Should You Buy Santos Shares in Australia in 2025?

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At HelloSafe, our expert has been tracking the performance of Santos for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Santos.

What is Santos?

How much is Santos stock?

The price of Santos stock is rising this week. Currently trading at A$7.68, Santos has seen a slight decrease of -0.26% in the last 24 hours but a positive 0.26% change over the past week. The company’s market capitalization stands at A$25.01 billion with an average daily trading volume of 12.9 million shares (3-month average). The stock features a P/E ratio of 13.47, a dividend yield of 4.63%, and a beta of 0.44, indicating relatively low volatility. Investors should note that recent takeover interest and upcoming major project completions could add to both value and short-term price movement.

Our full analysis of the Santos stock

We have thoroughly reviewed Santos's latest financial results and analysed its stock performance over the past three years. Drawing from a comprehensive blend of financial metrics, technical indicators, market intelligence, and peer benchmarking, all processed through our proprietary analytical algorithms, we aim to provide clear and insightful perspectives. So, why might Santos stock once again become a strategic entry point into the energy sector in 2025?

Recent performance and market context

Santos’s share price has demonstrated notable resilience, recently trading at A$7.68. Over the past six months, the stock has climbed 11.6%, outperforming the broader ASX energy index and reflecting robust investor confidence. Over the past week, the share price has edged up by 0.26%, despite a modest daily retreat of 0.26%, indicating healthy support and sustained market interest. This momentum is underpinned by a series of positive catalysts: most notably, the ADNOC-led consortium’s takeover offer at A$8.89 per share—a 28% premium—sent a strong signal regarding Santos’s intrinsic value and long-term appeal.

2024 has seen a favourable macro backdrop for oil and gas, with recovering global demand, tightening supply in key regions, and resilient prices. Santos’s strategic position in the Asia-Pacific, combined with its successful navigation of commodity cycles, has helped it mitigate sector volatility. In addition, favourable regulatory environments and energy security trends are driving renewed focus on long-term producers like Santos, reinforcing the case for its continued outperformance.

Technical analysis

Technical signals for Santos currently paint a bullish picture. The 14-day RSI stands at 70.84, reflecting strong buying momentum, albeit in overbought territory—a common sign in early-stage rallies. The MACD shows a buy signal at 0.29, with the short and medium-term moving averages (20d: A$7.45, 50d: A$6.75, 100d: A$6.53, 200d: A$6.71) all trending below the current price and flashing positive crossovers. Resistance is located at A$8.30, with a key support pivot at A$7.38, ensuring a well-defined technical structure for new entry points.

Recent price action confirms the prevailing bullish reversal: over the last three months, Santos has consistently produced higher lows and higher highs, punctuated by strong volume spikes on upward moves. The positive momentum suggests the stock is entering a new constructive phase, with technical buy signals aligned across all major moving averages.

Fundamental analysis

From a fundamental perspective, Santos stands out for its compelling financial profile and disciplined growth strategy. 2024 saw revenue reach US$5.38 billion, backed by an EBITDAX of US$3.7 billion and net profit of US$1.22 billion—figures that reinforce Santos’s ability to generate stable cash flows even in shifting market conditions. Free cash flow hit US$1.9 billion, enabling a healthy dividend payout and consistent reinvestment in core projects.

The valuation remains attractive: the current P/E ratio of 13.47 sits comfortably below sector highs, while the dividend yield of 4.63% is particularly appealing in a low-yield environment. Notably, Santos’s 18-year 2P reserve and consistently high production levels (87.1 mmboe in 2024) underpin its strong market share and reliable delivery. Structural advantages abound—ranging from best-in-class project execution, to leadership in carbon capture (Moomba CCS), and a track record of innovation through partnerships with QatarEnergy and Hokkaido Gas.

Unlike peers exposed to single jurisdictions or volatile basins, Santos’s diversified asset base across Australia, Papua New Guinea, and Alaska enhances its defensiveness and future-proofing. Its balance sheet flexibility supports both organic growth and opportunistic M&A, further boosting its bull case.

Volume and liquidity

Santos’s shares maintain a high liquidity profile, with an average daily volume of 12.9 million shares (3M average). This level of trading activity is a clear indicator of robust institutional and retail interest, ensuring efficient price discovery and minimal slippage for sizeable trades. With a public float of over 3 billion shares and an overall market cap of A$25.01 billion, Santos offers investors exceptional ease of entry and exit, supporting dynamic valuations.

Sustained high turnover especially during periods of price appreciation is a traditional hallmark of durable bull phases. This liquidity, coupled with a favourable technical structure, makes Santos particularly attractive to both short-term traders and long-term holders seeking dependable market action.

Catalysts and positive outlook

• The imminent start-up of the Barossa LNG project (91% complete, Q3 2025 operation) positions Santos at the forefront of a major energy supply shift to Asia, with long-term contracts (90% of LNG secured for the next five years) providing revenue visibility.
• The Pikka project in Alaska, set for first production mid-2026, adds another pillar for medium-term growth.
• Strategic moves in carbon capture and storage (Moomba CCS) fortify Santos’s leadership in ESG and future-proof its business against regulatory pressures.
• The ADNOC-led takeover bid underpins the value proposition, reflecting external conviction in Santos’s assets and strategic direction.
• Overall sentiment remains positive, buoyed by global LNG demand expansion, favourable Australian and global regulation, and Santos’s reputation as a responsible operator.

Notably, Santos’s focus on decarbonisation and sustainable practices resonates with global investment themes, increasing its appeal to ESG-oriented capital both domestically and overseas.

Investment strategies

• Short-term positioning: Entry at or near technical support (A$7.38) or during consolidation phases could capture breakout momentum, especially as the share price approaches the resistance zone at A$8.30.
• Medium-term view: Participation ahead of the Barossa and Pikka milestones—as well as potential deal approval or news on the ADNOC bid—leverages Santos’s visible project pipeline and the likelihood of further upward price revision.
• Long-term strategy: Holding for sustained capital appreciation and consistent dividend income, supported by Santos’s strong balance sheet, production growth, and leading position in the transition to lower-carbon energy.

A disciplined approach—anchored by technical levels and major catalysts—seems likely to reward patient investors, given the stock’s blend of value, yield, and structural growth.

Is it the right time to buy Santos?

In summary, Santos combines dynamic fundamentals, visible catalysts, strong technicals, and a positive sector backdrop to present what seems to be an excellent opportunity at current levels. Its unique combination of margin stability, capital discipline, growth visibility, and bullish technical signals justify heightened investor interest. For both new entrants and those seeking to add exposure to Australia’s energy leadership, Santos may be entering a new bullish phase with multiple upcoming catalysts and upside potential.

With resilient financials, a compelling growth pipeline, and outstanding liquidity, the Santos opportunity looks particularly attractive for those seeking exposure to the next cycle of energy sector outperformance. Now, more than ever, this stock deserves a place on every attentive investor’s radar.

How to buy Santos stock in Australia?

Buying Santos stock online is simple, efficient, and secure through any regulated Australian broker. Investors typically have two main choices: direct spot purchases of Santos shares or trading through CFDs (Contracts for Difference), which allow for leveraged exposure to price movements. Both methods are available from leading platforms, making it straightforward to tailor your investment to your goals and risk appetite. For a transparent overview of the best platforms, refer to our broker comparison further down this page.

Spot buying

A cash purchase means you buy Santos shares directly on the ASX, becoming a part-owner with rights to dividends and voting. This is a traditional, long-term approach favoured by many Australian investors. Brokerage fees for spot trades are typically a fixed commission, often ranging from AUD $5–$15 per order, depending on your broker. Here’s how a cash investment works in practice:

Gain scenario

If the Santos share price is $7.68 AUD, you can buy around 129 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

This method is ideal for investors seeking to hold high-quality Australian stocks and benefit from long-term growth and dividends.

Trading via CFD

CFD trading lets you speculate on movements in the Santos share price without owning the underlying stock. With CFDs, you only put down a fraction of the capital thanks to leverage (commonly 5:1). The main costs here are the spread (the difference between buy/sell prices) and overnight financing for positions held more than a day.

Example of a leveraged CFD position

You open a CFD position on Santos shares, with 5x leverage. This gives you a market exposure of $5,000. ✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).

CFDs can magnify both gains and losses, so they are best suited for investors who are comfortable actively managing risk and seeking short-term opportunities.

Final advice

Before you buy Santos stock, it’s important to compare broker fees and conditions, as costs can impact your returns—even for the same investment amount. Selecting between spot buying and CFDs depends on whether you prefer direct, long-term investment or more flexible, leveraged strategies. For more details, our comprehensive broker comparison can help you make the best choice for your financial goals.

Our 7 tips for buying Santos stock

The latest news about Santos

Santos surges as ADNOC-led consortium’s acquisition bid offers a 28% premium to shareholders. On 2 July, it was confirmed that ADNOC, alongside international partners, has lodged a takeover offer at 8.89 AUD per share, substantially above recent trading levels. This bid underscores global confidence in Santos' asset base and strategic positioning in Asia-Pacific LNG markets, with immediate price support and heightened market interest noted across Australian trading desks.

Santos’ Barossa LNG project nears completion, priming first production for Q3 2025. Latest company statements confirm Barossa is now 91% complete, positioning Santos for a significant ramp-up in output and cash flow. The project enhances Australia’s LNG export profile and consolidates Santos’ leadership, with local stakeholders following progress closely as a bellwether for regional energy supply and economic impact.

Strong technical signals position Santos as an outperformer on the ASX this week. As of 4 July, technical indicators—such as consistent “buy” signals across all major moving averages and a bullish MACD—point to ongoing positive momentum. With shares up 0.26% week-on-week and 11.63% over the last six months, local analysts interpret these signals as reflecting robust market sentiment amid heightened deal activity.

Santos achieves robust financial performance in 2024, meeting revenue and cash flow expectations. Reported full-year results include US$5.38 billion in revenue and US$1.9 billion in free cash flow, in line with market forecasts. The company has sustained healthy dividends at a 4.63% yield and maintains a disciplined capital structure, reinforcing its investment appeal for institutional and retail shareholders in Australia.

Santos secures further long-term LNG sales agreements with regional Asian utilities. Recent weeks have seen new contracts signed with QatarEnergy Trading, Hokkaido Gas, and Shizuoka Gas, locking in substantial forward revenue and strengthening trade ties with key regional partners. Australian observers highlight these deals as evidence of Santos’ pivotal role in ensuring energy security and export growth for the domestic economy.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.