Buying Santos shares? You'll want to read this

More than 40% of Santos' oil and gas reserves are held in international assets.

| More on:
Worker inspecting oil and gas pipeline.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Santos Ltd (ASX: STO) shares are outpacing the benchmark today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $6.97. In early afternoon trade on Wednesday, shares are changing hands for $7.03 apiece, up 0.8%.

For some context, the ASX 200 is up 0.3% at this same time.

That's today's price action for you.

Now, if you're buying Santos shares, you'll want to know about this latest update from the ASX 200 oil and gas stock.

Santos shares encompass 1.559 billion barrels of oil equivalent

In its annual reserve update, unlikely to have a material impact on Santos shares today but important longer-term, the company revealed that its proved plus probable (2P) reserves stood at 1.559 billion barrels of oil equivalent (mmboe) at the end of 2024.

That's down a slender 15 mmboe year on year before production of 87 mmboe.

Santos noted that additions across several of its assets increased organic reserves by 15 mmboe. However, its 2P reserves were impacted by the 30 mmboe reduction following the sale of a 2.6% interest in PNG LNG to Kumul Petroleum.

The company reported that its three-year 2P reserves replacement ratio was 58%.

As for where Santos' oil and gas projects are located, the company said 41% of its total 2P reserves are held in international assets.

The total 2P reserves are comprised of 84% gas and 16% liquids.

Santos shares often come under scrutiny from environmentalists concerned over the impacts of its greenhouse gas contributions.

On that front, Santos reported that it continues to hold a 2P CO2 storage capacity of 9 million tonnes. 2C (best estimate of contingent resources) contingent storage resources increased by 47 million tonnes in 2024 to 178 million tonnes in the Cooper Basin.

What did management say?

Commenting on Santos' global reserves, CEO Kevin Gallagher said:

Today's statement is the result of Santos' disciplined annual reserves review and accounting processes, which include external audit of approximately 97% of total 2P reserves.

It's also pleasing to add another 47 million tonnes of 2C CO2 storage, which is an important asset to underpin Santos' decarbonisation strategy and commercial expansion of the successful Moomba CCS project to meet customer demand for CO2 storage in the future.

How have Santos shares been tracking?

Pressured in part by lacklustre oil prices, Santos shares are down around 4% over the past year.

Of course, that doesn't include the 45.9 cents in unfranked dividends Santos paid out over the year.

If we add those back in, the accumulated value of Santos shares is up 2.0% in 12 months.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

Happy coal miner.
Share Gainers

Up 75% this week, why is this ASX All Ords stock rocketing again today?

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 43% on big news!

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant
Energy Shares

4 reasons to buy Santos shares right now

A leading expert forecasts Santos shares and dividends are set to grow. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX 200 stock has rocketed 86% since April?

This sky rocketing ASX 200 stock continues to defy short sellers. But how?

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

4 ASX 200 energy shares making big moves today as OPEC's oil production set to surge

ASX energy shares, including Woodside and Santos, are making big moves today. But not all in the same direction.

Read more »

Worker on a laptop at an oil and gas pipeline.
Energy Shares

Woodside share price charging higher on North West Shelf approval

Woodside has been working more than six years to gain an extension for its North West Shelf gas project.

Read more »

Gas and oil plant with a inspector in the background.
Energy Shares

Does Macquarie rate Origin Energy shares a buy, hold or sell?

The broker has given its verdict on the energy giant. Let's see what it is saying.

Read more »

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Ord Minnett tips Woodside shares to rise 15%+

Market-beating returns could be on offer from this energy giant.

Read more »