Santos announced new capital management framework and on-market share buyback

Santos Limited (ASX: STO) announced a new capital management framework aiming higher shareholder returns and containing an initial on-market share buyback of up to US$250 million.

The Company’s strategy is to maintain a disciplined, low-cost operating model that is intended to deliver robust cash flows via the oil price cycle. The new capital management framework seeks to maintain a right capital structure that allows Santos to balance the allocation of capital between investments in the business, the development of strategic growth and clean energy projects, as well as the provision of sustainable returns to shareholders at higher commodity prices.

Given the strong free cash flow being generated at current oil prices and gearing at 26% at March 2022 close, STO intends to return up to US$250 million to shareholders via an on-market share buyback during the rest of 2022.

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