Santos (STO) Q1 2026 earnings summary

Executive summary

• Achieved production of 22.5 mmboe, up 1% sequentially and 3% year-over-year, driven by Barossa's first cargoes and strong base business performance.

• Sales revenue reached $1.27 billion, up 3% from the previous quarter, with free cash flow from operations at $383 million, stable quarter-on-quarter.

• Pikka phase 1 reached mechanical completion, with commissioning underway and first oil sales expected soon; Barossa FPSO to ramp up imminently.

• Quokka-1 appraisal well in Alaska confirmed high-quality oil, supporting future development and premium pricing.

• Secured a 10-year, 200 PJ conditional gas sales agreement with the South Australian Government, supporting Moomba Central Optimisation project.

Financial highlights

• Production: 22.5 mmboe, up 1% from Q4 2025 and 3% year-over-year.

• Sales revenue: $1,271 million, up 3% sequentially, but down 2% year-over-year.

• Capital expenditure: $441 million, down 29% from Q4 2025.

• Free cash flow from operations: ~$383 million, stable quarter-on-quarter.

• LNG sales revenue: $843 million, up from $780 million in Q4 2025.

Outlook and guidance

• Full year 2026 guidance unchanged: production and sales volumes of 101–111 mmboe, capex of ~$1.95–2.15 billion, and unit production costs of $6.95–7.45/boe.

• Pikka phase 1 targeting plateau production early Q3 2026; Barossa LNG production ramp-up expected in Q2.

• Positioned to deliver production growth within $45–50/bbl all-in free cash flow break-even.