SANTOS LIMITED — Call Transcript 2025

Thank you, and good morning, and welcome to the presentation of Santos' 2025 half-year results. I'm speaking today from the traditional lands of the Kaurna people of the Adelaide Plains, and I pay my respects to elders past and present. I also acknowledge and recognize the support of traditional owners, Indigenous people, and nationals everywhere Santos operates around the world. Before I commence my report on what has been a strong financial and operational performance for Santos for the first half of 2025, you will have seen our update this morning on progress with the non-binding indicative proposal from the XRG Consortium. We are finalizing an acceptable Scheme Implementation Agreement and have made considerable progress. Importantly, the SIA will include customary protections for shareholders should the potential transaction take longer than expected to complete. The Consortium requested an extension of the exclusivity period to conclude due diligence and to obtain all necessary approvals to enter into a binding transaction. On the basis that we have made considerable progress towards an acceptable SIA, and given the Consortium has also again confirmed it has found nothing in due diligence that would lead it to withdraw its indicative proposal, Santos has agreed to extend the process date for four weeks until the 19th of September. We will, of course, keep the market updated in accordance with our continuous disclosure obligations over the coming weeks. Now, turning to our first half results, I am pleased to report on another strong financial performance, underscoring the cash-generated strength of our base business. Our disciplined low-cost operating model continues to deliver efficiency and reliability. I will provide an overview of our first half performance, and our Chief Financial Officer, Sherry Duhe, will present the financial details. Following Sherry's presentation, I'll take you through our operational performance and progress against our 2025 strategic priorities, then open up the call to questions. Before we start, I draw your attention to the usual disclaimer on slide two. Safety drives everything we do, and we have continued to deliver a strong safety performance during a period of high activity levels across our base business and across our development projects. Our lost time injury rate remains better than the IOGP 2024 global average, underscoring our dedication to maintaining a safe workplace. We've achieved an impressive 46% improvement in our total recordable injury rate compared to the first half of 2024. Our process safety performance, measured by the loss of containment incident rate, has also improved. While our safety performance is strong, there is never room for complacency, and we will always pursue a culture of continuous improvement. Slide four summarizes our financial results. Sales revenue of $2.6 billion, generated EBITDA of $1.8 billion, free cash flow from operations of $1.1 billion, and profit after tax of $439 million. Our production for the first half of the year was 44.1 million barrels of oil equivalent. Our strong performance in the first half delivered positive all-in free cash flow of $258 million while investing in our growth projects. Our gearing remains within target at 23.7%, including the impact of operating leases. I am pleased that our strong performance has enabled the Board to resolve to pay an interim dividend of $0.134 per share. The Board has also resolved to track the interim dividend to 10% this period. Strong execution of our major development projects in the first half of 2025 has been a highlight. Barossa remains on schedule, with production expected shortly. The Darwin LNG plant has achieved ready for startup. The BW Opal FPSO is on location, successfully hooked up to the subsea infrastructure, with only final commissioning work to go before reaching RFSU within weeks. This has been achieved within three months of schedule and within the original budget, thanks to outstanding self-execution, disciplined contractor management, effective contracting strategies, and simultaneous operations that prevented potential delays from the COVID pandemic, regulatory approvals, legal challenges, and supply chain disruptions. Our Alaska project is also progressing well, and we've brought first oil guidance forward to the first quarter of 2026, with a ramp-up to plateau expected in the second quarter. This is another outstanding example of Santos's self-execution project delivery model in action. The pipeline was completed a year ahead of schedule, and the challenging logistics of river lifting key processing modules from Canada and barging the seawater treatment plant from Indonesia have been executed flawlessly. Our drilling and completion team have just finished the 21st well, the first combination well with a 10,000-foot long horizontal section that replaces two wells with one single well. Combination wells, together with deployment of other innovative drilling technologies and techniques, are delivering real cost savings and faster job completion times. This represents a significant value upside opportunity for future developments in Alaska. We're now drilling the 22nd well, which will be the longest well in the field, with an expected total depth of 27,000 feet. Six wells are being flowed back in 2025, including three producers, bringing average expected flow rates per well to 7,000 barrels per day at startup. Pikka and Barossa are expected to deliver around a 30% increase in production by 2027, setting the company up with long-term stable cash flows to support returns to shareholders and disciplined investment in future production growth. Moving to slide seven, the excellent operational performance of our base business has ensured reliable production and solid cash flows, with LNG assets performing strongly, major development projects nearing completion, and our LNG marketers continuing to capture outstanding value through our customer-focused contracting strategy. These achievements demonstrate the strength of our portfolio and our ability to deliver value through the commodity price cycle. Demand for LNG from Asia remains strong, underpinned by economic growth. Our portfolio is well positioned, commanding premium for high heating value LNG from Barossa and PNG LNG, and providing reliable regional supply. Santos' diversified LNG contract mix also provides the flexibility to take advantage of market conditions. Our recent contract with QatarEnergy demonstrates our ability to leverage the flexibility of our LNG portfolio. The LNG portfolio is 92% contracted and around 80% oil-linked between 2025 and 2029. Portfolio pricing is around 14.7% float to Brent on 2025 to 2027. Our strong realized prices in the first half, realized prices from the first half of 2025, have exceeded our peers and supported strong cash margins. Decommissioning is being delivered to ensure safety of people, property, and the environment. We are phasing our decommissioning spend to prioritize safety and facility integrity, capturing synergies and applying lessons learned from our own experience and from across the industry to reduce both costs and job completion times. We're also adopting a responsible approach to waste management with the Mutineer Exeter, Fletcher Finucane decommissioning campaign, recycling more than 100 tons of metal, plastics, and wood this year. Moomba CCS phase I is a great demonstration of our project self-execution, online and under four years from FID, and performing to expectations. In the first half, it reached a major milestone, safely and permanently storing more than 1 million tons of CO₂ equivalent since startup. Since the startup of Moomba CCS, Santos emissions intensity has improved by 22%, and we have already achieved 84% of our target to reduce Scope 1 and 2 emissions by 30% by 2030. We operate in some of the world's most demanding environments: the PNG Highlands, the Australian Outback, deep water basins off WA, and the Alaskan North Slope. Different environments, different regulations, one disciplined low-cost operating model. In an industry with a track record of poor project execution, Santos has set to deliver three major development projects within months of target and within 10% of the original combined budgets. We achieved this during the COVID years, navigating regulatory approval and legal challenges, supply chain disruption, and inflationary pressures. Through it all, we remain disciplined. We focused on our own race, and we stuck to our strategy. At the same time, we maintained safe operations and strong base business performance. This has been a phenomenal achievement. Our self-execute capability has been developed and refined over the years because the nature of our assets means we are constantly in development mode, delivering large short-cycle CapEx development projects every year. Self-execution means we reduce costs, improve efficiency, and accelerate delivery by self-managing our subcontractors. It is how we transform technical excellence into sustained value. Over the past decade, our disciplined low-cost operating model has driven production costs down, strengthened the portfolio, and delivered strong free cash flow and returns for shareholders. At the same time, we've successfully executed three major developments: Moomba CCS phase I, Barossa LNG, and Pikka phase I, all while keeping yielding within our target range. With production set to rise as Barossa and Pikka phase I come online, and unit production costs expected to trend lower over time, our strategy is clear: generate cash, reward shareholders, reinvest to battle and sustain our infrastructure, and to build and grow our production while continuing to operate safely and reliably. I will now hand over to Sherry to provide an overview of our financial results. Thanks, Kevin, and thank you everyone for joining us today. Santos has delivered a strong set of financial results underpinned by solid base business performance. Our disciplined low-cost operating model continues to deliver, highlighted by a unit production cost of $7.28 per barrel and free cash flow from operations of $1.1 billion. The business had a positive all-in free cash flow of $258 million for the period, while continuing to invest in our two major development projects, Barossa and Pikka. Our balance sheet remains robust, with gearing at 23.7%, including leases at the end of the half, and excellent performance during a period of significant investment. On this basis, we are pleased to declare an interim dividend of $435 million. Last year, we rolled out our updated capital allocation framework. The updated framework is designed to prioritize and enhance shareholder returns as we move beyond the capital-intensive period of a major growth cycle and new production comes online. It provides a clear pathway to sustainable, improved returns across the cycle. The framework is built around three key pillars: maintaining a strong balance sheet, delivering improved shareholder returns, and generating strong free cash flow from operations. Together, these give us the flexibility and the resilience to create long-term value for our shareholders. This slide really shows the strength of our disciplined low-cost operating model. On the left, you can see our strong free cash flow generation, even through periods of commodity price headwinds. In the first half of 2025, we've delivered more free cash flow than the first half of 2024, despite significantly lower commodity prices. On the right, the impact is clear. Since adopting our disciplined low-cost operating model, we've returned more to shareholders than the company's entire market cap back in 2016. We remain focused on prioritizing shareholder returns, and with a strong balance sheet, we have the flexibility to keep delivering through the cycle. Shareholder returns of $435 million, equivalent to 40% of free cash flow from operations, and up on last year, have been delivered this half in line with our capital allocation policy. In the first half of 2025, free cash flow from operations was around $1.1 billion. This result is higher than the first half of 2024 and supported by lower production costs and lower CapEx. Our operating free cash flow for the first half of 2025 tells its own story: a resilient, diversified portfolio powered by high-performing core assets, secure LNG offtake agreements, inflation-linked fixed-price domestic gas contracts, and an unwavering commitment to low-cost operations. Our underlying earnings show that product sales revenue remains strong at over $2.6 billion, generating EBITDA of more than $1.8 billion and underlying profit of $508 million. Underlying profit is lower than the prior comparative half due to lower revenue from real-life domestic gas and crude oil pricing and sales volume, higher restoration and financing costs, offset by lower tax expenses. We recorded a one-off non-recurring exploration and evaluation impairment of $119 million against the P&G business. These are historical costs which were capitalized as a part of the Oil Search acquisition, and since then, the hive's footwall prospects have been unsuccessful. Despite the footwall section being plugged and abandoned, pleasingly, the hanging wall section was successful, with the operator planning to bring it online between late 2025 and early 2026. Building on a strong first-half performance, we've tightened our unit production cost guidance for 2025 to $7.00 to $7.40 per BOE. Once Barossa LNG and Pikka phase I are online, we remain on track to target unit costs below $7.00 per BOE. We continue to target an unhedged operating free cash flow breakeven of under $35 per barrel in 2025, ensuring our portfolio stays resilient in an ever-changing commodity price environment. Retaining our investment-grade credit ratings from Fitch, Moody's, and S&P reflects Santos' focus on disciplined capital management and our low-cost operating model in place since 2016. Net debt stood at less than $4.9 billion at the end of the first half, with gearing in our target range. As noted previously, we do expect that gearing will increase temporarily later this year as we near project completion for Barossa and Pikka, and with the inclusion of the lease liability from the Barossa FPSO, after which it is forecast to reduce as development capital expenditures decline and new revenues materialize. We continue to hold a high level of liquidity, with $3.9 billion at the end of June in a combination of cash facilities and undrawn finance facilities. In accordance with our capital management framework, we look to protect the balance sheet and safeguard our financial position through hedging strategies for commodity and FX exposures. We have 7.5 million barrels of oil hedged at a floor of $65 and an average cap of $80.57. Further, we have hedged positions in place for FX of AUD 930 million in the second half of 2025 and AUD 1.06 billion in 2026. This hedging has been undertaken at rates well below the long-term Australian dollar FX averages, providing strong FX protection as we complete our current period of major capital expenditure. Overall, we've had a strong financial performance in the first half of 2025, returning $435 million to shareholders. Thank you, and I'll now hand back over to Kevin. Thanks, Sherry. I want to turn my focus now to our operational performance. As I said earlier, Santos' disciplined low-cost operating model continues to deliver through the first half. PNG LNG performs strongly, driven by high plant reliability and sustained feed gas contributions from Santos operated upstream assets, which produced more than 4 million barrels of oil equivalent and accounted for 17% of total supply into PNG LNG. Santos successfully lifted and sold eight equity LNG cargoes on behalf of Santos lifting groups. Looking ahead to 2035, 100% of our LNG share will be equity lifted and integrated into our LNG contract portfolio. We are making strong progress on backfill projects that will sustain PNG LNG into the future. Starting with Angore, which was brought online in November last year, we are seeing strong production of over 360 million standard cubic feet of gas per day into PNG LNG. The IDD6 infill oil well continues to contribute to production and has helped identify further backfill and sustain opportunities. The Hides F2 well from the hanging wall reservoir has been completed and is planned to come online late this year or early next year. The Papua LNG project is making good progress towards an expected FID early in the new year. Muruk, P'nyang, and Juha remain in the pipeline to support PNG LNG's long-term supply. GLNG delivered over 3 million tons of LNG production, completing the 51 contract cargoes. This was an excellent result underpinned by 100% plant reliability. We completed a planned seven-day shutdown of Train 2 on schedule and with a strong safety performance. GLNG continues to support the East Coast domestic market through offering seasonal shaping of LNG supply. GLNG upstream production has remained steady, underpinned by high reliability and strong drilling performance, with 74 wells drilled and 58 connected in the first half. Both Roma and Scotia fields achieved new daily production records at 215 terajoules and 110 terajoules, respectively, demonstrating our team's operational excellence. Four rigs are now dedicated to the multi-year Fairview campaign, positioning us for sustained production levels and maximum resource recovery. Development is also being advanced across Roma, Scotia, and Arcadia. Electrification supported around 2 petajoules of additional production, along with reduced emissions. In the Cooper Basin, production was impacted by floods on a scale not seen since 1974, with more than 200 wells and several upstream compressors affected. We are actively managing safe recovery as flood levels recede and access is restored. The impact of the floods has led to top-end production guidance for the full year being reduced to 95 million barrels of oil equivalent. Pleasingly, all four rigs have remained in operation. Multi-stage stimulation was successful in two horizontal granite wash wells in Member South, with one well online and the second expected online during the third quarter. Member Central optimization is an exciting opportunity for the Cooper Basin. Over 90% of the future resource sits in the Member Central and northern fields. That's where our focus will be going forward. We can optimize infrastructure by replacing 25 gas compressors with just five electric compressors. From a reliability and maintenance point of view, that will be transformational for the Cooper, materially reducing unit production costs. In February, Halyard-2 began production six weeks ahead of schedule and has been consistently delivering approximately 90 million standard cubic feet per day to the Varanus Island hub, compared to the expected rate of 65 million standard cubic feet per day. This achievement highlights the immense value derived from developing reserves close to existing infrastructure. Small, low-cost hybrids like Halyard-2 allow us to maximize plant capacity, boost production, and reduce unit costs. We are now concept screening a number of near-field resources such as John Brookes infill, Spar Deep, Kultarr, and we're evaluating prospectivity externally. Plant performance has steadily improved at Varanus Island since 2022, achieving 98% reliability in the period. Across our portfolio, Santos has a range of low CapEx development opportunities that can boost production levels. These initiatives are embedded in our base business plans, leveraging existing infrastructure to deliver strong investment returns and maximize value from our current assets. In PNG, the APF Tie-in project is on track to be FID ready by 2026, with projections to deliver up to 125 million standard cubic feet per day gross. As I noted earlier, in the Cooper Basin, the Member Central optimization project is focused on replacing higher cost barrels with more cost-efficient production. In Western Australia, the impact of Halyard-2 on production costs highlights the advantages small actions can offer. Further development opportunities around Varanus Island promise value for years to come. In Eastern Queensland, Santos can leverage its comprehensive CSG experience and expertise in low-cost drilling to unlock significant value from our acreage positions. In Alaska, we have a low-capital project that aims to extend the plateau of Pikka and Deep [Autumnite] facilities. With disciplined investment, Santos is uniquely positioned for profitable growth. Momentum is building behind the Narrabri gas project, which signed an MOU with Origin to supply up to 20 petajoules a year for 10+ years into the East Coast domestic market. The Native Title Tribunal has remade a favorable future act decision for production tenure awards, and we continue to work constructively with the Gomeroi on both the gas project and the pipelines. Around 30% of land access for the Hunter Gas Pipeline is now secured, and other approvals are progressing well. In PNG, the Papua LNG project continues to progress through FEED, with FID expected early 2026. We have a strong acreage position on Alaska's North Slope, which positions us well for future growth there, and an appraisal well in Quokka is planned for the coming year. In Western Australia, we're assessing an integrated gas and liquids concept at Bedout, with appraisal wells being planned to refine scope and timing. In the Beetaloo, we have already booked 1.4 trillion cubic feet gross of 2C contingent resource from only two wells, and an appraisal program is planned for next year. The Beetaloo has the potential to reshape energy supply in the Northern Territory and materially boost both domestic gas and LNG markets in the North and East. Santos continues to invest in the communities where we operate and where our people live and work. Through the Santos Foundation, the Barossa Aboriginal Future Fund, partnerships such as our Cooper Basin Ranger programs, and our award-winning training collaboration with KAEFER Integrated Services, we're supporting jobs, skills, and better outcomes for our host communities. While the current market environment is challenging, our focus for the remainder of 2025 remains clear: operating our base business safely and reliably, bringing our development projects online, and implementing our disciplined low-cost operating model. Our first-half performance has been strong, and we're committed to bringing 2025 home safely with a strong finish by continuing to ramp Cooper production to full rates following this year's record plugs, maintaining unit production costs within our guidance, delivering structural cost savings of $150 million per year going forward, starting Barossa up successfully and safely, and delivering our first LNG cargo at DLNG from Barossa Gas, keeping Pikka on track and on budget, and aiming for early first oil in the first quarter of 2026, progressing Papua LNG, Bayu-Undan CCS, and Narrabri to FID ready status, and finalizing appraisal programs for Beetaloo and Bedout Basin to support getting these projects FID ready. In closing, the momentum we anticipated for 2025 is well underway and delivering value for our shareholders. Thank you, and it's now time to take questions. Thank you. If you wish to ask a question, please press 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press * then 2. If you're using a speakerphone, please pick up the handset to ask your question. We ask that questions be limited to two per person. Please rejoin the question queue for any follow-up questions. The first question today comes from Tom Allen from UBS. Please go ahead. Good morning, Kevin, Sherry, and the Board. I'll start with a question on the transactions. This morning, Santos has announced another extension to the exclusivity period for the potential transaction. Can you please provide some color on the customary protections, which read like a ticking fee under discussion, just to ensure the shareholders are supported if the timeline continues to slip further out? Good morning, Tom. Look, thank you for the question. Look, we gave color on the reasons for the, we flagged last week the reasons for the extension in our announcement to the market last week. This morning's announcement on the further extension is really as a result of us moving to finalize the acceptable Scheme Implementation Agreement. We have made considerable progress. We did say that it would include customary protections for shareholders should the potential transaction take longer than expected to complete. However, we're not going to comment on specific terms and conditions until we get to the binding agreement, which we're targeting for the end of this extension period. At that point, that document, of course, will become public, and we'll update the market accordingly in line with our obligations at that time. Okay, thanks, Kevin. If a binding transaction is agreed by 19th September, can you outline just an indicative timeline on securing regulatory approvals and when investors might expect a scheme vote? It's too premature to be speculating on what that timeline will be, Tom. We will look at those customary approvals taking normal durations, but obviously we'll talk about that at the time when we reach the point of having a binding agreement. Okay. On the result itself, PNG LNG continuing to annualize production at 25% above nameplate continues to look really strong. Following the drilling at Hides F2 and the hanging wall, can you provide a comment on how long current upstream supply to PNG LNG can sustain production at those levels? When the joint venture might consider a FEED decision on the P'nyang gas development, just in the event that Papua LNG development schedule continues to shift further to the right? I'll look at things over the course of the next year. We'll provide an update on longer-term developments like P'nyang. Currently, our focus is on a number of different projects, as we talked about in the presentation this morning, including APF Tie-in to continue to maintain plateau production all the way through until Papua comes on. Our confidence in the Papua project is increasing, and we're looking forward to getting that FID ready around the end of this year and then taking FID hopefully early in the new year. P'nyang would come after that. We'll give information in terms of moving into Pekin stuff, I'd imagine, throughout the course of the next year or so. Really, our focus in the short term is on many of those infill projects to provide to maintain plateau production all the way until Papua comes on. Okay, thanks, Kevin. Thanks, Tom. Thank you. The next question comes from Dale Koenders from Barrenjoey. Please go ahead. Morning, Kevin and James. Firstly, just on the Barossa lease coming onto the balance sheet, can you give us a steer as to how large that is? In terms of the lease payments that are coming with it, how should we think about that? I understand there's a level of prepayment. Thanks, Dale. I'm going to handball that one right over to Sherry, who loves talking about leases. We love that, Dale. Thank you for the question. We've guided previously that you should think low single digits in terms of the lease coming onto the balance sheet. We do expect that as soon as we come on production and first gas, we'll be able to update exactly what that is and then talk about how that actually hits the income statement and the cash flows that go along with that. As you say, there is a right of use asset that will be made up of both the prepayment and the actual lease obligation for the operation going forward. We'll disclose all of that in the future reporting period. Can you give us any steer in terms of how much of the leases are being prepaid or what timeframe you get beneficial treatment for? No, I think other than what we've put in our financial statements already, I can't go any further than that, Dale. We do expect to update you fully on that, and again, how it'll hit the income statement and cash flows once we have it online and producing. Okay. It doesn't seem to be any sort of comment around the proposed price from the XRG Consortium being adjusted for the dividend declared today. I'm just wondering if you can provide any comments on that, Kevin, or is that one of the things that's up for discussion still? The offer indicated that any dividends would be deducted from the price, and that is the status of the offer. As I say, you know, really don't want to start commenting on specific terms and conditions of the deal until we get to a binding agreement. The terms of the offer, the non-binding indicative offer, we made public some weeks back when we announced the opportunity. We'll talk more about the details when we get to the binding agreement, hopefully in around four weeks' time. Okay, thank you. Thank you. Thank you. The next question comes from Gordon Ramsay from RBC Capital Markets. Please go ahead. Oh, thank you very much. Kevin, just another question about the bid. When XRG asks for extended time, do they have to go back to the UAE for government approval on this once the SIA is agreed? As we flagged last week at Gordon, they have to go back for what they would call corporate approvals. As part of the discussions we've had with them, they've provided some color on those approvals. We don't want to comment publicly on XRG's internal processes, that is a matter for XRG. We're pleased with the progress we've made. We've worked well with the folks from XRG over the last few weeks. As a result of the considerable progress that we've made towards an acceptable SIA, and given that the consortium has again confirmed that it's found nothing in due diligence that would make it consider withdrawing its offer, we've agreed to extend the process, as you heard this morning, for a further four weeks until the 19th of September. Thank you. Just one more. You made a comment this morning on increased confidence on Papua LNG, potentially, you know, moving forward early in the new year. Can you just remind us what the critical path items are there? Is that achieving acceptable EPC contracts, or are there other factors in play that have held up this project? Really, it was the operators recycled some bid activities at the time, which I think that was way 2023, I think. Costs were looking a bit higher, so we've recycled some of that, and they've done a good job at taking considerable costs out. We'll update the market when we get to the point of making that decision. We're confident that project's heading in the right direction and that we should be in a position at least to be FID ready around the end of this year. Thank you. Thanks, Gordon. Thank you. The next question comes from Rob Koh from Morgan Stanley. Please go ahead. Good morning. Congratulations on the result. Just first question about PNG LNG. If you could give us any color on what kind of a plateau you're anticipating for Angore, please. We're not giving any specific data on Angore itself at this point in time. I think we always said that we'd watch its production for the first year before the operator would be in a position to give us their views on the longer-term bigger picture for that, if there's any upside or otherwise. Likewise, our subsurface people said the same thing. The great news is it's performing really strongly. As I said in my speech earlier, around 360 million standard cubic feet per day going into PNG LNG, and it's been a very successful project thus far. I can't really give you any more than that, I'm afraid. No worries. All right. Good start. I guess just a question on GLNG. There's been some commentary around the domestic gas review around the potential extension of a co-gas option. Are you able to provide any color on the co-gas option in 2031 and if that's already been exercised or whose right it is to exercise? I'm not going to give any comments on contractual discussions or decisions that haven't been made yet. Ultimately, you know, the project's performing well. Our gas is contracted, the majority of our gas at GLNG, and we'll continue to operate, and we'll update the market if anything changes. There is nothing really to say on that at this point in time. Okay, cool. Thanks so much. Cheers. Thanks very much. Thank you. Thank you. The next question comes from Saul Kavonic from MST Marquee. Please go ahead. Thanks, Kevin and Sherry. Just, I guess last week's announcement of the four-plus-week XRG corporate approval timeframe did seem to come as a surprise. Didn't you check with XRG about these approval timeframes before putting out all the ASX releases, including the one on the 11th of August, which indicated that you could have a binding deal much sooner than that timeframe allowed? Look, I think the question there really around the quality of XRG's internal corporate approvals is really a question for XRG, Saul. Look, we put the announcement out at the time that said six weeks to negotiate an SIA. At that time, both parties believed that was achievable. However, this is a big transaction. I believe it would be the largest all-cash transaction ever on the ASX, and I think the largest all-cash energy sector transaction globally. What has become apparent during that period and during the SIA detailed discussions was that things were taking a bit longer, and we got more clarity on the internal corporate approvals processes. As soon as we became aware of that, we flagged that for market last week. I guess if XRG haven't been honest with you about the timeframe of these basic procedural steps in this process, what do you think is the faith that our government can have that XRG are being honest about their plans for the business and our critical infrastructure if the deal is allowed to go through? I don't think any of those comments are really for me, Saul, and those were your words, not mine. Fair enough. If I'm not going to ever make a decision-maker available to us to ask questions, we will. So far, they're not exactly paying, don't appear to be playing a straight bat here. Just earlier, you mentioned in reply to an earlier question that you were targeting a binding agreement by the end of this period ending on the 19th of September. I just want to be clear, is that a full binding approved agreement, or that's just agreed terms, and then there'll still be the subsequent corporate approval process that would happen after that? We're targeting a full binding agreement by the 19th of September. Thanks, Saul. Thank you. Thank you. Thank you. The next question comes from Nik Burns from Jarden, Australia. Please go ahead. Yeah, hi, Kevin and Sherry and team. Apologies. Another couple of questions on the proposed bid. Last week, your announcement did say that it would take the XRG Consortium at least four weeks to obtain relevant approvals. You've now granted them a four-week extension. Based on what you said last week, it's clear that it feels like four weeks is the best-case outcome for the consortium to get those internal approvals. I guess the question is, is four weeks enough here, or is this a case of the Santos board really drawing a line in the sand and saying, "We really need you to get there within the next four weeks"? Is there a risk that the consortium does ask for a further extension? Thank you. Thanks, Nik. Look, I mean, I think those are really questions for XRG. From our perspective, we've had very positive discussions and made a lot of progress over the last week or two on the SIA terms. Consequently, because of that, and as I said earlier on, because the consortium has again confirmed it's found nothing in due diligence that would make it lead to consider withdrawing its proposal, we've granted them the extension to the 19th. The other thing I would say is that they've also demonstrated a commitment to the transaction, a very strong commitment to the transaction, and a commitment to expedite those approvals over the four-week process. Following those discussions, the progress, and the strong commitment from XRG, the board selected to grant that extension. We'll be working very diligently with XRG to help them make that happen. Okay, that's great. That's clear. Thanks for that, Kevin. I fear this question might give us another straight bat that's asked XRG. There's been a fair bit of focus on the consortium's requirements to obtain all necessary regulatory approvals before the SIA is taken to the Santos shareholders for approval. There's particular focus, I guess, on FIRB. I'm just wondering, can you comment at all on whether the delay in executing the SIA here is impacting the timeline behind the scenes to obtain those regulatory approvals, or is that a separate work stream, as far as you understand? Look, I think if I was given any guidance on the timeline for the expected timeline, I should say, for regulatory approvals, it would be from the signing of the SIA. I'd be able to give you more color on my expectations or thoughts around that at that point in time, Nik, but now it would be premature. Thanks for that, Kevin. I had to try, cheers. Yeah, good try, Nick. Thanks. Thank you. The next question comes from Henry Meyer from Goldman Sachs. Please go ahead. Morning, team. Just to follow up on the Barossa leases, if gearing rises over the 25% target this half, how do you think about dividends in February if you're considering the de-gearing trajectory over 2026? Would you still see a minimum payout? That's an excellent question, Henry. We've been very clear throughout that we did expect that gearing, subject in particular to commodity prices in the second half, may increase. However, that should not have any impact in terms of our ability to pay out dividends in accordance with the capital allocation framework because a lot of that's non-cash as well, just coming onto the balance sheet, as you can imagine. No impact should be expected in terms of our ability to stick to our cash. I would draw your attention, Henry, to the fact that if you exclude those operating leases, gearing excluding those leases is under 21%. You know, coming to the end of a heavy investment cycle, we're pretty pleased with where we are on that front. Perfect. Thanks, both. I guess a few months away from 2026 now, it seems the major drilling programs are shaping up for 2026 and 2027, and you're getting one offsite to Papua getting closer to FID as well. Can you give a sense of where you think that CapEx ceiling for 2026 might be set now? As normal, we'll give that CapEx guidance towards the end of the year, Henry. It's too premature to be giving that guidance at this point in time. Okay. Thanks, Kevin. If I can, a quick third one. In the accounts, we can see the commitments for expenses across the CapEx exploration leases have all fallen since December last year. Could you maybe just step through what's driving some of the changes in the key buckets there? Yeah, I think the biggest single one, Henry, without looking through the details of that, is that we're coming to the back end of our spending on both Barossa and Pikka. A lot of those longer-term commitments and long-lead items that were related to those major projects have now been extinguished. That's really the storyline there. Yep, okay. Thanks. Makes sense. Thank you. The next question comes from Mark Wiseman from Macquarie Group. Please go ahead. Oh, good day, Kevin. Sherry, thanks for the update today. In note one to the XRG announcement today, or the announcement separately on the XRG offer, you've clarified that all dividends would be adjusted. Obviously, you're trying to get customary protections to protect investors. I guess the question I've got is the business is improving substantially over the next six months with Barossa achieving startup, and Alaska started to come on as well. Under your capital framework, the dividend steps up quite materially in calendar 2026. Should we assume that if this drags through to mid-2026, including regulatory processes, that there'll be some sort of provision to protect investors against that sort of dividend step-up that would be deducted? Oh, look, I mean, we'll make it. Presumably, you're talking about in the terms of the binding Scheme Implementation Agreement. As I said earlier, Mark, we'll provide guidance and clarity on what those terms are at the point of getting or announcing that we've got the signed and binding agreement. I can't really speculate, or I don't want to comment on the specific terms at this point in time. As we said in our announcement this morning, there are customary protections in place. Okay. Are you able to give any sort of insight into the timing from which investors would be protected? Is there any logical point in time that things would kick in? No. As I said earlier, I don't want to comment. Until we've got a signed and binding agreement, we don't want to comment on specific terms and conditions. Okay. All right. Thanks very much. Thanks, Mark. Thank you. Once again, to ask a question, please press 1 on your phone. We'll pause for a moment to allow any other questions to enter the queue. At this time, we're showing no further questions. I'll hand the conference back to Kevin for any closing remarks. Thank you for tuning in this morning. We appreciate your support, and we look forward to talking to many of you over the next coming days. Thank you very much. Speak soon. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Speaker 3: Thank you, and good morning, and welcome to the presentation of Santos' 2025 half-year results. I'm speaking today from the traditional lands of the Kaurna people of the Adelaide Plains, and I pay my respects to elders past and present. I also acknowledge and recognize the support of traditional owners, Indigenous people, and nationals everywhere Santos operates around the world. Before I commence my report on what has been a strong financial and operational performance for Santos for the first half of 2025, you will have seen our update this morning on progress with the non-binding indicative proposal from the XRG Consortium. We are finalizing an acceptable Scheme Implementation Agreement and have made considerable progress. Importantly, the SIA will include customary protections for shareholders should the potential transaction take longer than expected to complete. Thank you, and good morning, and welcome to the presentation of Santos' 2025 half-year results. thank you and good morning and welcome to the presentation of santos' 2025 half-year results I'm speaking today from the traditional lands of the Kaurna people of the Adelaide Plains, and I pay my respects to elders past and present. i'm speaking today from the traditional lands of the kaurna people of the adelaide plains and i pay my respects to elders past and present I also acknowledge and recognize the support of traditional owners, Indigenous people, and nationals everywhere Santos operates around the world. i also acknowledge and recognize the support of traditional owners indigenous people and nationals everywhere santos operates around the world Before I commence my report on what has been a strong financial and operational performance for Santos for the first half of 2025, you will have seen our update this morning on progress with the non-binding indicative proposal from the XRG Consortium. before i commence my report on what has been a strong financial and operational performance for santos for the first half of 2025 you will have seen our update this morning on progress with the non-binding indicative proposal from the xrg consortium We are finalizing an acceptable Scheme Implementation Agreement and have made considerable progress. we are finalizing an acceptable scheme implementation agreement and have made considerable progress Importantly, the SIA will include customary protections for shareholders should the potential transaction take longer than expected to complete. importantly the sia will include customary protections for shareholders should the potential transaction take longer than expected to complete The Consortium requested an extension of the exclusivity period to conclude due diligence and to obtain all necessary approvals to enter into a binding transaction. On the basis that we have made considerable progress towards an acceptable SIA, and given the Consortium has also again confirmed it has found nothing in due diligence that would lead it to withdraw its indicative proposal, Santos has agreed to extend the process date for four weeks until the 19th of September. We will, of course, keep the market updated in accordance with our continuous disclosure obligations over the coming weeks. Now, turning to our first half results, I am pleased to report on another strong financial performance, underscoring the cash-generated strength of our base business. Our disciplined low-cost operating model continues to deliver efficiency and reliability. The Consortium requested an extension of the exclusivity period to conclude due diligence and to obtain all necessary approvals to enter into a binding transaction. the consortium requested an extension of the exclusivity period to conclude due diligence and to obtain all necessary approvals to enter into a binding transaction On the basis that we have made considerable progress towards an acceptable SIA, and given the Consortium has also again confirmed it has found nothing in due diligence that would lead it to withdraw its indicative proposal, Santos has agreed to extend the process date for four weeks until the 19th of September. on the basis that we have made considerable progress towards an acceptable sia and given the consortium has also again confirmed it has found nothing in due diligence that would lead it to withdraw its indicative proposal santos has agreed to extend the process date for four weeks until the 19th of september We will, of course, keep the market updated in accordance with our continuous disclosure obligations over the coming weeks. we will of course keep the market updated in accordance with our continuous disclosure obligations over the coming weeks Now, turning to our first half results, I am pleased to report on another strong financial performance, underscoring the cash-generated strength of our base business. now turning to our first half results i am pleased to report on another strong financial performance underscoring the cash-generated strength of our base business Our disciplined low-cost operating model continues to deliver efficiency and reliability. our disciplined low-cost operating model continues to deliver efficiency and reliability I will provide an overview of our first half performance, and our Chief Financial Officer, Sherry Duhe, will present the financial details. Following Sherry's presentation, I'll take you through our operational performance and progress against our 2025 strategic priorities, then open up the call to questions. Before we start, I draw your attention to the usual disclaimer on slide two. Safety drives everything we do, and we have continued to deliver a strong safety performance during a period of high activity levels across our base business and across our development projects. Our lost time injury rate remains better than the IOGP 2024 global average, underscoring our dedication to maintaining a safe workplace. We've achieved an impressive 46% improvement in our total recordable injury rate compared to the first half of 2024. Our process safety performance, measured by the loss of containment incident rate, has also improved. I will provide an overview of our first half performance, and our Chief Financial Officer, Sherry Duhe, will present the financial details. i will provide an overview of our first half performance and our chief financial officer sherry duhe will present the financial details Following Sherry's presentation, I'll take you through our operational performance and progress against our 2025 strategic priorities, then open up the call to questions. following sherry's presentation i'll take you through our operational performance and progress against our 2025 strategic priorities then open up the call to questions Before we start, I draw your attention to the usual disclaimer on slide two. before we start i draw your attention to the usual disclaimer on slide two Safety drives everything we do, and we have continued to deliver a strong safety performance during a period of high activity levels across our base business and across our development projects. safety drives everything we do and we have continued to deliver a strong safety performance during a period of high activity levels across our base business and across our development projects Our lost time injury rate remains better than the IOGP 2024 global average, underscoring our dedication to maintaining a safe workplace. our lost time injury rate remains better than the iogp 2024 global average underscoring our dedication to maintaining a safe workplace We've achieved an impressive 46% improvement in our total recordable injury rate compared to the first half of 2024. we've achieved an impressive 46% improvement in our total recordable injury rate compared to the first half of 2024 Our process safety performance, measured by the loss of containment incident rate, has also improved. our process safety performance measured by the loss of containment incident rate has also improved While our safety performance is strong, there is never room for complacency, and we will always pursue a culture of continuous improvement. Slide four summarizes our financial results. Sales revenue of $2.6 billion, generated EBITDA of $1.8 billion, free cash flow from operations of $1.1 billion, and profit after tax of $439 million. Our production for the first half of the year was 44.1 million barrels of oil equivalent. Our strong performance in the first half delivered positive all-in free cash flow of $258 million while investing in our growth projects. Our gearing remains within target at 23.7%, including the impact of operating leases. I am pleased that our strong performance has enabled the Board to resolve to pay an interim dividend of $0.134 per share. The Board has also resolved to track the interim dividend to 10% this period. While our safety performance is strong, there is never room for complacency, and we will always pursue a culture of continuous improvement. while our safety performance is strong there is never room for complacency and we will always pursue a culture of continuous improvement Slide four summarizes our financial results. slide four summarizes our financial results Sales revenue of $2.6 billion, generated EBITDA of $1.8 billion, free cash flow from operations of $1.1 billion, and profit after tax of $439 million. sales revenue of $2.6 billion generated ebitda of $1.8 billion free cash flow from operations of $1.1 billion and profit after tax of $439 million Our production for the first half of the year was 44.1 million barrels of oil equivalent. our production for the first half of the year was 44.1 million barrels of oil equivalent Our strong performance in the first half delivered positive all-in free cash flow of $258 million while investing in our growth projects. our strong performance in the first half delivered positive all-in free cash flow of $258 million while investing in our growth projects Our gearing remains within target at 23.7%, including the impact of operating leases. our gearing remains within target at 23.7% including the impact of operating leases I am pleased that our strong performance has enabled the Board to resolve to pay an interim dividend of $0.134 per share. i am pleased that our strong performance has enabled the board to resolve to pay an interim dividend of $0.134 per share The Board has also resolved to track the interim dividend to 10% this period. the board has also resolved to track the interim dividend to 10% this period Strong execution of our major development projects in the first half of 2025 has been a highlight. Barossa remains on schedule, with production expected shortly. The Darwin LNG plant has achieved ready for startup. The BW Opal FPSO is on location, successfully hooked up to the subsea infrastructure, with only final commissioning work to go before reaching RFSU within weeks. This has been achieved within three months of schedule and within the original budget, thanks to outstanding self-execution, disciplined contractor management, effective contracting strategies, and simultaneous operations that prevented potential delays from the COVID pandemic, regulatory approvals, legal challenges, and supply chain disruptions. Our Alaska project is also progressing well, and we've brought first oil guidance forward to the first quarter of 2026, with a ramp-up to plateau expected in the second quarter. This is another outstanding example of Santos's self-execution project delivery model in action. Strong execution of our major development projects in the first half of 2025 has been a highlight. strong execution of our major development projects in the first half of 2025 has been a highlight Barossa remains on schedule, with production expected shortly. barossa remains on schedule with production expected shortly The Darwin LNG plant has achieved ready for startup. the darwin lng plant has achieved ready for startup The BW Opal FPSO is on location, successfully hooked up to the subsea infrastructure, with only final commissioning work to go before reaching RFSU within weeks. the bw opal fpso is on location successfully hooked up to the subsea infrastructure with only final commissioning work to go before reaching rfsu within weeks This has been achieved within three months of schedule and within the original budget, thanks to outstanding self-execution, disciplined contractor management, effective contracting strategies, and simultaneous operations that prevented potential delays from the COVID pandemic, regulatory approvals, legal challenges, and supply chain disruptions. this has been achieved within three months of schedule and within the original budget thanks to outstanding self-execution disciplined contractor management effective contracting strategies and simultaneous operations that prevented potential delays from the covid pandemic regulatory approvals legal challenges and supply chain disruptions Our Alaska project is also progressing well, and we've brought first oil guidance forward to the first quarter of 2026, with a ramp-up to plateau expected in the second quarter. our alaska project is also progressing well and we've brought first oil guidance forward to the first quarter of 2026 with a ramp-up to plateau expected in the second quarter This is another outstanding example of Santos's self-execution project delivery model in action. this is another outstanding example of santos's self-execution project delivery model in action The pipeline was completed a year ahead of schedule, and the challenging logistics of river lifting key processing modules from Canada and barging the seawater treatment plant from Indonesia have been executed flawlessly. Our drilling and completion team have just finished the 21st well, the first combination well with a 10,000-foot long horizontal section that replaces two wells with one single well. Combination wells, together with deployment of other innovative drilling technologies and techniques, are delivering real cost savings and faster job completion times. This represents a significant value upside opportunity for future developments in Alaska. We're now drilling the 22nd well, which will be the longest well in the field, with an expected total depth of 27,000 feet. Six wells are being flowed back in 2025, including three producers, bringing average expected flow rates per well to 7,000 barrels per day at startup. The pipeline was completed a year ahead of schedule, and the challenging logistics of river lifting key processing modules from Canada and barging the seawater treatment plant from Indonesia have been executed flawlessly. the pipeline was completed a year ahead of schedule and the challenging logistics of river lifting key processing modules from canada and barging the seawater treatment plant from indonesia have been executed flawlessly Our drilling and completion team have just finished the 21st well, the first combination well with a 10,000-foot long horizontal section that replaces two wells with one single well. our drilling and completion team have just finished the 21st well the first combination well with a 10,000-foot long horizontal section that replaces two wells with one single well Combination wells, together with deployment of other innovative drilling technologies and techniques, are delivering real cost savings and faster job completion times. combination wells together with deployment of other innovative drilling technologies and techniques are delivering real cost savings and faster job completion times This represents a significant value upside opportunity for future developments in Alaska. this represents a significant value upside opportunity for future developments in alaska We're now drilling the 22nd well, which will be the longest well in the field, with an expected total depth of 27,000 feet. we're now drilling the 22nd well which will be the longest well in the field with an expected total depth of 27,000 feet Six wells are being flowed back in 2025, including three producers, bringing average expected flow rates per well to 7,000 barrels per day at startup. six wells are being flowed back in 2025 including three producers bringing average expected flow rates per well to 7,000 barrels per day at startup Pikka and Barossa are expected to deliver around a 30% increase in production by 2027, setting the company up with long-term stable cash flows to support returns to shareholders and disciplined investment in future production growth. Moving to slide seven, the excellent operational performance of our base business has ensured reliable production and solid cash flows, with LNG assets performing strongly, major development projects nearing completion, and our LNG marketers continuing to capture outstanding value through our customer-focused contracting strategy. These achievements demonstrate the strength of our portfolio and our ability to deliver value through the commodity price cycle. Demand for LNG from Asia remains strong, underpinned by economic growth. Our portfolio is well positioned, commanding premium for high heating value LNG from Barossa and PNG LNG, and providing reliable regional supply. Santos' diversified LNG contract mix also provides the flexibility to take advantage of market conditions. Pikka and Barossa are expected to deliver around a 30% increase in production by 2027, setting the company up with long-term stable cash flows to support returns to shareholders and disciplined investment in future production growth. pikka and barossa are expected to deliver around a 30% increase in production by 2027 setting the company up with long-term stable cash flows to support returns to shareholders and disciplined investment in future production growth Moving to slide seven, the excellent operational performance of our base business has ensured reliable production and solid cash flows, with LNG assets performing strongly, major development projects nearing completion, and our LNG marketers continuing to capture outstanding value through our customer-focused contracting strategy. moving to slide seven the excellent operational performance of our base business has ensured reliable production and solid cash flows with lng assets performing strongly major development projects nearing completion and our lng marketers continuing to capture outstanding value through our customer-focused contracting strategy These achievements demonstrate the strength of our portfolio and our ability to deliver value through the commodity price cycle. these achievements demonstrate the strength of our portfolio and our ability to deliver value through the commodity price cycle Demand for LNG from Asia remains strong, underpinned by economic growth. demand for lng from asia remains strong underpinned by economic growth Our portfolio is well positioned, commanding premium for high heating value LNG from Barossa and PNG LNG, and providing reliable regional supply. our portfolio is well positioned commanding premium for high heating value lng from barossa and png lng and providing reliable regional supply Santos' diversified LNG contract mix also provides the flexibility to take advantage of market conditions. santos' diversified lng contract mix also provides the flexibility to take advantage of market conditions Our recent contract with QatarEnergy demonstrates our ability to leverage the flexibility of our LNG portfolio. The LNG portfolio is 92% contracted and around 80% oil-linked between 2025 and 2029. Portfolio pricing is around 14.7% float to Brent on 2025 to 2027. Our strong realized prices in the first half, realized prices from the first half of 2025, have exceeded our peers and supported strong cash margins. Decommissioning is being delivered to ensure safety of people, property, and the environment. We are phasing our decommissioning spend to prioritize safety and facility integrity, capturing synergies and applying lessons learned from our own experience and from across the industry to reduce both costs and job completion times. We're also adopting a responsible approach to waste management with the Mutineer Exeter, Fletcher Finucane decommissioning campaign, recycling more than 100 tons of metal, plastics, and wood this year. Our recent contract with QatarEnergy demonstrates our ability to leverage the flexibility of our LNG portfolio. our recent contract with qatarenergy demonstrates our ability to leverage the flexibility of our lng portfolio The LNG portfolio is 92% contracted and around 80% oil-linked between 2025 and 2029. the lng portfolio is 92% contracted and around 80% oil-linked between 2025 and 2029 Portfolio pricing is around 14.7% float to Brent on 2025 to 2027. portfolio pricing is around 14.7% float to brent on 2025 to 2027 Our strong realized prices in the first half, realized prices from the first half of 2025, have exceeded our peers and supported strong cash margins. our strong realized prices in the first half realized prices from the first half of 2025 have exceeded our peers and supported strong cash margins Decommissioning is being delivered to ensure safety of people, property, and the environment. decommissioning is being delivered to ensure safety of people property and the environment We are phasing our decommissioning spend to prioritize safety and facility integrity, capturing synergies and applying lessons learned from our own experience and from across the industry to reduce both costs and job completion times. we are phasing our decommissioning spend to prioritize safety and facility integrity capturing synergies and applying lessons learned from our own experience and from across the industry to reduce both costs and job completion times We're also adopting a responsible approach to waste management with the Mutineer Exeter, Fletcher Finucane decommissioning campaign, recycling more than 100 tons of metal, plastics, and wood this year. we're also adopting a responsible approach to waste management with the mutineer exeter fletcher finucane decommissioning campaign recycling more than 100 tons of metal plastics and wood this year Moomba CCS phase I is a great demonstration of our project self-execution, online and under four years from FID, and performing to expectations. In the first half, it reached a major milestone, safely and permanently storing more than 1 million tons of CO₂ equivalent since startup. Since the startup of Moomba CCS, Santos emissions intensity has improved by 22%, and we have already achieved 84% of our target to reduce Scope 1 and 2 emissions by 30% by 2030. We operate in some of the world's most demanding environments: the PNG Highlands, the Australian Outback, deep water basins off WA, and the Alaskan North Slope. Different environments, different regulations, one disciplined low-cost operating model. In an industry with a track record of poor project execution, Santos has set to deliver three major development projects within months of target and within 10% of the original combined budgets. Moomba CCS phase I is a great demonstration of our project self-execution, online and under four years from FID, and performing to expectations. moomba ccs phase i is a great demonstration of our project self-execution online and under four years from fid and performing to expectations In the first half, it reached a major milestone, safely and permanently storing more than 1 million tons of CO₂ equivalent since startup. in the first half it reached a major milestone safely and permanently storing more than 1 million tons of co₂ equivalent since startup Since the startup of Moomba CCS, Santos emissions intensity has improved by 22%, and we have already achieved 84% of our target to reduce Scope 1 and 2 emissions by 30% by 2030. since the startup of moomba ccs santos emissions intensity has improved by 22% and we have already achieved 84% of our target to reduce scope 1 and 2 emissions by 30% by 2030 We operate in some of the world's most demanding environments: the PNG Highlands, the Australian Outback, deep water basins off WA, and the Alaskan North Slope. we operate in some of the world's most demanding environments the png highlands the australian outback deep water basins off wa and the alaskan north slope Different environments, different regulations, one disciplined low-cost operating model. different environments different regulations one disciplined low-cost operating model In an industry with a track record of poor project execution, Santos has set to deliver three major development projects within months of target and within 10% of the original combined budgets. in an industry with a track record of poor project execution santos has set to deliver three major development projects within months of target and within 10% of the original combined budgets We achieved this during the COVID years, navigating regulatory approval and legal challenges, supply chain disruption, and inflationary pressures. Through it all, we remain disciplined. We focused on our own race, and we stuck to our strategy. At the same time, we maintained safe operations and strong base business performance. This has been a phenomenal achievement. Our self-execute capability has been developed and refined over the years because the nature of our assets means we are constantly in development mode, delivering large short-cycle CapEx development projects every year. Self-execution means we reduce costs, improve efficiency, and accelerate delivery by self-managing our subcontractors. It is how we transform technical excellence into sustained value. Over the past decade, our disciplined low-cost operating model has driven production costs down, strengthened the portfolio, and delivered strong free cash flow and returns for shareholders. We achieved this during the COVID years, navigating regulatory approval and legal challenges, supply chain disruption, and inflationary pressures. we achieved this during the covid years navigating regulatory approval and legal challenges supply chain disruption and inflationary pressures Through it all, we remain disciplined. through it all we remain disciplined We focused on our own race, and we stuck to our strategy. we focused on our own race and we stuck to our strategy At the same time, we maintained safe operations and strong base business performance. at the same time we maintained safe operations and strong base business performance This has been a phenomenal achievement. this has been a phenomenal achievement Our self-execute capability has been developed and refined over the years because the nature of our assets means we are constantly in development mode, delivering large short-cycle CapEx development projects every year. our self-execute capability has been developed and refined over the years because the nature of our assets means we are constantly in development mode delivering large short-cycle capex development projects every year Self-execution means we reduce costs, improve efficiency, and accelerate delivery by self-managing our subcontractors. self-execution means we reduce costs improve efficiency and accelerate delivery by self-managing our subcontractors It is how we transform technical excellence into sustained value. it is how we transform technical excellence into sustained value Over the past decade, our disciplined low-cost operating model has driven production costs down, strengthened the portfolio, and delivered strong free cash flow and returns for shareholders. over the past decade our disciplined low-cost operating model has driven production costs down strengthened the portfolio and delivered strong free cash flow and returns for shareholders At the same time, we've successfully executed three major developments: Moomba CCS phase I, Barossa LNG, and Pikka phase I, all while keeping yielding within our target range. With production set to rise as Barossa and Pikka phase I come online, and unit production costs expected to trend lower over time, our strategy is clear: generate cash, reward shareholders, reinvest to battle and sustain our infrastructure, and to build and grow our production while continuing to operate safely and reliably. I will now hand over to Sherry to provide an overview of our financial results. At the same time, we've successfully executed three major developments: Moomba CCS phase I , Barossa LNG, and Pikka phase I , all while keeping yielding within our target range. at the same time we've successfully executed three major developments moomba ccs phase i barossa lng and pikka phase i all while keeping yielding within our target range With production set to rise as Barossa and Pikka phase I come online, and unit production costs expected to trend lower over time, our strategy is clear: generate cash, reward shareholders, reinvest to battle and sustain our infrastructure, and to build and grow our production while continuing to operate safely and reliably. with production set to rise as barossa and pikka phase i come online and unit production costs expected to trend lower over time our strategy is clear generate cash reward shareholders reinvest to battle and sustain our infrastructure and to build and grow our production while continuing to operate safely and reliably I will now hand over to Sherry to provide an overview of our financial results. i will now hand over to sherry to provide an overview of our financial results

Speaker 1: Thanks, Kevin, and thank you everyone for joining us today. Santos has delivered a strong set of financial results underpinned by solid base business performance. Our disciplined low-cost operating model continues to deliver, highlighted by a unit production cost of $7.28 per barrel and free cash flow from operations of $1.1 billion. The business had a positive all-in free cash flow of $258 million for the period, while continuing to invest in our two major development projects, Barossa and Pikka. Our balance sheet remains robust, with gearing at 23.7%, including leases at the end of the half, and excellent performance during a period of significant investment. On this basis, we are pleased to declare an interim dividend of $435 million. Last year, we rolled out our updated capital allocation framework. Thanks, Kevin, and thank you everyone for joining us today. thanks kevin and thank you everyone for joining us today Santos has delivered a strong set of financial results underpinned by solid base business performance. santos has delivered a strong set of financial results underpinned by solid base business performance Our disciplined low-cost operating model continues to deliver, highlighted by a unit production cost of $7.28 per barrel and free cash flow from operations of $1.1 billion. our disciplined low-cost operating model continues to deliver highlighted by a unit production cost of $7.28 per barrel and free cash flow from operations of $1.1 billion The business had a positive all-in free cash flow of $258 million for the period, while continuing to invest in our two major development projects, Barossa and Pikka. the business had a positive all-in free cash flow of $258 million for the period while continuing to invest in our two major development projects barossa and pikka Our balance sheet remains robust, with gearing at 23.7%, including leases at the end of the half, and excellent performance during a period of significant investment. our balance sheet remains robust with gearing at 23.7% including leases at the end of the half and excellent performance during a period of significant investment On this basis, we are pleased to declare an interim dividend of $435 million. on this basis we are pleased to declare an interim dividend of $435 million Last year, we rolled out our updated capital allocation framework. last year we rolled out our updated capital allocation framework The updated framework is designed to prioritize and enhance shareholder returns as we move beyond the capital-intensive period of a major growth cycle and new production comes online. It provides a clear pathway to sustainable, improved returns across the cycle. The framework is built around three key pillars: maintaining a strong balance sheet, delivering improved shareholder returns, and generating strong free cash flow from operations. Together, these give us the flexibility and the resilience to create long-term value for our shareholders. This slide really shows the strength of our disciplined low-cost operating model. On the left, you can see our strong free cash flow generation, even through periods of commodity price headwinds. In the first half of 2025, we've delivered more free cash flow than the first half of 2024, despite significantly lower commodity prices. On the right, the impact is clear. The updated framework is designed to prioritize and enhance shareholder returns as we move beyond the capital-intensive period of a major growth cycle and new production comes online. the updated framework is designed to prioritize and enhance shareholder returns as we move beyond the capital-intensive period of a major growth cycle and new production comes online It provides a clear pathway to sustainable, improved returns across the cycle. it provides a clear pathway to sustainable improved returns across the cycle The framework is built around three key pillars: maintaining a strong balance sheet, delivering improved shareholder returns, and generating strong free cash flow from operations. the framework is built around three key pillars maintaining a strong balance sheet delivering improved shareholder returns and generating strong free cash flow from operations Together, these give us the flexibility and the resilience to create long-term value for our shareholders. together these give us the flexibility and the resilience to create long-term value for our shareholders This slide really shows the strength of our disciplined low-cost operating model. this slide really shows the strength of our disciplined low-cost operating model On the left, you can see our strong free cash flow generation, even through periods of commodity price headwinds. on the left you can see our strong free cash flow generation even through periods of commodity price headwinds In the first half of 2025, we've delivered more free cash flow than the first half of 2024, despite significantly lower commodity prices. in the first half of 2025 we've delivered more free cash flow than the first half of 2024 despite significantly lower commodity prices On the right, the impact is clear. on the right the impact is clear Since adopting our disciplined low-cost operating model, we've returned more to shareholders than the company's entire market cap back in 2016. We remain focused on prioritizing shareholder returns, and with a strong balance sheet, we have the flexibility to keep delivering through the cycle. Shareholder returns of $435 million, equivalent to 40% of free cash flow from operations, and up on last year, have been delivered this half in line with our capital allocation policy. In the first half of 2025, free cash flow from operations was around $1.1 billion. This result is higher than the first half of 2024 and supported by lower production costs and lower CapEx. Our operating free cash flow for the first half of 2025 tells its own story: a resilient, diversified portfolio powered by high-performing core assets, secure LNG offtake agreements, inflation-linked fixed-price domestic gas contracts, and an unwavering commitment to low-cost operations. Since adopting our disciplined low-cost operating model, we've returned more to shareholders than the company's entire market cap back in 2016. since adopting our disciplined low-cost operating model we've returned more to shareholders than the company's entire market cap back in 2016 We remain focused on prioritizing shareholder returns, and with a strong balance sheet, we have the flexibility to keep delivering through the cycle. we remain focused on prioritizing shareholder returns and with a strong balance sheet we have the flexibility to keep delivering through the cycle Shareholder returns of $435 million, equivalent to 40% of free cash flow from operations, and up on last year, have been delivered this half in line with our capital allocation policy. shareholder returns of $435 million equivalent to 40% of free cash flow from operations and up on last year have been delivered this half in line with our capital allocation policy In the first half of 2025, free cash flow from operations was around $1.1 billion. in the first half of 2025 free cash flow from operations was around $1.1 billion This result is higher than the first half of 2024 and supported by lower production costs and lower CapEx. this result is higher than the first half of 2024 and supported by lower production costs and lower capex Our operating free cash flow for the first half of 2025 tells its own story: a resilient, diversified portfolio powered by high-performing core assets, secure LNG offtake agreements, inflation-linked fixed-price domestic gas contracts, and an unwavering commitment to low-cost operations. our operating free cash flow for the first half of 2025 tells its own story a resilient diversified portfolio powered by high-performing core assets secure lng offtake agreements inflation-linked fixed-price domestic gas contracts and an unwavering commitment to low-cost operations Our underlying earnings show that product sales revenue remains strong at over $2.6 billion, generating EBITDA of more than $1.8 billion and underlying profit of $508 million. Underlying profit is lower than the prior comparative half due to lower revenue from real-life domestic gas and crude oil pricing and sales volume, higher restoration and financing costs, offset by lower tax expenses. We recorded a one-off non-recurring exploration and evaluation impairment of $119 million against the P&G business. These are historical costs which were capitalized as a part of the Oil Search acquisition, and since then, the hive's footwall prospects have been unsuccessful. Despite the footwall section being plugged and abandoned, pleasingly, the hanging wall section was successful, with the operator planning to bring it online between late 2025 and early 2026. Our underlying earnings show that product sales revenue remains strong at over $2.6 billion, generating EBITDA of more than $1.8 billion and underlying profit of $508 million. our underlying earnings show that product sales revenue remains strong at over $2.6 billion generating ebitda of more than $1.8 billion and underlying profit of $508 million Underlying profit is lower than the prior comparative half due to lower revenue from real-life domestic gas and crude oil pricing and sales volume, higher restoration and financing costs, offset by lower tax expenses. underlying profit is lower than the prior comparative half due to lower revenue from real-life domestic gas and crude oil pricing and sales volume higher restoration and financing costs offset by lower tax expenses We recorded a one-off non-recurring exploration and evaluation impairment of $119 million against the P&G business. we recorded a one-off non-recurring exploration and evaluation impairment of $119 million against the p&g business These are historical costs which were capitalized as a part of the Oil Search acquisition, and since then, the hive's footwall prospects have been unsuccessful. these are historical costs which were capitalized as a part of the oil search acquisition and since then the hive's footwall prospects have been unsuccessful Despite the footwall section being plugged and abandoned, pleasingly, the hanging wall section was successful, with the operator planning to bring it online between late 2025 and early 2026. despite the footwall section being plugged and abandoned pleasingly the hanging wall section was successful with the operator planning to bring it online between late 2025 and early 2026 Building on a strong first-half performance, we've tightened our unit production cost guidance for 2025 to $7.00 to $7.40 per BOE. Once Barossa LNG and Pikka phase I are online, we remain on track to target unit costs below $7.00 per BOE. We continue to target an unhedged operating free cash flow breakeven of under $35 per barrel in 2025, ensuring our portfolio stays resilient in an ever-changing commodity price environment. Retaining our investment-grade credit ratings from Fitch, Moody's, and S&P reflects Santos' focus on disciplined capital management and our low-cost operating model in place since 2016. Net debt stood at less than $4.9 billion at the end of the first half, with gearing in our target range. Building on a strong first-half performance, we've tightened our unit production cost guidance for 2025 to $7.00 to $7.40 per BOE. building on a strong first-half performance we've tightened our unit production cost guidance for 2025 to $7.00 to $7.40 per boe Once Barossa LNG and Pikka phase I are online, we remain on track to target unit costs below $7.00 per BOE. once barossa lng and pikka phase i are online we remain on track to target unit costs below $7.00 per boe We continue to target an unhedged operating free cash flow breakeven of under $35 per barrel in 2025, ensuring our portfolio stays resilient in an ever-changing commodity price environment. we continue to target an unhedged operating free cash flow breakeven of under $35 per barrel in 2025 ensuring our portfolio stays resilient in an ever-changing commodity price environment Retaining our investment-grade credit ratings from Fitch, Moody's, and S&P reflects Santos' focus on disciplined capital management and our low-cost operating model in place since 2016. retaining our investment-grade credit ratings from fitch moody's and s&p reflects santos' focus on disciplined capital management and our low-cost operating model in place since 2016 Net debt stood at less than $4.9 billion at the end of the first half, with gearing in our target range. net debt stood at less than $4.9 billion at the end of the first half with gearing in our target range As noted previously, we do expect that gearing will increase temporarily later this year as we near project completion for Barossa and Pikka, and with the inclusion of the lease liability from the Barossa FPSO, after which it is forecast to reduce as development capital expenditures decline and new revenues materialize. We continue to hold a high level of liquidity, with $3.9 billion at the end of June in a combination of cash facilities and undrawn finance facilities. In accordance with our capital management framework, we look to protect the balance sheet and safeguard our financial position through hedging strategies for commodity and FX exposures. We have 7.5 million barrels of oil hedged at a floor of $65 and an average cap of $80.57. As noted previously, we do expect that gearing will increase temporarily later this year as we near project completion for Barossa and Pikka, and with the inclusion of the lease liability from the Barossa FPSO, after which it is forecast to reduce as development capital expenditures decline and new revenues materialize. as noted previously we do expect that gearing will increase temporarily later this year as we near project completion for barossa and pikka and with the inclusion of the lease liability from the barossa fpso after which it is forecast to reduce as development capital expenditures decline and new revenues materialize We continue to hold a high level of liquidity, with $3.9 billion at the end of June in a combination of cash facilities and undrawn finance facilities. we continue to hold a high level of liquidity with $3.9 billion at the end of june in a combination of cash facilities and undrawn finance facilities In accordance with our capital management framework, we look to protect the balance sheet and safeguard our financial position through hedging strategies for commodity and FX exposures. in accordance with our capital management framework we look to protect the balance sheet and safeguard our financial position through hedging strategies for commodity and fx exposures We have 7.5 million barrels of oil hedged at a floor of $65 and an average cap of $80.57. we have 7.5 million barrels of oil hedged at a floor of $65 and an average cap of $80.57 Further, we have hedged positions in place for FX of AUD 930 million in the second half of 2025 and AUD 1.06 billion in 2026. This hedging has been undertaken at rates well below the long-term Australian dollar FX averages, providing strong FX protection as we complete our current period of major capital expenditure. Overall, we've had a strong financial performance in the first half of 2025, returning $435 million to shareholders. Thank you, and I'll now hand back over to Kevin. Further, we have hedged positions in place for FX of AUD 930 million in the second half of 2025 and AUD 1.06 billion i n 2026. further we have hedged positions in place for fx of aud 930 million in the second half of 2025 and aud 1.06 billion i n 2026 This hedging has been undertaken at rates well below the long-term Australian dollar FX averages, providing strong FX protection as we complete our current period of major capital expenditure. this hedging has been undertaken at rates well below the long-term australian dollar fx averages providing strong fx protection as we complete our current period of major capital expenditure Overall, we've had a strong financial performance in the first half of 2025, returning $435 million to shareholders. overall we've had a strong financial performance in the first half of 2025 returning $435 million to shareholders Thank you, and I'll now hand back over to Kevin. thank you and i'll now hand back over to kevin

Speaker 3: Thanks, Sherry. I want to turn my focus now to our operational performance. As I said earlier, Santos' disciplined low-cost operating model continues to deliver through the first half. PNG LNG performs strongly, driven by high plant reliability and sustained feed gas contributions from Santos operated upstream assets, which produced more than 4 million barrels of oil equivalent and accounted for 17% of total supply into PNG LNG. Santos successfully lifted and sold eight equity LNG cargoes on behalf of Santos lifting groups. Looking ahead to 2035, 100% of our LNG share will be equity lifted and integrated into our LNG contract portfolio. We are making strong progress on backfill projects that will sustain PNG LNG into the future. Starting with Angore, which was brought online in November last year, we are seeing strong production of over 360 million standard cubic feet of gas per day into PNG LNG. Thanks, Sherry. thanks sherry I want to turn my focus now to our operational performance. i want to turn my focus now to our operational performance As I said earlier, Santos' disciplined low-cost operating model continues to deliver through the first half. as i said earlier santos' disciplined low-cost operating model continues to deliver through the first half PNG LNG performs strongly, driven by high plant reliability and sustained feed gas contributions from Santos operated upstream assets, which produced more than 4 million barrels of oil equivalent and accounted for 17% of total supply into PNG LNG. png lng performs strongly driven by high plant reliability and sustained feed gas contributions from santos operated upstream assets which produced more than 4 million barrels of oil equivalent and accounted for 17% of total supply into png lng Santos successfully lifted and sold eight equity LNG cargoes on behalf of Santos lifting groups. santos successfully lifted and sold eight equity lng cargoes on behalf of santos lifting groups Looking ahead to 2035, 100% of our LNG share will be equity lifted and integrated into our LNG contract portfolio. looking ahead to 2035 100% of our lng share will be equity lifted and integrated into our lng contract portfolio We are making strong progress on backfill projects that will sustain PNG LNG into the future. we are making strong progress on backfill projects that will sustain png lng into the future Starting with Angore, which was brought online in November last year, we are seeing strong production of over 360 million standard cubic feet of gas per day into PNG LNG. starting with angore which was brought online in november last year we are seeing strong production of over 360 million standard cubic feet of gas per day into png lng The IDD6 infill oil well continues to contribute to production and has helped identify further backfill and sustain opportunities. The Hides F2 well from the hanging wall reservoir has been completed and is planned to come online late this year or early next year. The Papua LNG project is making good progress towards an expected FID early in the new year. Muruk, P'nyang, and Juha remain in the pipeline to support PNG LNG's long-term supply. GLNG delivered over 3 million tons of LNG production, completing the 51 contract cargoes. This was an excellent result underpinned by 100% plant reliability. We completed a planned seven-day shutdown of Train 2 on schedule and with a strong safety performance. GLNG continues to support the East Coast domestic market through offering seasonal shaping of LNG supply. The IDD6 infill oil well continues to contribute to production and has helped identify further backfill and sustain opportunities. the idd6 infill oil well continues to contribute to production and has helped identify further backfill and sustain opportunities The Hides F2 well from the hanging wall reservoir has been completed and is planned to come online late this year or early next year. the hides f2 well from the hanging wall reservoir has been completed and is planned to come online late this year or early next year The Papua LNG project is making good progress towards an expected FID early in the new year. the papua lng project is making good progress towards an expected fid early in the new year Muruk, P'nyang, and Juha remain in the pipeline to support PNG LNG's long-term supply. muruk p'nyang and juha remain in the pipeline to support png lng's long-term supply GLNG delivered over 3 million tons of LNG production, completing the 51 contract cargoes. glng delivered over 3 million tons of lng production completing the 51 contract cargoes This was an excellent result underpinned by 100% plant reliability. this was an excellent result underpinned by 100% plant reliability We completed a planned seven-day shutdown of Train 2 on schedule and with a strong safety performance. we completed a planned seven-day shutdown of train 2 on schedule and with a strong safety performance GLNG continues to support the East Coast domestic market through offering seasonal shaping of LNG supply. glng continues to support the east coast domestic market through offering seasonal shaping of lng supply GLNG upstream production has remained steady, underpinned by high reliability and strong drilling performance, with 74 wells drilled and 58 connected in the first half. Both Roma and Scotia fields achieved new daily production records at 215 terajoules and 110 terajoules, respectively, demonstrating our team's operational excellence. Four rigs are now dedicated to the multi-year Fairview campaign, positioning us for sustained production levels and maximum resource recovery. Development is also being advanced across Roma, Scotia, and Arcadia. Electrification supported around 2 petajoules of additional production, along with reduced emissions. In the Cooper Basin, production was impacted by floods on a scale not seen since 1974, with more than 200 wells and several upstream compressors affected. We are actively managing safe recovery as flood levels recede and access is restored. GLNG upstream production has remained steady, underpinned by high reliability and strong drilling performance, with 74 wells drilled and 58 connected in the first half. glng upstream production has remained steady underpinned by high reliability and strong drilling performance with 74 wells drilled and 58 connected in the first half Both Roma and Scotia fields achieved new daily production records at 215 terajoules and 110 terajoules, respectively, demonstrating our team's operational excellence. both roma and scotia fields achieved new daily production records at 215 terajoules and 110 terajoules respectively demonstrating our team's operational excellence Four rigs are now dedicated to the multi-year Fairview campaign, positioning us for sustained production levels and maximum resource recovery. four rigs are now dedicated to the multi-year fairview campaign positioning us for sustained production levels and maximum resource recovery Development is also being advanced across Roma, Scotia, and Arcadia. development is also being advanced across roma scotia and arcadia Electrification supported around 2 petajoules of additional production, along with reduced emissions. electrification supported around 2 petajoules of additional production along with reduced emissions In the Cooper Basin, production was impacted by floods on a scale not seen since 1974, with more than 200 wells and several upstream compressors affected. in the cooper basin production was impacted by floods on a scale not seen since 1974 with more than 200 wells and several upstream compressors affected We are actively managing safe recovery as flood levels recede and access is restored. we are actively managing safe recovery as flood levels recede and access is restored The impact of the floods has led to top-end production guidance for the full year being reduced to 95 million barrels of oil equivalent. Pleasingly, all four rigs have remained in operation. Multi-stage stimulation was successful in two horizontal granite wash wells in Member South, with one well online and the second expected online during the third quarter. Member Central optimization is an exciting opportunity for the Cooper Basin. Over 90% of the future resource sits in the Member Central and northern fields. That's where our focus will be going forward. We can optimize infrastructure by replacing 25 gas compressors with just five electric compressors. From a reliability and maintenance point of view, that will be transformational for the Cooper, materially reducing unit production costs. The impact of the floods has led to top-end production guidance for the full year being reduced to 95 million barrels of oil equivalent. the impact of the floods has led to top-end production guidance for the full year being reduced to 95 million barrels of oil equivalent Pleasingly, all four rigs have remained in operation. pleasingly all four rigs have remained in operation Multi-stage stimulation was successful in two horizontal granite wash wells in Member South, with one well online and the second expected online during the third quarter. multi-stage stimulation was successful in two horizontal granite wash wells in member south with one well online and the second expected online during the third quarter Member Central optimization is an exciting opportunity for the Cooper Basin. member central optimization is an exciting opportunity for the cooper basin Over 90% of the future resource sits in the Member Central and northern fields. over 90% of the future resource sits in the member central and northern fields That's where our focus will be going forward. that's where our focus will be going forward We can optimize infrastructure by replacing 25 gas compressors with just five electric compressors. we can optimize infrastructure by replacing 25 gas compressors with just five electric compressors From a reliability and maintenance point of view, that will be transformational for the Cooper, materially reducing unit production costs. from a reliability and maintenance point of view that will be transformational for the cooper materially reducing unit production costs In February, Halyard-2 began production six weeks ahead of schedule and has been consistently delivering approximately 90 million standard cubic feet per day to the Varanus Island hub, compared to the expected rate of 65 million standard cubic feet per day. This achievement highlights the immense value derived from developing reserves close to existing infrastructure. Small, low-cost hybrids like Halyard-2 allow us to maximize plant capacity, boost production, and reduce unit costs. We are now concept screening a number of near-field resources such as John Brookes infill, Spar Deep, Kultarr, and we're evaluating prospectivity externally. Plant performance has steadily improved at Varanus Island since 2022, achieving 98% reliability in the period. Across our portfolio, Santos has a range of low CapEx development opportunities that can boost production levels. In February, Halyard-2 began production six weeks ahead of schedule and has been consistently delivering approximately 90 million standard cubic feet per day to the Varanus Island hub, compared to the expected rate of 65 million standard cubic feet per day. in february halyard-2 began production six weeks ahead of schedule and has been consistently delivering approximately 90 million standard cubic feet per day to the varanus island hub compared to the expected rate of 65 million standard cubic feet per day This achievement highlights the immense value derived from developing reserves close to existing infrastructure. this achievement highlights the immense value derived from developing reserves close to existing infrastructure Small, low-cost hybrids like Halyard-2 allow us to maximize plant capacity, boost production, and reduce unit costs. small low-cost hybrids like halyard-2 allow us to maximize plant capacity boost production and reduce unit costs We are now concept screening a number of near-field resources such as John Brookes infill, Spar Deep, Kultarr , and we're evaluating prospectivity externally. we are now concept screening a number of near-field resources such as john brookes infill spar deep, kultarr and we're evaluating prospectivity externally Plant performance has steadily improved at Varanus Island since 2022, achieving 98% reliability in the period. plant performance has steadily improved at varanus island since 2022 achieving 98% reliability in the period Across our portfolio, Santos has a range of low CapEx development opportunities that can boost production levels. across our portfolio santos has a range of low capex development opportunities that can boost production levels These initiatives are embedded in our base business plans, leveraging existing infrastructure to deliver strong investment returns and maximize value from our current assets. In PNG, the APF Tie-in project is on track to be FID ready by 2026, with projections to deliver up to 125 million standard cubic feet per day gross. As I noted earlier, in the Cooper Basin, the Member Central optimization project is focused on replacing higher cost barrels with more cost-efficient production. In Western Australia, the impact of Halyard-2 on production costs highlights the advantages small actions can offer. Further development opportunities around Varanus Island promise value for years to come. In Eastern Queensland, Santos can leverage its comprehensive CSG experience and expertise in low-cost drilling to unlock significant value from our acreage positions. In Alaska, we have a low-capital project that aims to extend the plateau of Pikka and Deep [Autumnite] facilities. These initiatives are embedded in our base business plans, leveraging existing infrastructure to deliver strong investment returns and maximize value from our current assets. these initiatives are embedded in our base business plans leveraging existing infrastructure to deliver strong investment returns and maximize value from our current assets In PNG, the APF Tie-in project is on track to be FID ready by 2026, with projections to deliver up to 125 million standard cubic feet per day gross. in png the apf tie-in project is on track to be fid ready by 2026 with projections to deliver up to 125 million standard cubic feet per day gross As I noted earlier, in the Cooper Basin, the Member Central optimization project is focused on replacing higher cost barrels with more cost-efficient production. as i noted earlier in the cooper basin the member central optimization project is focused on replacing higher cost barrels with more cost-efficient production In Western Australia, the impact of Halyard-2 on production costs highlights the advantages small actions can offer. in western australia the impact of halyard-2 on production costs highlights the advantages small actions can offer Further development opportunities around Varanus Island promise value for years to come. further development opportunities around varanus island promise value for years to come In Eastern Queensland, Santos can leverage its comprehensive CSG experience and expertise in low-cost drilling to unlock significant value from our acreage positions. in eastern queensland santos can leverage its comprehensive csg experience and expertise in low-cost drilling to unlock significant value from our acreage positions In Alaska, we have a low-capital project that aims to extend the plateau of Pikka and Deep [Autumnite] facilities. in alaska we have a low-capital project that aims to extend the plateau of pikka and deep [autumnite] facilities With disciplined investment, Santos is uniquely positioned for profitable growth. Momentum is building behind the Narrabri gas project, which signed an MOU with Origin to supply up to 20 petajoules a year for 10+ years into the East Coast domestic market. The Native Title Tribunal has remade a favorable future act decision for production tenure awards, and we continue to work constructively with the Gomeroi on both the gas project and the pipelines. Around 30% of land access for the Hunter Gas Pipeline is now secured, and other approvals are progressing well. In PNG, the Papua LNG project continues to progress through FEED, with FID expected early 2026. We have a strong acreage position on Alaska's North Slope, which positions us well for future growth there, and an appraisal well in Quokka is planned for the coming year. With disciplined investment, Santos is uniquely positioned for profitable growth. with disciplined investment santos is uniquely positioned for profitable growth Momentum is building behind the Narrabri gas project, which signed an MOU with Origin to supply up to 20 petajoules a year for 10+ years into the East Coast domestic market. momentum is building behind the narrabri gas project which signed an mou with origin to supply up to 20 petajoules a year for 10+ years into the east coast domestic market The Native Title Tribunal has remade a favorable future act decision for production tenure awards, and we continue to work constructively with the Gomeroi on both the gas project and the pipelines. the native title tribunal has remade a favorable future act decision for production tenure awards and we continue to work constructively with the gomeroi on both the gas project and the pipelines Around 30% of land access for the Hunter Gas Pipeline is now secured, and other approvals are progressing well. around 30% of land access for the hunter gas pipeline is now secured and other approvals are progressing well In PNG, the Papua LNG project continues to progress through FEED, with FID expected early 2026. in png the papua lng project continues to progress through feed with fid expected early 2026 We have a strong acreage position on Alaska's North Slope, which positions us well for future growth there, and an appraisal well in Quokka is planned for the coming year. we have a strong acreage position on alaska's north slope which positions us well for future growth there and an appraisal well in quokka is planned for the coming year In Western Australia, we're assessing an integrated gas and liquids concept at Bedout, with appraisal wells being planned to refine scope and timing. In the Beetaloo, we have already booked 1.4 trillion cubic feet gross of 2C contingent resource from only two wells, and an appraisal program is planned for next year. The Beetaloo has the potential to reshape energy supply in the Northern Territory and materially boost both domestic gas and LNG markets in the North and East. Santos continues to invest in the communities where we operate and where our people live and work. Through the Santos Foundation, the Barossa Aboriginal Future Fund, partnerships such as our Cooper Basin Ranger programs, and our award-winning training collaboration with KAEFER Integrated Services, we're supporting jobs, skills, and better outcomes for our host communities. In Western Australia, we're assessing an integrated gas and liquids concept at Bedout, with appraisal wells being planned to refine scope and timing. in western australia we're assessing an integrated gas and liquids concept at bedout with appraisal wells being planned to refine scope and timing In the Beetaloo, we have already booked 1.4 trillion cubic feet gross of 2C contingent resource from only two wells, and an appraisal program is planned for next year. in the beetaloo we have already booked 1.4 trillion cubic feet gross of 2c contingent resource from only two wells and an appraisal program is planned for next year The Beetaloo has the potential to reshape energy supply in the Northern Territory and materially boost both domestic gas and LNG markets in the North and East. the beetaloo has the potential to reshape energy supply in the northern territory and materially boost both domestic gas and lng markets in the north and east Santos continues to invest in the communities where we operate and where our people live and work. santos continues to invest in the communities where we operate and where our people live and work Through the Santos Foundation, the Barossa Aboriginal Future Fund, partnerships such as our Cooper Basin Ranger programs, and our award-winning training collaboration with KAEFER Integrated Services, we're supporting jobs, skills, and better outcomes for our host communities. through the santos foundation the barossa aboriginal future fund partnerships such as our cooper basin ranger programs and our award-winning training collaboration with kaefer integrated services we're supporting jobs skills and better outcomes for our host communities While the current market environment is challenging, our focus for the remainder of 2025 remains clear: operating our base business safely and reliably, bringing our development projects online, and implementing our disciplined low-cost operating model. Our first-half performance has been strong, and we're committed to bringing 2025 home safely with a strong finish by continuing to ramp Cooper production to full rates following this year's record plugs, maintaining unit production costs within our guidance, delivering structural cost savings of $150 million per year going forward, starting Barossa up successfully and safely, and delivering our first LNG cargo at DLNG from Barossa Gas, keeping Pikka on track and on budget, and aiming for early first oil in the first quarter of 2026, progressing Papua LNG, Bayu-Undan CCS, and Narrabri to FID ready status, and finalizing appraisal programs for Beetaloo and Bedout Basin to support getting these projects FID ready. While the current market environment is challenging, our focus for the remainder of 2025 remains clear: operating our base business safely and reliably, bringing our development projects online, and implementing our disciplined low-cost operating model. while the current market environment is challenging our focus for the remainder of 2025 remains clear operating our base business safely and reliably bringing our development projects online and implementing our disciplined low-cost operating model Our first-half performance has been strong, and we're committed to bringing 2025 home safely with a strong finish by continuing to ramp Cooper production to full rates following this year's record plugs, maintaining unit production costs within our guidance, delivering structural cost savings of $150 million per year going forward, starting Barossa up successfully and safely, and delivering our first LNG cargo at DLNG from Barossa Gas, keeping Pikka on track and on budget, and aiming for early first oil in the first quarter of 2026, progressing Papua LNG, Bayu-Undan CCS, and Narrabri to FID ready status, and finalizing appraisal programs for Beetaloo and Bedout Basin to support getting these projects FID ready. our first-half performance has been strong and we're committed to bringing 2025 home safely with a strong finish by continuing to ramp cooper production to full rates following this year's record plugs maintaining unit production costs within our guidance delivering structural cost savings of $150 million per year going forward starting barossa up successfully and safely and delivering our first lng cargo at dlng from barossa gas keeping pikka on track and on budget and aiming for early first oil in the first quarter of 2026 progressing papua lng bayu-undan ccs and narrabri to fid ready status and finalizing appraisal programs for beetaloo and bedout basin to support getting these projects fid ready In closing, the momentum we anticipated for 2025 is well underway and delivering value for our shareholders. Thank you, and it's now time to take questions. In closing, the momentum we anticipated for 2025 is well underway and delivering value for our shareholders. in closing the momentum we anticipated for 2025 is well underway and delivering value for our shareholders Thank you, and it's now time to take questions. thank you and it's now time to take questions

Speaker 8: Thank you. If you wish to ask a question, please press 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press * then 2. If you're using a speakerphone, please pick up the handset to ask your question. We ask that questions be limited to two per person. Please rejoin the question queue for any follow-up questions. The first question today comes from Tom Allen from UBS. Please go ahead. Thank you. thank you If you wish to ask a question, please press 1 on your telephone and wait for your name to be announced. if you wish to ask a question please press *1 on your telephone and wait for your name to be announced If you wish to cancel your request, please press * then 2. if you wish to cancel your request please press * then 2 If you're using a speakerphone, please pick up the handset to ask your question. if you're using a speakerphone please pick up the handset to ask your question We ask that questions be limited to two per person. we ask that questions be limited to two per person Please rejoin the question queue for any follow-up questions. please rejoin the question queue for any follow-up questions The first question today comes from Tom Allen from UBS. the first question today comes from tom allen from ubs Please go ahead. please go ahead

Speaker 5: Good morning, Kevin, Sherry, and the Board. I'll start with a question on the transactions. This morning, Santos has announced another extension to the exclusivity period for the potential transaction. Can you please provide some color on the customary protections, which read like a ticking fee under discussion, just to ensure the shareholders are supported if the timeline continues to slip further out? Good morning, Kevin, Sherry, and the Board. good morning kevin sherry and the board I'll start with a question on the transactions. i'll start with a question on the transactions This morning, Santos has announced another extension to the exclusivity period for the potential transaction. this morning santos has announced another extension to the exclusivity period for the potential transaction Can you please provide some color on the customary protections, which read like a ticking fee under discussion, just to ensure the shareholders are supported if the timeline continues to slip further out? can you please provide some color on the customary protections which read like a ticking fee under discussion just to ensure the shareholders are supported if the timeline continues to slip further out

Speaker 3: Good morning, Tom. Look, thank you for the question. Look, we gave color on the reasons for the, we flagged last week the reasons for the extension in our announcement to the market last week. This morning's announcement on the further extension is really as a result of us moving to finalize the acceptable Scheme Implementation Agreement. We have made considerable progress. We did say that it would include customary protections for shareholders should the potential transaction take longer than expected to complete. However, we're not going to comment on specific terms and conditions until we get to the binding agreement, which we're targeting for the end of this extension period. At that point, that document, of course, will become public, and we'll update the market accordingly in line with our obligations at that time. Good morning, Tom. good morning tom Look, thank you for the question. look thank you for the question Look, we gave color on the reasons for the, we flagged last week the reasons for the extension in our announcement to the market last week. look we gave color on the reasons for the we flagged last week the reasons for the extension in our announcement to the market last week This morning's announcement on the further extension is really as a result of us moving to finalize the acceptable Scheme Implementation Agreement. this morning's announcement on the further extension is really as a result of us moving to finalize the acceptable scheme implementation agreement We have made considerable progress. we have made considerable progress We did say that it would include customary protections for shareholders should the potential transaction take longer than expected to complete. we did say that it would include customary protections for shareholders should the potential transaction take longer than expected to complete However, we're not going to comment on specific terms and conditions until we get to the binding agreement, which we're targeting for the end of this extension period. however we're not going to comment on specific terms and conditions until we get to the binding agreement which we're targeting for the end of this extension period At that point, that document, of course, will become public, and we'll update the market accordingly in line with our obligations at that time. at that point that document of course will become public and we'll update the market accordingly in line with our obligations at that time

Speaker 5: Okay, thanks, Kevin. If a binding transaction is agreed by 19th September, can you outline just an indicative timeline on securing regulatory approvals and when investors might expect a scheme vote? Okay, thanks, Kevin. okay thanks kevin If a binding transaction is agreed by 19th September, can you outline just an indicative timeline on securing regulatory approvals and when investors might expect a scheme vote? if a binding transaction is agreed by 19th september can you outline just an indicative timeline on securing regulatory approvals and when investors might expect a scheme vote

Speaker 3: It's too premature to be speculating on what that timeline will be, Tom. We will look at those customary approvals taking normal durations, but obviously we'll talk about that at the time when we reach the point of having a binding agreement. It's too premature to be speculating on what that timeline will be, Tom. it's too premature to be speculating on what that timeline will be tom We will look at those customary approvals taking normal durations, but obviously we'll talk about that at the time when we reach the point of having a binding agreement. we will look at those customary approvals taking normal durations but obviously we'll talk about that at the time when we reach the point of having a binding agreement

Speaker 5: Okay. On the result itself, PNG LNG continuing to annualize production at 25% above nameplate continues to look really strong. Following the drilling at Hides F2 and the hanging wall, can you provide a comment on how long current upstream supply to PNG LNG can sustain production at those levels? When the joint venture might consider a FEED decision on the P'nyang gas development, just in the event that Papua LNG development schedule continues to shift further to the right? Okay. okay On the result itself, PNG LNG continuing to annualize production at 25% above nameplate continues to look really strong. on the result itself png lng continuing to annualize production at 25% above nameplate continues to look really strong Following the drilling at Hides F2 and the hanging wall, can you provide a comment on how long current upstream supply to PNG LNG can sustain production at those levels? following the drilling at hides f2 and the hanging wall can you provide a comment on how long current upstream supply to png lng can sustain production at those levels When the joint venture might consider a FEED decision on the P'nyang gas development, just in the event that Papua LNG development schedule continues to shift further to the right? when the joint venture might consider a feed decision on the p'nyang gas development just in the event that papua lng development schedule continues to shift further to the right

Speaker 3: I'll look at things over the course of the next year. We'll provide an update on longer-term developments like P'nyang. Currently, our focus is on a number of different projects, as we talked about in the presentation this morning, including APF Tie-in to continue to maintain plateau production all the way through until Papua comes on. Our confidence in the Papua project is increasing, and we're looking forward to getting that FID ready around the end of this year and then taking FID hopefully early in the new year. P'nyang would come after that. We'll give information in terms of moving into Pekin stuff, I'd imagine, throughout the course of the next year or so. Really, our focus in the short term is on many of those infill projects to provide to maintain plateau production all the way until Papua comes on. I'll look at things over the course of the next year. i'll look at things over the course of the next year We'll provide an update on longer-term developments like P'nyang. we'll provide an update on longer-term developments like p'nyang Currently, our focus is on a number of different projects, as we talked about in the presentation this morning, including APF Tie-in to continue to maintain plateau production all the way through until Papua comes on. currently our focus is on a number of different projects as we talked about in the presentation this morning including apf tie-in to continue to maintain plateau production all the way through until papua comes on Our confidence in the Papua project is increasing, and we're looking forward to getting that FID ready around the end of this year and then taking FID hopefully early in the new year. our confidence in the papua project is increasing and we're looking forward to getting that fid ready around the end of this year and then taking fid hopefully early in the new year P'nyang would come after that. p'nyang would come after that We'll give information in terms of moving into Pekin stuff, I'd imagine, throughout the course of the next year or so. we'll give information in terms of moving into pekin stuff i'd imagine throughout the course of the next year or so Really, our focus in the short term is on many of those infill projects to provide to maintain plateau production all the way until Papua comes on. really our focus in the short term is on many of those infill projects to provide to maintain plateau production all the way until papua comes on

Speaker 5: Okay, thanks, Kevin. Okay, thanks, Kevin. okay thanks kevin

Speaker 3: Thanks, Tom. Thanks, Tom. thanks tom

Speaker 8: Thank you. The next question comes from Dale Koenders from Barrenjoey. Please go ahead. Thank you. thank you The next question comes from Dale Koenders from Barrenjoey. the next question comes from dale koenders from barrenjoey Please go ahead. please go ahead

Speaker 4: Morning, Kevin and James. Firstly, just on the Barossa lease coming onto the balance sheet, can you give us a steer as to how large that is? In terms of the lease payments that are coming with it, how should we think about that? I understand there's a level of prepayment. Morning, Kevin and James. morning kevin and james Firstly, just on the Barossa lease coming onto the balance sheet, can you give us a steer as to how large that is? firstly just on the barossa lease coming onto the balance sheet can you give us a steer as to how large that is In terms of the lease payments that are coming with it, how should we think about that? in terms of the lease payments that are coming with it how should we think about that I understand there's a level of prepayment. i understand there's a level of prepayment

Speaker 3: Thanks, Dale. I'm going to handball that one right over to Sherry, who loves talking about leases. Thanks, Dale. thanks dale I'm going to handball that one right over to Sherry, who loves talking about leases. i'm going to handball that one right over to sherry who loves talking about leases

Speaker 1: We love that, Dale. Thank you for the question. We've guided previously that you should think low single digits in terms of the lease coming onto the balance sheet. We do expect that as soon as we come on production and first gas, we'll be able to update exactly what that is and then talk about how that actually hits the income statement and the cash flows that go along with that. As you say, there is a right of use asset that will be made up of both the prepayment and the actual lease obligation for the operation going forward. We'll disclose all of that in the future reporting period. We love that, Dale. we love that dale Thank you for the question. thank you for the question We've guided previously that you should think low single digits in terms of the lease coming onto the balance sheet. we've guided previously that you should think low single digits in terms of the lease coming onto the balance sheet We do expect that as soon as we come on production and first gas, we'll be able to update exactly what that is and then talk about how that actually hits the income statement and the cash flows that go along with that. we do expect that as soon as we come on production and first gas we'll be able to update exactly what that is and then talk about how that actually hits the income statement and the cash flows that go along with that As you say, there is a right of use asset that will be made up of both the prepayment and the actual lease obligation for the operation going forward. as you say there is a right of use asset that will be made up of both the prepayment and the actual lease obligation for the operation going forward We'll disclose all of that in the future reporting period. we'll disclose all of that in the future reporting period

Speaker 4: Can you give us any steer in terms of how much of the leases are being prepaid or what timeframe you get beneficial treatment for? Can you give us any steer in terms of how much of the leases are being prepaid or what timeframe you get beneficial treatment for? can you give us any steer in terms of how much of the leases are being prepaid or what timeframe you get beneficial treatment for

Speaker 1: No, I think other than what we've put in our financial statements already, I can't go any further than that, Dale. We do expect to update you fully on that, and again, how it'll hit the income statement and cash flows once we have it online and producing. No, I think other than what we've put in our financial statements already, I can't go any further than that, Dale. no i think other than what we've put in our financial statements already i can't go any further than that dale We do expect to update you fully on that, and again, how it'll hit the income statement and cash flows once we have it online and producing. we do expect to update you fully on that and again how it'll hit the income statement and cash flows once we have it online and producing

Speaker 4: Okay. It doesn't seem to be any sort of comment around the proposed price from the XRG Consortium being adjusted for the dividend declared today. I'm just wondering if you can provide any comments on that, Kevin, or is that one of the things that's up for discussion still? Okay. okay It doesn't seem to be any sort of comment around the proposed price from the XRG Consortium being adjusted for the dividend declared today. it doesn't seem to be any sort of comment around the proposed price from the xrg consortium being adjusted for the dividend declared today I'm just wondering if you can provide any comments on that, Kevin, or is that one of the things that's up for discussion still? i'm just wondering if you can provide any comments on that kevin or is that one of the things that's up for discussion still

Speaker 3: The offer indicated that any dividends would be deducted from the price, and that is the status of the offer. As I say, you know, really don't want to start commenting on specific terms and conditions of the deal until we get to a binding agreement. The terms of the offer, the non-binding indicative offer, we made public some weeks back when we announced the opportunity. We'll talk more about the details when we get to the binding agreement, hopefully in around four weeks' time. The offer indicated that any dividends would be deducted from the price, and that is the status of the offer. the offer indicated that any dividends would be deducted from the price and that is the status of the offer As I say, you know, really don't want to start commenting on specific terms and conditions of the deal until we get to a binding agreement. as i say you know really don't want to start commenting on specific terms and conditions of the deal until we get to a binding agreement The terms of the offer, the non-binding indicative offer, we made public some weeks back when we announced the opportunity. the terms of the offer the non-binding indicative offer we made public some weeks back when we announced the opportunity We'll talk more about the details when we get to the binding agreement, hopefully in around four weeks' time. we'll talk more about the details when we get to the binding agreement hopefully in around four weeks' time

Speaker 4: Okay, thank you. Okay, thank you. okay thank you

Speaker 3: Thank you. Thank you. thank you

Speaker 8: Thank you. The next question comes from Gordon Ramsay from RBC Capital Markets. Please go ahead. Thank you. thank you The next question comes from Gordon Ramsay from RBC Capital Markets. the next question comes from gordon ramsay from rbc capital markets Please go ahead. please go ahead

Speaker 6: Oh, thank you very much. Kevin, just another question about the bid. When XRG asks for extended time, do they have to go back to the UAE for government approval on this once the SIA is agreed? Oh, thank you very much. oh thank you very much Kevin, just another question about the bid. kevin just another question about the bid When XRG asks for extended time, do they have to go back to the UAE for government approval on this once the SIA is agreed? when xrg asks for extended time do they have to go back to the uae for government approval on this once the sia is agreed

Speaker 3: As we flagged last week at Gordon, they have to go back for what they would call corporate approvals. As part of the discussions we've had with them, they've provided some color on those approvals. We don't want to comment publicly on XRG's internal processes, that is a matter for XRG. We're pleased with the progress we've made. We've worked well with the folks from XRG over the last few weeks. As a result of the considerable progress that we've made towards an acceptable SIA, and given that the consortium has again confirmed that it's found nothing in due diligence that would make it consider withdrawing its offer, we've agreed to extend the process, as you heard this morning, for a further four weeks until the 19th of September. As we flagged last week at Gordon, they have to go back for what they would call corporate approvals. as we flagged last week at gordon they have to go back for what they would call corporate approvals As part of the discussions we've had with them, they've provided some color on those approvals. as part of the discussions we've had with them they've provided some color on those approvals We don't want to comment publicly on XRG's internal processes, that is a matter for XRG. we don't want to comment publicly on xrg's internal processes that is a matter for xrg We're pleased with the progress we've made. we're pleased with the progress we've made We've worked well with the folks from XRG over the last few weeks. we've worked well with the folks from xrg over the last few weeks As a result of the considerable progress that we've made towards an acceptable SIA, and given that the consortium has again confirmed that it's found nothing in due diligence that would make it consider withdrawing its offer, we've agreed to extend the process , as you heard this morning, for a further four weeks until the 19th of September. as a result of the considerable progress that we've made towards an acceptable sia and given that the consortium has again confirmed that it's found nothing in due diligence that would make it consider withdrawing its offer we've agreed to extend the process as you heard this morning for a further four weeks until the 19th of september

Speaker 6: Thank you. Just one more. You made a comment this morning on increased confidence on Papua LNG, potentially, you know, moving forward early in the new year. Can you just remind us what the critical path items are there? Is that achieving acceptable EPC contracts, or are there other factors in play that have held up this project? Thank you. thank you Just one more. just one more You made a comment this morning on increased confidence on Papua LNG, potentially, you know, moving forward early in the new year. you made a comment this morning on increased confidence on papua lng potentially you know moving forward early in the new year Can you just remind us what the critical path items are there? can you just remind us what the critical path items are there Is that achieving acceptable EPC contracts, or are there other factors in play that have held up this project? is that achieving acceptable epc contracts or are there other factors in play that have held up this project

Speaker 3: Really, it was the operators recycled some bid activities at the time, which I think that was way 2023, I think. Costs were looking a bit higher, so we've recycled some of that, and they've done a good job at taking considerable costs out. We'll update the market when we get to the point of making that decision. We're confident that project's heading in the right direction and that we should be in a position at least to be FID ready around the end of this year. Really, it was the operators recycled some bid activities at the time, which I think that was way 2023, I think. really it was the operators recycled some bid activities at the time which i think that was way 2023 i think Costs were looking a bit higher, so we've recycled some of that, and they've done a good job at taking considerable costs out. costs were looking a bit higher so we've recycled some of that and they've done a good job at taking considerable costs out We'll update the market when we get to the point of making that decision. we'll update the market when we get to the point of making that decision We're confident that project's heading in the right direction and that we should be in a position at least to be FID ready around the end of this year. we're confident that project's heading in the right direction and that we should be in a position at least to be fid ready around the end of this year

Speaker 6: Thank you. Thank you. thank you

Speaker 3: Thanks, Gordon. Thanks, Gordon. thanks gordon

Speaker 8: Thank you. The next question comes from Rob Koh from Morgan Stanley. Please go ahead. Thank you. thank you The next question comes from Rob Koh from Morgan Stanley. the next question comes from rob koh from morgan stanley Please go ahead. please go ahead

Speaker 11: Good morning. Congratulations on the result. Just first question about PNG LNG. If you could give us any color on what kind of a plateau you're anticipating for Angore, please. Good morning. good morning Congratulations on the result. congratulations on the result Just first question about PNG LNG. just first question about png lng If you could give us any color on what kind of a plateau you're anticipating for Angore, please. if you could give us any color on what kind of a plateau you're anticipating for angore please

Speaker 3: We're not giving any specific data on Angore itself at this point in time. I think we always said that we'd watch its production for the first year before the operator would be in a position to give us their views on the longer-term bigger picture for that, if there's any upside or otherwise. Likewise, our subsurface people said the same thing. The great news is it's performing really strongly. As I said in my speech earlier, around 360 million standard cubic feet per day going into PNG LNG, and it's been a very successful project thus far. I can't really give you any more than that, I'm afraid. We're not giving any specific data on Angore itself at this point in time. we're not giving any specific data on angore itself at this point in time I think we always said that we'd watch its production for the first year before the operator would be in a position to give us their views on the longer-term bigger picture for that, if there's any upside or otherwise. i think we always said that we'd watch its production for the first year before the operator would be in a position to give us their views on the longer-term bigger picture for that if there's any upside or otherwise Likewise, our subsurface people said the same thing. likewise our subsurface people said the same thing The great news is it's performing really strongly. the great news is it's performing really strongly As I said in my speech earlier, around 360 million standard cubic feet per day going into PNG LNG, and it's been a very successful project thus far. as i said in my speech earlier around 360 million standard cubic feet per day going into png lng and it's been a very successful project thus far I can't really give you any more than that, I'm afraid. i can't really give you any more than that i'm afraid

Speaker 4: No worries. All right. Good start. I guess just a question on GLNG. There's been some commentary around the domestic gas review around the potential extension of a co-gas option. Are you able to provide any color on the co-gas option in 2031 and if that's already been exercised or whose right it is to exercise? No worries. All right. no worries. all right Good start. good start I guess just a question on GLNG. i guess just a question on glng There's been some commentary around the domestic gas review around the potential extension of a co-gas option. there's been some commentary around the domestic gas review around the potential extension of a co-gas option Are you able to provide any color on the co-gas option in 2031 and if that's already been exercised or whose right it is to exercise? are you able to provide any color on the co-gas option in 2031 and if that's already been exercised or whose right it is to exercise

Speaker 3: I'm not going to give any comments on contractual discussions or decisions that haven't been made yet. Ultimately, you know, the project's performing well. Our gas is contracted, the majority of our gas at GLNG, and we'll continue to operate, and we'll update the market if anything changes. There is nothing really to say on that at this point in time. I'm not going to give any comments on contractual discussions or decisions that haven't been made yet. i'm not going to give any comments on contractual discussions or decisions that haven't been made yet Ultimately, you know, the project's performing well. ultimately you know the project's performing well Our gas is contracted, the majority of our gas at GLNG, and we'll continue to operate, and we'll update the market if anything changes. our gas is contracted the majority of our gas at glng and we'll continue to operate and we'll update the market if anything changes There is nothing really to say on that at this point in time. there is nothing really to say on that at this point in time

Speaker 4: Okay, cool. Thanks so much. Cheers. Okay, cool. okay cool Thanks so much. thanks so much Cheers. cheers

Speaker 3: Thanks very much. Thank you. Thanks very much. thanks very much Thank you. thank you

Speaker 8: Thank you. The next question comes from Saul Kavonic from MST Marquee. Please go ahead. Thank you. thank you The next question comes from Saul Kavonic from MST Marquee. the next question comes from saul kavonic from mst marquee Please go ahead. please go ahead

Speaker 9: Thanks, Kevin and Sherry. Just, I guess last week's announcement of the four-plus-week XRG corporate approval timeframe did seem to come as a surprise. Didn't you check with XRG about these approval timeframes before putting out all the ASX releases, including the one on the 11th of August, which indicated that you could have a binding deal much sooner than that timeframe allowed? Thanks, Kevin and Sherry. thanks kevin and sherry Just, I guess last week's announcement of the four-plus-week XRG corporate approval timeframe did seem to come as a surprise. just i guess last week's announcement of the four-plus-week xrg corporate approval timeframe did seem to come as a surprise Didn't you check with XRG about these approval timeframes before putting out all the ASX releases, including the one on the 11th of August, which indicated that you could have a binding deal much sooner than that timeframe allowed? didn't you check with xrg about these approval timeframes before putting out all the asx releases including the one on the 11th of august which indicated that you could have a binding deal much sooner than that timeframe allowed

Speaker 3: Look, I think the question there really around the quality of XRG's internal corporate approvals is really a question for XRG, Saul. Look, we put the announcement out at the time that said six weeks to negotiate an SIA. At that time, both parties believed that was achievable. However, this is a big transaction. I believe it would be the largest all-cash transaction ever on the ASX, and I think the largest all-cash energy sector transaction globally. What has become apparent during that period and during the SIA detailed discussions was that things were taking a bit longer, and we got more clarity on the internal corporate approvals processes. As soon as we became aware of that, we flagged that for market last week. Look, I think the question there really around the quality of XRG's internal corporate approvals is really a question for XRG, Saul. look i think the question there really around the quality of xrg's internal corporate approvals is really a question for xrg saul Look, we put the announcement out at the time that said six weeks to negotiate an SIA. look we put the announcement out at the time that said six weeks to negotiate an sia At that time, both parties believed that was achievable. at that time both parties believed that was achievable However, this is a big transaction. however this is a big transaction I believe it would be the largest all-cash transaction ever on the ASX, and I think the largest all-cash energy sector transaction globally. i believe it would be the largest all-cash transaction ever on the asx and i think the largest all-cash energy sector transaction globally What has become apparent during that period and during the SIA detailed discussions was that things were taking a bit longer, and we got more clarity on the internal corporate approvals processes. what has become apparent during that period and during the sia detailed discussions was that things were taking a bit longer and we got more clarity on the internal corporate approvals processes As soon as we became aware of that, we flagged that for market last week. as soon as we became aware of that we flagged that for market last week

Speaker 9: I guess if XRG haven't been honest with you about the timeframe of these basic procedural steps in this process, what do you think is the faith that our government can have that XRG are being honest about their plans for the business and our critical infrastructure if the deal is allowed to go through? I guess if XRG haven't been honest with you about the timeframe of these basic procedural steps in this process, what do you think is the faith that our government can have that XRG are being honest about their plans for the business and our critical infrastructure if the deal is allowed to go through? i guess if xrg haven't been honest with you about the timeframe of these basic procedural steps in this process what do you think is the faith that our government can have that xrg are being honest about their plans for the business and our critical infrastructure if the deal is allowed to go through

Speaker 3: I don't think any of those comments are really for me, Saul, and those were your words, not mine. I don't think any of those comments are really for me, Saul, and those were your words, not mine. i don't think any of those comments are really for me saul and those were your words not mine

Speaker 9: Fair enough. If I'm not going to ever make a decision-maker available to us to ask questions, we will. So far, they're not exactly paying, don't appear to be playing a straight bat here. Just earlier, you mentioned in reply to an earlier question that you were targeting a binding agreement by the end of this period ending on the 19th of September. I just want to be clear, is that a full binding approved agreement, or that's just agreed terms, and then there'll still be the subsequent corporate approval process that would happen after that? Fair enough. fair enough If I'm not going to ever make a decision-maker available to us to ask questions, we will. if i'm not going to ever make a decision-maker available to us to ask questions we will So far, they're not exactly paying, don't appear to be playing a straight bat here. so far they're not exactly paying don't appear to be playing a straight bat here Just earlier, you mentioned in reply to an earlier question that you were targeting a binding agreement by the end of this period ending on the 19th of September. just earlier you mentioned in reply to an earlier question that you were targeting a binding agreement by the end of this period ending on the 19th of september I just want to be clear, is that a full binding approved agreement, or that's just agreed terms, and then there'll still be the subsequent corporate approval process that would happen after that? i just want to be clear is that a full binding approved agreement or that's just agreed terms and then there'll still be the subsequent corporate approval process that would happen after that

Speaker 3: We're targeting a full binding agreement by the 19th of September. Thanks, Saul. We're targeting a full binding agreement by the 19th of September. we're targeting a full binding agreement by the 19th of september Thanks, Saul. thanks saul

Speaker 9: Thank you. Thank you. thank you Thank you. Thank you. thank you

Speaker 8: Thank you. The next question comes from Nik Burns from Jarden, Australia. Please go ahead. Thank you. thank you The next question comes from Nik Burns from Jarden, Australia. the next question comes from nik burns from jarden australia Please go ahead. please go ahead

Speaker 7: Yeah, hi, Kevin and Sherry and team. Apologies. Another couple of questions on the proposed bid. Last week, your announcement did say that it would take the XRG Consortium at least four weeks to obtain relevant approvals. You've now granted them a four-week extension. Based on what you said last week, it's clear that it feels like four weeks is the best-case outcome for the consortium to get those internal approvals. I guess the question is, is four weeks enough here, or is this a case of the Santos board really drawing a line in the sand and saying, "We really need you to get there within the next four weeks"? Is there a risk that the consortium does ask for a further extension? Thank you. Yeah, hi, Kevin and Sherry and team. yeah hi kevin and sherry and team Apologies. apologies Another couple of questions on the proposed bid. another couple of questions on the proposed bid Last week, your announcement did say that it would take the XRG Consortium at least four weeks to obtain relevant approvals. last week your announcement did say that it would take the xrg consortium at least four weeks to obtain relevant approvals You've now granted them a four-week extension. you've now granted them a four-week extension Based on what you said last week, it's clear that it feels like four weeks is the best-case outcome for the consortium to get those internal approvals. based on what you said last week it's clear that it feels like four weeks is the best-case outcome for the consortium to get those internal approvals I guess the question is, is four weeks enough here, or is this a case of the Santos board really drawing a line in the sand and saying, "We really need you to get there within the next four weeks"? i guess the question is is four weeks enough here or is this a case of the santos board really drawing a line in the sand and saying "we really need you to get there within the next four weeks" Is there a risk that the consortium does ask for a further extension? is there a risk that the consortium does ask for a further extension Thank you. thank you

Speaker 3: Thanks, Nik. Look, I mean, I think those are really questions for XRG. From our perspective, we've had very positive discussions and made a lot of progress over the last week or two on the SIA terms. Consequently, because of that, and as I said earlier on, because the consortium has again confirmed it's found nothing in due diligence that would make it lead to consider withdrawing its proposal, we've granted them the extension to the 19th. The other thing I would say is that they've also demonstrated a commitment to the transaction, a very strong commitment to the transaction, and a commitment to expedite those approvals over the four-week process. Following those discussions, the progress, and the strong commitment from XRG, the board selected to grant that extension. We'll be working very diligently with XRG to help them make that happen. Thanks, Nik. thanks nik Look, I mean, I think those are really questions for XRG. look i mean i think those are really questions for xrg From our perspective, we've had very positive discussions and made a lot of progress over the last week or two on the SIA terms. from our perspective we've had very positive discussions and made a lot of progress over the last week or two on the sia terms Consequently, because of that, and as I said earlier on, because the consortium has again confirmed it's found nothing in due diligence that would make it lead to consider withdrawing its proposal, we've granted them the extension to the 19th. consequently because of that and as i said earlier on because the consortium has again confirmed it's found nothing in due diligence that would make it lead to consider withdrawing its proposal we've granted them the extension to the 19th The other thing I would say is that they've also demonstrated a commitment to the transaction, a very strong commitment to the transaction, and a commitment to expedite those approvals over the four-week process. the other thing i would say is that they've also demonstrated a commitment to the transaction a very strong commitment to the transaction and a commitment to expedite those approvals over the four-week process Following those discussions, the progress, and the strong commitment from XRG, the board selected to grant that extension. following those discussions the progress and the strong commitment from xrg the board selected to grant that extension We'll be working very diligently with XRG to help them make that happen. we'll be working very diligently with xrg to help them make that happen

Speaker 7: Okay, that's great. That's clear. Thanks for that, Kevin. I fear this question might give us another straight bat that's asked XRG. There's been a fair bit of focus on the consortium's requirements to obtain all necessary regulatory approvals before the SIA is taken to the Santos shareholders for approval. There's particular focus, I guess, on FIRB. I'm just wondering, can you comment at all on whether the delay in executing the SIA here is impacting the timeline behind the scenes to obtain those regulatory approvals, or is that a separate work stream, as far as you understand? Okay, that's great. okay that's great That's clear. that's clear Thanks for that, Kevin. thanks for that kevin I fear this question might give us another straight bat that's asked XRG. i fear this question might give us another straight bat that's asked xrg There's been a fair bit of focus on the consortium's requirements to obtain all necessary regulatory approvals before the SIA is taken to the Santos shareholders for approval. there's been a fair bit of focus on the consortium's requirements to obtain all necessary regulatory approvals before the sia is taken to the santos shareholders for approval There's particular focus, I guess, on FIRB. there's particular focus i guess on firb I'm just wondering, can you comment at all on whether the delay in executing the SIA here is impacting the timeline behind the scenes to obtain those regulatory approvals, or is that a separate work stream, as far as you understand? i'm just wondering can you comment at all on whether the delay in executing the sia here is impacting the timeline behind the scenes to obtain those regulatory approvals or is that a separate work stream as far as you understand

Speaker 3: Look, I think if I was given any guidance on the timeline for the expected timeline, I should say, for regulatory approvals, it would be from the signing of the SIA. I'd be able to give you more color on my expectations or thoughts around that at that point in time, Nik, but now it would be premature. Look, I think if I was given any guidance on the timeline for the expected timeline, I should say, for regulatory approvals, it would be from the signing of the SIA . look i think if i was given any guidance on the timeline for the expected timeline i should say for regulatory approvals it would be from the signing of the sia I'd be able to give you more color on my expectations or thoughts around that at that point in time, Nik, but now it would be premature. i'd be able to give you more color on my expectations or thoughts around that at that point in time nik but now it would be premature

Speaker 7: Thanks for that, Kevin. I had to try, cheers. Thanks for that, Kevin. thanks for that kevin I had to try, cheers. i had to try cheers

Speaker 3: Yeah, good try, Nick. Thanks. Yeah, good try, Nick. yeah good try nick Thanks. thanks

Speaker 8: Thank you. The next question comes from Henry Meyer from Goldman Sachs. Please go ahead. Thank you. thank you The next question comes from Henry Meyer from Goldman Sachs. the next question comes from henry meyer from goldman sachs Please go ahead. please go ahead

Speaker 10: Morning, team. Just to follow up on the Barossa leases, if gearing rises over the 25% target this half, how do you think about dividends in February if you're considering the de-gearing trajectory over 2026? Would you still see a minimum payout? Morning, team. morning team Just to follow up on the Barossa leases, if gearing rises over the 25% target this half, how do you think about dividends in February if you're considering the de-gearing trajectory over 2026? just to follow up on the barossa leases if gearing rises over the 25% target this half how do you think about dividends in february if you're considering the de-gearing trajectory over 2026 Would you still see a minimum payout? would you still see a minimum payout

Speaker 1: That's an excellent question, Henry. We've been very clear throughout that we did expect that gearing, subject in particular to commodity prices in the second half, may increase. However, that should not have any impact in terms of our ability to pay out dividends in accordance with the capital allocation framework because a lot of that's non-cash as well, just coming onto the balance sheet, as you can imagine. No impact should be expected in terms of our ability to stick to our cash. That's an excellent question, Henry. that's an excellent question henry We've been very clear throughout that we did expect that gearing, subject in particular to commodity prices in the second half, may increase. we've been very clear throughout that we did expect that gearing subject in particular to commodity prices in the second half may increase However, that should not have any impact in terms of our ability to pay out dividends in accordance with the capital allocation framework because a lot of that's non-cash as well, just coming onto the balance sheet, as you can imagine. however that should not have any impact in terms of our ability to pay out dividends in accordance with the capital allocation framework because a lot of that's non-cash as well just coming onto the balance sheet as you can imagine No impact should be expected in terms of our ability to stick to our cash. no impact should be expected in terms of our ability to stick to our cash

Speaker 3: I would draw your attention, Henry, to the fact that if you exclude those operating leases, gearing excluding those leases is under 21%. You know, coming to the end of a heavy investment cycle, we're pretty pleased with where we are on that front. I would draw your attention, Henry, to the fact that if you exclude those operating leases, gearing excluding those leases is under 21%. i would draw your attention henry to the fact that if you exclude those operating leases gearing excluding those leases is under 21% You know, coming to the end of a heavy investment cycle, we're pretty pleased with where we are on that front. you know coming to the end of a heavy investment cycle we're pretty pleased with where we are on that front

Speaker 9: Perfect. Thanks, both. I guess a few months away from 2026 now, it seems the major drilling programs are shaping up for 2026 and 2027, and you're getting one offsite to Papua getting closer to FID as well. Can you give a sense of where you think that CapEx ceiling for 2026 might be set now? Perfect. perfect Thanks, both. thanks both I guess a few months away from 2026 now, it seems the major drilling programs are shaping up for 2026 and 2027, and you're getting one offsite to Papua getting closer to FID as well. i guess a few months away from 2026 now it seems the major drilling programs are shaping up for 2026 and 2027 and you're getting one offsite to papua getting closer to fid as well Can you give a sense of where you think that CapEx ceiling for 2026 might be set now? can you give a sense of where you think that capex ceiling for 2026 might be set now

Speaker 3: As normal, we'll give that CapEx guidance towards the end of the year, Henry. It's too premature to be giving that guidance at this point in time. As normal, we'll give that CapEx guidance towards the end of the year, Henry. as normal we'll give that capex guidance towards the end of the year henry It's too premature to be giving that guidance at this point in time. it's too premature to be giving that guidance at this point in time

Speaker 9: Okay. Thanks, Kevin. If I can, a quick third one. In the accounts, we can see the commitments for expenses across the CapEx exploration leases have all fallen since December last year. Could you maybe just step through what's driving some of the changes in the key buckets there? Okay. okay Thanks, Kevin. thanks kevin If I can, a quick third one. if i can a quick third one In the accounts, we can see the commitments for expenses across the CapEx exploration leases have all fallen since December last year. in the accounts we can see the commitments for expenses across the capex exploration leases have all fallen since december last year Could you maybe just step through what's driving some of the changes in the key buckets there? could you maybe just step through what's driving some of the changes in the key buckets there

Speaker 1: Yeah, I think the biggest single one, Henry, without looking through the details of that, is that we're coming to the back end of our spending on both Barossa and Pikka. A lot of those longer-term commitments and long-lead items that were related to those major projects have now been extinguished. That's really the storyline there. Yeah, I think the biggest single one, Henry, without looking through the details of that, is that we're coming to the back end of our spending on both Barossa and Pikka. yeah i think the biggest single one henry without looking through the details of that is that we're coming to the back end of our spending on both barossa and pikka A lot of those longer-term commitments and long-lead items that were related to those major projects have now been extinguished. a lot of those longer-term commitments and long-lead items that were related to those major projects have now been extinguished That's really the storyline there. that's really the storyline there

Speaker 9: Yep, okay. Thanks. Makes sense. Yep, okay. yep okay Thanks. thanks Makes sense. makes sense

Speaker 8: Thank you. The next question comes from Mark Wiseman from Macquarie Group. Please go ahead. Thank you. thank you The next question comes from Mark Wiseman from Macquarie Group. the next question comes from mark wiseman from macquarie group Please go ahead. please go ahead

Speaker 2: Oh, good day, Kevin. Sherry, thanks for the update today. In note one to the XRG announcement today, or the announcement separately on the XRG offer, you've clarified that all dividends would be adjusted. Obviously, you're trying to get customary protections to protect investors. I guess the question I've got is the business is improving substantially over the next six months with Barossa achieving startup, and Alaska started to come on as well. Under your capital framework, the dividend steps up quite materially in calendar 2026. Should we assume that if this drags through to mid-2026, including regulatory processes, that there'll be some sort of provision to protect investors against that sort of dividend step-up that would be deducted? Oh, good day, Kevin. oh good day kevin Sherry, thanks for the update today. sherry thanks for the update today In note one to the XRG announcement today, or the announcement separately on the XRG offer, you've clarified that all dividends would be adjusted. in note one to the xrg announcement today or the announcement separately on the xrg offer you've clarified that all dividends would be adjusted Obviously, you're trying to get customary protections to protect investors. obviously you're trying to get customary protections to protect investors I guess the question I've got is the business is improving substantially over the next six months with Barossa achieving startup, and Alaska started to come on as well. i guess the question i've got is the business is improving substantially over the next six months with barossa achieving startup and alaska started to come on as well Under your capital framework, the dividend steps up quite materially in calendar 2026. under your capital framework the dividend steps up quite materially in calendar 2026 Should we assume that if this drags through to mid-2026, including regulatory processes, that there'll be some sort of provision to protect investors against that sort of dividend step-up that would be deducted? should we assume that if this drags through to mid-2026 including regulatory processes that there'll be some sort of provision to protect investors against that sort of dividend step-up that would be deducted

Speaker 3: Oh, look, I mean, we'll make it. Presumably, you're talking about in the terms of the binding Scheme Implementation Agreement. As I said earlier, Mark, we'll provide guidance and clarity on what those terms are at the point of getting or announcing that we've got the signed and binding agreement. I can't really speculate, or I don't want to comment on the specific terms at this point in time. As we said in our announcement this morning, there are customary protections in place. Oh, look, I mean, we'll make it. oh look i mean we'll make it Presumably, you're talking about in the terms of the binding Scheme Implementation Agreement. presumably you're talking about in the terms of the binding scheme implementation agreement As I said earlier, Mark, we'll provide guidance and clarity on what those terms are at the point of getting or announcing that we've got the signed and binding agreement. as i said earlier mark we'll provide guidance and clarity on what those terms are at the point of getting or announcing that we've got the signed and binding agreement I can't really speculate, or I don't want to comment on the specific terms at this point in time. i can't really speculate or i don't want to comment on the specific terms at this point in time As we said in our announcement this morning, there are customary protections in place. as we said in our announcement this morning there are customary protections in place

Speaker 2: Okay. Are you able to give any sort of insight into the timing from which investors would be protected? Is there any logical point in time that things would kick in? Okay. okay Are you able to give any sort of insight into the timing from which investors would be protected? are you able to give any sort of insight into the timing from which investors would be protected Is there any logical point in time that things would kick in? is there any logical point in time that things would kick in

Speaker 3: No. As I said earlier, I don't want to comment. Until we've got a signed and binding agreement, we don't want to comment on specific terms and conditions. No. no As I said earlier, I don't want to comment. as i said earlier i don't want to comment Until we've got a signed and binding agreement, we don't want to comment on specific terms and conditions. until we've got a signed and binding agreement we don't want to comment on specific terms and conditions

Speaker 2: Okay. All right. Thanks very much. Okay. okay All right. all right Thanks very much. thanks very much

Speaker 3: Thanks, Mark. Thanks, Mark. thanks mark

Speaker 8: Thank you. Once again, to ask a question, please press 1 on your phone. We'll pause for a moment to allow any other questions to enter the queue. At this time, we're showing no further questions. I'll hand the conference back to Kevin for any closing remarks. Thank you. thank you Once again, to ask a question, please press 1 on your phone. once again to ask a question please press *1 on your phone We'll pause for a moment to allow any other questions to enter the queue. we'll pause for a moment to allow any other questions to enter the queue At this time, we're showing no further questions. at this time we're showing no further questions I'll hand the conference back to Kevin for any closing remarks. i'll hand the conference back to kevin for any closing remarks

Speaker 3: Thank you for tuning in this morning. We appreciate your support, and we look forward to talking to many of you over the next coming days. Thank you very much. Speak soon. Thank you for tuning in this morning. thank you for tuning in this morning We appreciate your support, and we look forward to talking to many of you over the next coming days. we appreciate your support and we look forward to talking to many of you over the next coming days Thank you very much. thank you very much Speak soon. speak soon

Speaker 8: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect. Thank you. thank you That does conclude our conference for today. that does conclude our conference for today Thank you for participating. thank you for participating You may now disconnect. you may now disconnect