Santos Boosts Q1 Production as Barossa Project Commences Cargoes

Santos (STO.AX) has announced a rise in first-quarter production, reaching 22.5 million barrels of oil equivalent (mmboe). This represents a 1% increase over the previous quarter and a 3% rise compared to the same period in 2025. The growth was primarily attributed to the Barossa project achieving its first cargoes. This operational milestone is part of a broader strategy to scale production as the company integrates new assets into its portfolio. Financial performance for the quarter remained steady, with sales revenue totaling approximately $1.27 billion. While this figure represents a 3% sequential increase, it is down 2% on a year-over-year basis. The company generated $383 million in free cash flow from operations, which management attributed to strong execution across its various assets. CEO Kevin Gallagher confirmed that full-year 2026 guidance remains unchanged. The company is targeting an all-in free cash flow break-even range of $45 to $50 per barrel, with further growth expected as Pikka phase 1 comes online. Following the announcement, Santos shares rose 3.49% to trade at A$7.70, reflecting investor confidence in the company's production ramp-up and disciplined financial management.