Analysts see Santos benefiting from soaring gas prices, shareholder return plans

STO

22/04/2022 01:11

** Analysts expect Australian gas producer Santos Ltd
 STO.AX  to be supported by soaring prices, allowing STO to make
strong shareholder returns
    ** Santos on Thursday reported a two-fold jump in its Q1
revenue, boosted in part by its takeover of Oil Search and
surging LNG prices; also announced a new capital framework for
strong shareholder returns, and a $250 mln buyback  urn:newsml:reuters.com:*:nL3N2WI3RC
 urn:newsml:reuters.com:*:nL3N2WH3O4
    ** UBS (buy, A$9.90) believes STO's new capital management
framework could drive share price higher on the back of stronger
shareholder returns with a $250 mln on-market buyback starting
in May
    ** Barrenjoey (overweight, A$9.64) sees lower production in
CY22-23, but expects a modest increase in earnings on higher gas
prices
    ** "Remains a well-run company with proven track record of
capital discipline" - Barrenjoey; estimates upside risk if
Santos can progress key growth projects
    ** 12 of 15 analysts rate the stock "buy" or higher, and
three rate it "hold"; their median PT is A$9.80 – Refinitiv data
    ** STO up 32.6% this year, as of last close, inline with a
32.8% increase in the ASX 200 Energy index  .AXEJ 

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))