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

Santos

07/09/2026 20:26

** Citi raises its target price for Santos STO.AX to A$9.20 from A$9 on its increased interest in the Papua New Guinea LNG project
** Australia's no.2 independent oil and gas producer 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
** Following the transaction, Santos' interest in the venture increases to 21%
** 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 35.3% so far this year as of last close, outperforming a 3.4% rise in the broader benchmark .AXJO

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