Santos Limited · ASX:STO
Santos — 2021 Macquarie Australia Conference
11 slides from Santos's conference presentation, May 5, 2021
Slide 1: 2021 Macquarie Australia Conference
2021 Macquarie Australia Conference Kevin Gallagher, Managing Director and Chief Executive Officer | 5 May 2021
Slide 2: Disclaimer and important notice
Disclaimer and important notice 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 c
Slide 3: Key messages
Key messages Focused on ensuring the base business continues to deliver strong performance through the growth phase 1 Strong cash-generative base business throughout the commodity price cycle Positioned for disciplined growth with Barossa investment approved and strengthened 2 balance sheet Well-dev
Slide 4: 2021 first quarter highlights
1 2021 first quarter highlights Strong and sustainable free cash flows with >US$1 billion forecast in 2021 at current oil prices PRODUCTION VOLUME SALES VOLUME GLNG SALES 112% 112% 112% 24.8 39% 27.4 23% 6.4 3% mmboe mmboe mtpa run-rate in Q1 DOMESTIC GAS PRICE SALES REVENUE FREE CASH FLOW1 $4.54 20
Slide 5: High value infrastructure-led offshore development
1 High value infrastructure-led offshore development Operated portfolio of high value projects, delivering incremental production in 2021 Varanus Island Bayu-Undan Phase 3C Van Gogh Infill Phase 2 Spartan Development Compression Description 2 platform and 1 subsea 3 dual lateral wells, Low pressure
Slide 6: Disciplined and phased growth
2 Disciplined and phased growth Major growth projects are all Santos-operated providing optionality and control over pace Moomba Carbon Narrabri Gas Project Dorado Barossa Capture and Storage Phase 1 Phase 1 Milestones FID March 2021 FID-ready, subject to Appraisal drilling planned for FEED-entry pl
Slide 7: Barossa investment decision
2 Barossa investment decision FID announced in March 2021. Targeting cash cost of production of ~$2.00/mmBtu Barossa development + Long term LNG offtake agreement signed with DGI, a wholly-owned subsidiary of Mitsubishi, and MOU with Mitsubishi for carbon neutral LNG from Barossa + Capex estimated a
Slide 8: Balance sheet strengthened & prepared for growth
2 Balance sheet strengthened & prepared for growth Secured a second investment grade credit rating and extended debt maturity term at low rates 144A transaction provides flexibility for capital management + Secured BBB (stable outlook) credit rating from Fitch to support the existing S&P rating at B
Slide 9: Roadmap to net-zero emissions
3 Roadmap to net-zero emissions Well developed plans to decarbonise our base business. CCS and hydrogen are the pathway to net-zero emissions by 2040 2020 2040 Planned activities + Nature-based offsets include the existing savanna burning program in Arnhem Land ~5 mtCO2e + Energy Solutions to delive
Slide 10: Moomba CCS provides step change in emission reduction
3 Moomba CCS provides step change in emission reduction Lowest cost (<US$24/t lifecycle) and second largest CCS project globally. Pathway to further lowering cost. Project is FID-ready, subject to Australian Carbon Credit Units eligibility + Low cost CCS project due to + Leveraging off existing CO2
Slide 11: Santos
Santos