![]() Santos shares are trading more than 2% lower today, however this may also be due to weakness in the energy sector following declining oil prices overnight. In terms of broker responses, Citi has maintained a buy rating on Santos with a price target of $8.60 per share, and UBS has also maintained its buy rating on the oil and gas giant with a price target of $9.65 per share. The oil and gas giant also committed to delivering a net-zero project from first oil at the Pikka project.ĭespite the strong results, Santos’ performance comes in just short of expectations with Citi having forecast an NPAT of US$1.33 billion. Today, Santos also announced a final investment decision has been taken to proceed with the US$2.6 billion gross Pikka Phase 1 oil project located on the North Slope of Alaska, which is expected to produce 80,000 barrels a day of oil gross with first oil anticipated in 2026. ![]() Sales volume and production guidance have been maintained in their respective ranges for FY22. The impressive results for Santos were driven by a large increase in the price of oil and LNG, record sales volume of oil equivalent, record production and the company’s merger with Oil Search. An interim dividend was also announced with growth of 38% to 7.6 US cents per share. The Pikka field is located on the Alaska North Slope and is operated by Australian-based Santos who merged with the previous operator Oil Search in December 2021. Partner Repsol of Spain is also expected to sell part. Santos benefitted from soaring oil prices to report NPAT surged 300% to US$1.267 billion, free cash flow tripled to US$1.708 billion and revenue jumped 85% to US$3.766 billion. Oil Search is seeking to sell a stake of up to 15 per cent in the 1 billion barrel Pikka project, reducing its existing 51 per cent interest. 2 that it will unanimously recommend to shareholders an improved 6.2 billion (A8.4 billion) buyout offer from Santos Ltd. Our focus in Alaska is advancement of our Pikka Phase 1 project, which includes a single drill site, an oil processing facility, and other infrastructure to support production of 80,000. The company signalled on Wednesday it expects to commit within weeks to starting engineering and design work on the Pikka project on Alaska’s North Slope. After a weekend of talks, Oil Search Ltd.’s board said Aug. Through its merger with Oil Search, Santos has acquired and assumed operatorship over a world-class portfolio of oil leases on the Alaskan North Slope, USA. Shares in oil and gas giant Santos (ASX:STO) are on watch today following the release of the company’s H1 FY22 results. As Santos and Oil Search prepare to merge, fate of Alaska acreage unknown.
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