Santos Ltd has received a non-binding indicative proposal from the XRG Consortium for a cash acquisition, highlighting investor confidence in its strong production and financial outlook.

Target Information

Santos Ltd is a prominent oil and gas exploration company based in Australia, recognized for its extensive operations in petroleum extraction and liquefied natural gas (LNG) production. The firm achieved notable financial health in the first half of 2025, reporting a free cash flow from operations totaling approximately $1.1 billion, with $620 million generated in the second quarter alone. Santos produced 22.2 million barrels of oil equivalent (mmboe) during this period, marking a 1% increase from the previous quarter, alongside sales volumes of 23.9 mmboe, which saw a 3% uptick compared to the prior quarter.

Industry Overview in Australia

The oil and gas industry in Australia is characterized by significant production capabilities and a robust market for liquefied natural gas (LNG), driven by both domestic demand and exports. The country has evolved into one of the world's top LNG exporters, supported by substantial capital investments and advanced technological capabilities. Recently, Australia has focused on enhancing its energy infrastructure to cater to the increasing LNG demand, particularly in Asia, where countries are transitioning to cleaner energy sources.

In 2025, the industry continued to witness fluctuations in production levels due to external factors, such as climate impacts and evolving regulatory landscapes, resulting in heightened operational resi