Santos (ASX:STO) share price rises on production update

The Santos Ltd (ASX:STO) share price is edging higher this morning as the company adds a further 10,000 barrels per day in production.
The post Santos (ASX:STO) share price rises on production update appeared first on The Motley Fool Australia. –

surging asx 200 energy shares represented by two fountains of black oil in the shape of up arrows

The Santos Ltd (ASX: STO) share price is on the rise in early trade after a production update from the Aussie oil and gas giant this morning. At the time of writing, the Santos share price has edged 0.99% higher to $7.15.

Let’s take a look at what the company announced.

What’s driving the Santos share price?

Santos provided an update on production at its Ningaloo Vision floating production storage and offloading vessel (Ningaloo Vision). This comes after scheduled vessel maintenance in Singapore.

Ningaloo Vision, which ties together several oil fields off the Western Australian coast, has now ramped-up production again. The offshore vessel is expected to achieve production of 10,000 barrels per day in the coming weeks.

Santos managing director and CEO Kevin Gallagher said the vessel’s return to production sets the company up for the next stage of production from the Van Gogh oil field. Santos has a 52.5% interest in the Van Gogh-Coniston-Navara project with the remaining 47.5% held by Inpex.

How has Santos performed recently?

The Santos share price has surged higher in the last 12 months after a large share price collapse in March 2020.

Oil prices plummeted last year as the coronavirus pandemic took hold. Demand for energy collapsed as widespread border closures and localised lockdowns reduced usage in key industries like travel and manufacturing.

That saw the Santos share price plummet lower, which somewhat skews the story of the company’s recent performance.

Foolish takeaway

The Santos share price is responding positively after today’s update from Ningaloo Vision, with the vessel expected to add 10,000 barrels per day.

According to Bloomberg, however, overnight the WTI and Brent crude oil prices fell 4.4% and 4% lower, respectively. WTI closed at US$58.49 per barrel while the Brent crude oil price fell to US$61.82 per barrel. This could be subduing the impact on the company’s share price of its positive update today.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Santos (ASX:STO) share price rises on production update appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!