Slide 1: Santos reports record underlying earnings and higher shareholder returns
ASX / Media Release 22 February 2023 Santos reports record underlying earnings and higher shareholder returns Highlights • Underlying profit1 US$2,461 million, up 160% • Reported net profit after tax US$2,112 million, up 221% • EBITDAX1 US$5,646 million, up 101% • Free cash flow1 US$3,641 million, u
Slide 2: CEO comments and live webcast information
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record production, free cash flow and underlying earnings in 2022 as the company benefited from strong customer demand for our products, higher commodity prices and disciplined cost management. “Today’s result
Slide 3: 2022 Full-year results
2022 Full-year results 22 February 2023
Slide 4: Disclaimer
2022 Full-year results Disclaimer This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which
Slide 5: Record operating performance
2022 Full-year results Record operating performance Disciplined operating model delivered record operating performance, strengthened balance sheet and increased returns to shareholders Record Record Record Strengthened Higher returns production sales revenue free cash flow balance sheet to sharehold
Slide 6: Financial highlights
2022 Full-year results 2022 Financial highlights Strong free cash flow driving higher returns to shareholders Free cash flow 1 Profit after tax 2 Underlying profit 2 $ , 3 641 million 142% $ , 2 112million 221% $ , 2 461million 160% Sales revenue EBITDAX 2022 dividends plus announced buybacks 3 $ ,
Slide 7: Strong cash flow delivering increased returns
2022 Full-year results Strong cash flow delivering increased returns 40% of free cash flow in announced shareholder returns through cash dividends and on-market buyback. Final dividend up 78% to US15.1 cents per share Free cash flow from operations 1 Shareholder returns Shareholder returns 3,641 $mi
Slide 8: Health, safety and environment
2022 Full-year results Health, safety and environment Personal safety performance has improved in 2022 Injury frequency Loss of containment, Tier 1 and 2 Number of injuries per million hours worked Frequency per 100 mmboe of available capacity 1.2 12 0.9 9 0.6 6 0.3 3 0 0 2017 2018 2019 2020 2021 20
Slide 9: Upstream Gas and Liquids operating highlights
2022 Full-year results Upstream Gas and Liquids operating highlights Queensland & Northern Australia Cooper Basin New South Wales PNG & Timor-Leste Western Australia Backfill and sustain Fifth drilling rig added Arcadia performing well PNG LNG produced Bayu-Undan extension Natural field decline to t
Slide 10: Record reserve and resource position of 5 billion boe
2022 Full-year results Record reserve and resource position of 5 billion boe 165 mmboe 2P reserves added in Alaska following the sanction of Pikka Phase 1 in 2022 YE22 2C resources and 2P reserves 5.0 billion boe 2P reserves plus 2C resource 2P reserves of 1,745 mmboe, an increase of 171 mmboe By lo
Slide 11: Barossa project update
2022 Full-year results Barossa project update Barossa is a world-class LNG project targeting a cash cost of production ~$2.00/mmBtu Project phase Execution, 55% complete Drilling currently suspended awaiting re-submission of drilling activity environment plan 2H22 milestones Darwin Pipeline Duplicat
Slide 12: Pikka Phase 1 progressing to plan
2022 Full-year results Pikka Phase 1 progressing to plan Ice road construction First oil 2026 Nameplate capacity 80,000 barrels of oil per day gross Expected 6-8 years plateau duration Capex to $2.6 billion gross (2022 real), $1.3 billion Santos share at 51% interest nameplate capacity Project Over
Slide 13: Santos Energy Solutions focused on decarbonisation & clean fuels
2022 Full-year results Santos Energy Solutions focused on decarbonisation & clean fuels Santos Energy Solutions is delivering large-scale, low-cost decarbonisation initiatives Darwin and Bayu-Undan Hub Dili NORTHERN AUSTRALIA Port Moresby Bayu-Undan CCS FEED entry achieved & TIMOR-LESTE PNG LNG plan
Slide 14: Strategic focus
2022 Full-year results Strategic focus Development projects that backfill and sustain our core assets to provide critical fuels, decarbonising the energy chain and transition to the production of clean fuels Upstream Gas and Liquids Santos Energy Solutions North America Three LNG projects PNG LNG Lo
Slide 15: Well positioned to supply into strong Asian demand
2022 Full-year results Well positioned to supply into strong Asian demand 10% of Santos’ LNG volumes expected to be sold on JKM-linked pricing in 2023 Global LNG supply and demand 1 Santos LNG supply Mtpa Expecting at least 2 spot cargoes from Darwin LNG in 2023 1,000 PNG LNG gross volumes available
Slide 16: Summary
2022 Full-year results Summary Consistent execution of strategy delivering higher shareholder returns Record operating Strong free cash Reserve Energy Disciplined performance flow driving replacement transition growth Disciplined operating higher returns Three year Progressing Santos’ Barossa, Pikka
Slide 17: Finance and Capital Management
2022 Full-year results Finance and Capital Management Anthea McKinnell Chief Financial Officer 22 February 2023 I 14
Slide 18: 2022 Full-year highlights
2022 Full-year results 2022 Full-year highlights Record financial results and increased returns to shareholders Strong financial results Delivered higher returns to shareholders Generated free cash flow of $3,641 million 142% Targeting shareholder returns of at least 40 per cent of free cash flow fr
Slide 19: Capital management framework
2022 Full-year results Capital management framework Simplified capital management framework targeting higher returns to shareholders Disciplined operating model Cash from operations $4.6 billion 3 Sustaining capital 1 $1.0 billion 3 Free cash flow from operations 2 $3.6 billion 3 Maintain strong bal
Slide 20: Strong free cash flow generation
2022 Full-year results Strong free cash flow generation Free cash flow from operations $3.6 billion up 142% Operating cash flow Investing cash flow 1 Free cash flow from operations 1 Oil price $million 4,558 $million $million $/bbl 120 (908) (917) 3,641 (768) (736) 90 (634) (630) (572) 2,272 60 2,04
Slide 21: Underlying earnings
2022 Full-year results Underlying earnings EBITDAX more than doubled to $5.6 billion and underlying profit up 160% Product sales revenue EBITDAX Underlying profit 1 $million $million $million 7,790 2,461 5,646 4,713 4,033 3,660 2,805 3,387 2,457 3,100 2,160 946 2,594 1,898 727 719 1,428 1,199 318 28
Slide 22: Cash generative operating model continues to drive value
2022 Full-year results Cash generative operating model continues to drive value EBITDAX margin improved due to higher commodity prices and higher interest in PNG LNG 2022 Full-year results summary 1 Queensland Northern Australia Western Cooper Basin & NSW PNG & Timor-Leste Australia Santos Total rev
Slide 23: Cost discipline
2022 Full-year results Cost discipline 2023 production cost guidance $7.25-$7.75 per boe 1 Unit production cost Disciplined Operating Model $/boe Core portfolio free cash flow breakeven at ≤$35/bbl oil price through the oil price cycle 10.0 Delivered ~$18/bbl free cash flow from operations breakeven
Slide 24: Capital expenditure
2022 Full-year results Capital expenditure Major projects will be phased and equity levels optimised consistent with the disciplined operating model Sustaining capex Major project capex for committed activities 1,2 Included in FCF from operations Excluded from FCF from operations $million $billion ~
Slide 25: Strong balance sheet to deliver on business objectives
2022 Full-year results Strong balance sheet to deliver on business objectives Gearing reduced to 18.9 per cent, further strengthening the balance sheet Gearing Net debt Strong balance sheet % $million 40 Gearing reduced to 18.9 per cent down from 27.5 per cent Gearing, excluding leases, at 14.7 per
Slide 26: Liquidity position
2022 Full-year results Liquidity position Disciplined approach to maintaining financial flexibility with no near-term debt maturities 1 Drawn debt maturity profile Strong liquidity position 2 $million $million 1,000 Cash and deposits 2,430 788 800 Committed (undrawn) bank facilities 3,115 733 689 60
Slide 27: Upstream Gas and Liquids
2022 Full-year results Upstream Gas and Liquids 22 February 2023 I 24
Slide 28: PNG LNG and GLNG upstream performing strongly
2022 Full-year results PNG LNG and GLNG upstream performing strongly PNG LNG maintained strong gross production and GLNG equity production growth year-on-year PNG production (includes operated oil assets) Unit cost Upstream Queensland production Unit cost mmboe $/boe mmboe $/boe 10 10 13.3 13.5 13.8
Slide 29: Strong GLNG upstream production
2022 Full-year results Strong GLNG upstream production Low cost development focus supporting strong production GLNG sales gas production Strong GLNG gas production Mean time between failure Driving down operating cost and TJ/d (gross) Scotia and Arcadia production Years (Roma) 6.4 increasing product
Slide 30: Cooper Basin operating model
2022 Full-year results Cooper Basin operating model Disciplined operating model delivering short cycle capex business Production Strong second half of 2022 Drill, complete, connect capex Continuous cost out focus mmboe $million 16.8 Recovery plan implemented to mitigate Growth self-funded within the
Slide 31: WA Gas backfill opportunities
2022 Full-year results WA Gas backfill opportunities Near term production decline due to Reindeer end of field life, with near field backfill opportunities being progressed Base production Majority of throughput from John Brookes and Macedon Reindeer and Spar-Halyard approaching end of field life in
Slide 32: Upstream unsanctioned projects
2022 Full-year results Upstream unsanctioned projects Pipeline of phased and disciplined projects connected to domestic and Asian markets Dorado Narrabri Papua LNG Description Dorado is a proposed phased liquids and gas development Domestic gas project which will supply the LNG growth option in PNG
Slide 33: Santos Energy Solutions
2022 Full-year results Santos Energy Solutions 22 February 2023 I 30
Slide 34: Creating value from midstream infrastructure portfolio
2022 Full-year results Creating value from midstream infrastructure portfolio Unique portfolio of strategic midstream infrastructure assets delivers stable cash flows Midstream infrastructure assets Moomba Port Bonython Darwin LNG Varanus Island Devil Creek Nameplate capacity Gas: 400 TJ/d Liquids:
Slide 35: CCS and Clean Fuels Hubs update
2022 Full-year results CCS and Clean Fuels Hubs update Activities progressed across all three hubs in line with Santos’ strategy Moomba Hub Darwin and Bayu-Undan Hub Western Australia Hub CCS & Decarbonisation Fabrication of DAC units commenced – FEED design work on the Bayu-Undan CCS Santos leading
Slide 36: Moomba CCS Project update
2022 Full-year results Moomba CCS Project update Project progressing on schedule with 40% of activities complete Subsurface First two injection wells cased and suspended Facilities Train 7 pre-shut works complete Greenfield bulk earthworks complete with piling commenced Major packages including scru
Slide 37: Santos Energy Solutions projects
2022 Full-year results Santos Energy Solutions projects Santos continues to invest in emerging decarbonisation and clean fuels technologies and transform energy usage to deliver a step change in emissions reduction Direct Air Capture Cooper Electrification Port Bonython Hydrogen Mobility Hub Overvie
Slide 38: Appendix
2022 Full-year results Appendix 22 February 2023 I 35
Slide 39: Financial performance
2022 Full-year results Financial performance EBITDAX up 101% to $5,646 million. Underlying profit up 160% to $2,461 million $million 2022 2021 Production costs higher primarily due to Oil Search merger Total revenue 7,987 4,837 Production costs (807) (715) Other operating costs higher primarily due
Slide 40: Sales revenue
2022 Full-year results Sales revenue Higher realised prices across all products $million 2022 2021 Variance Average realised Average realised 2022 Sales revenue crude oil price LNG price by asset Sales Revenue (incl. third-party) US$/bbl US$/mmBtu % Gas, ethane and liquefied gas 6,009 3,464 73% 110.
Slide 41: Free cash flow from operations
2022 Full-year results Free cash flow from operations Calculation of 2022 full-year free cash flow from operations $million 2022 Operating cash flows 4,558 Deduct Investing cash flows (1,669) Deduct Net acquisitions and disposals (177) Add Major growth capex 1 1,171 Deduct Lease liability payments (
Slide 42: Significant items
2022 Full-year results Significant items Reconciliation of full-year net profit to underlying profit $million 2022 2021 Net profit after tax 2,112 658 Add/(deduct) significant items after tax Net gains on sales of non-current assets (13) (44) Impairment losses 224 6 Fair value adjustment on hedges –
Slide 43: Liquidity and net debt
2022 Full-year results Liquidity and net debt Net debt $3,450 million. Liquidity of $5,545 million Liquidity ($million) 31 Dec 2022 31 Dec 2021 Cash 2,430 2,976 Committed (undrawn) bank facilities 3,115 2,635 Total liquidity 5,545 5,611 Debt ($million) 31 Dec 2022 31 Dec 2021 Bank Loans – unsecured
Slide 44: 2023 guidance
2022 Full-year results 2023 guidance 2023 guidance item 1 Guidance Production (mmboe) 89-96 mmboe Sales volumes (mmboe) 90-100 mmboe Capital expenditure – sustaining including restoration ($billion) ~$1.2 Capital expenditure – major projects including Santos Energy Solutions ($billion) ~$1.8 Upstrea
Slide 45: 2022 Full-year segment results summary
2022 Full-year results 2022 Full-year segment results summary Northern Corporate Cooper Queensland & Australia & Western exploration US$million Basin New South Wales PNG Timor-Leste Australia & elimins Total Revenue 1,065 1,538 3,459 630 1,097 198 7,987 Production costs (133) (79) (282) (140) (208)
Slide 46: 2021 Full-year segment results summary
2022 Full-year results 2021 Full-year segment results summary Northern Corporate Cooper Queensland & Australia & Western exploration US$million Basin New South Wales PNG Timor-Leste Australia & elimins Total Revenue 1,000 973 736 903 1,105 120 4,837 Production costs (143) (79) (67) (234) (215) 23 (7
Slide 47: www.santos.com
www.santos.com) \.