Report
Mark Taylor
EUR 147.86 For Business Accounts Only

Corporate Action - No-Moat Santos Raising AUD 1.5 Billion, We Recommend Take-up of the SPP

Our AUD 5.30 per share fair value estimate is unchanged. The mild dilutionary impact of Santos’ AUD 1.5 billion capital raising is insufficiently material to warrant a move. Risk reduction via a less leveraged balance sheet is an improvement. Our 2016 underlying earnings forecast is little changed at AUD 0.02 per share. Our 2017 earnings forecast increases by 40% to AUD 0.35, as a result of an increase in our Brent crude price forecast to USD 60 per barrel from USD 50, following OPEC’s implement...
Underlying
Santos Limited

Santos is a natural gas company engaged in the exploration for, and development, production, transportation and marketing of, hydrocarbons. Co.'s operating segments consist of five key assets/operating areas of: Cooper Basin; Gladstone LNG; Papua New Guinea; Northern Australia; and Western Australia gas; based on the nature and geographical location of the assets, plus Other non-core assets. Co.'s proved petroleum reserves were 485.0 million barrels of oil equivalent at Dec 31 2016.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Mark Taylor

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