Santos Needs $US3.5b Capital Injection - Macquarie, page-116

Do people forget that Santos is still above breakeven at these prices...?

Unlike David Knox who is a pure businessman who built the company up to thrive on high oil prices ($100+ bbl) Kevin Gallagher is a producer/engineer who understand that the company has to be able to survive through the ups and downs of commodity cycles.

Ever since he took over CEO he made it his job to cut production costs in order to lower the companies cash flow breakeven point.

Taken from the August half-yearly report:

“Our goal is to be free cash flow breakeven at between US$35 to US$40 per barrel on a portfolio basis.

"We have made good progress in the first half towards this goal and are forecasting a free cash flow breakeven oil price of US$43.50 per barrel for 2016, down from US$47 per barrel."

Anything below $3.50 I am using as an opportunity to top up for a long term holding of a quality company.