In this section we will conduct a deep analysis on Santos (STO) following the recent takeover bid. When assessing this company we take into account the upside and downside risks and determine whether the company is worth adding to your portfolio. We also look at the company’s fundamentals and thematics to come up with a final decision. Company Overview Santos (STO) – Is one of the leading independent oil and gas producers in the Asia-Pacific region, supplying the energy needs of homes, businesses and major industries across Australia and Asia. With its origins in the Cooper Basin, it has one of the largest exploration and production acreages in Australia. It has portfolio of high-quality liquefied natural gas (LNG), pipeline gas and oil assets. These include: Papua New Guinea LNG Darwin LNG John Brookes and Spar fields WA Gladstone LNG (GLNG) Cooper Basin Carnarvon Basin Santos Asia Harbour Energy have lodged a binding bid to takeover Santos at US$4.98 which works out roughly to be about $6.63 a share. will be the fourth bid the Harbour Energy have made. Fundamentals On fundamentals, the company is best described as mixed. A few years ago Santos was burdened with debt from its Gladstone Project and there were real concerns that it could default on its obligations due to the falling oil price. But Santos is seemingly out…

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