Santos Announces Acquisition of Quadrant Energy
Thursday 23 August 2018
Key Highlights
- Acquisition of 100% of Quadrant Energy for US$2.15 billion plus potential contingent payments related to the Bedout Basin
- Fully funded from existing cash resources and new committed debt facilities, with rapid de-gearing expected to <30% by the end of 2019
- Value accretive acquisition of long-life WA conventional natural gas assets with stable cash flows
- Consistent with Santos' growth strategy of building on existing infrastructure positions around core assets to deliver sustainable shareholder returns
- Advances Santos' aim to be Australia’s leading domestic natural gas supplier
- Increases proforma 2P reserves(1) by 220 mmboe, up ~26% and proforma annual production(2) by 19 mmboe, up ~32%
- Significant portfolio overlap with Santos provides combination synergies estimated at US$30-50 million per annum (excluding integration and other one-off costs)
- Upside through further material synergies, near-term developments and exploration
- Material earnings, cash flow and value per share accretion
- Opportunities to leverage Quadrant’s offshore operating capability across Santos’ Western Australia and Northern Australia portfolio
(1) Proforma reserves based on Santos and Quadrant 2P reserves as at 31 December 2017.
(2) Proforma production based on Santos and Quadrant production for the year ended 31 December 2017.