Santos (STO) Q2 2025 earnings summary

Executive summary

• Free cash flow from operations reached ~$1.1 billion for H1 2025, with $620 million in Q2; production rose 1% sequentially to 22.2 mmboe and sales volumes increased 3% to 23.9 mmboe.

• Major projects Barossa LNG (~97% complete) and Pikka Phase 1 (~89% complete) remain on schedule, with Barossa targeting first gas in Q3 2025 and Pikka first oil in mid-2026.

• Moomba CCS achieved a milestone of over 1 million tonnes CO2e stored; awarded Energy Technology Company of the Year for this project.

• Positive credit ratings maintained (Moody's Baa3, S&P BBB-, Fitch BBB); gearing at 20.5% (excl. leases).

• A non-binding proposal to acquire 100% of shares at $5.761 per share in cash is under exclusivity with the XRG Consortium.

Financial highlights

• Q2 2025 sales revenue was $1,285 million, down 1% sequentially; H1 2025 revenue was $2,579 million, down 5% year-over-year.

• Capital expenditure in Q2 was $540 million, 12% lower sequentially; H1 capex was $1,153 million, 21% lower year-over-year.

• LNG sales revenue in Q2 was $770 million; domestic gas $300 million; crude oil $132 million.

• Average realised LNG price was $11.57/mmBtu; crude oil $71.17/bbl, both lower than Q1.

Outlook and guidance

• 2025 production guidance narrowed to 90–95 mmboe due to Cooper Basin flooding; sales volume guidance unchanged but expected at upper end.

• Unit production cost guidance narrowed to $7.00–$7.40/boe; expected to moderate in H2 as Barossa comes online.

• Capital expenditure guidance for major projects and sustaining capex unchanged at ~$1.2–$1.3 billion each.

• Depreciation, depletion, and amortisation expected at ~$1.8 billion for 2025.