Strong financial and operational performance
- Free cash flow from operations of ~$300 million, delivering year-to-date free cash flow from operations of ~$1.4 billion.
- Production of 21.3 mmboe, bringing total year-to-date production to 65.4 mmboe.
- Sales volumes of 21.5 mmboe, with year-to-date sales one per cent higher than the prior year.
- Sales revenue of $1.1 billion, contributing to cumulative revenue of $3.7 billion year-to-date.
- Gearing at 22.9 per cent, excluding operating leases (28.2 per cent when included). Gearing has increased due to the BW Opal FPSO (floating production, storage and offloading vessel) reaching Ready for Start-up (RFSU) in the third quarter and coming onto the balance sheet.
Operating highlights
- PNG LNG achieved an 8.6 Mtpa run rate during the quarter, driven by high facility reliability (>98 per cent). Production from Santos-operated PNG gas facilities remained strong, with reliability of more than 99 per cent at the Hides Central Processing Facility.
- Western Australia domestic gas production is up 8 per cent year-to-date, compared to the prior year. Strong production supported by Halyard-2 infill exceeding expectations and strong reliability from Varanus Island (averaging 98 per cent year-to-date).
- GLNG upstream gas production averaged 711 TJ per day (up from 705 TJ per day in the second quarter). GLNG output remains on track to deliver full-year production of approximately 6 Mt of LNG.
- GLNG’s Roma field achieved record daily production of more than 220 TJ per day. The first well of a 32-well development program was successfully drilled at Scotia. Development activities at Fairview progressed with 33 wells drilled, completion of compression upgrades, and installation of a new gathering pipeline. Strong upstream production and development performance is supporting growing reliance on GLNG’s own gas and reducing reliance on third-party feed gas volumes.
- Cooper Basin production continued to recover from record floods earlier this year. Fifty wells and an upstream compressor were successfully returned to service, with production continuing to ramp up.
- Moomba Carbon Capture and Storage phase 1 project (Moomba CCS) continues to perform to plan, safely and permanently storing more than 1.3 Mt (gross) of CO2e in its first year of operation. First issue of Australian Carbon Credit Units is expected imminently.
- Successful early completion of the Varanus Island shutdown accelerated the return to normal production by ~10 days.
- Ningaloo Vision FPSO disconnected and departed Australia in August 2025. The vessel is now with the contractor for deconstruction and recycling.
- Achieved a 2025 S&P Corporate Sustainability Assessment score for Environment, Social and Governance of 61, placing Santos in the top 10 per cent of companies globally in the sector.
Strategic partnerships
- Signed a mid-term LNG supply contract with QatarEnergy Trading LLC to supply approximately 0.5 Mtpa over a period of two years from 2026.
- Three Memoranda of Understanding (MOUs) were signed with ENGIE, Orica and Narrabri Shire Council for potential long-term supply of domestic gas from the Narrabri Gas Project.
Barossa LNG – production operations phase commences
- The BW Opal FPSO successfully received first gas into the facility to commence production phase commissioning and operations. All six wells drilled in the Barossa gas field have intersected excellent reservoir quality with expected average potential well deliverability of ~300 mmscf per day. Testing has been completed on five of the six wells.
- Barossa LNG remains on track to ship its first LNG cargo in the fourth quarter of 2025.
- The Darwin LNG facility achieved RFSU in August 2025, following successful completion of the life extension project for Barossa LNG.
- The Northern Territory Environment Protection Authority renewed the Environment Protection Licence for Darwin LNG, commencing 19 September 2025.
Pikka phase 1 – advancing towards completion
- Pikka phase 1 is more than 95 per cent complete. Twenty-two wells were drilled and completed at the end of the third quarter. The 22nd well was the longest in the project to date at nearly 27,000 feet (8,200 metres), a company record for Santos, and one of the longest wells drilled on Alaska’s North Slope.
- All 120 miles of pipeline are cleaned, gauged, hydrotested and ready for service.
- The seawater treatment plant and remaining processing modules from the Hay River Marine Terminal arrived in August 2025. Commissioning works are now underway in advance of first oil.
- The project remains on track to meet accelerated first oil guidance in the first quarter of 2026, with ramp up to a plateau of 80,000 bopd (gross) expected in mid-2026.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said the strong performance of the base business highlights the resilience and strength of our diversified portfolio as Santos transitions from a period of high capital intensity to one that will deliver stronger returns for our shareholders.
'Our focus on operational excellence and our disciplined low-cost operating model has been crucial to achieving these results. With around $1.4 billion of free cash flow from operations generated year-to-date, Santos is well positioned to deliver strong shareholder returns with imminent production growth as we bring Barossa LNG online and move closer to the start-up of Pikka,' said Mr Gallagher.
'Along with our focus on operating the base business safely and efficiently, delivering these projects successfully remains our top priority, supporting strong and sustainable production well into the future. Software issues affecting the safety systems onboard the BW Opal FPSO resulted in an unplanned shutdown of around two weeks during September, impacting the ramp-up of the Barossa project. Pleasingly, these issues have now been resolved and are behind us. Safety will always take precedence over schedule as we work to achieve our ambition of a safe, high-reliability operation for many years to come. Following resolution of these software issues, first gas from Barossa into the gas export pipeline was achieved this week, with first production at Darwin LNG expected in the coming weeks.
'Our Pikka drilling campaign continues to set new benchmarks for performance, including the successful delivery of combination wells and extended reach wells. The 22nd well was one of the longest wells drilled on Alaska’s North Slope. The drilling and completions innovations and capability developed through Pikka provides a great platform for self-execution of future developments such as Beetaloo, setting the company up as a leader in low-cost, high-productivity drilling performance.
'First oil guidance from our Pikka phase 1 development project is forecast for the first quarter of 2026. Together, Barossa LNG and Pikka phase 1 are expected to lift Santos’ production compared to 2024 levels, by around 30 per cent by 2027.
'Moomba CCS continues to perform to expectations, with more than 1.3 million tonnes (gross) of CO2-equivalent safely and permanently stored in its first year of operations.
'A final investment decision was made for the Cooper Midstream Simplification project, which will drive cost savings by simplifying the processing configuration at Moomba Plant and Port Bonython. This initiative supports our long-term strategy to maintain profitable Cooper Basin operations,” said Mr Gallagher.
'Momentum is also building around our Narrabri Gas Project, with strong market interest reflected in recent MOUs and ongoing engagement with key stakeholders. Narrabri is the key to solving east coast gas supply concerns and would be a competitive supply source for local industry for decades to come.
'Santos has a clear strategy, a high-reliability, low-cost operating culture and significant growth optionality across our global portfolio. I am confident that with the discipline of our capital allocation framework, Santos will be well positioned over the next few years to deliver sustainable results and strong returns for our shareholders,' said Mr Gallagher.
Source: Santos
