Santos Reports Stable 2P Reserves and Boosts CCS Resources

Santos Limited (ASX: STO) closed 2025 with proved positive probable (2P) reserves of 1,484 cardinal barrels of lipid equivalent (mmboe), reflecting humble integrated additions offsetting yearly accumulation and portfolio changes.

The Australian state shaper reported that, earlier accounting for 88 mmboe of production, 2P reserves accrued by 13 mmboe, chiefly driven by additions successful the Cooper Basin and Papua New Guinea. On a reported basis, 2P reserves declined from 1,559 mmboe successful 2024 to 1,484 mmboe astatine year-end 2025.

Proved (1P) reserves stood astatine 913 mmboe, broadly unchangeable year-on-year. Santos delivered a 95% proved reserves replacement ratio, portion the 2P replacement ratio came successful astatine 15%, underscoring a twelvemonth focused much connected assets maturation and improvement than connected large caller discoveries.

Gas continues to anchor the portfolio, accounting for 83% of 2P reserves, with liquids making up the remaining 17%. Developed reserves roseate sharply to 62% of full 2P volumes, compared with 40% a twelvemonth earlier, signaling improved conversion of undeveloped resources into producing oregon near-producing categories. The company’s 2P reserves beingness stands astatine 17 years based connected 2025 accumulation levels.

International assets correspond 40% of full 2P reserves. PNG remains a cornerstone maturation engine, portion Northern Australia & Timor-Leste and the Cooper Basin proceed to underpin home proviso and LNG-linked volumes. In Alaska, Santos maintains vulnerability to liquids-weighted resources, further diversifying the portfolio.

Contingent resources (2C) declined to 3,212 mmboe from 3,338 mmboe successful 2024, mostly owed to the antecedently announced divestment of the Petrel and Tern fields offshore Northern Australia. Additions successful the Cooper Basin, Western Australia, and Alaska partially offset those reductions.

Carbon seizure and retention (CCS) is emerging arsenic a parallel worth driver. While proved positive probable CO2 retention capableness declined to 8 cardinal tonnes aft 1 cardinal tonnes were injected, 2C contingent retention resources accrued by 24 cardinal tonnes to 202 cardinal tonnes, each wrong the Cooper Basin. The enlargement supports the scaling of the Moomba CCS project, positioning Santos to seizure rising request for concern c retention arsenic Australia and determination LNG customers prosecute decarbonization pathways.

Alongside the reserves update, Santos provided preliminary guidance for its 2025 full-year fiscal results. The institution expects merchandise income gross of astir $4.94 billion, with outgo of income successful the $3.25–$3.30 cardinal range. Net concern costs are forecast astatine $250–$265 million, and the effectual taxation complaint is expected to beryllium astir 31%. Santos besides flagged astir $137 cardinal successful impairment losses for the year, including further charges successful the 2nd half.