April 7, 2026, Sydney—07:07 AEST.
Santos Ltd closed out Monday at A$8.08, putting the stock just 11 cents below its 52-week peak. Trading was lively, with 32.4 million shares moving—well above the stock’s 30-day average. The broader local energy index slipped 0.36%, but Santos stood out as one of the sector’s stronger performers. 1
The move packs a punch. LNG markets tightened once again Monday after Iran blocked two Qatari tankers on their way to the Strait of Hormuz; Brent crude closed at $109.77 a barrel. Back in late March, Reuters noted that Santos and Woodside were outperforming the broader energy space, as investors hunted for exporters less vulnerable to Gulf disruptions. Jefferies’ Mike Wilson flagged the “gas price ramp” as the key marker for these markets. 2
Santos stands out for a few specific reasons right now. Back in January, the company projected 2026 output between 101 million and 111 million barrels of oil equivalent—a mix of oil and gas—up from the 87.7 million it expects for 2025, with production gains pinned to Barossa LNG and Alaska’s Pikka oil project moving ahead. Citi’s Tom Wallington pointed out that shipping the first Barossa cargo might “allay investor concerns” about deeper commissioning problems. 3
Still, what happens in the near term comes down to how well they execute, plus the policy backdrop. On March 24, Santos announced it had halted operations at Darwin LNG for equipment replacement on the BW Opal floating production vessel, but didn’t provide a timeline for resuming activity. Meanwhile, Reuters recently reported the Australian government is considering both a windfall tax and adjustments to the Petroleum Resources Rent Tax—which covers offshore profits—as spot LNG prices continue to climb. 4
Domestic infrastructure remains a focus. Back in March, Santos and Beach Energy greenlit the Moomba Central Optimisation project out in South Australia. Santos is putting roughly $357 million behind it, targeting more than $600 million in total capital and operating savings over the full run of the Cooper Basin’s Central Fields, according to the company. 5
Conditions at home are changing as well. The Australian Energy Market Operator last month pushed its forecast for an east-coast gas shortfall out to 2030—delaying it from 2029—citing factors like extended coal use, weaker demand, and a quicker shift to batteries. But from 2027, exporters remain on the hook to keep as much as 25% of their gas supply for domestic buyers under federal rules. 6
While investors weigh up the situation, Australia’s No. 2 oil and gas producer is undergoing some big changes. Back in February, Santos announced plans to cut around 10% of its workforce and launched a review of its domestic integrated oil and gas portfolio after missing profit expectations. According to Barrenjoey’s Dale Koenders, the market is effectively giving “zero value” to certain undeveloped assets right now. Jarden, meanwhile, pointed out that with fewer employees, operating costs should come down. 7
The next stop for Santos shareholders: the annual general meeting in Adelaide on April 16. Investors, after weeks of choppy signals, are hoping for clearer direction from the company at that gathering. 8
