News Post
Santos acquiring ConocoPhillips’ northern Australia interests
Key highlights:
• Acquisition of ConocoPhillips’ northern Australia business with operating interests in Darwin LNG, Bayu-Undan, Barossa and Poseidon for US$1.39 billion plus a
$75 million contingent payment subject to FID on Barossa
• Value accretive acquisition of operating interests in long-life, low cost natural gas assets and strategic LNG infrastructure consistent with Santos' core asset growth strategy
• Fully funded from existing cash resources and new committed debt
• Materially accretive: ~16% expected earnings per share accretion and ~19% EBITDAX accretion in 20201
• Increases pro-forma production by ~25%, pro-forma 2P reserves by ~5% and pro-forma 2C contingent resources by ~27%
• Reduces forecast 2020 free cash flow breakeven oil price by ~US$4 per barrel
• Targeting pre-tax synergies of US$50-75 million per annum (excluding integration and other one-off costs) driven by Santos operatorship and efficiencies
• Acquisition delivers operatorship and control of strategic LNG infrastructure with growth potential
• Acquisition advances and supports Santos’ goal of taking Barossa FID by early 2020. Santos is prepared to sell down equity in Barossa and Darwin LNG to a target ownership of 40-50% to achieve increased partner alignment
• Barossa partner SK E&S is highly supportive and has signed a Letter of Intent to acquire a 25% interest in Bayu-Undan and Darwin LNG
• Santos is also in discussions with existing Darwin LNG joint-venture partners for equity in Barossa and in advanced discussions with LNG buyers for Barossa offtake volumes, including with an existing partner in Darwin LNG
Source: Santos
For subscriptions or a demo:
Ed Bramwell
Subscriptions Sales Manager
+44 20 3793 9705
For questions or to give feedback:
Thad Pittman
Senior Researcher
+1 (713) 525-4605
Download our brochure today!
Project News