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STO, SANTOS LIMITED
blacksheep
post Posted: Oct 15 2019, 01:31 PM
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14 October 2019
Acquisition of ConocoPhillips’ northern Australia interests
QUOTE
Key Highlights
 Acquisition of ConocoPhillips’ northern Australia business with operating interests in
Darwin LNG, Bayu-Undan, Barossa and Poseidon for US$1.39 billion plus a
$75 million contingent payment subject to FID on Barossa
 Value accretive acquisition of operating interests in long-life, low cost natural gas assets
and strategic LNG infrastructure consistent with Santos' core asset growth strategy
 Fully funded from existing cash resources and new committed debt
 Materially accretive: ~16% expected earnings per share accretion and ~19% EBITDAX
accretion in 20201
 Increases pro-forma production by ~25%, pro-forma 2P reserves by ~5% and pro-forma
2C contingent resources by ~27%2
 Reduces forecast 2020 free cash flow breakeven oil price by ~US$4 per barrel
 Targeting pre-tax synergies of US$50-75 million per annum (excluding integration and
other one-off costs) driven by Santos operatorship and efficiencies
 Acquisition delivers operatorship and control of strategic LNG infrastructure with growth
potential
 Acquisition advances and supports Santos’ goal of taking Barossa FID by early 2020.
Santos is prepared to sell down equity in Barossa and Darwin LNG to a target ownership
of 40-50% to achieve increased partner alignment
 Barossa partner SK E&S is highly supportive and has signed a Letter of Intent to acquire a
25% interest in Bayu-Undan and Darwin LNG
 Santos is also in discussions with existing Darwin LNG joint-venture partners for equity in
Barossa and in advanced discussions with LNG buyers for Barossa offtake volumes,
including with an existing partner in Darwin LNG


FWIW - UBS rates STO as Neutral

QUOTE
Santos will acquire ConocoPhillips' northern Australian assets for $1.39bn. The transaction will be funded from free cash flow and $750m in new debt facilities as well as a 25% equity sell-down of Bayu-Undan and Darwin LNG.

The transaction increases forecast production by 12% and UBS estimates the acquisition will deliver 9% upside to operating earnings (EBITDA) in 2020. Neutral rating maintained. Target rises to $8.10 from $7.20.

https://www.shortman.com.au/stock?q=sto
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
blacksheep
post Posted: Oct 8 2019, 10:57 AM
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QUOTE
Santos oil strike
By Lucy Battersby
Shares in Santos are up 2 per cent to $7.50 after it reported stronger than expected oil flows from its Dorado-3 well in Western Australia. Testing indicates a potential flow of 30,000 barrels of oil each day from what is known as the Caley reservoir.

The oil discovery is in Commonwealth waters about 160 kilometers north of Port Hedland in an areas in which Santos has an 80 per cent stake and Carnarvon Petroleum holds the remaining 20 per cent. Shares in Carnarvon are up 7.9 per cent to 41¢ today.

Santos will extract the oil then plug and abandon the reservoir.


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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Dec 3 2018, 03:32 PM
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Not sure how big Curtis Island is and whether STO's storage facility on Curtis Island is in the fire's path.

QUOTE
PREPARE TO LEAVE 11:55AM 3/12 | The Curtis Island bushfire is Watch and Act.

Queensland Fire and Emergency Services (QFES) advises there is a bushfire in Curtis Island and conditions could get worse.

You need to be ready to follow your bushfire survival plan. If you do not have a plan, or intend to leave, you should be ready to leave the area because the situation could get worse quickly.

Currently as at 11.55am Monday 3 December, an unpredictable fire is travelling from Reserve Esplanade, in the northern part of the island, in a northerly direction towards the coastline. The fire is likely to impact this area.


https://www.4ro.com.au/news/local-news/1158...island-bushfire

Hope everyone remains safe

Map here
QUOTE
The four LNG projects are all located in the Curtis Island Industry Precinct of the Gladstone State Development Area (GSDA). This is the dark purple area at the south western end of the island on the first map below. The second map shows the LNG plant locations.

https://www.cccqld.org.au/curtis.html



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Sep 25 2018, 01:47 PM
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In Reply To: blacksheep's post @ Sep 24 2018, 11:01 PM

QUOTE
BUZZ-Australia's energy index surges as oil prices rally
** Australia's energy index <.AXEJ> jumps 2.4 pct to a near 1-1/2 month high
** Oil and gas explorers Santos , Beach Energy and Woodside Petroleum lead gains, rise in range of 2 pct to 4.1 pct
** Oil prices rally as after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply [O/R]
** Santos and Woodside each hit more than 3-year highs


STO up 3.02% @ $7.345

https://www.shortman.com.au/stock?q=sto
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Sep 24 2018, 11:01 PM
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SEPTEMBER 21 2018 - 11:34AM
Jemena signs Mount Isa gas deal with Santos
QUOTE
Energy companies Jemena and Santos have signed a new contract on Friday to ship gas across the new Northern Gas Pipeline from the Northern Territory to Mount Isa.

The value of the contract has not been disclosed but the deal delivers Santos eight terajoules of Northern territory gas a day which will be used to provide energy for mining and mineral processing operations in the Mount Isa region........

read more - https://www.northweststar.com.au/story/5660...al-with-santos/
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
mullokintyre
post Posted: Sep 4 2018, 02:56 PM
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In Reply To: mullokintyre's post @ Aug 27 2018, 11:46 AM


I was partly right.
There is a push for a royal comission into the energy retailers, but it has come from the new Prime Misister.

QUOTE
Prime Minister Scott Morrison says he has an open mind about the possibility of a royal commission into the energy sector, an idea floated by Home Affairs Minister Peter Dutton during his abortive push for the Liberal leadership.


Mr Morrison said he did not want a royal commission "at this point" but would consider it because he agreed with the argument that power companies were as bad as the banks.SMH

And right on cue, Bill Shorten backs him up.

QUOTE
Bill Shorten says any royal commission into energy prices must include an analysis of whether privatisation of electricity assets has caused prices to go up.

The Labor leader was responding to comments from Prime Minister Scott Morrison, who this morning said he agreed with his Energy Minister Angus Taylor that the big energy companies are as bad as the big banks and that he is open to a royal commission into the power industry.


The Australian

You can just about guarantee it will happen now.

There will be horse trading - ,Sco Mo will support a RC into energy co's if Bill supports something he wants.

Mick




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mullokintyre
post Posted: Aug 27 2018, 11:46 AM
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In Reply To: early birds's post @ Aug 27 2018, 11:00 AM

I am reluctant to invest in the energy sector in the medium to long term.
Given that we are a very short odds on bet to have a Labor Government next year, I can see a Royal Comission coming into the retail energy sector.
The greens will support it, and given the Labor proposal to be 50% renewal, being able to show that energy retailers are just as rapacious as the banks,
they can blame all our energy woes on the retailers/generators, and get away with it.
Mick



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sent from my Olivetti Typewriter.

Said 'Thanks' for this post: early birds  nipper  
 
early birds
post Posted: Aug 27 2018, 11:00 AM
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Three months after rejecting a $14 billion plus takeover offer from US private equity Santos has gone on the takeover trail itself, buying Quadrant Energy for $US2.15 billion or $A2.9 billion.

Quadrant was formed in 2015 from the WA assets of US oil group Apache and is jointly owned by Brookfield Asset Management, Macquarie Capital, Wesfarmers and AMB Holdings.

The owners had explored a float of Quadrant but abandoned the move this year.

It is best known for its 80% stake in the recent Dorado oil strike off the northern WA coast.

According to the statement on Wednesday Santos will also make a contingent payment relating to the Dorado oil discovery and a royalty over all other future hydrocarbons produced in Quadrant’s Bedout Basin areas off the Pilbara.

Two of the main assets Quadrant operates, the Varanus Island and Devil Creek processing plants, are 45% owned by Santos.

With total ownership of these two plants and 29% of the BHP’s Macedon gas plant, the deal will make Santos a dominant player in the WA domestic gas market.

Figures released this week by minority partner Carnarvon Petroleum put Dorado’s contingent resources at 171 million barrels of oil plus gas.

Quadrant’s share of production in 2017 from its assets was 19 million barrels of oil equivalent (mmboe). It had 2P reserves of 220 mmboe at the end of that year.

The deal will increase Santos’ proven and probable reserves by 220 million barrels of oil equivalent by around 26% and its annual production levels by around 32%, or 19 million barrels of oil equivalent.

“This acquisition delivers increased ownership and operatorship of a high-quality portfolio of low cost, long-life conventional Western Australian natural gas assets which are well known to Santos, and importantly significantly strengthens Santos’ offshore operating capability,” Santos managing director Kevin Gallagher said.

“It is materially value-accretive for Santos shareholders and advances Santos’ aim to be Australia’s leading domestic natural gas supplier,” he said.

Santos said the takeover would be funded from existing cash resources and new debt facilities.

Wesfarmers said it would net $US170 million from the sale of 13.2% stake. The interest had been acquired for $US100 million.

Wesfarmers said it expected to report a pre-tax profit from the transaction of about US$98 million.
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now we see a up ramping from market......... with current oil price i reckon this one can go little higher than current level




Said 'Thanks' for this post: nipper  
 
early birds
post Posted: Aug 24 2018, 10:08 AM
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In Reply To: nipper's post @ Aug 23 2018, 03:24 PM

big thumbs up from investors to Santos’ interim result, resumption of dividends and the $2.9 billion buy of Quadrant Energy.

Santos shares charged higher yesterday, ending the day up more than 11% at $6.98.

That’s the highest the shares have been since January 2015 as Santos came under pressure from the slide in global oil prices.

But after three years of pain, hacking and punishment by disgruntled shareholders, Santos’s P&L account is back in black - paying out its first dividend in two years and has been given a tick by analysts for the cash purchase of Quadrant

Santos reported a first-half net profit of $US104 million, a turnaround from the $US506 million loss this time last year.

This was driven by higher oil and gas prices that powered a 16% jump in revenues to $US1.7 billion for the half.

Profit was also supported by the sell-off of its Asian non-core assets for $US221 million.

The oil and gas company is paying a fully franked dividend of 3.5 US cents.

Santos has justified rejecting the $14.4 billion bid from US private equity group, Harbour Energy - debt is down, cash flows up, costs cut (the rise in global oil and gas prices is a bonus) and the company has had enough cash to make a major deal happen without tapping shareholders.

Santos chief executive Kevin Gallagher said the company’s cost-cutting strategy has it out of the black hole as had the rise in global oil and gas prices in the six months to June.

He said the company’s strong cash flows, up 22% to $US637 million, allowed Santos to cut net debt to $US2.4 billion and pay shareholders the first dividend since 2016.

“We will shortly achieve our net debt reduction target, more than a year ahead of schedule, and therefore have a significantly stronger balance sheet to support our growth strategy,” he said in yesterday’s statement.

The Quadrant takeover will give Santos access to the Dorado oil discovery (Quadrant owns 80%, Carnarvon has the other 20%) with its initial resource of 171 million barrels of oil plus gas and condensates.

Quadrant has also backed the Santos takeover.

“Carnarvon welcomes news of the potential acquisition and the incoming joint venture partner Santos,”Carnarvon said.
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looks it finally win some hearts from market!! tongue.gif


Said 'Thanks' for this post: nipper  abner29  
 
nipper
post Posted: Aug 23 2018, 03:24 PM
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'Done at a good price': analysts react to $3b Santos purchase

QUOTE
"... a complementary portfolio of assets and purchased at a good price. "On a very preliminary basis the acquisition price looks good to us," RBC analysts told clients on Thursday morning. "On the imperfect metric of EV/2P reserves we estimate Santos is currently trading on ~US$14/boe. After adjusting for the PV of an Alcoa gas prepayment arrangement associated with the transaction we estimate an acquisition purchase cost of ~US$10/boe."

RBC said the deal reiterated Santos' focus on growth, and it had found a suitable target. "While the prima facie case for an acquisition of Quadrant was strong (i.e. willing sellers, significant asset crossover creating associated synergies) the question of would it bid for the assets was clouded by its balance sheet crunch in the oil market collapse and the more recent rejection of Harbour Energy's takeover bid. By acquiring Quadrant without reverting to fresh equity funding we feel Santos has addressed the issue of undertaking a major acquisition so soon after rejecting a takeover offer."

UBS analysts reminded clients that M&A deals often went wrong when buyers paid too much for assets because of too little access to operational data and pricing assumptions. However, it said Santos was a partner in two of Quadrant's five operating assets that accounted for 60 per cent of the company's production.
- might change name to Wantos if the assets are as good as hoped for



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  abner29  
 
 


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