Santos Limited · ASX:STO
Santos — Investor Day (November 2024)
79 slides from Santos's investor day presentation, Nov 19, 2024
Slide 1: Santos announces updated capital allocation framework and carbon storage growth target
ASX / Media Release 19 November 2024 Santos announces updated capital allocation framework and carbon storage growth target Santos today announced an updated capital allocation framework that will target returns to shareholders of at least 60 per cent of all-in free cash flow from 2026, following a
Slide 2: CEO quotes on capital allocation framework and carbon storage
“The simplified capital allocation framework announced today reflects our commitment to prioritise shareholder returns following the company’s investment over recent years in new production from Barossa and Pikka. “From 2026 we will return at least 60 per cent of all-in free cash flow to shareholder
Slide 3: 2024 Investor Day
November 2024 2024 INVESTOR DAY
Slide 4: Disclaimer and important notice
2024 Investor Day 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 expect
Slide 5: Acknowledgement of Country
2024 Investor Day Santos acknowledges that we are meeting on the traditional land of the Gadigal people of the Eora Nation and we pay our respects to Elders past and present. 3
Slide 6: Agenda
2024 Investor Day Agenda Session one Session two Welcome Capital management and finance 09:00am 10.30am Kevin Gallagher, Managing Director and CEO Sherry Duhe, Chief Financial Officer Portfolio update LNG portfolio backfill and growth 09:10am 10.45am Kevin Gallagher, Managing Director and CEO Brett
Slide 7: Portfolio Update
PORTFOLIO UPDATE
Slide 8: Personal and process safety performance
2024 Investor Day Personal and process safety performance Safety is a core value for Santos, we are focused on continuous improvement Lost time injury rate1 LTIR improved over last 3 years since COVID Rate per million hours worked Employee Contractor IOGP Global Average 1.00 Majority of incidents fr
Slide 9: Business overview
2024 Investor Day Business overview Strong base business and disciplined operating model to deliver to domestic and Asian markets LNG Assets Integrated Oil and Gas Midstream Energy Solutions Hubs PNG LNG Moomba Western Australia East Coast LNG Darwin & Alaska Bayu-Undan Barossa / DLNG Western Austra
Slide 10: LNG operational update
2024 Investor Day LNG operational update World class LNG infrastructure portfolio to meet growing Asian demand PNG LNG East Coast LNG Barossa / DLNG Status Producing Producing First Gas Q3 2025 Customers LNG customers – Sinopec, Osaka, CPC and Jera LNG customers – Petronas and Kogas LNG customers –
Slide 11: PNG operational insights
2024 Investor Day PNG operational insights PNG reliability at all-time record levels and PNG drilling surprising on the upside Operated CPF reliability Production: Strong production from operated fields. Record oil production rates supported by most recent infill oil well drilled High reliability in
Slide 12: Angore gas development project
2024 Investor Day Angore gas development project Exciting next phase of major LNG development for PNG STO interest 39.9 per cent1 PNG LNG Project production levels to be supported by up to Production 350 mmscf/d2 Resource ~1 tcf3 gas field (gross) Reservoir Conventional Project status Online as of N
Slide 13: GLNG upstream performance
2024 Investor Day GLNG upstream performance GLNG on track to deliver 230 wells drilled this year and production continues to build across upstream fields Wells drilled1 No. of wells per year • Queensland CSG hitting record production rates 356 • Repeated success drilling extended reach (4km) horizon
Slide 14: Cooper Basin upstream performance
2024 Investor Day Cooper Basin upstream performance Continued focus on development and operational efficiencies to sustain the long-life asset Wells drilled and success rate1 Prospective resources 2C Drill success rate CCS injector wells • Fifth supply field for GLNG 2P No. of wells per year, % • On
Slide 15: Barossa Gas Project
2024 Investor Day Barossa Gas Project Significant progress across all scopes STO interest • 50 per cent Production1 • 3.7 Mtpa of LNG and 2.7 mmboe of Condensate Reserves and • 2P Reserves 374 mmboe Resources • 2C Contingent 24 mmboe Reservoir • Conventional Project status • 83.5 per cent complete a
Slide 16: Integrated oil and gas portfolio
2024 Investor Day Integrated oil and gas portfolio Diversified portfolio with development opportunities to backfill and sustain production Alaska Western Australia Status Development project with first oil expected mid 2026 Producing current rates of 250 mmscf/d and 6,300 bbl/d Varanus Island Hub As
Slide 17: Pikka Phase 1
2024 Investor Day Pikka Phase 1 High productivity across all scopes of work over the 2023/2024 winter season Enclosed rig for year-round STO interest • 51 per cent drilling operations Production • 80,000 bopd with plateau of 5-6 years Reserves • 2P Reserves 165 mmboe Reservoir • Conventional Onsite
Slide 18: Moomba Phase 1 – online and storing CO2e
2024 Investor Day Moomba Phase 1 – online and storing CO2e Capturing, injecting and storing CO2e at Moomba in depleted reservoirs Moomba CCS Injection (gross)1 What we said… mmscf/d Injected Available CO2 Well Injection Capacity “…Moomba CCS Project will be one of the biggest in the world and will s
Slide 19: Net-Zero target
2024 Investor Day Net-Zero target Santos announces new third-party carbon storage growth target of ~14 Mtpa, equivalent to 50 per cent of Santos’ 2023 equity Scope 3 emissions from combustion and use of our products1,2 2025 2030 2040 Beyond Reduced emissions across Aspiration to store more the Coope
Slide 20: Creating stronger communities
2024 Investor Day Creating stronger communities Building respectful relationships and supporting our local communities for 70-years1 Local employees2 Indigenous employment - workforce3 Timor-Leste Papua New Guinea United States 100% 2.5% 2.13% 80% 2.0% 60% 1.5% 40% 1.0% 20% 0.5% 0% 0.0% 2021 2022 20
Slide 21: Transformation journey
2024 Investor Day Transformation journey Demonstrated success of Santos’ strategy leading to shareholder value creation 2016 2020 2024 2026 Investment proposition • Diversified, cash-generative portfolio • Sustainable production, disciplined investment Delivering development projects • Decarbonising
Slide 22: Santos' strategy
2024 Investor Day Santos’ strategy Driving the disciplined low-cost operating model and maximising existing infrastructure to sustainably grow returns over the longer term in line with our updated capital allocation framework Low- > Progress customer-led synthetic carbon fuels gas project at Moomba
Slide 23: Disciplined operating model
2024 Investor Day Disciplined operating model Santos maintains financial discipline through high inflationary periods Reported unit production cost v peers1 Santos unit production cost per year5 US$/boe US$/boe mmboe Average CPI2 Average CPI2 EOFL assets Base Business Production mmboe 12 4.0% 1.7% P
Slide 24: Delivering shareholder returns
2024 Investor Day Delivering shareholder returns Generated more than 200 per cent TSR since 20161 Shareholder returns US cents per share $ million Interim Final Buy Back Annual dividends per share Total shareholder returns of more than 200 per cent1 since transformation journey began 1400 1200 30 70
Slide 25: Delivering on our commitments
2024 Investor Day Delivering on our commitments Achieving our 2024 strategic priorities What we said we would do… What we’ve done • 24 per cent reduction in total recordable injury rate YTD compared to end of Q3 2023 Deliver safe and reliable production in the • Queensland CSG hitting record product
Slide 26: Market Outlook
MARKET OUTLOOK
Slide 27: Global energy demand
2024 Investor Day Global energy demand Oil and gas remain an essential part of this energy mix up to 2050 Primary energy demand1 Economic development and population EJ Demand Oil Gas Coal Other growth are driving increasing global energy demand 800 700 Generative AI utilisation queries are expected
Slide 28: Strong long-term LNG demand
2024 Investor Day Strong long-term LNG demand Santos is strategically positioned to supply lower cost, lower carbon LNG to the Asia Pacific region LNG supply and demand1 • The Asia Pacific region is the leading growth market for LNG, driven by Mtpa increasing energy demand and decarbonisation target
Slide 29: Strong position in Asian market
2024 Investor Day Strong position in Asian market Superior LNG pricing achieved through contracting strategy and low-cost / low-emission shipping position Proximal to Asian demand centres1 Strengths of Santos’ LNG portfolio • Strategically located portfolio proximal to Asian demand centres • Low-cos
Slide 30: Domestic gas supply critical for energy security
2024 Investor Day Domestic gas supply critical for energy security New supply is needed to meet long-term demand, keep the lights on and manufacturing running West coast domestic gas market1 East coast domestic gas market (southern regions)2 PJ per annum PJ per annum 600 600 Supply Developed and Com
Slide 31: Oil demand growing this decade
2024 Investor Day Oil demand growing this decade Developing Alaska to meet oil demand this decade Brent pricing1 Global liquids demand and supply capacity2 US$/bbl Brent price mmbbl/d Supply gap 140 Brent price forecast 120 Supply STO realised price Demand 120 100 100 80 80 60 60 40 40 20 20 0 0 201
Slide 32: Carbon credit markets
2024 Investor Day Carbon credit markets Forecast demand growth for emissions reduction units. ACCU market short from 2027 and prices increasing Annual supply versus demand for ACCUs Forecast ACCU price range2 Forecast global carbon prices3 in Australia1 Mt CO2e US$/t CO2e, 2024 real US$/t CO2e, 2024
Slide 33: Marketing portfolio overview
2024 Investor Day Marketing portfolio overview Santos’ marketing strategy is well positioned to deliver value Strategic location High value LNG Well positioned to supply Well placed to supply of LNG portfolio domestic market new oil demand Majority of portfolio with high heating value, Oil demand gl
Slide 34: Capital Management and Finance
CAPITAL MANAGEMENT AND FINANCE
Slide 35: What you will hear today
What you will hear today 1 Updated Capital Allocation Framework prioritising shareholder returns 2 Continue to drive the disciplined low-cost operating model 3 Development optionality enabling decades of sustainable returns
Slide 36: Strong balance sheet, balanced portfolio
2024 Investor Day Strong balance sheet, balanced portfolio Recent financing demonstrates the strength and diversity of the portfolio, target gearing remains a priority Drawn debt maturity profile1 Successful recent financing activity in 2024 US$ million • Execution of Moomba CCS transition loan $150
Slide 37: Updated capital allocation framework
2024 Investor Day Updated capital allocation framework From 2026: Prioritised shareholder returns supported by sustained profitable production and constrained capex Strong balance sheet Shareholder returns Disciplined capital reinvestment Existing Update from 20261 Target gearing range maintained 15
Slide 38: Capital allocation framework principles
2024 Investor Day Capital allocation framework principles From 2026: Simplified framework1 prioritises shareholder returns and strong balance sheet Disciplined operating model Cash flow from operations Sustaining and development capital Target sustainable production of 100-120mmboe per annum2 Limit
Slide 39: Target annual production range 100-120 mmboe
2024 Investor Day Target annual production range 100-120 mmboe Demonstrated delivery from current development projects maintains target production range Base business production1 mmboe 120 Culmination of three horizon strategy results in our ability to produce sustainably above 100 mmboe annually fr
Slide 40: Disciplined operating model
2024 Investor Day Disciplined operating model Santos is committed to sustaining our low-cost operating model as we complete a major growth phase Reported unit production cost v peers1 Company-wide cost-out is a focus area in 2025 US$/boe Average CPI2 Average CPI2 Emerging from a major growth phase f
Slide 41: Project portfolio enables decades of returns
2024 Investor Day Project portfolio enables decades of returns Disciplined and rigorous assessment applied to phased capital allocation Value Value realisation1 creation1 Opportunity Development2 Unsanctioned Projects3 Sanctioned Projects CTAP Gas & LNG Oil Strong portfolio offering diverse growth o
Slide 42: LNG Portfolio Backfill and Growth
LNG PORTFOLIO BACKFILL AND GROWTH
Slide 43: What you will hear today
What you will hear today 1 Infrastructure and resource recap 2 World-class LNG portfolio with significant optionality 3 Sustainable backfill and lower-cost expansion options
Slide 44: PNG LNG project
2024 Investor Day Project status PNG LNG project Production Producing since 2014 Capacity 6.9 Mtpa nameplate capacity 8.3 Mtpa / ~3.3 Mtpa1 annualised run rate Current producing fields Hides Associated Gas fields: Kutubu, Gobe Angore (online Q4 2024) Development Conventional Decarbonisation Low CO2
Slide 45: PNG facility overview
2024 Investor Day PNG facility overview Integrated Operated and Non-Operated Assets maximising resource value in PNG Non-Operated Assets Hides Conditioning Plant • Exporting to PNG LNG PNG LNG Plant • Annualised run rate capacity 8.3 Mtpa Operated Assets Agogo Production Facility • Gas reinjection u
Slide 46: Papua LNG project overview
2024 Investor Day Papua LNG project overview Continued growth in supply of low intensity LNG to meet Asian demand Expected Capacity • Up to 6 Mtpa Current • 9 production wells, 1 water injection well, 1 CO2 well, 1 gas processing Development plant, 320km of pipeline (of which 60km are onshore) Resou
Slide 47: Near term PNG LNG backfill strategy
2024 Investor Day Near term PNG LNG backfill strategy PNG LNG to be kept full until end of decade and beyond CPF Angore Hides F2 APF Tie-In Gobe Extension Optimisation Development Drilling Project of Field Life Supply of associated ~1 tcf1 Angore Currently drilling Footwall Development of associated
Slide 48: PNG development opportunities
2024 Investor Day PNG development opportunities Strong portfolio of development projects and exploration opportunities to backfill and sustain Papua LNG P’nyang Muruk Juha Eastern Fold Belt Status Unsanctioned, discovered Unsanctioned, discovered Unsanctioned, discovered Unsanctioned, discovered Uns
Slide 49: PNG asset is world-class
2024 Investor Day PNG asset is world-class Prolific resource base to provide reliable, long-term, low-cost LNG to Asian markets Production1 Reserves and contingent resources3 PNG LNG Plant Inlet Rate2 mmboe, Santos share 2P Reserves Mtpa, Santos share Unsanctioned projects and exploration upside 4.0
Slide 50: Barossa to DLNG
2024 Investor Day Project status Barossa to DLNG Production1 1.85 Mtpa of LNG Reserves 2P Reserves 374 mmboe 2C Contingent Resources 24 mmboe Reservoir Conventional Gas Status 83.5 per cent complete2 Development FPSO facility with export pipeline to existing Darwin LNG facility for LNG export 1. STO
Slide 51: Darwin Train 1 full out to 2040
2024 Investor Day Darwin Train 1 full out to 2040 FEED ready Darwin Train 2 allows for LNG expansion up to 10 Mtpa Production1 Barossa project tracking to plan, over 83.5 per cent complete Mtpa, Santos share 2.5 Barossa Caldita Barossa gas will fully utilize Darwin Train 1 until 2040, 2.0 Caldita ti
Slide 52: East Coast LNG (GLNG)
2024 Investor Day Project status East Coast LNG (GLNG) Production GLNG producing since 2015 Resources Queensland: 2P Reserves 319 mmboe 2C Contingent Resources 142 mmboe Surat and Bowen Basins Cooper Basin: 2P Reserves 128 mmboe 2C Contingent Resources 252 mmboe Nameplate capacity 7.8 Mtpa / ~2.3 Mt
Slide 53: East Coast LNG
2024 Investor Day East Coast LNG Five upstream operating fields and options for backfill of available ullage at GLNG GLNG Equity EQ Growth4 Production1 STO Equity Foundation Gas Supply2 Beetaloo5 CSG equity gas – Record production in 2024, Third Party Supply 1 displacing third-party gas purchases. G
Slide 54: Cooper Basin overview
2024 Investor Day Cooper Basin overview Foundation gas supply for GLNG unlocking material new resources to underpin longevity of the strategically positioned asset Horizon foundation contract supply ~50 PJ per annum to GLNG1, ~1 Mtpa of GLNG sales volumes Well-priced parity between LNG and East Coas
Slide 55: More than just a 2P value proposition
2024 Investor Day More than just a 2P value proposition Cooper Basin has a demonstrated history of continuous 2C and 2P replacement with significant running room remaining in the basin Cooper Basin reserve replacement history mmboe Continued reserves 20-year RRR average of ~60 per cent1 replacement
Slide 56: Cooper Basin
2024 Investor Day Cooper Basin Extending the life of the Cooper Basin by developing low-cost material plays in Central fields 1. Central fields strategy • Moomba Central Optimisation Project to reset cost base and un-constrain surface infrastructure • Unlock material reserves and resource positions
Slide 57: Moomba Patchawarra
2024 Investor Day Moomba Patchawarra Increasing recoverable volumes through technology advancements and driving down cost Simultaneous Operations improving efficiency of drilling and completions operations and driving down cycle times Real time drilling analytics tools driving continuous improvement
Slide 58: Moomba Granite Wash
2024 Investor Day Moomba Granite Wash Unlocking material additional resources through horizontal drilling through high temperature reservoir Proven unconventional resource currently being produced in 80 wells Horizontal drilling has potential to increase rates from Granite Wash by 10-15x that of a s
Slide 59: Moomba Central Optimisation
2024 Investor Day Moomba Central Optimisation Subsurface opportunities will drive future development, with cost-effective infrastructure upgrades to support production and reduce costs Additional capacity to support Project Scope future Central Fields development2 Northern Fields Expansion Central G
Slide 60: Northern Fields: Deep Coal
2024 Investor Day Northern Fields: Deep Coal Leveraging recent learnings to build development plans to unlock a multi TCF resource Deep Coal Play Segments Proven unconventional resources within the current producing Patchawarra formation Currently being produced in 60+ vertical wells Potential for s
Slide 61: Beetaloo: Northern Australia onshore shales
2024 Investor Day Beetaloo: Northern Australia onshore shales Beetaloo Sub-Basin, part of the greater McArthur Basin, is estimated to contain more than 200 TCF in-place1 EP161 is recognised as the geological “sweet spot” in the Beetaloo with 1.4 tcf gross (1.1 tcf, Santos share) 2C Resource booked f
Slide 62: Beetaloo: A stacked shale play
Beetaloo: A stacked shale play World-class geological characteristics analogous to the Utica and Marcellus Shales EP161 Velkerri B Shale Type Curves (Gas Rate vs. Days on Production)1,2,3 Tanumbirini (Scaled) 25,000 Extensive, high-quality stacked shale units in Velkerri Shenandoah South 1H Formatio
Slide 63: World-class LNG portfolio
2024 Investor Day World-class LNG portfolio Significant low-cost backfill optionality to expand the portfolio further PNG sustained and Cooper Basin Advantaged LNG Portfolio GLNG backfill opportunities growing longevity Three operational LNG plants Production upsides Five upstream fields 20-year his
Slide 64: Santos Energy Solutions
SANTOS ENERGY SOLUTIONS
Slide 65: What you will hear today
What you will hear today Using midstream cashflows to develop the portfolio for the future 1 Established cash flow generating assets that represent privileged infrastructure 2 Our focus on building towards commercial carbon management services at scale 3 Disciplined portfolio development and carbon
Slide 66: Strong midstream base
2024 Investor Day Strong midstream base Refocused portfolio of strategic assets well-suited to backfill and repurposing Eastern Australia Northern Australia1 Moomba Port Bonython Darwin LNG Nameplate Gas: 400 TJ/d Liquids: LNG: 3.7 Mtpa, throughout capacity Storage: 70 PJ 20 mmboe p.a. approvals up
Slide 67: Building a profitable and targeted portfolio
2024 Investor Day Building a profitable and targeted portfolio Developing commercial carbon management services at scale to decarbonise Santos and third-party assets Strong Focused portfolio build towards commercial Customer-led midstream base carbon management services leveraging future growth infr
Slide 68: Three operated CCS hubs
2024 Investor Day Three operated CCS hubs An extensive infrastructure position that can be repurposed for decarbonisation1 Darwin & Bayu-Undan Hub • Up to ~10 Mtpa CO2e storage • Targeting FID readiness in 2025 • Four MOUs signed for >10 Mtpa volume • Timor-Leste government developing regulatory reg
Slide 69: Moomba Phase 2 – development concept
2024 Investor Day Moomba Phase 2 – development concept Significant growth potential with up to 50-years of storage resource potential at up to 20 Mtpa CO2e Scale potential CCS Value Chain Import CO2 CO2 Phase 1 Up to 20 Mtpa Capture terminal transmission storage Build credibility 2-10 Mtpa Capture f
Slide 70: Bayu-Undan CCS
2024 Investor Day Bayu-Undan CCS Large, scalable project to be underpinned initially by Barossa CO2 volumes Overview Industrial decarbonisation of adjacent and international CO2 imports by leveraging the existing Bayu-Undan infrastructure and depleted reservoirs in Timor-Leste waters Status FEED nea
Slide 71: Western Australia CCS
2024 Investor Day Western Australia CCS Initial Reindeer CCS project will cater solely to third-party CO2 volumes Overview Industrial decarbonisation of adjacent emissions by leveraging the existing infrastructure and depleted reservoirs in Australian waters Status Entered FEED in 1H 2024 Timeline T
Slide 72: Moomba low carbon fuels project
2024 Investor Day Moomba low carbon fuels project Developing a low carbon fuel which can be used in existing supply chains to backfill LNG projects over time or for domestic use Cooper Basin advantages Low Carbon Fuels Value Chain Cooper basin renewable energy resources • Excellent renewable energy
Slide 73: Carbon third-party storage growth target
2024 Investor Day Carbon third-party storage growth target Gross storage target ~14 Mtpa, equivalent to 50 per cent of Santos’ 2023 estimated downstream equity Scope 3 emissions1 By 2040 Longer term aspiration Store ~14 Mtpa Store more carbon than third-party CO2e2 our Scope 1, 2 and 3 emissions Bui
Slide 74: Santos Energy Solutions summary
2024 Investor Day Santos Energy Solutions summary Developing commercial carbon management services at scale to decarbonise Santos and third-party assets Building towards Established cash flow Privileged commercial carbon and ACCU generating Portfolio discipline infrastructure position management ser
Slide 75: Close & Q&A
CLOSE & Q&A
Slide 76: 2025 Strategic priorities
2024 Investor Day 2025 Strategic priorities Focused on driving shareholder returns by delivering our low-cost operating model and executing on major projects Deliver safe, reliable and low-cost production from base business Deliver first LNG from Barossa project Progress Pikka project for first oil
Slide 77: Investment proposition
2024 Investor Day Investment proposition Rapidly approaching inflection point, cash generative portfolio, driving shareholder returns and positioned for the energy transition High quality, Superior returns Investment and commitment diversified portfolio for shareholders to decarbonisation Geographic
Slide 78: Slide 78
Slide 79: Definitions and Abbreviations
Definitions and Abbreviations Absolute When used in reference to emissions reduction targets means reduction against the total emissions at the Net-zero Santos’ equity share of net-zero Scope 1 and 2 greenhouse gas emissions relevant point in time, rather than a relative or comparative amount Scope