Santos plans to return 60 per cent of free cash flow to shareholders from 2026, alongside expanding carbon storage efforts.
The move follows a wave of major capital investments, including the Barossa and Pikka projects, which are set to significantly boost production in the coming years.
At its Investor Day in Sydney, Santos also set its sights on a bold carbon storage target – aiming to permanently store 14 million tonnes of third-party carbon dioxide emissions annually by 2040.
This target is equivalent to half of Santos’ 2023 equity Scope 3 emissions, underscoring the company’s push to play a bigger role in global decarbonisation efforts.
Santos CEO Kevin Gallagher hailed the recent startup of the Moomba Carbon Capture and Storage (CCS) project as a breakthrough, calling it “one of the world’s largest and lowest-cost CCS projects”.
With the Moomba facility already storing over 150,000 tonnes of CO2 and poised to handle 1.7 million tonnes annually, Santos is confident in expanding its carbon storage capabilities.
“We are delivering on our strategy to develop upstream production to backfill and sustain our leading infrastructure position, decarbonise our operations and build a commercial carbon management services and low-carbon fuels business to meet future demand,” Gallagher said.
Santos’ production is projected to grow by more than 30 per cent by 2027 as its Barossa and Pikka projects ramp up, reducing unit costs and enhancing cash flow.
Gallagher also highlighted Santos’ advantage in serving Asian markets, noting shorter shipping routes and lower emissions compared to competitors in the US and Middle East.
“With a strong balance sheet, line of sight to long-term, cash-generative production and a healthy portfolio of sustainable backfill and expansion options, I am confident Santos can continue to deliver superior value for shareholders over the long term,”Gallagher said.
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