The Santos first-quarter report indicates a disciplined financial performance in its global portfolio. The production increased by 1 per cent to 22.5 mmboe against the previous quarter. It also rose 3 per cent compared to the same period in 2025.
The quarterly sales revenue was around $1.27 billion. This is an improvement of 3 per cent over the previous quarter. Operating cash flows were approximately 383 million. This was in accordance with the last quarter. The company did not change its full-year 2026 guidance.
Constant performance was backed by operational efficiencies and cost discipline. Santos remains oriented towards sustainable value creation.
Santos operations are delivering steady quarterly production growth. [Courtesy: Rigzone]
What Drove Santos First Quarter Report Performance?
The Santos first-quarter report indicates an increase in production with the help of the Barossa first cargoes. The Barossa project had a positive impact on increased output in the quarter.
High demand for LNG also contributed to the overall revenue performance. Consumption trends were being driven by Asian markets. Stable revenue flows were provided by contracted LNG volumes.
Key asset operational reliability was high. PNG LNG ensured that its plant reliability was over 98 per cent. This guaranteed a steady level of production.
Increased volumes of crude oil sales also contributed to increased revenues. Santos used the flexibility of portfolios to maximise output. The implementation of strategies in projects enhanced quarter-to-quarter performance.
Production Growth Supported By Key Projects
The Santos first-quarter report indicates that major projects are growing in production. The total production in the quarter was 22.5 mmboe. It was aided by the Barossa Gas Project start-up. This was partly neutralised by the disruption due to the weather.
Western Australia’s production facilities were affected by cyclone Narelle. The weather conditions in the Cooper Basin were wet. Output was resilient despite challenges. PNG added 9.8 mmboe to overall production. The state of Western Australia produced 4.7 mmboe.
Queensland and NSW had 3.5 mmboe production. High performance of the assets guaranteed stable growth of production. Santos is maximising its diversified asset base.
Barossa LNG project supporting Santos production expansion. [Courtesy: Santos]
Why Is LNG Demand Central To Santos Strategy?
The Santos first-quarter report shows that LNG demand is a key driver of growth. LNG consumption in the world remains dominated by Asian markets. Nations are shifting towards less polluting energy sources. LNG is one of the most important transition fuels in this transition.
Santos enjoys long-term LNG deals within the area. Such contracts offer predictable revenues. The company registered LNG sales revenue of $843 million. The volumes of LNG were 1,501.4 thousand tonnes in the quarter.
Good pricing aided revenue performance. The fact that Santos is close to Asian markets enhances its competitiveness. In the long-run, LNG demand will continue to be high.
Revenue Growth Reflects Market Strength
The Santos first-quarter report indicates that revenue is growing due to increased sales of oil and LNG. The quarterly sales revenue amounted to $1,271 million. This was a 3 per cent growth compared to the previous quarter. The average price of crude oil was US 75.88 per barrel.
The average price of LNG was US dollar 10.69 per mmBtu. There was also an increase in revenue due to third-party LNG sales. In the quarter, Santos bought four LNG cargoes. This contributed to the reduction of delays in production at Barossa.
The domestic gas sales added sales revenue of $243 million. Constant pricing across markets favoured financial performance. Good market fundamentals are represented by revenue resilience.
Global energy prices are supporting Santos’ revenue performance. [Courtesy: World Bank Blogs]
How Does Santos Outlook Support Investor Confidence?
The Santos first-quarter report continues to give a positive projection for 2026. The production guidance stands at 101-111 mmboe. The sales volumes will be within the same range.
The capital expenditure guidance is about 1.95 to 2.15 billion. The unit production cost is estimated to be between 6.95 and 7.45 boe. Pikka phase 1 project is heading towards first oil. Early in the third quarter, plateau production should be 80,000 bopd.
The ramp-up of Barossa LNG production is also imminent. Long-term expansion is still being boosted by strategic investments. Santos is still concerned about the delivery of shareholder value.
Also Read: Santos Alaska Appraisal Success Boosts Project Pipeline
FAQs
Q1. What is Santos production in Q1 2026?
A1: Santos reported production of 22.5 mmboe. This reflects a 1 per cent quarterly increase.
Q2. How much revenue did Santos generate in Q1?
A2: The company recorded $1,271 million in sales revenue. This increased by 3 per cent quarter-on-quarter.
Q3. What is the Pikka phase 1 production target?
A3: Pikka phase 1 targets 80,000 bopd plateau production. This is expected early in Q3 2026.
Q4. What is Santos 2026 production guidance?
A4: Santos expects production between 101 and 111 mmboe. This guidance remains unchanged.
Disclaimer
This article is based on Santos Limited’s official first-quarter report released on 23 April 2026. It is for informational purposes only and does not constitute financial advice. Investors should assess risks independently. Market conditions, commodity prices, and operational factors may impact actual results and future performance outcomes.
Sources
- https://data-api.marketindex.com.au/api/v1/announcements/XASX:STO:2A1667885/pdf/inline/2026-santos-first-quarter-report
- https://www.santos.com/news/
