Report
Mark Taylor
EUR 101.80 For Business Accounts Only

Santos boasts some of the largest and highest-quality coal seam gas reserves in Australia.

We increase our fair value estimate by 8% to AUD 5.75, due to a combination of the time-value-of-money and reduced costs. Santos has guided for yet another decline in free cash flow breakeven, confirming the ability of CEO Kevin Gallagher to match words with action. The updated USD 33 per barrel figure improves on the most recent USD 34 estimate and betters 2016’s USD 36.50 figure. Production cost guidance is reduced to USD 8.00-8.25 per barrel of oil equivalent, from USD 8.45 in 2016.
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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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