Santos Limited

Good morning and welcome to the presentation of Santos' 2025 full year results. I'm speaking today from the traditional lands of the Gardiner people of the Adelaide Plains and pay my respects to elders past and present. I also acknowledge and recognise the support of traditional owners and indigenous people everywhere Santos operates around the world. Before we start, I draw your attention to the usual disclaimer on slide two. Santos delivered a strong result despite lower commodity prices, with the base business continuing to demonstrate the resilience of our disciplined, low-cost operating model. I'll begin with an overview of our results before handing over to our Chief Financial Officer, Lockie Harris, to present the financial details. Our Chief Operating Officer, Brett Darley, will then discuss the operational performance of our base business. Following Brett's presentation, I'll take you through our outlook and strategic priorities for 2026. Then we'll open the call up to questions. In 2025, personal and process safety performance were outstanding, with Santorff ranking the top quartile of our sector globally for personal safety and outperforming the global benchmark for process safety. Our lost time injury rate and total recordable injury rate were Santorff's best on record. Process safety performance, measured by the loss of containment incident rate was the best in more than a decade. While we are proud of these outcomes, we remain focused on continuous improvement, and I'd like to take this opportunity to thank all of our employees across our global operations for their hard work and commitment to continual improvement. Slide 5 summarises our 2025 financial results. The business generated strong revenues and delivered free cash flow from operations of $1.8 billion, EBITDAX of $3.4 billion, and underlying profit after tax of almost $900 million. Our gearing was 26.9% excluding leases and 21.5% excluding leases, notwithstanding a capital-intensive period. This performance demonstrates the value of our disciplined focus on costs, reliability and margin. Accordingly, the Board has resolved to pay a final dividend of 10.3 US cents per share, 48% of free cash flow from operations in the second half. Underpinned by our disciplined low-cost operating model, the base business continues to improve reliability and reduce costs. Total production for the year was 87.7 million barrels of oil equivalent, an increase on 2024, and unit production cost was the lowest in a decade at $6.78. Pleasingly, we received more than 900,000 ACUs for Moomba CCS Phase 1. B&G L&G plant was at capacity throughout 2025. In GL&G, we saw plant reliability of more than 99.5%, and our marketing and trading teams signed three new LNG sales and purchase agreements in the year. Compounding growth in shareholder returns is driven by consistent value extraction from the underlying portfolio and a disciplined application of our capital allocation framework. For 2025, the 10.3 cents per share will be returned to shareholders in the final dividend, equivalent to 48% of free cash flow from operations in the second half, exceeding our commitment under the capital allocation framework. The total amount returned to shareholders for the year is 23.7 cents per share, which is 43% of free cash flow from operations. The Board's decision to increase returns to shareholders reflects the fact that Barossa is now producing and gearing has passed its peak at a lower level than previously anticipated. Over the last seven years, compound annual dividend growth of more than 13% has been achieved despite a period of major capital investment and significant global inflation. Santos delivered Barossa, a Tier 1 long-life asset, within around six months of the original planned start date and without drawing on additional budget contingency. For a project of this scale and complexity, that is a significant achievement. It demonstrates outstanding project self-execution and disciplined contractor management, despite the challenges of COVID, global supply chain disruption, uncertain regulatory approvals and unprecedented litigation. Just as importantly, it demonstrates our capability to execute major development projects while continuing to run the base business efficiently, reliably and safely. We've taken a very considered approach to the final stages of commissioning to ensure offshore operations achieve a high level of reliability as quickly as possible once fuel production is achieved. The project has a high technical complexity with technology deployed to improve operational efficiency and emissions. And we're currently producing at just under half rates while we go through a sequence of compressor dry gas seal change-outs and we are targeting ramping up the fuel production rates in the next few weeks. Mechanical completion of PICA Phase 1 was achieved in January, with ramp-up to plateau production rates expected around the middle of the year. Dynamic commissioning is underway at the Seawater Treatment Plant, Nanoshoot Drill Site B and the Nanoshoot Processing Facility. The Nanoshoot Drill Site B has been handed over to operations, another key milestone towards first oil. Drilling performance remains exceptional. We're now drilling the 26th well and continue to push technical limits. Two combination wells have been completed, including a record 10,000 foot horizontal section that delivers two bottom hole locations with a single well. Combination wells deliver savings on cost as well as rig time, accelerating the drilling schedule and getting more reservoir sections online earlier. 20 development wells have been flowed back, including 10 producers, with average expected start-up flow rates of approximately 7,000 barrels per day per well, in line with pre-drill expectations. The 23rd well delivered the highest productivity to date, with expectations of flow rates of approximately 8,000 barrels per day. Once at full rates, Barossa and Beaker Phase 1 together are expected to lift Santos' production by around 25% by 2027 compared to 2025 levels. In 2026, as these two major development projects are integrated into the base business and we right-size the business, we expect a reduction in headcount of around 10% across the business from 2024 levels. Moving to slide 10, Santos holds a unique and diversified resource base with a 17-year 2P reserve life and a 10-year 1P life. supported by almost 4.7 billion barrels of oil equivalent and reserves and contingent resources. The quality and depth of our inventory underpins our strategy to continue to backfill existing infrastructure and grow production. We are optimistic of making significant resource additions following the appraisal campaigns in the Beetaloo and Berri basins over the next 18 months or so. Across the portfolio, We have a deep inventory of opportunities embedded in the base business. These have the potential to leverage existing infrastructure to lift production and deliver strong returns, supporting our ambition to maintain production between 100 and 120 million barrels of oil equivalent in the near term with clear pathways to sustain growth beyond that. Slide 11 demonstrates the disciplined low-cost operating model in action. With a relatively steady production over the last few years, we have still managed to reduce unit production costs during this period, generating strong cash flows despite falling commodity prices, resulting in our ability to increase shareholder returns over the same period. Additionally, we have delivered two major developments, Numba CCS and Barossa, and are closing in on the start-up of PICA Phase 1. All of this has been achieved while maintaining balance sheet strength improving our personal and process safety performance, and lowering our emissions. Santos has already achieved its 2030 emissions target, supported by the world-class Moonbus CCS project, reinforcing the role lower carbon gas can play in delivering energy security while reducing emissions. Our strategy remains clear. Generate strong cash flow, reward shareholders, reinvest to backfill our infrastructure, and to build new capacity and grow production and continue to operate safely and reliably. I'll now hand over to Lockie to provide an overview of our financial results.

Thanks, Kevin, and good morning, everyone. I'll step through the financial performance for 2025, which reflects a resilient-based business and disciplined execution across the portfolio. In terms of our 2025 financial highlights, free cash flow breakeven from operations was $27.43 per barrel, demonstrating the ongoing cost discipline from our base business. All-in free cash flow breakeven was $58.90 per barrel. Going forward, we will target an all-in free cash flow breakeven of $45 to $50 per barrel. At this range, we will have capacity to invest in projects that add high-quality production volumes, reserves and resources, and continue progressing our organic pre-fit opportunities. Unit production costs were $6.78 per barrel, the best result in a decade, achieved with FX tailwinds and cost discipline. Total 2025 dividends of $770 million include the final dividend declared of $335 million. Slide 14 details our balance sheet strength. Pleasingly, Gearing finished the year at 26.9%, including leases, which is a real positive, noting we're at the conclusion of our peak capital investment phase Barossa is in production and Picker Phase 1 nearing production. We remain committed to a resilient balance sheet and maintaining an investment grade credit rating as production and cash flow increase following the delivery of Barossa and Picker Phase 1. This financial strength provides flexibility to fund growth, deliver shareholder returns and actively manage gearing. Our continued investment grade credit ratings from Fitch, Moody's and S&P reflects Santos' in place since 2016. Our long-dated debt maturity profile supports financial stability with an average weighted term to maturity of five years. In 2025, we accelerated the final repayment of the PNG LNG project financing facility, fully repaying the debt. The early repayment reduces interest costs and removes restricted cash requirements, which helps strengthen our liquidity position. Santos now has approximately $4.3 billion of liquidity across cash and undrawn facilities. There are no scheduled debt maturities in 2026, with the next due in September 2027. During 2025, we also successfully completed a $1 billion senior unsecured 10-year bond offering in the US 144A Reg S market. This attractively priced long-term capital further strengthens our funding base and supports disciplined growth from our high-quality, diversified portfolio. Consistent with our capital management framework, we continue to protect and strengthen the balance sheet to safeguard our financial position through hedging strategies for both commodity and FX exposure. Hedging has been undertaken at rates well below the long-term Australian dollar FX average, providing strong protection for the balance sheet. The strength of this balance sheet is what has funded the development projects whilst providing strong returns to shareholders. Our underlying earnings show that product sales revenue remains strong at over $4.9 billion, generating EBITDAX of $3.4 billion and underlying profit of $898 million. Underlying profit is lower than the prior year, reflecting lower commodity prices and a higher effective income tax rate. Our 2025 free cash flow from operations highlights the strength of Santos' diversified portfolio, high-performing core assets, secure LNG contracts, inflation-linked cost discipline. Pleasingly, we continue to maintain high gross profit margins across the portfolio with a gross profit margin of 33.7% this year. We have delivered savings of around $50 million and continue to target an annual savings run rate of $150 million. As we have previously advised, once Barossa and Picker Fudge One are online, we expect our free cash flow sensitivity to increase from around $400 million for every $10 movement in Brent oil up to $550 to $600 million for every $10 movement. As outlined earlier, we achieved record low unit production costs of $6.78 per barrel in 2025, supported by FX tailwinds and discipline cost control. Our TREC record shows we continue to outperform our peers in this space with an unwavering commitment to cost discipline. In addition, we remain focused on our target of less than $7 per BOE unit production cost. Santos is Australia's low cost operator and that is not a slogan, it is a competitive advantage. With the production from Barossa and Picker Phase 1 coming online, Santos is positioned to fully fund the base business and growth capital requirements. This includes exploration and appraisal, decommissioning, corporate and funding cost and investment in growth at an all in free cash flow break even of $45 to $50 per barrel. Our portfolio will keep production between 100 to 120 million barrels of oil equivalent over the next few years, but the $45 to $50 framework allows us to pre-invest in our next stage of growth, including exploration and appraisal projects such as Papua LNG, Betaloo and the Bedouin Basin. Cash flow in excess of our all-in free cash flow break-even will be returned to shareholders at a minimum of 60%. with the remaining 40% available for de-gearing the balance sheet or increased shareholder returns. With a strong balance sheet, Santos has the ability to take advantages of opportunities for value accretive growth. Thank you, and I'll now hand over to our Chief Operating Officer, Brett Darley. Thanks, Lachie, and good morning, everyone.

Let me turn now to the operational performance. Our base business has delivered another strong year. Safety remains a leading indicator of operating capability. and we achieved our lowest lost time injury rep rate on record. We are getting more from our infrastructure with reliability above 98% across PNG gas, PNG LNG plant and GLNG upstream facilities. The GLNG plant at Curtis Island achieved 99.5% reliability. A key competitive advantage for Sanos is our ability to self-execute projects. In 2025, 296 wells were drilled globally. We produced drill duration in the Cooper by two and a half days per well, drilled a record 8,200 metre horizontal well in Alaska and completed the first triple lateral CSG well in Queensland. In 2025, P&G LNG sustained an annualised run rate of 8.6 million tonnes per annum, supported by plant reliability of more than 98% and the first full year production from Angorae. PMG LNG effectively ran full for the year with upstream capacity exceeding planned capacity. We intentionally choked back some of our operated wells, a strong position that highlights the depth and flexibility of our resource base. Our Stannos operated fields provided 17% of PMG LNG gas supply with upstream operated gas reliability of 98%. The Heights 2F2 well was completed with a safe and accelerated start-up in the fourth quarter. Initial production is averaging around 60 TJs a day, further adding volume and resilience to our supply base. Alongside strong operational delivery, we maintained our disciplined cost performance. Upstream PNG production costs decreased 34 cents per BFOE compared to 2024, and overall we delivered a 5% reduction in unit production costs. This improvement was driven by targeted initiatives, including the reorg of our supply chain and logistics services, delivering around 1.3 million in sustainable annual savings, and optimisation of maintenance programs, contributing more than $5 million in savings in 2025. Put simply, P&G LNG is performing. Costs are improving, and we've got a deep runway ahead of us. It's a high-quality, long-life asset in a very strong position. GLNG and our Queensland CSG operations delivered another year of strong performance. GLNG produced 6 million tonnes of LNG, shipping 101 cargoes, with more than 99.5% plant reliability. We also completed Train 2 shutdowns safely and on schedule. GLNG continue to support the East Coast domestic gas market, supplying 11 petajoules through seasonal shaping and working with our joint venture partners to exercise contractual flexibility so we can continue supporting the domestic gas market in 26. Upstream supply remains stable with record production rates from Roma of 223 terajoules per day and record average production from Scotia of 105 terajoules per day, underpinned by high facility reliability. And we continue to focus on disciplined cost performance. In 2025, we completed several compressor facility upgrades, enabling the shutdown of a legacy facility. These initiatives delivered around $5 million per annum in production cost savings and unlocked an additional 15 terajoules a day of incremental production. At the well level, we continue to push technical boundaries. Pump Life has improved through solids handling initiatives and the rollout of our Smart PCP digital program, which reduces failure rates and improves uptime. We also extended our well design capability, drilling our first triple lateral CSG well and achieving our longest inseam lateral length at 3.2 kilometres, increasing reservoir access and improving recovery. In Western Australia, our focus on reliability and discipline execution and infrastructure-led value continues to deliver strong results. Uranus Island averaged 99% reliability in 2025. Production costs improved compared to 24, with unit production costs now approximately $6.15 per BOE, benefiting from strong contribution from the Halyard 2 well and FX tailwinds. The Halyard 2 infill wells is a strong example of our self-execute capability. It came online in the first quarter and has exceeded pre-drill deliverability expectations by 38%, reinforcing the value of developing reserves close to existing infrastructure. The same self-execute, low-cost tie-back model underpins approval of the John Brooks 7 infill well as the next Varanus Island backfill opportunity, while the Varanus Island Compression Project Phase 2 has developed around 24 million barrels of oil equivalent of 2P reserves. The Cooper Basin was impacted by a record-breaking flood event on a scale not seen since 1974, affecting more than 200 wells and several upstream compressor facilities. Our focus throughout has been the safe recovery of these facilities, and I'm pleased to say production rates have now returned to pre-flood levels. We have safely reinstated about 70% of impacted wells and facilities and restored more than 2,500 kilometres of road access. Importantly, drilling activity continued uninterrupted with 104 wells drilled and 80 wells connected during the year. As a result, 30 wells are now ready for connection in early 26 once residual floodwaters recede and full access to flowline routes is restored. Beyond recovery, we continue to advance the long-term potential of the Cooper Basin. Whilst the Cooper has its challenges, we've been progressing our resource opportunities including the granite wash and the patch of watertight gas place. Our future investments will focus on these areas that provide higher margins and contain the majority of our future resource base. We've also progressed in the planning of a new way of operating these areas with the development of the Moomba Central Optimisation Project. This project will transform the cost structure in the central area of the basin and we have plans in place to change the way we're thinking about the Cooper Basin more broadly. In 2025, we also implemented our integrated remote drilling ops centre, the IROC, which will improve safety and cost by taking people out of the field and reducing evaluation costs, and is expected to deliver around $5.5 million in annual recurring savings. It will also improve our stimulation and completion activities, improving overall well productivity. I'll now hand back to Kevin.