These are a few things against Santos and why I don't want to hold it.
1. Large amount of debt in USD (USD forecast to get stronger)
2. Write down must happen due to massive difference between market cap/book value of assets
3. LNG prices forecast to collapse and stay low for next 5 years as big projects come on line
4. LNG is abundant in supply as shown in US shale gas production figures
5. Location advantage and cost differential between LNG Asia/USA will diminish with LNG exports from USA starting up
6. GLNG project is a non-conventional play and I don't believe the operators have the expertise and freedoms that exist in the USA. Texas has the most relaxed environmental laws regarding oil/gas exploration that Santos doesn't enjoy in Australia which means higher costs and more hurdles to jump.
7. Environmental concerns making headlines about the damage to land and water supply.
8. Santos is missing the upstream side that Origin has.
As for the positives - well if oil goes above $80 and stays there then pretty much every big oil/gas company will be making good $$.
STO - Long Term Buy, page-115
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Last
$6.72 |
Change
0.030(0.45%) |
Mkt cap ! $21.82B | |||
| Open | High | Low | Value | Volume |
| $6.74 | $6.77 | $6.72 | $43.42M | 6.449M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 55681 | $6.72 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.73 | 10465 | 2 |
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| Last trade - 16.10pm 15/11/2024 (20 minute delay) ? |
| STO (ASX) Chart |