Morningstar sees further Santos price gains in H2 on LNG price lag

Santos

23/07/2026 22:59

** Morningstar expects further price improvement for oil and gas major Santos STO.AX in the second half of 2026, underscoring the lagged effect of higher LNG prices
** 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
** Co's Q2 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
** As of last close, STO up 27.2% YTD

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