Santos 1Q Oil, Gas Output Falls

By David Winning

SYDNEY--Santos Ltd. reported a drop in quarterly oil and natural gas output, reflecting reduced domestic gas volumes in Western Australia.

Santos said it produced 22.2 million barrels of oil equivalent in the three months through March, which is its fiscal first quarter. Output fell 13% from 25.6 million barrels in the final quarter of 2022.

Santos said the impact of lower domestic gas sales in Western Australia was partially offset by higher crude oil and condensate volumes due to the timing of liftings. It increased volumes from the Bayu-Undan field, which is expected to cease production around the middle of this year.

Santos said quarterly sales revenue totaled US$1.6 billion, supported by a higher domestic gas price compared to the final quarter of 2022. However, the average realized price of liquefied natural gas eased to US$14.46/mmBtu, from US$16.92 in the fourth quarter of 2022.

"Despite the uncertain external environment Santos continues to perform strongly against the backdrop of regulatory and economic uncertainty," said Chief Executive Kevin Gallagher.

Santos reported around US$720 million of free cash flow in its first quarter.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

April 19, 2023 19:00 ET (23:00 GMT)

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