Santos Limited · ASX:STO
Santos — FY2024 Earnings Presentation
49 slides from Santos's earnings presentation, Feb 19, 2025
Slide 1: 2024 Full year results
2024 Full year results 19 February 2025 Moomba CCS phase 1
Slide 2: Disclaimer and important notice
2024 Full-year results Disclaimer and important notice This presentation contains forward-looking statements that reflect Santos’ expectations at the date of this report (including with respect to Santos’ strategies and plans relating to climate change).These statements are based on management’s cur
Slide 3: Personal and process safety performance
2024 Full-year results Personal and process safety performance Focus on continuous improvement delivered our best personal safety performance in 10 years Lost time injury rate1,2 40 per cent improvement in Lost Time Injury Rate (LTIR) from Rate per million hours worked 2023, significantly better tha
Slide 4: Financial overview
2024 Full-year results 2024 Financial overview Strong financial performance, despite global inflationary environment and lower commodity pricing $5.4 billion $3.7 billion $1.2 billion Sales revenue EBITDAX Profit after tax1 $1.9 billion 87.1 mmboe 10.3 UScps Free cash flow from operations2 Total pro
Slide 5: Returns to shareholders
2024 Full-year results Returns to shareholders Free cash flow from operations providing strong returns to shareholders. $757 million cash returned in 2024 Free cash flow from operations1,2 Shareholder returns3 $ million $ million 3,641 Interim Final Buy Back “Since the implementation of the 700 disc
Slide 6: Reserves and resources to backfill production
2024 Full-year results Reserves and resources to backfill production 18-year 2P reserves life, 11-year 1P reserves life with multi tcf resources positioned to backfill and grow1,2 By location3 By product type 2P and 2C contingent CO2 storage capacity % % MtCO2 2C Integrated oil 12 2P 22 and gas 25 1
Slide 7: Operational highlights
2024 Full-year results 2024 Operational highlights Strong operational performance from the base business, providing reliable production and cash flows LNG Integrated Oil and Gas Barossa on track for first gas from Q3-2025 Pikka on track for first oil from mid-2026; drill time improved 25 per cent to
Slide 8: LNG position in strong and growing markets
2024 Full-year results LNG position in strong and growing markets Strong LNG pricing achieved through high heating value LNG, proximity to markets and portfolio flexibility Proximal to Asian demand centres1 Successful 2024 for LNG business • High heating value, liquids rich LNG portfolio provides co
Slide 9: Barossa LNG project update
2024 Full-year results Barossa LNG project update Project 91 per cent complete1 and remains on schedule and within capex guidance. Production from four wells can deliver nameplate capacity, derisking the project First gas on track for Q3-2025 The vapour recovery unit will capture and recycle waste g
Slide 10: Pikka phase 1 project update
2024 Full-year results Pikka phase 1 project update Project more than 76 per cent complete1 and remains on schedule and within capex guidance First oil target mid-2026 Enclosed rig for year-round drilling operations 16th well 16 of 26 wells drilled and completed1,4,5 complete Production 2 Drill time
Slide 11: Finance and Capital Management
FINANCE AND CAPITAL MANAGEMENT
Slide 12: Financial highlights
2024 Full-year results 2024 Financial highlights Strong financial performance despite high inflationary environment and lower commodity pricing <$33.50/bbl $3.7 billion $7.85/boe Free cash flow break even1 EDITDAX Unit production costs2 $335 million 23.9 per cent $1.9 billion Final dividend declared
Slide 13: Free cash flow from operations
2024 Full-year results Free cash flow from operations Significant free cash flow from operations of $1.9 billion, providing reliable returns to shareholders Operating cash flow1 Investing cash flow2 Free cash flow from operations1,3 $ million $ million $ million 4,558 3,641 3,258 2,850 (1,130) 2,128
Slide 14: Underlying earnings
2024 Full-year results Underlying earnings Strong earnings from the base business supporting Santos’ development projects and returns to shareholders Product sales revenue EBITDAX Underlying profit1 $ million $ million $ million 5,646 7,790 2,641 4,083 5,889 5,381 3,706 4,713 2,805 1,423 4,033 3,660
Slide 15: The disciplined operating model delivering
2024 Full-year results The disciplined operating model delivering Targeting growing production by 30 per cent by 2027 and maintaining a range of 100-120 mmboe per year to 2030. Unit production costs on trajectory to target less than $7 per boe once Barossa and Pikka phase 1 online Production volumes
Slide 16: Strong balance sheet, balanced portfolio
2024 Full-year results Strong balance sheet, balanced portfolio Focus on strong stable balance sheet through the cycle. Final year of full repayments on PNG LNG financing Drawn debt maturity profile 1 Liquidity2 Hedging3 $4.4b US$ million Oil Hedging PNG LNG project finance (non- First half 2025: 10
Slide 17: Operations Review
Santos OPERATIONS REVIEW FOR GENERATIONS
Slide 18: Disciplined operating model
2024 Full-year results Disciplined operating model Delivering strong free cash flows for shareholder returns, debt repayment and reinvestment Disciplined Asset lifecycle Portfolio & portfolio rules capital allocation Diversified portfolio Resource add Return to Integrated Midstream and shareholders
Slide 19: Market overview
2024 Full-year results Market overview Oil and gas remain key to the global energy mix through the 2040s, with strong LNG demand growth in Asia and a continued need for investment in new liquids supply Global primary energy demand1 Asia LNG demand2 Global liquids supply-demand3 EJ Demand Gas Other M
Slide 20: PNG LNG
2024 Full-year results PNG LNG World class LNG infrastructure to meet growing Asian demand LNG volumes Increased supply to PNG LNG • Ongoing strategy to optimise Completed three of the four LNG price reviews for PNG LNG, Mtpa (gross) maintenance activity throughout 8.3 8.5 8.8 8.4 8.6 8.4 locking in
Slide 21: PNG: backfill and optionality
2024 Full-year results PNG: backfill and optionality Continued growth in supply to backfill and sustain PNG LNG Operated CPF reliability Continued high reliability Angore successfully developed, with two wells tied into PNG LNG, % • High reliability increases gas delivering up to 350 mmscf/d1 95% 98
Slide 22: East Coast LNG: GLNG Curtis Island
2024 Full-year results East Coast LNG: GLNG Curtis Island Continuing to safely deliver LNG to international customers LNG volumes produced Steady operated field delivery Mtpa (gross) Delivered 6.08 million tonnes (gross) of LNG production (100 • Record upstream delivery rates 6.5 cargoes) to GLNG’s
Slide 23: East Coast LNG: Queensland CSG
2024 Full-year results East Coast LNG: Queensland CSG Record delivery rates to date in Roma, Scotia and Arcadia Roma gas production Record production in 2024 Well mean time between failure Sustained life performance PJ (gross) Years (Roma) • Continued focus on Artificial Lift • Highest delivery rate
Slide 24: East Coast LNG: Cooper Basin
2024 Full-year results East Coast LNG: Cooper Basin Drilling activity in 2H 2024 offset impact of extreme weather events in 1H 2024 Production and unit cost Record production Central fields Wells drilled Drilled 108 wells in 2024 $/boe mmboe • Record production rate in Central Number of wells per ye
Slide 25: Western Australia
2024 Full-year results Western Australia Halyard-2 infill well, first gas in February 2025 Production volumes Delivering volumes Halyard-2 first gas mmboe • Well cycling strategy extended • Infill well now online Reindeer asset life into 2H 2024 30.9 31.1 33.7 • Preliminary drilling results in 2024
Slide 26: Backfill and sustainable growth options
2024 Investor Day Backfill and sustainable growth options Options will be progressed and phased in accordance with our disciplined capital allocation framework Beetaloo – Papua LNG Bedout Basin Narrabri Pikka phase 2 GLNG/DLNG & P’nyang (Dorado) Papua: Progressing key Progressing planning for contra
Slide 27: Delivering on our decarbonisation targets
2024 Full-year results Delivering on our decarbonisation targets Moomba CCS phase 1 delivering immediate and real large-scale emissions reduction 2024 Scope 1 and 2 net equity emissions intensity Moomba CCS Scope 1 and 2 equity emissions were 26 per cent lower2. This phase 1 online ktCO2e / mmboe 30
Slide 28: Smarter technology, better business
2024 Full-year results Smarter technology, better business Innovation powering improved efficiency and safety Improved efficiency Streamlined operations Optimised performance Eastern Australia Eastern Australia Alaska Integrated production model HiVis flushing optimisation New proppant handling syst
Slide 29: Organisation and culture
2024 Full-year results Organisation and culture Greater than 80 per cent participation in 2024 engagement survey Purpose and values Strong employee alignment 37 per cent uplift in employee engagement – engagement levels • Very high alignment with purpose trending towards top quartile compared to glo
Slide 30: 2025 Strategic priorities
2024 Full-year results 2025 Strategic priorities Focused on driving shareholder returns by delivering our disciplined low-cost operating model and executing on development projects Deliver safe, reliable and low-cost production Progress PNG LNG and East Coast LNG from base business backfill opportun
Slide 31: Appendix
Santos APPENDIX FOR GENERATIONS
Slide 32: Financial performance
2024 Full-year results 2024 Financial performance Consistently strong financial performance despite lower realised prices and high inflationary environment 2024 $million 2023 $million • Total revenue down due to lower volumes and lower realised prices. Total revenue 5,518 6,034 • Third party purchas
Slide 33: Sales revenue
2024 Full-year results Sales revenue Diverse portfolio, proximal to Asian markets and supplying domestic markets 2024 Total product sales 2024 Sales revenue product % % 3 7 1 PNG 16 LNG 10 Cooper Basin upstream Gas & ethane 1 Queensland & NSW 48 Crude oil Northern Australia & Timor-Leste 21 Condensa
Slide 34: Free cash flow from operations
2024 Full-year results Free cash flow from operations Calculation of 2024 full year free cash flow from operations Lease liability payments are treated as financing cash flows under AASB 16. To ensure like-for-like $million 2024 2023 comparisons with prior periods, the definition of free cash flow r
Slide 35: Significant items
2024 Full-year results Significant items Reconciliation of full year net profit to underlying profit 2024 2023 $ million $million $million Net profit attributable to the owners of Santos Limited1 1,224 1,416 Add/(deduct) significant items after tax: Net gain on sales of non-current assets (116) (3)
Slide 36: 2025 guidance
2024 Full-year results 2025 guidance X Guidance item 2025 Guidance Production1 90 - 97 mmboe Sales volumes 92 - 99 mmboe Capital expenditure – sustaining (incl. decommissioning) ~$1.2 - $1.3 billion Capital expenditure – major projects ~$1.2 - $1.3 billion Unit production costs1 $7.00 - $7.50 per bo
Slide 37: Liquidity and net debt
2024 Full-year results Liquidity and net debt Strong liquidity and balance sheet 31 December 2024 31 December 2023 Liquidity $million $million Cash and cash equivalents 1,833 1,875 Committed (undrawn) bank facilities 2,580 2,615 Assets held for sale - cash - 36 Total liquidity 4,413 4,526 31 Decembe
Slide 38: 2024 Full-year segment results summary
2024 Full-year results 2024 Full-year segment results summary Northern Corporate, Australia & Western Eliminations, Cooper Basin Queensland Timor-Leste Australia Santos Energy Non-core,& 2024 results summary Upstream & NSW PNG Upstream Upstream Solutions Total other Total Santos Product sales to ext
Slide 39: 2023 Full-year segment results summary
2024 Full-year results 2023 Full-year segment results summary Northern Corporate, Australia & Western Eliminations, Cooper Basin Queensland Timor-Leste Australia Santos Energy Non-core,& 2023 results summary Upstream & NSW PNG Upstream Upstream Solutions Total other Total Santos Product sales to ext
Slide 40: Capital allocation framework principles
2024 Full-year results Capital allocation framework principles From 2026: Simplified framework1 prioritises shareholder returns and strong balance sheet Disciplined operating model Cash flow from operations Sustaining and development capital Target sustainable production of 100-120mmboe per annum2 L
Slide 41: Beetaloo onshore shales
2024 Full-year results Beetaloo onshore shales Beetaloo Sub-Basin, part of the greater McArthur Basin, is estimated to contain more than 200 tcf in-place1 Drilling appraisal program planned for 2026 Normalised production from more than 20 wells are analogous to the Marcellus and Utica onshore US Sha
Slide 42: Papua LNG
2024 Full-year results Papua LNG Continued growth in supply of low emissions intensity LNG to meet Asian demand Progressing key contracts re-bid process. Regulatory license application submitted Electrical LNG trains with a cumulative capacity of 4 Mtpa to be developed within the existing liquefacti
Slide 43: Narrabri gas project
2024 Full-year results Narrabri gas project Potential to supply up to half of the natural gas demand of New South Wales Progressing planning for appraisal drilling program Progressing land access agreements, cadastral surveys and environmental assessments for the Hunter Gas Pipeline route alignment
Slide 44: Pikka future phases
2024 Full-year results Pikka future phases Opportunity to leverage existing infrastructure to enhance oil production on the North Slope Fully appraised with all major permits in place. FEED ready in 2025 Develops significant 2C Contingent resources from the future NDC1 and NDA1 drill sites to enable
Slide 45: Bedout Basin (Dorado)
2024 Full-year results Bedout Basin (Dorado) Building value through an integrated gas and liquids development within Bedout Basin 2 gas exploration wells planned to be drilled in 2026 >70 per cent Bedout Basin Santos exploration success rate >150 prospects and leads currently mapped on modern 3D sei
Slide 46: Bayu-Undan CCS
2024 Full-year results Bayu-Undan CCS Strategically situated to provide potential carbon management services across the Asia-Pacific region Potential to store up to 10 Mtpa of CO2 annually FEED >96 per cent complete1 Leverages existing infrastructure to provide a cost- competitive solution for carbo
Slide 47: Definitions and abbreviations
2024 Full-year results Definitions and abbreviations When used in reference to emissions reduction targets, means reduction against the total contingent Those storage quantities, as of a given date, to be potentially stored in geologic formations absolute emissions at the relevant point in time, rat
Slide 48: Definitions and abbreviations
2024 Full-year results Definitions and abbreviations Operating cash flows less investing cash flows (net of acquisitions and disposals and major loss of primary A loss of containment incident, meaning an unplanned or uncontrolled release of any free cash flow containment material hydrocarbon from pr
Slide 49: Definitions and abbreviations
2024 Full-year results Definitions and abbreviations A tax applied to profits generated from the recovery of marketable petroleum commodities bbl barrel Petroleum from Australian offshore petroleum projects. Marketable petroleum commodities include Resource Rent crude oil, condensate, LPG, natural g