Santos (STO) Q3 2026 TU earnings summary

Executive summary

• Record Q3 production of 26.3 mmboe, up 13.9% QoQ and 23% YoY; Barossa reached steady production and Pikka ramped up, driving record free cash flow from operations.

• Production growth and cash generation were supported by reliable base operations; ~50% of Q3 free cash flow came from PNG and Alaska operations.

Financial highlights

• Q3 sales revenue was $2,006 million, up 48.7% QoQ and 78% YoY; 2026 YTD revenue reached $4,626 million, up 24.7% YoY.

• Q3 sales volume was 26.4 mmboe, up 10.9% QoQ; 2026 YTD volume rose 8.3% YoY to 74.4 mmboe.

• Record Q3 free cash flow from operations was ~$1,069 million; 2026 YTD was ~$1,447 million. Free cash flow was ~$957 million for Q3 and ~$839 million YTD.

• Q3 capital expenditure, excluding capitalised interest, was $511 million; 2026 YTD was $1,433 million, down 19.7% YoY.

Outlook and guidance

• 2026 production guidance narrowed to 99–102 mmboe from 99–105 mmboe; sales volume guidance narrowed to 102–105 mmboe from 102–108 mmboe, mainly due to Pikka commissioning delays and curtailments.

• Capital expenditure guidance remains ~$1.95–$2.15 billion; unit production cost guidance remains $6.95–$7.45/boe, with DD&A guidance unchanged.

• Pikka is planned to hold at ~70,000 b/d gross briefly while water injection replenishes reservoir voidage, then ramp toward 80,000 b/d gross.

• Papua LNG is progressing toward planned FID in Q4 2026; the Greater Meridian CSG acquisition is targeted to complete in late 2026, subject to approvals.