Santos (ASX:STO) reported a disciplined start to the 2026 financial year, underpinned by strong production figures and significant progress across its major growth projects.
The energy giant recorded quarterly production of 22.5 mmboe, representing a 1% increase over the previous quarter and a 3% rise compared to the same period in 2025.
The steady output translated into sales revenue of approximately $1.27 billion, while free cash flow from operations remained stable at roughly $383 million.
A highlight of the quarter was the operational advancement of Pikka Phase 1 in Alaska, which achieved mechanical completion early in the period.
Following fuel gas introduction, the facility has commenced oil initiation for tank filling, with first sales oil expected to enter the pipeline network in the coming weeks.
The Barossa LNG Project is nearing a critical juncture; the floating storage and offloading facility is slated to ramp up production within the next week following routine maintenance and component replacements.
In the appraisal sector, the Quokka-1 well in Alaska has confirmed a high-quality reservoir, further strengthening the company’s development pipeline.
Santos maintained high plant reliability in PNG and record daily production at the Roma field within its GLNG operations.
Bolstered by the results and a final investment decision on the Moomba Central Optimisation project—targeting $600 million in savings—the company has reaffirmed its full-year 2026 guidance.
At the time of reporting, Santos’ share price was $7.57.