Santos has walked hand in hand with Woodside through 2026, closing up +29% year-to-date on Monday, with the stock finally appearing to have shrugged off the disappointment of an Abu Dhabi-led consortium walking away from a takeover bid (around $8.90) last September. Santos is primarily a gas and LNG producer, making it more leveraged to LNG contract pricing and Asian gas markets than the day-to-day moves in crude oil that have dominated the headlines in recent months. However, while the Middle East conflict and Hormuz disruptions have tightened LNG markets and supported Santos, the direct earnings leverage is far less pronounced than for more oil-exposed producers such as Woodside.
- We’ve been looking for Santos to ”pop” above its 2026 high, and last week’s small spike may have been it, with the next 10% move now feeling like a coin toss.
MM is neutral towards Santos around $8
Add To Hit List
