SANTOS’ share price climbed 31% last year as it ticked off milestones on its two major liquid natural gas projects (LNG) and pulled in record quarterly sales revenues.
According to the Australia’s Nine News, Santos expected operating cash flows to double by 2016 following the completion of the PNG LNG this year and Gladstone LNG in 2015.
This will come as a result of massive production increases as well as higher margins through cost control and long-term pricing.
Longer-term, Santos had forecast a compounded annual growth rate of 6% out to 2020, at which point the company will be producing 80-90 million barrels of oil equivalent (mmobe) annually.
The report said Santos has committed to returning more capital to shareholders as cashflows rise, which means bigger dividend cheques annually.
With many anticipating a strengthening of the US dollar on the back of an improving US economy this year, Santos and other listed energy producers like Woodside Petroleum and Oil Search stand to benefit over the short-term.