STO - BUY IMO, page-90

Article from The Australian:

"Santos won’t be hit by gas export curbs: analysts"

Credit Suisse analyst Mark Samter noted Mr Turnbull’s announcement was light on detail. But he said the government’s acceptance that export parity pricing was the level needed to be attained could be good for Santos.

“A seeming contentment with export parity sets a high benchmark price for domestic gas,” Mr Samter said.
He said the Santos strategy under managing director Kevin Gallagher of preserving capital was at loggerheads with its need to produce more gas.

“If you have greater certainty of higher prices, and a political imperative to produce more, does the drill bit get a bit more of a workout?” he said. “In theory, this could be value accretive.”