Australia's Santos hits six-week high; Morningstar sees further H2 pricing uplift on LNG price lag

Morningstar

24/07/2026 01:42

Updates
** Shares of Australia's Santos STO.AX gain as much as 2.9% to A$8.080, their highest point since June 12

    ** Stock has gained 5% so far this week, set for its third consecutive weekly climb, if trend sustains
  

    ** Morningstar expects further price improvement for oil and gas major in H2, underscoring the lagged effect of higher LNG prices
  
** The investment research firm estimates that by 2027 Santos' Barossa and Pikka projects will ramp up production by 30%
** Santos on Thursday lowered its annual production outlook to a range of 99 million barrels of oil equivalent (boe) to 105 million boe, from its earlier projection of 101-111 million boe
** The company's second-quarter sales revenue rose 5% to $1.35 billion, but missed Visible Alpha's consensus estimate of $1.57 billion
** Citi sees stronger H2 cash flows at Santos supporting higher shareholder returns, with a revised capital management framework likely at annual results
** Santos stock up 31%, YTD

        
  

 (Reporting by Keshav Singh Chundawat in Bengaluru)
 ((Keshav.singhchundawat@thomsonreuters.com))