Santos Limited (ASX: STO) – commonly searched as “STO stock” – is trading sideways-to-slightly higher today, even as global oil prices slump to fresh multi‑week lows and investors continue to digest a messy few months of takeover drama, guidance cuts, and senior leadership turmoil.
At around 12:40pm AEST on Wednesday, 26 November 2025, STO stock was changing hands near A$6.55, up just under 1% on the day from Tuesday’s A$6.49 close. Intraday, the share price has traded between A$6.39 and A$6.55, leaving Santos roughly 20% below its 52‑week high of A$8.06 but comfortably above the A$5.20 low. [1]
Despite the modest bounce today, Santos shares are still down about 5% over the past 12 months, even as the broader ASX 200 has pushed to new highs. [2]
STO stock price today: key numbers at a glance
Based on midday data from StockAnalysis and other market sources for Wednesday, 26 November 2025: [3]
- Last price: ~A$6.55
- Daily move: +A$0.06 (+0.85%) versus Tuesday’s A$6.49 close
- Day’s range:A$6.39 – A$6.55
- 52‑week range:A$5.20 – A$8.06
- Market cap: ~A$21.0 billion
- Trailing EPS (ttm): A$0.48
- Trailing P/E:~13.5×
- Forward P/E:~12×
- Dividend (ttm): A$0.36 per share
- Dividend yield:~5.5% (and closer to ~6.3% on some dividend trackers, depending on FX and timing). [4]
The key takeaway: STO stock is sitting in the middle of its recent trading range, offering a relatively high yield and moderate valuation, but with sentiment still bruised by a string of negative headlines.
Why STO stock is in focus today
1. Oil prices have tumbled – and Santos is feeling the macro pressure
Global crude prices slid again overnight after reports of progress toward a revised peace framework between Ukraine and Russia, which could eventually ease supply constraints and keep a lid on prices. [5]
- Brent crude has been trading around US$62–63 per barrel, near a five‑week low and down more than 2–3% in the last couple of sessions. [6]
- WTI crude is hovering in the high‑US$50s, also under pressure as markets fret about a potential oversupply in 2026. [7]
For Santos – which derives a large share of its revenue from LNG contracts indexed to oil – lower crude prices squeeze revenue and cash flow over time. That’s why ASX energy names, including Santos, were flagged as potential underperformers today in pre‑market commentary, with analysts warning Beach Energy and Santos “could have a poor session” if oil weakness persisted. [8]
So far, Santos has held up better than feared, but today’s small gain sits against a clearly weakening commodity backdrop.
2. Hot Australian inflation complicates the interest‑rate outlook
On top of commodities pressure, new monthly CPI data this morning showed headline Australian inflation running at 3.8% year-on-year, above expectations and above the Reserve Bank of Australia’s 2–3% target band. Underlying (trimmed mean) inflation is also stuck above 3%. [9]
Economists quoted in the ABC’s markets live blog say this makes near-term RBA rate cuts unlikely, and may even push out the timing of any easing toward late 2026. [10]
For Santos, higher‑for‑longer rates have a double impact:
- They raise the cost of capital and make it more expensive to fund big projects like Barossa and Moomba CCS.
- They pressure valuation multiples, especially for high‑capex sectors like oil & gas, where investors demand higher returns to compensate for risk.
Despite those headwinds, the stock’s modest climb today suggests the inflation print was largely priced in – at least for now.
Recent Santos news that still moves STO stock
Today’s share price doesn’t exist in a vacuum. STO stock has been on a rollercoaster through 2025. Several stories continue to shape sentiment:
1. Takeover bid collapses – again
In June, a consortium led by Abu Dhabi National Oil Company (ADNOC) lobbed an all‑cash takeover bid worth about US$18.7 billion for Santos. [11]
- The bid initially sent Santos shares soaring more than 15%. [12]
- But in mid‑September, the XRG/ADNOC consortium walked away, citing regulatory uncertainty and extended negotiations. [13]
On the day the deal collapsed, STO stock plunged around 11–14%, wiping billions from its market value and dragging the energy sector lower. [14]
Under long‑time CEO Kevin Gallagher, Santos has now seen three multi‑billion‑dollar approaches fail in roughly a decade – including a scrapped merger with Woodside Energy in 2023–24. [15]
For investors, this raises two competing narratives:
- Bullish spin: If multiple suitors were willing to bid at premiums, STO might be undervalued on a standalone basis.
- Bearish spin: Regulatory complexity, ESG scrutiny and internal strategic disagreements may be permanently capping M&A value.
Both views are still influencing how traders interpret every move in the share price.
2. Q2 and Q3 2025: solid cash flow, weaker sales and guidance cuts
Santos’s half‑year 2025 results showed solid operational performance: [16]
- Sales revenue: ~US$2.6 billion for the first half.
- Free cash flow from operations: ~US$1.1 billion, underlining the cash‑generative nature of its LNG and domestic gas assets.
- Underlying profit: ~US$508 million.
- Production volumes: 44.1 million barrels of oil equivalent (mmboe), broadly in line with the prior year.
- Interim dividend:US 13.4 cents per share, partially franked.
However, the 2025 Third Quarter Report told a more sobering story: [17]
- Q3 production was 21.3 mmboe, bringing year‑to‑date production to 65.4 mmboe.
- Sales volumes: 21.5 mmboe.
- Q3 sales revenue: around US$1.13 billion, down roughly 11–12% sequentially on weaker LNG prices and some operational disruptions.
- Management narrowed full‑year production guidance to 89–91 mmboe (down from 90–95 mmboe), and sales volume guidance to 93–95 mmboe.
- A key driver was a technical software issue with the safety systems aboard the BW Opal FPSO at the Barossa project, which caused an unplanned shutdown of around two weeks, slowing the ramp‑up of a crucial growth asset.
- Flood‑related issues at the Cooper Basin also lingered longer than expected, with more than 150 wells still impacted during the quarter.
On the plus side, Santos has reaffirmed that Barossa is still on track to ship its first LNG cargo in Q4 2025, which would be a key catalyst for future volume and cash flow growth. [18]
3. CFO resignation and governance concerns
The other overhang on STO stock has been boardroom drama.
On 14 October, Santos announced that Chief Financial Officer Sherry Duhe was stepping down after barely a year in the role. [19]
Duhe later told Reuters she left due to an “untenable leadership environment” and differences in leadership style with CEO Kevin Gallagher, saying she could not reconcile her approach with his and that she refused to sign a non‑disclosure agreement about her departure. [20]
- Santos has said only that Duhe left to pursue other interests and appointed deputy CFO Lachlan Harris as acting finance chief. [21]
- Analysts had seen Duhe as a potential CEO successor, so her abrupt exit – and her comments about culture and leadership – have fuelled concerns about internal governance and succession planning. [22]
For a capital‑intensive LNG operator that regularly asks investors to back multi‑billion‑dollar projects, confidence in management is critical. The leadership question remains a live issue for STO’s valuation.
4. US$1 billion bond issue shores up the balance sheet
In brighter news, Santos has successfully tapped global debt markets.
Earlier this month the company priced a US$1 billion senior unsecured bond in the US Rule 144A/Reg S market, with a 5.75% coupon and maturity in November 2035. [23]
TipRanks and ASX filings note that the deal is intended to:
- Support disciplined growth investment (including Barossa and decarbonisation projects).
- Maintain a robust liquidity position.
- Preserve flexibility around capital returns to shareholders.
At the same time, Santos still reported US$1.1 billion in free cash flow from operations over the first half of 2025, suggesting leverage remains manageable. [24]
The combination of strong operating cash flow and long‑dated funding is one reason why STO stock continues to appeal to income‑oriented investors, despite the recent volatility.
STO stock valuation and analyst sentiment
From a valuation standpoint, Santos currently screens as neither a deep bargain nor a momentum darling:
- P/E ratio: ~13.5× trailing earnings, with a forward P/E around 12× – modestly cheaper than many global integrated energy majors but not distressed. [25]
- Dividend yield: ~5.5–6.3%, depending on the data source and FX, with a three‑year dividend growth rate around 30% according to dividend trackers. [26]
- 1‑year share performance: about –5%, underperforming the ASX 200, and around –21% over three years, according to Simply Wall St. [27]
On the analyst side:
- Investing.com data shows an average 12‑month price target near A$7.8, implying roughly 20% upside from current levels, with most brokers rating the stock a Buy or equivalent. [28]
- Some brokers have turned more cautious. MarketScreener reports that Morgans Financial recently downgraded Santos from “Accumulate” to “Hold” with a A$6.80 price target, citing uncertainty around earnings and project execution. [29]
Short‑term technical services such as StockInvest class STO as a “buy candidate” in the short term, noting low day‑to‑day volatility but a broader falling trend. [30]
Is STO stock a buy, sell, or hold right now?
Whether STO stock looks attractive at today’s A$6.50–6.60 region depends heavily on your risk tolerance and time horizon. Here’s a quick balanced view.
Bullish points for Santos (STO)
- Robust, diversified asset base
Santos controls a portfolio of LNG and gas assets across Australia, Papua New Guinea, Timor‑Leste, Alaska and the US, supplying domestic gas and LNG into Asian markets. [31] - Strong cash generation and high yield
Even with softer commodity prices, Santos generated over US$1 billion in free cash flow in the first half of 2025 and is paying a mid‑single‑digit to low‑double‑digit dividend yield, depending on your entry price. [32] - Barossa and CCS as long‑term growth levers
The Barossa LNG project is nearing first cargo in Q4 2025, which could lift volumes and cash flow through the back half of the decade, while the Moomba CCS project and broader decarbonisation push aim to future‑proof the business against climate policy and carbon pricing. [33] - Takeover “floor” and strategic interest
Multiple failed bids – including the ADNOC‑led US$18.7 billion proposal this year – suggest continued strategic interest from global energy majors in Santos’s LNG-heavy portfolio. [34]
Bearish points and key risks
- Commodity price risk
With Brent and WTI now near multi‑week lows, any sustained period of sub‑US$60 oil could pressure earnings, cash flow and future dividends, particularly if LNG contract prices adjust lower. [35] - Execution and operational risk
Guidance cuts and the Barossa FPSO issues in Q3 highlight the operational complexity of Santos’s portfolio. Delays or cost overruns at Barossa or CCS projects could weigh on returns. [36] - Governance and culture concerns
The public comments from ex‑CFO Sherry Duhe about an “untenable leadership environment” raise questions about board culture, succession planning and long‑term strategic alignment. [37] - Regulatory and ESG pressures
Santos has faced legal and activist scrutiny on the environmental footprint of its gas projects, including challenges around Narrabri and broader concerns over gas’s role in a net‑zero world. This can impact project approvals, financing conditions and investor appetite. [38]
How investors might approach STO stock today
For income-focused investors, Santos offers:
- A relatively high cash yield,
- Exposure to LNG demand growth in Asia, and
- A strengthened balance sheet backed by the new US$1 billion bond issue. [39]
For more conservative or ESG‑sensitive investors, the combination of:
- Governance questions,
- Repeated takeover failures, and
- Ongoing commodity and regulatory risks
may argue for a “wait and see” stance until there’s clearer evidence of execution at Barossa, stabilisation in leadership, and a firmer oil price floor.
Either way, at around 13–12× earnings with a mid‑single‑digit yield, STO stock looks priced for moderate growth with meaningful risk, rather than for perfection. [40]
Final word
As of 26 November 2025, STO stock is holding up better than the oil market would suggest, but the share price still reflects years of underperformance, takeover disappointment, and rising scrutiny of management and strategy.
If you’re considering Santos:
- Revisit your thesis: Are you buying it as a yield play, a long‑term LNG growth story, or a potential future takeover target?
- Stress‑test your numbers against lower oil and LNG prices.
- Watch upcoming catalysts: Barossa’s first LNG cargo, any update to 2025–26 guidance, and further commentary from the board on governance and leadership.
And, of course, this article is for information only and is not financial advice. Before making any investment decision about STO or any other stock, consider your own objectives, financial situation and risk tolerance, and if needed, consult a licensed financial adviser.
References
1. stockanalysis.com, 2. stockanalysis.com, 3. stockanalysis.com, 4. stockanalysis.com, 5. www.sharecafe.com.au, 6. www.sharecafe.com.au, 7. mezha.net, 8. www.fool.com.au, 9. www.abc.net.au, 10. www.abc.net.au, 11. stockanalysis.com, 12. stockanalysis.com, 13. www.raskmedia.com.au, 14. www.raskmedia.com.au, 15. www.reuters.com, 16. www.intelligentinvestor.com.au, 17. www.santos.com, 18. www.reuters.com, 19. www.intelligentinvestor.com.au, 20. www.reuters.com, 21. www.reuters.com, 22. www.reuters.com, 23. www.tipranks.com, 24. www.intelligentinvestor.com.au, 25. stockanalysis.com, 26. www.digrin.com, 27. simplywall.st, 28. au.investing.com, 29. www.marketscreener.com, 30. stockinvest.us, 31. stockanalysis.com, 32. www.intelligentinvestor.com.au, 33. www.santos.com, 34. stockanalysis.com, 35. www.sharecafe.com.au, 36. www.reuters.com, 37. www.reuters.com, 38. stockanalysis.com, 39. www.tipranks.com, 40. stockanalysis.com
