Ann: Santos 2022 Investor Briefing Day, page-16

Part 1 takeaways:
1- WA is the biggest downside on production and I wonder if STO was a little caught by surprise by the production decline? I say this as the team note that there’s easy access resources available although this will take some time (short cycle)
2- growth from 2025 will be spectacular as the approved & unapproved but advanced projects come on line. Talk is 140mmboe after sell-down across the projects. Impressive outlook for the patient investor.
3- get a lot of confidence on Barossa issues being resolved. Extending existing DLNG production is providing residual but meaningful value but the asset should cease by 1H/23.
4- Pikka should be a cracking cash generator across plateau production (6-8 yrs). Oil prices at <$100 is just upside. Further upside in development areas for appraisals options on subsequent project phases
5- Cooper has been hit hard by La Niña which has restricted operations. The team have used the time to plan developments and to open production opportunities. In short, more wells and return of ~16+Mmboe production levels. 30 wells waiting connection. There’s lots of life left in the Cooper!
6- GLNG - big opportunity to get more gas through this asset. Work to be done to unlock the reserves. Some talk about Mahalo gas project. To be seen…

Share price is too low for the potential of STO but I understand that the investor is cautious and
wants to see dividend returns. I do too!

I’d like to see STO pay USD0.20/share dividend as the final payment. I see 0.10 (330m) as regular dividend and 0.10 as special dividend on sale of 5% of PNG LNG. I think STO will also have capacity for up to 0.10 of buybacks. I see gearing at being closer to 15% end of 2022 with 5% sales.

Lots to like for me!