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The Santos Ltd share price is close to a 52-week low

Despite the local share market climbing significantly higher, the Santos Ltd (ASX: STO) share price is once again heading in the wrong direction.

In afternoon trade the oil and gas company’s shares are down over 1% to $3.20. Unfortunately for shareholders this means its shares have now lost 20% of their value year-to-date.

Weakening oil prices due to increased production from U.S. shale oil producers is largely behind the decline in its share price.

Unfortunately one expert is tipping the oil price for further declines. According to a report by CNBC, Fereidun Fesharaki from consulting group FGE believes the oil price could fall as low as US$30 a barrel if OPEC fails to make additional cuts to production.

Fesharaki has stated that production needs to be cut by an additional 700,000 barrels per day, or else oil prices will sink.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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