Australia's Santos up after Citi hikes price target post PNG interest buy

Santos

08/09/2026 02:16

Updates
** Shares of Santos STO.AX rise as much as 0.8% to A$8.375 in early trade, their highest since September 2
** Citi raises its target price for Australia's no.2 independent oil and gas producer to A$9.20 from A$9 on its increased interest in the Papua New Guinea LNG project
** Santos on Monday said it had acquired an additional 3.3% stake in the Papua LNG project from France's TotalEnergies TTEF.PA for $189 million
** Citi says the deal is considerably attractive to Santos, with the additional interest coming at around 50% discount to the brokerage's valuation
** Citi adds the increased exposure is strategically attractive, particularly alongside the transition to ExxonMobil XOM.N operatorship, which should improve alignment and execution certainty
** We see the deal as an efficient use of capital and increase exposure to the highest-quality undeveloped LNG projects globally - Citi
** Santos up 35.5% YTD, including the day's moves

(Reporting by Nikita Maria Jino in Bengaluru)
((Nikita.Jino@thomsonreuters.com;))