Santos Limited explores for, develops, produces, transports, and markets hydrocarbons in Australia and Papua New Guinea.
Santos sits in Rivkin’s ASX Starter Pack. The company released its third quarter 2026 report on Thursday 22 October, covering the three months to 30 September. Santos reports in US dollars.
Production reached a record 26.3 mmboe, up 14% on the June quarter and 23% on a year ago, with Barossa and Pikka both contributing. Sales volumes rose to 26.4 mmboe. Sales revenue climbed 49% on the June quarter and 78% year on year to US$2,006 million, in line with the Visible Alpha consensus, according to Reuters.
| Metric | Actual | Comparison |
| Production | 26.3 mmboe | 23.1 mmboe Jun Q; 21.3 mmboe pcp |
| Sales revenue | US$2,006m | In line with consensus; +78% y/y |
| Realised LNG price | US$16.22/mmBtu | US$11.05 pcp |
| Free cash flow from operations | About US$1,069m | Company record |
| 2026 production guidance | 99 to 102 mmboe | 99 to 105 mmboe previously |
The realised LNG price rose to US$16.22 per mmBtu from US$11.21 in the June quarter and US$11.05 a year ago. The realised oil price eased to US$99.04 a barrel from US$120.33 in June, against US$71.30 a year earlier. Free cash flow from operations reached a record of about US$1,069 million, or about US$957 million after growth capex. Capital expenditure excluding capitalised interest came to US$511 million.
Santos narrowed 2026 production guidance to 99 to 102 mmboe from 99 to 105, and sales volume guidance to 102 to 105 mmboe from 102 to 108. The company attributed the change to three issues at Pikka in Alaska: a delay commissioning the seawater treatment plant, output cut back after a weather event, and a Kuparuk pipeline shutdown after a road accident. Pikka produced 69,000 barrels a day gross at quarter end after briefly exceeding 80,000, and Santos will hold it near 70,000 before ramping to 80,000. Capex guidance of about US$1.95 to US$2.15 billion and unit production cost guidance of US$6.95 to US$7.45 per boe are unchanged. Darwin LNG ran at 98.5% reliability on Barossa gas and lifted 10 cargoes.
Santos plans a final investment decision on Papua LNG in the fourth quarter, with its stake rising to 21% subject to approvals. It agreed to take 30% of and operate the Meridian coal seam gas project in Queensland, sold its Mahalo stake for about A$32 million upfront, and agreed key terms on a 10-year LNG contract with POSCO. Chief executive Kevin Gallagher said, “The inflection point is here, and I expect more to come in the fourth quarter.”
Shares closed at A$9.31 on Wednesday. They traded between A$9.21 and A$9.25 on Thursday morning, down about 1%, while the ASX 200 energy index fell 2.2%.
