Analyst Note| Mark Taylor |
We make no change to our AUD 10.30 fair value for no-moat Santos. Australia’s largest domestic gas producer reported second-quarter 2021 production of 22.5 million barrels of oil equivalent, or mmboe, close to expectations. This was 9% below the first quarter, but only due to flagged sell-down of 25% equity interest in Bayu-Undan and Darwin LNG on April 30, 2021. Otherwise production was marginally higher overall including stronger gas output from Western Australia and Queensland.