Santos Ltd (ASX: STO) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed Friday trading for $7.76. In morning trade on Monday, shares are swapping hands for $7.84 apiece, up 1.0%.
For some context, the ASX 200 is up 0.9% at this same time.
This follows the release of Santos' half-year results (H1 2025) and an update on the takeover proposal from the XRG consortium. Santos said it has agreed to an extension of the consortium's exclusivity period to conclude due diligence to 19 September.
Now, here are the highlights from the half year to 30 June.
Image source: Getty Images
Santos shares push into the green on results
Investors are bidding up Santos shares today after the oil and gas company reported sales revenue for the six months of US$2.6 billion. That's down 4.3% from H1 2024, amid lower realised oil and gas prices, largely matching consensus expectations.
On the earnings front, Santos reported EBITDAX of US$1.8 billion, down 4.8% year on year, while free cash flow from operations came in at US$1.1 billion.
Production volumes were 44.1 million barrels of oil equivalent (mmboe), similar to the prior year, with H1 2025 sales volumes of 47.2 mmboe.
On the bottom line, the ASX 200 energy stock reported a net profit after tax (NPAT) of US$439 million, down a sharp 33.4% from H1 2024. Underlying profit of US$508 million was down 22.3%.
Santos recognised a non-cash exploration and evaluation impairment charge of US$119 million during the half in relation to the Hides footwall in PNG.
Pleasingly, Santos also accelerated its first oil guidance for its Pikka phase 1 project to the first quarter of 2026.
The board declared an interim dividend of 13.4 US cents per share, 10% franked, up a touch from the 13.0 cents per share interim dividend in 2024. If you're looking to bank that passive income payout, you'll need to own Santos shares at market close on 1 September. The stock trades ex-dividend on 2 September.
Turning to the balance sheet, Santos closed out the half year with liquidity of US$3.9 billion.
What did management say?
Commenting on the results that are helping support Santos shares today, CEO Kevin Gallagher said, "Our low-cost operating model continues to underpin the resilience of our business in our continual fight against inflation throughout the commodity price cycle."
Addressing Santos' major growth projects, Gallagher added:
Another strong cash flow year from our long-life gas assets has enabled us to deliver shareholder returns while investing in our Barossa and Pikka development projects, which will bring new production online this year and next. Barossa LNG together with Pikka phase 1, are expected to deliver a [roughly] 30% increase in production by 2027…
Barossa LNG is more than 98% complete and first gas is expected imminently. The Darwin LNG plant has reached RFSU and the Barossa FPSO is expected to meet its RFSU milestone within weeks.
What's ahead for Santos shares?
Looking to what could impact Santos shares in the months ahead, the company provided full calendar year 2025 guidance for production volumes in the range of 90 mmboe to 95 mmboe, with sales volumes between 92 mmboe and 99 mmboe.
Management expects unit production costs to be in the range of US$7.00 to US$7.40 per barrel of oil equivalent (BOE).
Full year depreciation, depletion and amortisation is guided at $1.8 billion.
With today's intraday boost factored in, Santos shares are up 7.9% since this time last year, not including dividends.
