Santos Limited (STO) - Q3 2025 Operational Update
Alpha Insights Equity Research | 17 October 2025
Current Price: A$6.38 | Updated Fair Value: A$7.96 (previously A$10.45)
Working through the backlog of companies that have provided an update this week. Full automation of the updater process is nearly completed - just a few more loose ends to tie up.
What Happened
Santos delivered Q3 2025 results that validated both business model resilience and operational complexity. Despite material disruptions—a 2-week Barossa FPSO shutdown, Cooper Basin flooding affecting 155 wells, and multiple facility maintenance events—the company generated A$1.129bn quarterly revenue and A$1.4bn year-to-date free cash flow.
Barossa achieved first gas on 12 October with Q4 2025 first LNG cargo maintained, whilst Pikka remains 95% complete targeting Q1 2026 first oil. Management narrowed production guidance to 89-91 mmboe whilst maintaining confidence in 30% production growth by 2027.