplined operating model driving stronger onshore performance
Cooper Basin annual production increased for the second consecutive year, driven by strong operating
performance and a record 115 wells drilled
Higher GLNG sales driven by stronger upstream equity gas production and a record 393 wells drilled.
GLNG ~6.2 mtpa sales run-rate now expected from 2020
Record free cash flow and lower production costs
Record free cash flow of over $1.1 billion in 2019
Production costs of ~$7.25/boe were 10% lower than the prior year and at the bottom end of guidance
Acquisition of ConocoPhillips’ business in northern Australia and Timor-Leste
Value accretive acquisition of ConocoPhillips’ operating interests in Darwin LNG, Bayu-Undan, Barossa
and Poseidon announced in October for $1.39 billion plus a $75 million contingent payment subject to FID
on Barossa
Fully-funded from existing cash resources and new committed debt
Completion expected in the first quarter of 2020, subject to third-party consents and regulatory approvals
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record annual production
and revenues in 2019, and lower unit production costs, clearly demonstrating the effectiveness of our disciplined, cash
generative operating model.
“The year was highlighted by highest ever free cash flow of more than $1.1 billion, record onshore drilling performance,
lower unit production costs and significant progress on our diversified portfolio of growth projects.”
“The acquisition of ConocoPhillips’ natural gas assets in northern Australia and Timor-Leste announced in October is
fully aligned with our growth strategy to build on existing infrastructure positions and delivers operatorship and control
of strategic LNG infrastructure at Darwin.”
“Also in the Northern Territory, better than expected gas flow rates from the ongoing Tanumbirini-1 vertical well test are
very encouraging and an important step in Santos’ appraisal of the significant resource potential of the McArthur Basin.”
“Natural gas is forecast to supply a quarter of the world’s total energy demand by 2040 and Santos, with its portfolio of
long-life natural gas assets, is well positioned to benefit as we seek to deliver 120 mmboe of production by 2025.”
“We are also investing in projects to lower emissions and assessing the significant potential for carbon capture and
storage in the Cooper Basin,” Mr Gallagher said.
Comparative performance
Santos share Unit Q4 2019 Q3 2019 Change 2019 2018 Change
Production mmboe 18.7 19.8 -5% 75.5 58.9 28%
Sales volume mmboe 24.1 25.2 -4% 94.5 78.3 21%
Ave. realised oil price $/bbl 73.49 70.22 5% 71.99 75.05 -4%
Sales revenue $million 1,029 1,030 -1% 4,033 3,660 10%
Capital expenditure1 $million 301 267 13% 1,016 759 34%
1Capital expenditure including restoration expenditure and acquisition of exploration assets but excluding capitalised interest.
Media enquiries Investor enquiries Santos Limited ABN 80 007 550 923
Phoebe Nolan Andrew Nairn GPO Box 2455, Adelaide SA 5001
+61 8 8116 7409 / +61 (0) 408 193 056 +61 8 8116 5314 / +61 (0) 437 166 497 T +61 8 8116 5000 F +61 8 8116 5131
phoebe.nolan@santos.com andrew.nairn@santos.com www.santos.com
Sales volumes (Santos share)
Product Unit Q4 2019 Q3 20191 Q4 2018 2019 2018
LNG 000 t 736.5 731.9 779.3 2,951.0 2,791.1
Domestic sales gas & ethane PJ 65.1 77.5 53.4 272.4 211.9
Crude oil 000 bbls 3,755.4 3,553.3 2,493.9 12,872.6
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