09/11/2023 09:12

Santos Ltd (STO) $7.33

STO closed unchanged on Wednesday, close to its June swing low as tumbling crude oil prices weighed on the energy sector, although the stocks didn’t fair too badly under the circumstances. We believe the aggressive decline by oil over the last few weeks, even as war continues between Israel and Hamas, is a testament that investors and traders are voting for a global economic slowdown into 2024.

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25/10/2023 09:16

Santos Ltd (STO) $7.85

Following our exit from Woodside (WDS) and the decline by oil overnight, we thought today was an opportune time to revisit fellow ASX Energy Sector play Santos (STO), a stock often discussed negatively, but it is up over +9% year-to-date. As with many ASX50 stocks, the key to adding alpha to a portfolio is timing around entry and exit.

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14/09/2023 09:21

Santos Ltd (STO) $7.74

Santos is often considered by investors as an oil/energy play but in 2022 its revenue showed it to be far more of an LNG stock i.e. crude oil 14%, gas & ethane 16%, and 61% from LNG. At this stage MM would prefer to have oil, and indeed uranium, for energy exposure as opposed to LNG especially since the recent uncertainty created with Japan.

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24/08/2023 09:35

Santos (STO) $7.73

1H23 results from the Oil & Gas company were slightly lower than expected yesterday across most metrics, although net profit after tax (NPAT) of $801m was aligned with consensus driven by a more favourable tax benefit (making it lower quality). Higher LNG plant and pipeline costs were evident while distributions were below their guided range.

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07/07/2023 09:28

Santos Ltd (STO) $7.57

STO has struggled to participate in any market gains through 2023, a frustrating position for many no doubt as this is a company analysts love. An underappreciation of their capex requirements we think is to blame while the energy sector more broadly tends to be very interest rate/recession correlated i.e. higher rates slows the economy which reduces the demand for oil and gas. We anticipate weaker sales in 2Q23 than current consensus estimates due to softer realised pricing but global oil fundamentals continue to support our view that a material supply deficit of nearly 2Mb/d will emerge over 2H23 pushing oil prices higher.

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07/07/2023 09:27

Energy Special – BUY HOLD SELL

Lead Portfolio Manager James Gerrish discussed the Energy Sector more broadly last week on Livewire markets. Joe Wright from Airlie covers Santos (STO) as their No 1 pick in the energy space.

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02/06/2023 09:05

Santos Ltd (STO) $7.34

Analysts believe that STO has less exposure than WDS to potential moves from Treasurer Chalmers but both have remained firm over recent months. As we’ve touched on a few times over recent weeks the current market is delivering outperformance in the quality stocks, WDS has rallied nicely from its 2021 low while STO is basically unchanged, hence we prefer WDS until further notice.

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18/04/2023 09:13

Santos Ltd (STO) $7.32

Macquarie believes that STO has less exposure than WDS to potential moves from Treasurer Chalmers but both continue to track the energy complex although neither is making any headway in either direction year to date

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23/03/2023 09:34

Santos Ltd (STO) $6.99

Oil and gas producer STO has struggled to match high-flying Woodside over the last 6-12 months, a number of stock specific headwinds operationally were at play following their acquisition of Oil Search while their larger rival executed a great deal buying BHP’s Petroleum business, a deal which clearly captured more attention from overseas investors with deep pockets. WDS remains our preferred vehicle of choice for exposure to the oil and gas sector.

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22/02/2023 16:46

Santos (STO) $7.02

STO +3.08%: Had a good session today following FY22 results that showed NPAT of US$2,46bn, up 160% on CY21 due to higher oil and gas prices. While 2H earnings were weaker than forecast due to higher costs, the dividend of 15.1c was better and their guidance was good.

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