Santos Reports Stable 2P Reserves and Boosts CCS Resources

Core Insights - Santos Limited reported a decline in proved plus probable (2P) reserves to 1,484 million barrels of oil equivalent (mmboe) at the end of 2025, down from 1,559 mmboe in 2024, despite modest organic additions [1] - The company achieved a 95% proved reserves replacement ratio and a 15% 2P replacement ratio, indicating a focus on resource maturation rather than major new discoveries [2] - Gas constitutes 83% of the 2P reserves, with developed reserves increasing to 62% of total 2P volumes, reflecting improved conversion of undeveloped resources [3] Reserves and Resources - Proved (1P) reserves remained stable at 913 mmboe year-on-year [2] - Contingent resources (2C) decreased to 3,212 mmboe from 3,338 mmboe in 2024, primarily due to the divestment of the Petrel and Tern fields [5] - Carbon capture and storage (CCS) capacity declined to 8 million tonnes, while 2C contingent storage resources increased by 24 million tonnes to 202 million tonnes, supporting the Moomba CCS project [6] Financial Guidance - For 2025, Santos anticipates product sales revenue of approximately $4.94 billion, with cost of sales projected between $3.25 billion and $3.30 billion [7] - Net finance costs are expected to be in the range of $250 million to $265 million, with an effective tax rate around 31% [7] - The company has flagged approximately $137 million in impairment losses for the year, including additional charges in the second half [7] International Assets - International assets account for 40% of total 2P reserves, with Papua New Guinea identified as a key growth area [4] - Northern Australia, Timor-Leste, and the Cooper Basin are crucial for domestic supply and LNG-linked volumes [4] - Santos maintains exposure to liquids-weighted resources in Alaska, further diversifying its portfolio [4]