Santos Limited Boosts Shareholder Returns with New Projects and Carbon Goals

Santos Limited (ASX: STO) plans to increase shareholder returns from 2026, raising its free cash flow payout target to 60% after production starts at the Barossa gas project and the Pikka oil project. The company will return all free cash flow as dividends and buybacks when gearing falls below 15-25%. Santos also aims to expand its carbon storage capacity to 14 million tonnes annually by 2040, equivalent to 50% of its scope three emissions. The announcement follows pressure from investors for higher returns and comes amidst a Federal Court case over clean energy claims. At the time of writing, Santos remains focused on balancing production growth with sustainability initiatives.

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