ASX / Media Release

      22 August 2019

      Santos reports record interim underlying profit of $411 million
      and 71% increase in interim dividend

        Half-year (US$m)                                   2019                  2018                 Change

        Product sales                                      1,974                1,680                   18%

        EBITDAX1                                           1,260                 883                    43%

        Underlying profit1                                  411                  217                    89%

        Net profit/(loss) after tax                         388                  104                    273%

        Free cash flow1                                     638                  367                    74%

        Interim dividend (UScps)                             6.0                  3.5                   71%

      Santos today announced its half-year results for 2019, reporting both record EBITDAX and
      underlying profit.

      The Board has resolved to pay an interim dividend of US6.0 cents per share fully-franked, an
      increase of 71% over the previous interim dividend. The dividend is in-line with Santos’
      sustainable dividend policy which targets a range of 10% to 30% payout of free cash flow.

      Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “Today’s
      announcement of half-year results demonstrates the strength of our cash-generative operating
      model and the successful integration of the Quadrant acquisition.”

      “Santos has delivered strong interim financial results with EBITDAX1 up 43% to a record
      US$1.3 billion and free cash flow1 up 74% to US$638 million. Underlying profit1 after tax
      increased by 89% to a record US$411 million.

      “Consistent application of our disciplined operating model continues to deliver cost reductions
      and efficiencies, with normalised production costs2 down 5% to US$7.27/boe.

      “Our forecast free cash flow breakeven oil price for 2019 is now reduced to ~US$31 per barrel,
      in-line with 2018 notwithstanding higher capex this year. Every US$10 per barrel increment in
      average oil price above our free cash flow breakeven increases annual free cash flow by
      between US$300 million to US$350 million.

      “Today’s results also demonstrate the successful integration of our Western Australian business
      following the acquisition of Quadrant. We are today increasing guidance on combination
      synergies to between US$50 and $60 million per annum.




Media enquiries                         Investor enquiries                      Santos Limited ABN 80 007 550 923
Daniela Ritorto                         Andrew Nairn                            GPO Box 2455, Adelaide SA 5001
+61 8 8116 5167 / +61 (0) 455 319 770   +61 8 8116 5314 / +61 (0) 437 166 497   T +61 8 8116 5000 F +61 8 8116 5131
daniela.ritorto@santos.com              andrew.nairn@santos.com                 www.santos.com
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“Strong free cash flows also underpin our brownfield growth strategy, including Dorado where
successful appraisal during the first half has resulted in a 68% increase in gross 2C resources
to 310 million barrels of oil equivalent. Santos has an 80% interest in Dorado.

“I am also pleased with the progress we are making toward FID on Barossa, including the award
of major contracts and exclusive negotiations for the supply of backfill gas to Darwin LNG.

“We are in advanced discussions with a number of LNG buyers on firm offers for Barossa
offtake volumes.

“In PNG, our signing of a binding letter of intent to farm-in to PRL 3 (P’nyang) marked an
important milestone towards expansion of the PNG LNG plant. We look forward to working with
our partners and the PNG Government to make expansion a reality.

“In the Cooper Basin, our focus on low-cost, efficient operations contributed to stronger first-half
production and the highest number of wells drilled in 12 years. The Cooper Basin is now
positioned to grow production and reserves.

“At GLNG, our disciplined operating model continues to support a development plan to unlock
more gas over time. In the first half of 2019, we drilled a record 189 wells and progressed the
Roma East and Arcadia upstream developments on schedule. GLNG remains on track to meet
the six million tonne annualised LNG sales run-rate (including LNG volumes redirected to the
domestic market) by the end of 2019.

“All of this growth activity is consistent with reaching our goal of more than 100 million barrels of
oil equivalent production by 2025.

“This growth is enabled by our strong balance sheet and balanced asset portfolio, which
provides sustainable free cash flow through the oil price cycle,” Mr Gallagher said.

Interim dividend

The Board has resolved to pay a 2019 interim dividend of US6.0 cents per share fully-franked,
in line with the company’s sustainable dividend policy which targets a range of 10% to 30%
payout of free cash flow.

The interim dividend will be paid on 26 September 2019 to registered shareholders as at the
record date of 28 August 2019.

Santos dividends are determined and declared in US dollars and paid to shareholders in
Australian dollars. Currency conversion for the interim dividend will be based on the exchange
rate on the record date of 28 August 2019. The Dividend Reinvestment Plan will not be offered
for the 2019 interim dividend.




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Conference call and live webcast

Santos will host a conference call and live webcast for analysts and investors today at 11:00am
AEST.

Dial-in numbers for the conference call are listed below. Please quote passcode ID: 10000888.

For locations within Australia dial toll-free 1800 558 698 or toll 02 9007 3187.

For other countries, please use one of the following toll-free numbers: Canada (1 855 336
4664); China (4001 200 641); Hong Kong (800 906 986); India (0008 0010 08069); Japan (005
3116 1306); New Zealand toll free (800 480 392); Singapore (800 852 3140); United Kingdom
(0808 168 3761); United States (1 855 336 4664). For all other countries or operator assistance,
please call +61 2 9007 3187.

The webcast will be available on Santos’ website from 11:00am AEST at www.santos.com.

Ends.




1
    EBITDAX (earnings before interest, tax, depreciation, depletion, exploration, evaluation and impairment), underlying profit and free cash flow (operating cash
    flows less investing cash flows net of acquisitions and disposals) are non-IFRS measures that are presented to provide an understanding of the performance of
    Santos’ operations. Underlying profit excludes the impacts of asset acquisitions, disposals and impairments, commodity hedging as well as items that are
    subject to significant variability from one period to the next. The non-IFRS financial information is unaudited however the numbers have been extracted from the
    financial statements which have been subject to review by the Company’s auditor. A reconciliation between net profit after tax and underlying profit is provided
    in the Appendix of the 2019 Half-year results presentation released to ASX on 22 August 2019.
2
    Excluding the impact of shutdowns and PNG LNG earthquake recovery costs.




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