Is Santos stock a buy right now?
As of May 2025, Santos Ltd (ASX:STO) is trading at approximately AUD 6.08, with an average daily volume of 11.32 million shares, making it one of the most actively traded energy stocks on the Australian Securities Exchange. Despite a challenging broader resources market and volatile commodity prices, Santos has demonstrated robust operational performance, highlighted by a stable Q1 2025 result: US$465 million in free cash flow and production growth from key assets. Recent developments – including the operational start of the innovative Moomba Carbon Capture and Storage (CCS) project and rapid progress on the Barossa LNG project (now over 95% complete) – underline management’s execution strength. While the share price is still recovering from a softer year, current technical indicators, such as the recent golden cross and consistently positive momentum, suggest renewed optimism. Industry consensus, as compiled from more than 32 national and international banks, sets a target price of AUD 7.90. With a solid 5.83% dividend yield and clear growth outlook driven by major near-term projects, sentiment is constructive. As the Australian energy sector pivots toward cleaner operations, Santos stands out for its blend of diversification, scale, and decarbonisation leadership.
- Strong production growth forecast as Barossa and Pikka projects near completion.
- High dividend yield estimated at 5.83%, well above industry average.
- Resilient free cash flow with breakeven below US$35 per barrel.
- Operational reliability: 99.8% uptime at gas facilities across the portfolio.
- Leading progress in carbon capture and emissions reduction technologies.
- Earnings remain sensitive to short-term commodity price volatility.
- Potential delays in large project delivery could affect growth timeline.
- What is Santos?
- How much is Santos stock?
- Our full analysis on Santos </b>stock
- How to buy Santos stock in Australia?
- Our 7 tips for buying Santos stock
- The latest news about Santos
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Santos’ performance for over three years. Each month, hundreds of thousands of Australians rely on us to break down market trends and highlight the best investment opportunities. Our analyses are provided solely for informational purposes and do not constitute investment advice. In line with our ethical charter, we have never received, and will never accept, any form of compensation from Santos.
What is Santos?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Australia | Australian company with headquarters in Adelaide; well-positioned in domestic and Asia-Pacific markets. |
| 💼 Market | ASX (Australian Securities Exchange) | Listed on ASX, provides transparent access for local investors. |
| 🏛️ ISIN code | AU000000STO6 | Globally recognized security identifier ensures accessibility for international and local investors. |
| 👤 CEO | Kevin Thomas Gallagher | CEO since 2016; recognized for strong operational delivery and driving strategic growth. |
| 🏢 Market cap | AUD 19.75 billion | Mid-cap energy leader; recent share price weakness offers potential value opportunity. |
| 📈 Revenue | US$1.3 billion (Q1 2025) | Solid revenue base; correlates with recent production growth and stable operational performance. |
| 💹 EBITDA | Not disclosed (recent quarter) | Data unavailable; investors should monitor for updated disclosure to assess profitability trends. |
| 📊 P/E Ratio (Price/Earnings) | 10.32 | Below industry average; suggests market undervaluation or cautious outlook due to sector headwinds. |
How much is Santos stock?
The price of Santos stock is rising this week. As of today, Santos shares are trading at AUD 6.08, gaining 2.70% in the past 24 hours and up 3.40% over the week. The company’s market capitalization stands at AUD 19.75 billion, with an average trading volume of 11.32 million shares over the last three months. The current P/E ratio is 10.32, and the dividend yield is 5.83%, while the stock’s beta is 0.64, reflecting lower volatility compared to the broader market. These metrics suggest that Santos offers both income and stability for investors amid ongoing sector movements.
Check out the best brokers in Australia!Compare brokersOur full analysis on Santos stock
After a rigorous review of Santos Ltd’s (ASX:STO) most recent quarterly results, alongside a detailed assessment of its stock performance over the past three years, we leveraged our proprietary algorithms—blending quantitative financial indicators, advanced technical signals, live market data, and peer benchmarking—to provide a holistic outlook. This integrative approach captures not only the market's present perception but also Santos’s evolving fundamentals and sector positioning. 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 stock price dynamics over the past year reveal a market in flux but primed for recovery. Closing at AUD 6.08 as of 3 May 2025, shares have gained 3.40% over the past week and 2.70% intraday—indicators of strong positive momentum. While the six-month and one-year returns register at -10.98% and -18.72% respectively, this retreat from highs largely mirrors global energy market turbulence and sector-wide commodity price volatility, rather than company-specific underperformance.
Crucially, Santos has navigated these headwinds with notable operational resilience. Q1 2025 results showcased robust fundamentals: revenue of US$1.3 billion, a 9% sequential increase in free cash flow (US$465 million), and solid production growth led by Western Australia (18% quarter-on-quarter). The successful acceleration of key projects—Moomba CCS now operational and Barossa LNG 95.2% complete—provides tangible proof points of management’s focus on value creation and future readiness.
Domestically, the energy sector benefits from a resilient Australian economy and persistent upward demand for LNG across Asia-Pacific. The regulatory environment remains generally supportive, and analysts across the board maintain a bullish outlook on the sector with particular enthusiasm for operators that demonstrate execution discipline and project delivery—qualities Santos has recently exhibited with consistency.
Technical Analysis
The technical landscape for Santos at present is distinctly constructive. A 14-day RSI of 61.45, while approaching overbought territory, suggests the current trend is underpinned by genuine buying interest rather than speculative extremes. The MACD indicator, registering at 0.029, signals ongoing accumulation and a favorable buy sentiment.
| Moving Average | Value (AUD) |
|---|---|
| 20-day | 6.02 |
| 50-day | 5.98 |
| 100-day | 5.77 |
| 200-day | 6.07 |
Importantly, the stock’s price sits above all major moving averages—20-day (6.02), 50-day (5.98), 100-day (5.77), and 200-day (6.07)—reaffirming both short- and longer-term momentum. The recent formation of a golden cross, where the 50-day moving average crossed above the 100-day moving average, is a classic bullish reversal pattern often preceding significant recoveries.
| Support Level (AUD) | Resistance Level (AUD) |
|---|---|
| 5.93 | 6.10 |
| 5.77 | 6.30 |
| 5.20 (52-week low) | 8.18 (52-week high) |
Key support levels at 5.93, 5.77, and particularly the 52-week low at 5.20 provide a technical safety net, while resistance is flagged at 6.10, 6.30, and the 52-week high of 8.18—establishing clear benchmarks for continued upside. The entire technical structure, therefore, suggests the current market environment is primed for a renewed bullish phase, reinforced by robust participation on recent price advances.
Fundamental Analysis
From a fundamental perspective, Santos stands out for its sound revenue growth, impressive operational cash flow, and strategic project pipeline. The company’s Q1 2025 results are especially noteworthy:
- Revenue Growth: US$1.3 billion in Q1, consistent with expectations despite sector volatility.
- Profitability: Free cash flow increased 9% quarter-on-quarter; ongoing cost discipline keeps the free cash flow breakeven under US$35/barrel.
- Dividend Yield: At 5.83%, the current yield is materially above-market, underscoring strong cash returns.
- Valuation: Trading at a P/E ratio of 10.32, Santos appears undervalued relative to its historical averages and peer group, leaving ample room for multiple expansion as project milestones are achieved.
- Shareholder Alignment: Management is committed to returning at least 60%—and up to 100% under certain conditions—of all-in free cash flow, a shareholder-friendly approach rare among industry peers.
Strategically, Santos’s diversified operations across Australia, Papua New Guinea, Timor-Leste, and North America mitigate region-specific risks and ensure exposure to multiple growth catalysts. The brand commands significant influence through its LNG portfolio and operational excellence—exemplified by 99.8% reliability at gas facilities and strong output from the PNG LNG venture.
Crucially, Santos’s leadership in decarbonisation through the Moomba Carbon Capture and Storage project—now fully operational—reflects both forward-thinking innovation and compatibility with evolving global ESG requirements. Few competitors in the Australian market can currently match this combination of traditional energy reliability and new-era sustainability.
Volume and Liquidity
Santos benefits from outstanding liquidity and sustained market confidence, with a 3-month average daily trading volume of 11.32 million shares and a robust AUD 19.75 billion market capitalisation. This high level of turnover points to both institutional engagement and the ability for investors to enter or exit substantial positions without disrupting price stability.
Moreover, the current free float, with major institutional shareholders like HSBC Custody Nominees, JP Morgan, and Citicorp, offers a favourable structure for dynamic valuation. When combined with growing technical and fundamental momentum, this depth of liquidity acts as a further positive underpinning for a stable yet responsive market environment.
Catalysts and Positive Outlook
Santos approaches the next six to eighteen months with exceptional visibility on several major catalysts:
- Barossa LNG Project: 95.2% complete and set for first gas in Q3 2025, this project alone is forecast to drive a multi-year production and earnings surge.
- Pikka Phase 1: 82.2% complete and ahead of schedule, potentially delivering earlier and stronger returns by mid-2026.
- Moomba CCS Project: Over 685,000 tonnes of CO2-equivalent already sequestered, cementing Santos as a genuine leader in decarbonisation and future-proofing its asset base.
- Strategic Expansion: Approved expansion at Darwin will raise LNG capacity to 10 million tonnes per annum, positioning the company as a regional export powerhouse in growing Asian markets.
- Flexible LNG Contracts: The company’s contract structure allows it to pivot rapidly to emerging opportunities, maximising realisations in a dynamic demand landscape.
- Operational Leverage: Free cash flow growth and dividend policy tie upside directly to project delivery—a rare alignment that bodes well for shareholders as gearing targets are met.
- Favourable Analyst Coverage: A broker consensus “Strong Buy” (6 Buys, 1 Hold, 0 Sells) and a 30% higher analyst target price (AUD 7.90) provide further validation of robust upside potential.
On the macro front, persistently strong energy demand in the Asia-Pacific, attractive Australian LNG export margins, and supportive regulatory signals create an environment ripe for Santos to outperform. Additional upside could be realised from any positive commodity price surprises, especially with the company’s sustained capex discipline and sector-leading ESG initiatives.
Investment Strategies
The current positioning of Santos offers distinct arguments for all investment horizons:
Short-Term Entry
- Technical Setup: Ongoing bullish momentum, golden cross, and strong institutional flows point to likely continuation.
- Upcoming Catalysts: With the Barossa project weeks from completion, a pre-catalyst entry could capture near-term news flow upside.
Medium-Term Opportunity
- Fundamental Strengthening: Ramp-up of Barossa and advances at Pikka Phase 1 will drive meaningful increases in production and cash flow in coming quarters.
- Valuation Re-Rating: As major project delivery is confirmed, the market may reappraise Santos’s sub-11x earnings multiple.
Long-Term Perspective
- Growth Platform: Production capacity is set to rise by over 30% by 2027—a clear case for multi-year revenue and earnings growth.
- ESG and Energy Transition: The Moomba CCS project and continued decarbonisation efforts position Santos ideally for longer-term global capital flows and evolving investor requirements.
- Dividend and Capital Return: Ongoing high-yield dividends alongside possible share buybacks underpin compelling total return potential for patient investors.
Across all time frames, the stock seems to represent an excellent opportunity for entry at a technically supported price, with a unique combination of operational execution, growth catalysts, and robust market liquidity.
Is It the Right Time to Buy Santos?
Santos stands at the confluence of technical strength, robust fundamentals, and imminent growth catalysts. The company is demonstrating both strategic foresight—with large-scale LNG projects and pioneering CCS achievements—and operational discipline, as shown by resilient cash flows and a prudent gearing ratio. With shares trading at a price-to-earnings multiple providing an attractive entry relative to both its historical averages and anticipated earnings growth, and with analyst consensus backing further upside, the fundamentals justify renewed interest.
Looking ahead to H2 2025 and beyond, Santos appears uniquely positioned to benefit from near-term project milestones, sustained production growth, and increased global demand for decarbonised energy solutions. The positive technical profile and institutional support further enhance its appeal at current levels.
In summary, Santos’s blend of strategic execution, compelling valuation, and exposure to key sectoral trends strongly supports the case for those considering entry at the current juncture. Investors seeking resilient energy exposure with structural growth drivers and a future-oriented business model may find that Santos not only justifies closer scrutiny but also seems poised to enter an extended bullish phase as 2025 unfolds. The alignment of technical and fundamental signals signals that this could indeed be a defining opportunity in one of Australia’s flagship energy assets.
How to buy Santos stock in Australia?
Buying Santos (ASX:STO) shares online is a straightforward and secure process when you use a regulated broker in Australia. You can invest in Santos either by spot buying—owning the shares outright—or via Contracts for Difference (CFDs) that let you speculate on price movements without owning the stock. Each method has its features, risks, and costs, so understanding the differences is key. To help you make the right choice, you’ll find a broker comparison further down this page.
Spot buying
Spot buying means you purchase Santos shares directly on the Australian Securities Exchange (ASX), becoming a part-owner of the company. As a shareholder, you are entitled to dividends and voting rights. With most Australian brokers, you’ll typically pay a flat commission per order—commonly ranging from AUD 5 to AUD 10.
Important information
Example: If the Santos share price is AUD 6.08, you can buy approximately 163 shares with a AUD 1,000 stake, including a brokerage fee of around AUD 5.
✔️ Gain Scenario: If the share price rises by 10%, your shares would be worth around AUD 1,100.
Result: +AUD 100 gross gain, or +10% on your investment.
Trading via CFD
Trading Santos via CFDs (Contracts for Difference) allows you to speculate on price movements without owning the underlying shares. CFDs let you use leverage, meaning you can control a larger position with a smaller initial outlay. Typical costs include the bid-ask spread and daily overnight financing fees if you hold leveraged positions.
Important information
Example: You open a CFD position on Santos with a AUD 1,000 stake and 5x leverage—giving you a market exposure of AUD 5,000.
✔️ Gain Scenario: If Santos shares rise by 8%, your position gains 8% × 5 = 40%.
Result: +AUD 400 gain on your AUD 1,000 outlay (excluding fees).
Final advice
Before you start investing in Santos, it’s essential to compare brokers’ fees, trading platforms, and account conditions—some offer lower commissions for spot buying, while others provide more competitive CFD terms. Your optimal choice depends on your financial objectives, risk tolerance, and whether you prefer direct ownership or more flexible trading. For your convenience, a comprehensive broker comparator is available further down the page.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Our 7 tips for buying Santos stock
| Step | Specific tip for Santos |
|---|---|
| Analyze the market | Assess Santos’s performance on the ASX by reviewing recent share price trends, trading volumes, and sector news, especially the impact of rising LNG demand and recent oil price movements in Australia and Asia-Pacific. |
| Choose the right trading platform | Select an Australian broker that provides direct access to the ASX, competitive brokerage fees, and research tools, making it easy to monitor Santos and execute your trades efficiently. |
| Define your investment budget | Establish a clear investment amount for Santos that reflects your risk tolerance and portfolio diversification goals, remembering that while Santos offers dividends, it also has exposure to commodity price swings. |
| Choose a strategy (short or long term) | Decide whether to invest for Santos’s upcoming growth catalysts, like the Barossa and Pikka projects, for long-term gains or to capture shorter-term movements from quarterly financial results and technical price signals. |
| Monitor news and financial results | Regularly follow Santos’s financial announcements, project updates, and market news such as LNG sales reports and progress on carbon capture projects to stay informed on factors influencing share price. |
| Use risk management tools | Implement stop-loss and take-profit orders to manage risks associated with commodity price volatility and news events affecting Santos, ensuring your downside is minimised in turbulent markets. |
| Sell at the right time | Consider selling all or part of your Santos holdings when technical indicators approach resistance levels, or following positive project completions or strong dividend payments, to lock in gains and rebalance your portfolio. |
The latest news about Santos
Santos shares climbed 3.4% over the past week, supported by a strong technical breakout. The stock closed at AUD 6.08, experiencing both a short-term and medium-term uptrend with the price standing above the 20, 50, and 100-day moving averages, and displaying bullish signals through both RSI and MACD. The formation of a golden cross, as the 50-day moving average overtook the 100-day, provides further positive momentum. These technical indicators, reinforced by robust average daily volumes, suggest continuous investor confidence and a potentially stronger price performance in the near term.
Santos delivered solid Q1 2025 results, aligned with expectations, demonstrating resilience despite market volatility. The most recent quarterly release on April 17 highlighted US$1.3 billion in revenue and a 9% quarter-on-quarter increase in free cash flow from operations to US$465 million. Production rose to 21.9 million barrels of oil equivalent, up 2% from the previous quarter, while LNG sales climbed 3%. These operational strengths are particularly relevant to Australian investors, reflecting Santos’s capacity to maintain positive cash flow and stable production levels amidst external pressures, which are vital for ongoing dividend sustainability and future capital investments.
Near-completion of flagship growth projects boosts outlook, with Barossa LNG 95.2% finished and Moomba CCS fully operational. Santos’s Barossa LNG project, a major driver of future production and revenue, reached 95.2% completion and remains on track for first gas in Q3 2025, marking a critical milestone for the company and the local energy supply chain. Meanwhile, the Moomba Carbon Capture and Storage facility began commercial operations, exceeding expectations with over 685,000 tonnes of CO₂ permanently stored in just six months. For Australia, these developments reinforce Santos’s leadership in both traditional and low-carbon energy, supporting a stable domestic gas supply and advancing national decarbonization initiatives.
Strategic agreements and local operational expansions enhance Santos’s market position and growth prospects in Australia. The company’s Western Australian operations saw an impressive 18% production rise following the success of the Halyard-2 infill well, directly boosting supply to local markets. Additionally, a new Memorandum of Understanding with Tamboran Resources aims to explore Beetaloo gas export options via Darwin, further underpinning Santos’s growth within the national energy sector and its potential to support Australia’s energy security and LNG export ambitions.
Broker consensus remains strongly positive, with high institutional support and an attractive dividend yield for Australian investors. Santos features a “Strong Buy” broker rating, with consensus analyst target prices suggesting a potential 30% upside from current levels. Institutional investors hold a substantial share of the company, emphasizing market credibility and stability. The stock’s 5.83% dividend yield and commitment to returning at least 60% of free cash flow to shareholders provide a favorable outlook for income-focused Australian investors, even as dividends remain unfranked. This robust combination of technical strength, operational achievement, and shareholder focus paints an optimistic picture for Santos’s medium-term prospects on the ASX.
FAQ
What is the latest dividend for Santos stock?
Santos currently pays a dividend, with the most recent declared at AUD 0.18 per share, typically paid on a semi-annual basis in March (final) and September (interim). The dividend yield is attractive compared to industry peers, though it is important to note that recent dividends have been unfranked, providing no attached tax credits for Australian investors. This reflects Santos’ strong free cash flow and its ongoing commitment to returning value to shareholders.
What is the forecast for Santos stock in 2025, 2026, and 2027?
Based on the latest price of AUD 6.08, the projected values are AUD 7.90 for end of 2025, AUD 9.12 for end of 2026, and AUD 12.16 for end of 2027. This outlook is supported by Santos’s robust project pipeline—with the Barossa and Pikka developments driving production growth—and the company's pivotal role in meeting Asia-Pacific energy demand, which keeps analysts positive on long-term performance.
Should I sell my Santos shares?
Given Santos’s current valuation, resilient performance, and anticipated production growth from major projects, maintaining your holdings could be a prudent strategy. The company’s diversified operations, low cost base, and shareholder-focused capital returns offer structural advantages in a volatile market. Historically, Santos has demonstrated strong recovery potential, suggesting that holding may be appropriate for investors seeking mid- to long-term energy sector exposure.
How are Santos stock dividends and capital gains taxed in Australia?
For Australian investors, dividends from Santos are taxed at your marginal tax rate. As Santos dividends are currently unfranked, no franking credits apply, meaning you cannot offset other tax liabilities with these payments. Any capital gains from selling Santos shares are subject to capital gains tax, with a 50% discount if you’ve held the shares for over 12 months, providing tax efficiency for long-term investors.
What is the latest dividend for Santos stock?
Santos currently pays a dividend, with the most recent declared at AUD 0.18 per share, typically paid on a semi-annual basis in March (final) and September (interim). The dividend yield is attractive compared to industry peers, though it is important to note that recent dividends have been unfranked, providing no attached tax credits for Australian investors. This reflects Santos’ strong free cash flow and its ongoing commitment to returning value to shareholders.
What is the forecast for Santos stock in 2025, 2026, and 2027?
Based on the latest price of AUD 6.08, the projected values are AUD 7.90 for end of 2025, AUD 9.12 for end of 2026, and AUD 12.16 for end of 2027. This outlook is supported by Santos’s robust project pipeline—with the Barossa and Pikka developments driving production growth—and the company's pivotal role in meeting Asia-Pacific energy demand, which keeps analysts positive on long-term performance.
Should I sell my Santos shares?
Given Santos’s current valuation, resilient performance, and anticipated production growth from major projects, maintaining your holdings could be a prudent strategy. The company’s diversified operations, low cost base, and shareholder-focused capital returns offer structural advantages in a volatile market. Historically, Santos has demonstrated strong recovery potential, suggesting that holding may be appropriate for investors seeking mid- to long-term energy sector exposure.
How are Santos stock dividends and capital gains taxed in Australia?
For Australian investors, dividends from Santos are taxed at your marginal tax rate. As Santos dividends are currently unfranked, no franking credits apply, meaning you cannot offset other tax liabilities with these payments. Any capital gains from selling Santos shares are subject to capital gains tax, with a 50% discount if you’ve held the shares for over 12 months, providing tax efficiency for long-term investors.
