Santos Announces $300M Off-market Buyback

Santos Ltd. on Monday announced an off-market buyback tender for approximately $300 million of ordinary shares.

"This initiative reflects our solid balance sheet and cashflow position, combined with the Board's view that the Company's shares are being undervalued by the market," said John Ellice Flint, Santos' Managing Director and Chief Executive Officer.

"Directors considered a number of capital management alternatives and concluded that an off market buyback would be the most effective way to deliver additional benefits to shareholders.

"In particular, the buyback is expected to improve the efficiency of Santos' capital structure and result in improvements to earnings per share and return on equity, which will therefore also benefit non-participating shareholders.

"At the same time, we will continue to make significant investments in our growth businesses, including short cycle time development projects such as Cooper Basin oil and the expansion of the Fairview field. Coupled with our substantial contingent resource position, we have numerous options in our portfolio to leverage the growing global demand for energy, including LNG."

The Santos Board believes that the proposed off-market buyback will not affect the capacity of Santos to pay fully franked dividends for the foreseeable future.