MENU

Will Santos Ltd (ASX:STO) shares tank if Narrabri coal seam gas project is axed?

Photo: Jeremy Buckingham

Macquarie has voiced its concerns Santos Ltd (ASX: STO) shares could face heavy falls if its Narrabri coal seam gas project doesn’t proceed, according to The Australian.

According to Macquarie, the Narrabri project accounts for about 27c of the Santos share price – potentially leading to about a 4% drop in price if it disappears.

Shares in Santos have been on a steady incline in the last 12 months, up 118% from its share price of $2.91 at this time last year.

But according to The Australian, billionaire Andrew Forrest’s LNG scheme could see Santos shelve Narrabri, despite promises by the company its production would beat the price of imported gas.

Santos has come up against environmentalists and regulatory issues so far in its attempts to bring the long-delayed project to reality and investors with skin in the game no doubt feel nervous about what will eventuate.

Energy stocks have surged higher across the board today with Beach Energy Ltd (ASX: BPT) up 1.4% to $1.94 at the time of writing, BHP Billiton Limited (ASX: BHP) also up 1.2% to $34.29, Oil Search Limited (ASX: OSH) climbing 0.9% to $9.17.

7 of 8 People Are Clueless About This Trillion-Dollar Market

One of our investors has recently returned from a research trip to Silicon Valley... and has a warning for fellow investors:

Because he works for an organization dedicated to spreading great investing ideas, his video report is free today... so you can see it and decide for yourself.

Don't miss your chance click here to learn about this warning and how you might be able to profit!

Motley Fool contributor Carin Pickworth has no position in any of the 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 Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!