Santos: Guidance Creditably Maintained Despite Cyclones

No-moat Santos reported a robust first-quarter 2024 operating result, with production and revenue down 7% and 6% to 21.8 million barrels of oil equivalent, or mmboe, and USD 1.4 billion, respectively, in line with our expectations. We have made no change to our AUD 12.30 fair value estimate. The production decline reflects the anticipated depletion of the Bayu-Undan gas field and planned maintenance, as well as unplanned shutdowns due to cyclone activity in Western Australia. It was creditable that expectations were still met despite the weather.