The Santos Ltd (ASX: STO) share price is marginally higher this morning after the LNG producer posted record quarterly production of 19.8 million barrels of oil equivalent (mmboe) that translated into sales revenue of $1,030 million.
Santos reports on a calendar year basis with total production up 7% on the prior quarter and sales volumes of 25.2 mmboe landing 25% higher than the prior corresponding quarter.
In total it posted $214 million in free cash flow over the quarter to take free cash flow to $852 million for the 9 months to September 30, 2019.
Santos also announced the US$1.39 billion acquisition of ConocoPhillips’ natural gas fields in northern Australia in a deal that will be funded by existing cash resources and new bank debt.
“This value accretive acquisition will also further reduce our free cash flow breakeven oil price and strengthen our offshore operating and development expertise to drive growth across northern and Western Australia where we have a significant existing resource position,” CEO, Kevin Gallagher, reported.
Santos is sticking to guidance for total LNG production between 90-97 mmboe over 2019. Capital expenditure is forecast to land between $950 million to $1,050 million.
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