Santos Limited (SSLZY)
OTHER OTC:SSLZY
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Santos
(OTC:SSLZY)
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Rating:66Neutral
Price Target:
$6.00
â–²(50.75% Upside)
Action:ReiteratedDate:02/19/26
The score is primarily held back by weakening fundamentals—multi-year revenue declines, softer free cash flow, and higher 2025 leverage—despite ongoing profitability and operating cash generation. Technicals are mildly supportive but mixed, while valuation is helped by the ~4.68% dividend yield. The latest earnings call adds support through constructive guidance and project ramp visibility, tempered by cost/breakeven and execution risks.
Positive Factors
Consistent cash generation & profitability
Santos has delivered sizeable operating cashflow and positive underlying profit, providing repeatable internal funding for capex, decommissioning and shareholder returns. Persistent cash generation strengthens resilience to commodity cycles and supports execution of multi‑year projects and dividend policy.
Negative Factors
Multi‑year revenue decline and weakening FCF
Revenue and free cash flow have trended downward versus peak years, reducing the firm’s internal flexibility. Over a 2–6 month horizon this weakens the buffer for capital projects, decommissioning spend, and shareholder distributions if commodity realizations or operational ramps underperform.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation & profitability
Santos has delivered sizeable operating cashflow and positive underlying profit, providing repeatable internal funding for capex, decommissioning and shareholder returns. Persistent cash generation strengthens resilience to commodity cycles and supports execution of multi‑year projects and dividend policy.
Read all positive factors
Santos (SSLZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.52B
Dividend Yield5.38%
Average Volume (3M)7.15K
Price to Earnings (P/E)16.2
Beta (1Y)0.58
Revenue Growth-7.44%
EPS Growth-19.13%
CountryUS
Employees3,958
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.12
Shares Outstanding3,247,773,000
10 Day Avg. Volume9,345
30 Day Avg. Volume7,151
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)0.85
Price to Sales (P/S)2.61
P/FCF Ratio21.37
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue4.90
Enterprise Value/Gross Profit15.28
Enterprise Value/Ebitda7.79
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.62
Revenue Forecast (FY)$7.11B
Santos Business Overview & Revenue Model
Company Description
Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and the Asia Pacific. Its five principal assets are located in the Cooper Basin, Queensland and NSW, Papua New Guinea, Nort...
How the Company Makes Money
Santos primarily makes money by selling produced hydrocarbons—natural gas, LNG-linked gas volumes, crude oil, and natural gas liquids—under a mix of long-term contracts and shorter-term/spot sales. Revenue is driven by (1) production volumes from ...
Santos Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive tone: Santos demonstrated strong cash generation, robust balance sheet metrics, industry-leading safety and reliability, successful delivery of major projects (Barossa, Moomba CCS), and clear mid-term growth optionality (Beetaloo, Bedout, Papua). Operational setbacks (Barossa commissioning issues), regional disruption (Cooper flood), higher-than-expected costs on Pikka, and sensitivity to commodity prices and all-in breakeven in 2025 were acknowledged but framed as manageable within a disciplined capital framework. Overall, the highlights notably outweigh the lowlights.Positive Updates
Strong Cash Generation and Profitability
Free cash flow from operations of $1.8 billion, EBITDAX of $3.4 billion and underlying profit after tax of $898 million. Product sales revenue exceeded $4.9 billion and gross profit margin was 33.7%.
Negative Updates
Lower Commodity Prices and Impact on Underlying Profit
Underlying profit of $898 million was lower than prior year, primarily reflecting weaker commodity prices and a higher effective income tax rate.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Cash Generation and Profitability
Free cash flow from operations of $1.8 billion, EBITDAX of $3.4 billion and underlying profit after tax of $898 million. Product sales revenue exceeded $4.9 billion and gross profit margin was 33.7%.
Read all positive updates
Company Guidance
Management guided to an all‑in free cash‑flow breakeven of $45–50/boe (2025 all‑in was $58.90/boe; free‑cash‑flow breakeven from operations $27.43/boe), a unit production cost target of <$7/boe (2025 unit cost $6.78), an annual savings run‑rate target of $150m (c.$50m delivered in 2025), and a minimum 60% shareholder return of cash in excess of the all‑in breakeven (40% for de‑gearing/increased returns); near‑term operational guidance includes Barossa to reach full rates in the coming weeks and Pikka Phase 1 to hit plateau in Q2‑2026, a ~10% headcount reduction from 2024 levels in 2026 (included in the $150m savings), Beetaloo appraisal in 2026 targeting ~5 Tcf 2C, up to 3 Bedout wells in 2027, Bayu‑Undan CCS FEED‑complete and FID‑readiness by ~2H‑2027, and a Papua LNG FID target around mid‑2026 (costs cited ~$14–15bn); financial framework targets gearing of 15–25% (26.9% incl leases at FY25), liquidity ~ $4.3bn, free‑cash‑flow sensitivity rising from ~$400m to ~$550–600m per $10 Brent once Barossa and Pikka are online, and production sustained at 100–120 MMboe (FY25 production 87.7 MMboe) supported by ~4.7 billion boe resources and a 17‑year 2P life.Santos Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.09B | 5.40B | 5.89B | 7.79B | 4.71B |
| Gross Profit | 1.57B | 3.70B | 2.22B | 5.64B | 1.59B |
| EBITDA | 3.35B | 3.67B | 3.97B | 4.97B | 2.65B |
| Net Income | 818.86M | 1.22B | 1.42B | 2.11B | 658.00M |
Balance Sheet | |||||
| Total Assets | 32.03B | 29.63B | 29.76B | 28.86B | 31.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.72B | 1.86B | 2.28B | 2.46B | 2.97B |
| Total Debt | 8.74B | 6.69B | 6.16B | 5.52B | 8.02B |
| Total Liabilities | 16.36B | 14.10B | 14.48B | 14.01B | 17.45B |
| Stockholders Equity | 15.66B | 15.54B | 15.28B | 14.84B | 13.57B |
Cash Flow | |||||
| Free Cash Flow | 621.65M | 449.00M | 889.00M | 2.15B | 1.07B |
| Operating Cash Flow | 2.56B | 2.85B | 3.26B | 3.86B | 2.14B |
| Investing Cash Flow | -1.92B | -2.69B | -2.90B | -1.67B | -137.00M |
| Financing Cash Flow | -791.83M | -206.00M | -860.00M | -3.40B | -481.00M |
Santos Technical Analysis
Positive
3.98
Price Trends
5.07
Positive
4.59
Positive
4.60
Positive
Market Momentum
0.15
Positive
65.21
Neutral
93.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSLZY, the sentiment is Positive. The current price of 3.98 is below the 20-day moving average (MA) of 5.47, below the 50-day MA of 5.07, and below the 200-day MA of 4.60, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 65.21 is Neutral, neither overbought nor oversold. The STOCH value of 93.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSLZY.
Santos Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $31.01B | 41.14 | 36.18% | 0.72% | 12.48% | 6.24% | |
77 Outperform | $26.51B | 11.67 | 11.77% | 3.39% | 26.13% | 31.42% | |
75 Outperform | $31.04B | 10.12 | 17.47% | 2.64% | 11.14% | -21.32% | |
74 Outperform | $17.21B | 8.12 | 11.86% | 3.16% | -8.07% | -87.88% | |
69 Neutral | $24.50B | 14.40 | 10.13% | 2.87% | 246.16% | 82.62% | |
66 Neutral | $18.52B | 16.23 | 5.26% | 5.38% | -7.44% | -19.13% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
SSLZY
Santos
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2.55
83.28%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.