Oil and gas company, Santos
(ASX:STO) had its Investor Day today, and its CEO and managing director, Kevin Gallagher, outlined the company’s new strategy to drive shareholder value.
Mr Gallagher says the new strategy is aiming to reduce net debt by US$1.5 billion – and the goal is for debt to be lower than US$3 billion by the end of 2019.
One part of Santos’ strategy is to simply its business to focus on five core, long-life natural gas assets – the Cooper Basin, GLNG, PNG, Northern Australia and Western Australia Gas, with the remaining assets to be packaged and run separately as a separate business.
Santos also announced that it reduced headcount by more than 500 positions, and the business has been cash flow positive for each of the last 7 months.
Also, the company is expecting 2016 sales volumes to be at top end of the 81-83 million barrels of oil equivalent guidance range.
Santos posted a net loss of $1.49 billion at 30 June 2016.
