Santos lifts Q2 output but trims 2025 guidance after Cooper Basin floods
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The news: Oil and gas giant Santos reported increases in production and sales volumes during the second quarter but narrowed its full-year production guidance following flooding in the Cooper Basin.
The numbers: Santos posted quarterly production of 22.2 million barrels of oil equivalent (mmboe), up 1% from the prior quarter. Sales volumes were up 3% to 23.9 mmboe, taking revenue to USD1.3 billion ($2 billion).
However, the company trimmed 2025 production guidance from 90-97 mmboe to 90-95 mmboe, due to expected impacts from flooding at the Cooper Basin during the second quarter.
The context: Santos noted that Cooper Basin production was impacted by floods "on par with levels not seen since 1974". Over 200 wells and multiple upstream compressors were shut during the period, with production recovery still underway.
The company said the quarterly result, which takes first-half free cash flow to USD1.1 billion, keeps its major development projects Barossa and Pikka on schedule, with production growth "imminent".
The first gas from the Barossa gas field is on track for the third quarter, while first production at Pikka is due in mid-2026. The two projects are expected to deliver a 30% increase in production by 2027, the company said.
Santos provided no further update to its proposed $30 billion buyout by Abu Dhabi's state-owned oil company Adnoc, announced last month.
The source: ASX
