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Santos narrows 2026 output outlook as Barossa and Pikka ramp
The company expects second-half production to be about 20% to 30% higher than the first half, after Barossa reached 97% of planned rates and Pikka wells delivered around 23,000 bpd.
Santos narrowed its full-year 2026 production guidance to 99 to 105 million barrels of oil equivalent (mmboe) as its Barossa LNG project and Alaska's Pikka oil development advanced through commissioning, the company said. It expects a significant production and free cash flow increase in the second half of 2026.
Santos said Barossa is operating at 97% of planned production rates, with LNG cargoes being loaded about every eight days. At Pikka, initial production wells are delivering about 23,000 barrels per day, with plateau output of roughly 80,000 bpd targeted in the third quarter, and first sales expected in August.
The company reported second-quarter production up 3% quarter-on-quarter to 23.1 mmboe, bringing first-half output to 45.6 mmboe. It expects second-half production to be approximately 20% to 30% higher than the first half, while also citing stronger earnings support from higher LNG prices.
Santos said second-quarter sales revenue rose 6% quarter-on-quarter to $1.35 billion, and first-half free cash flow from operations was about $378 million, weighed down by one-off commissioning costs, LNG cargo timing, and temporary under-lift positions in Papua New Guinea. It also approved two Papua New Guinea brownfield investments during the quarter, including projects targeting first gas in the second quarter of 2028 and returns above 50% and above 30%, respectively.