Slide 1: ASX / Media Release
ASX / Media Release 21 August 2024 Strong cash flow from operations, record half-year dividend, strong project delivery Summary • Strong free cash flow from operations1 US$1.1 billion (down 5%) • Record interim dividend of US$422 million (49% increase). US13 cents per share unfranked • Stable produc
Slide 2: Media release continued: Barossa and Pikka progress
projects in the world and have capacity to permanently store up to 1.7 million tonnes of carbon dioxide annually, making Moomba CCS a significant part of Australia’s journey to net-zero emissions.” The Barossa Gas Project is nearing 80 per cent complete with first gas expected in the third quarter o
Slide 3: 2024 Half-Year Results
2024 HALF-YEAR RESULTS August 2024
Slide 4: Disclaimer and important notice
2024 Half-year results Disclaimer and important notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry, and the carbon capture and storage and carbon emissions reduction technologies industries. It is believed that the e
Slide 5: First-half highlights
2024 Half-year results 2024 First-half highlights Strong cash flow from operations, record half-year dividend and delivering on projects $2.7 billion $1.8 billion $1.1 billion Sales revenue EBITDAX Free cash flow from operations2 9% 13% 5% $654 million $422 million 13.0 UScps Underlying profit1 Inte
Slide 6: Returns to shareholders
2024 Half-year results Returns to shareholders Santos’ disciplined capital management framework returning at least 40% of free cash flow from operations Free cash flow from operations1 Interim dividend $million 120 $million UScps 16 1,708 1500 $422 million record interim dividend 400 422 80 10 1,129
Slide 7: Personal and process safety performance
2024 Half-year results Personal and process safety performance Safety is a core value for Santos and we are focused on continuous improvement1 Loss of containment incident rate2, Tier 1 and 2 Moderate harm rate4,5 Rate per million hours worked Rate per million hours worked 0.80 Santos Tier 1 & 2 0.6
Slide 8: Operational highlights
2024 Half-year results 2024 Operational highlights Strong first-half, providing a reliable production and cash flows Upstream oil and gas Santos Energy Solutions East Coast LNG PNG WA and NATL SES (Queensland CSG and Cooper Basin) • Record Queensland CSG • Angore successfully drilled and • Bayu-Unda
Slide 9: Santos' LNG portfolio
2024 Half-year results Santos’ LNG portfolio Above market pricing, low unit LNG operating costs, maximising margins Realised LNG pricing1 LNG Price US$/mmbtu • Progressing periodic portfolio price reviews 16 14 • Strong realised LNG pricing across the portfolio compared to peers, demonstrating stron
Slide 10: Santos' LNG portfolio
2024 Half-year results Santos’ LNG portfolio Strategic geographical advantage, high quality LNG customer base, long-term certainty Proximal to Asian demand centres1 • Proximity to Asian markets reduces Scope 3 emissions from shipping, with US to Japan 2.5x greater than Australian to Japan2 • Compara
Slide 11: Barossa Gas Project Highlights
2024 Half-year results Barossa Gas Project Highlights Barossa gas project, nearing 80% complete. First gas on track for Q3 2025, no change to guidance Drilling Gas Export SURF1 program FPSO2 and Subsurface Pipeline ~45% complete 100% complete 75% complete 86% complete • First well drilled, completed
Slide 12: Pikka Phase 1 project highlights
2024 Half-year results Pikka Phase 1 project highlights Strong first winter season with significant progress delivered, project nearing 60% complete1 Seawater North Slope Drilling treatment plant infrastructure Pipelay continues progressing barge and module construction and fabrication installation
Slide 13: Moomba CCS Phase One highlights
2024 Half-year results Moomba CCS Phase One highlights Construction complete, commissioning underway Construction and commissioning Final stages approaching Construction Regulatory Plant start-up and Commissioning Complete Approvals first Injection 100% complete 100% complete 90% complete 90% comple
Slide 14: Moomba CCS set to generate ACCUs
2024 Half-year results Moomba CCS set to generate ACCUs Generating ACCUs for CO2 stored1 The First CCS Project to Generate Australian Carbon Credit Units (ACCUs) Project Project Lodge offsets Assessment of Application registration implementation report offset report approved Capture CO2 Report net A
Slide 15: Market outlook
2024 Half-year results Market outlook LNG demand in the region remains strong, well into the future Pacific Basin LNG supply and demand1 Global oil supply and IEA demand scenarios2 Asia Pacific energy mix3 % OPEC + Russia share Gas Oil Coal Nuclear Renewables Biomass LNG mmtpa mmbbl/d Energy (EJ) 50
Slide 16: Strategic focus and discipline
2024 Half-year results Strategic focus and discipline Opportunities to provide cash flows into the future FCF base price1,2,3 US$ billion FCF upside price1,2,3 US$ billion First full-year FCF per share4 of sanctioned US$ per share major projects 0.7 cash flows ~$4.7b ~$4.0b 0.3 1H 2024 FCF $1.1b -0.
Slide 17: Cash flow yield providing portfolio optionality
2024 Half-year results Cash flow yield providing portfolio optionality Reduction in committed capex and potential increase in cash flow yield should provide flexibility for capital management 20% FCF yield at $90/bbl • Delivery of committed1 growth projects should increase all-in free Indicative all
Slide 18: Santos' investment proposition
2024 Half-year results Santos’ investment proposition Tier-1 LNG portfolio with liquids production driving strong shareholder returns through the energy transition A high-quality Strong cash Decarbonising Developing new portfolio of generation supports our business earnings streams diversified asset
Slide 19: Finance and Capital Management
FINANCE AND CAPITAL MANAGEMENT
Slide 20: First-half financial achievements
2024 Half-year results 2024 First-half financial achievements Strong first-half, delivering significant returns to shareholders $1.1 billion $1.8 billion $7.94 /boe Free cash flow from operations1 5% EBITDAX 13% Unit production costs2 4% 19.9% 13.0 UScps $4.0 billion Gearing3 8% Interim dividend dec
Slide 21: Capital Management Framework
2024 Half-year results Capital Management Framework Disciplined operating model and capital management framework provide for the delivery of Santos’ strategy Disciplined operating model Cash from operations Sustaining capital 1 Free cash flow from operations 2 Maintain strong balance sheet Returns t
Slide 22: Cost discipline
2024 Half-year results Cost discipline Focus on managing operating costs in the second half of 2024 Unit production costs Disciplined operating model $/boe • No change to current guidance 8.07 8.05 8.04 7.76 7.82 7.94 • Targeting free cash flow break even <$35 per barrel in 2024 unhedged 7.61 7.24 •
Slide 23: Free cash flow from operations
2024 Half-year results Free cash flow from operations Providing consistent and reliable cash flows to shareholders Operating cash flow Investing cash flow1 Free cash flow from operations1 $million $million $million 2,137 1,628 1,708 1,440 1,129 1,051 1,068 942 838 640 644 638 572 499 391 413 407 429
Slide 24: Underlying earnings
2024 Half-year results Underlying earnings EBITDAX $1.8 billion and underlying profit $654 million Product sales revenue EBITDAX Underlying profit1 $ million $ million $ million 3,766 2,731 1,267 2,967 2,112 2,711 1,846 801 2,040 1,974 654 1,680 1,668 1,260 1,231 1,449 995 1,191 883 411 718 317 491
Slide 25: Financial Snapshot
2024 Half-year results Financial Snapshot Disciplined operating model continues to generate revenue and strong margins Corporate, 2024 half year Northern Santos eliminations, results Queensland Australia & Western Energy Non-core & summary1,2 Cooper Basin & NSW PNG Timor-Leste Australia Solutions Ot
Slide 26: Balance Sheet
2024 Half-year results Balance Sheet Long-dated debt maturity profile with limited near-term drawn debt maturities1 Net debt and Gearing2 Strong liquidity and balance sheet • Total liquidity of ~$4 billion $ million % 6,000 40 • Gearing at 19.9% excluding operating leases (23.5% including leases) Ne
Slide 27: Upstream Gas and Liquids Performance
UPSTREAM GAS AND LIQUIDS PERFORMANCE
Slide 28: Major Project update: Barossa
2024 Half-year results Major Project update: Barossa Delivering significant project momentum towards first gas in Q3 2025 Project Status Project update • Nearing 80% per cent complete • FPSO module integration and pre-commissioning is 86% complete • Three of six development wells successfully drille
Slide 29: Major Project update: Pikka Phase 1
2024 Half-year results Major Project update: Pikka Phase 1 Strong first winter season with significant progress delivered Project Status Project update • 59.7% complete at end July • First winter season successful • Modules for hydrocarbon processing, well site and connecting infrastructure are 86%
Slide 30: East Coast LNG: Cooper Basin
2024 Half-year results East Coast LNG: Cooper Basin Production recovering after extreme weather events in 1H 2024 Production Recovery from wet weather Drill, complete, connect Capex Maintaining capital discipline mmboe • Production impacted by extreme weather $ million • Rig fleet and contract optim
Slide 31: East Coast LNG: GLNG
2024 Half-year results East Coast LNG: GLNG On track to deliver ~6 mt of LNG production in 2024 GLNG sales gas production Record production in 1H Mean time between failures Efficient operations Years (Roma) TJ/d (gross) • Continued growth in production from • Continuous improvement of artificial lif
Slide 32: PNG
2024 Half-year results PNG High compression reliability provides additional backfill to PNG LNG facility PNG Production (includes Strong operated field delivery Operated facility reliability Reliable infrastructure operated oil assets) • Continued focus on improving reliability, Mmboe STO • Gross LN
Slide 33: WA and NATL
2024 Half-year results WA and NATL Continuing to supply gas to the Northern Territory domestic market beyond expectations WA production volumes Delivering volumes NA & TL Production volumes Sustaining production mmboe • Well cycling strategy extended Reindeer mmboe • Bayu-Undan field continued to su
Slide 34: Eastern Australia and PNG: Unsanctioned upstream projects
2024 Half-year results Eastern Australia and PNG: Unsanctioned upstream projects Disciplined approach to growth opportunities to backfill and sustain the business Papua LNG Narrabri • Up to 6 Mtpa including ~4 Mtpa expansion and ~2 Mtpa to backfill PNG • Targeting FID-ready 2025 LNG capacity • 150 T
Slide 35: Western Australia: Other projects
2024 Half-year results Western Australia: Other projects Halyard-2 infill well supporting Western Australia domestic gas supply Sanctioned: Halyard-2 Infill Well Unsanctioned: Dorado (Bedout Basin) Halyard Field Dorado Varanus Island Plant • FID approved and Environmental Plan accepted1 • Offshore P
Slide 36: Santos Energy Solutions Business
SANTOS ENERGY SOLUTIONS BUSINESS
Slide 37: Major Project update: Moomba CCS Phase 1
2024 Half-year results Major Project update: Moomba CCS Phase 1 World-class, low-cost CCS project Project phase • Project at 92% completion at end 1H 2024 • Construction and pre-commissioning complete1 • Commissioning underway prior to first injection 1H 2024 milestones • CO2 Removal Train 6 tie-in
Slide 38: Midstream infrastructure
2024 Half-year results Midstream infrastructure Running a strong portfolio of strategic infrastructure assets for value Eastern Australia Hub Northern Hub Western Australia Hub Moomba Port Bonython Darwin LNG Varanus Island Devil Creek Nameplate throughput Gas: 400 TJ/d LNG: 3.7 mtpa, Liquids: 20 mm
Slide 39: CCS and low carbon fuels hubs
2024 Half-year results CCS and low carbon fuels hubs CCS Hubs across the country providing opportunities to decarbonise Santos production and wider industry Eastern Australia Hub Northern Hub Western Australia Hub Moomba CCS Phase 1 Moomba CCS Phase 2 Darwin and Bayu-Undan Reindeer FEED in Progress
Slide 40: Nature-based projects portfolio
2024 Half-year results Nature-based projects portfolio Actively building a portfolio of high-quality1 nature-based carbon solutions Nature based projects (PNG) Nature based projects (Alaska) Nature based projects (Australia) Estimated Future Emissions ~8 M ERU’s3 ~4 M ERU’s5 ~77,000 ERUs Reduction U
Slide 41: Appendix
Santos APPENDIX ENERGY FOR A BETTER WORLD
Slide 42: First-half financial performance
2024 Half-year results 2024 First-half financial performance Consistently strong financial results despite a high inflationary environment 1H24 1H23 • Total revenue down due to lower volumes, and lower realised $million $million LNG prices, offset by higher realised oil prices Total revenue 2,780 3,
Slide 43: Sales revenue
2024 Half-year results Sales revenue A diverse portfolio of five long-life asset hubs producing multiple products, which reduces reliance on any one asset, product type or end market 1H24 Product sales revenue by area 1H24 Product sales revenue by product % % 3 8 1 7 16 20 10 Cooper Basin 1 24 QLD &
Slide 44: Significant items
2024 Half-year results Significant items Reconciliation of the half year net profit to underlying profit 1H24 1H23 $million $million Net profit attributable to the owners of Santos Limited 636 790 Add/(deduct) significant items after tax: Impairment losses 18 9 Costs associated with acquisitions and
Slide 45: Free cash flow from operations
2024 Half-year results Free cash flow from operations Calculation of 2024 half year free cash flow from operations Lease liability payments are treated as financing $ million 1H24 cash flows under AASB 16. To ensure like-for-like $million comparisons with prior periods, the definition of Operating c
Slide 46: 2024 Guidance
2024 Half-year results 2024 Guidance Guidance remains unchanged 2024 Guidance Production 84 - 90 mmboe Sales volumes 87 - 93 mmboe Capital expenditure – sustaining capital, including decommissioning ~$1.25 billion Capital expenditure – major projects including Santos Energy Solutions ~$1.6 billion U
Slide 47: Liquidity and net debt
2024 Half-year results Liquidity and net debt Net debt $4,799 million. Liquidity of $4,014 million Liquidity 30 June 2024 31 December 2023 $million $million Cash and cash equivalents 1,659 1,875 Committed (undrawn) bank facilities 2,355 2,615 Assets held for sale - cash - 36 Total liquidity 4,014 4,
Slide 48: 2024 Half-year segment results summary
2024 Half-year results 2024 Half-year segment results summary Santos Corporate, Northern Upstream Gas Energy Eliminations, 2024 Half-year results Queensland Australia & Western & Liquids Solutions Non-core & summary Cooper Basin & NSW PNG Timor-Leste Australia Total Total Other Total Santos Product
Slide 49: 2023 Half-year segment results summary
2024 Half-year results 2023 Half-year segment results summary Santos Corporate, Northern Upstream Gas Energy Eliminations, 2023 Half-year results Queensland Australia & Western & Liquids Solutions Non-core & summary Cooper Basin & NSW PNG Timor-Leste Australia Total Total Other Total Santos Product
Slide 50: Definitions and abbreviations
2024 Half-year results Definitions and abbreviations When used in reference to emissions reduction targets, means reduction against the total A mixture of hydrocarbons (mainly pentanes and heavier) that exist in the gaseous phase absolute at original temperature and pressure of the reservoir, but wh
Slide 51: Definitions and abbreviations
2024 Half-year results Definitions and abbreviations Fuels produced by combining hydrogen with carbon dioxide to produce methane. This joint venture ExCom member for the Joint Venture who has primary responsibility for the relevant Core process is called methanation and it can potentially utilise ca
Slide 52: Definitions and abbreviations
2024 Half-year results Definitions and abbreviations Liquefied petroleum gas. A mixture of light hydrocarbons derived from oil bearing strata Those quantities of petroleum estimated, as of a given date, to be potentially recoverable prospective LPG that is gaseous at normal temperatures but that has
Slide 53: Definitions and abbreviations
2024 Half-year results Definitions and abbreviations total recordable The number of recordable injuries (fatalities + lost time injuries + restricted work day cases IEA International Energy Agency injury rate (TRIR) + medical treatment cases) per million hours worked Traditional An Aboriginal or Tor
Slide 54: Definitions and abbreviations
2024 Half-year results Definitions and abbreviations M million mmbbl million barrels mmboe million barrels of oil equivalent mmBtu million British thermal units million standard cubic feet mmscf MtCO2e million tonnes of carbon dioxide equivalent mtpa million tonnes per annum PJ Petajoules, 1 joule x