Santos Limited (ASX: STO) closed 2025 with 1,484 million barrels of oil equivalent (mmboe) in proved plus probable (2P) reserves, seeing modest organic additions offsetting annual production and portfolio changes. The company reported a 13 mmboe increase in 2P reserves, primarily from the Cooper Basin and Papua New Guinea.

Proved (1P) reserves remained stable at 913 mmboe, with a 95% proved reserves replacement ratio and a 15% 2P replacement ratio. Gas accounts for 83% of 2P reserves, with liquids at 17%. Developed reserves increased to 62% of total 2P volumes, signaling improved resource conversion.

International assets make up 40% of total 2P reserves, with PNG as a growth engine. Contingent resources (2C) decreased to 3,212 mmboe, mainly due to divestments. Carbon capture capacity reduced to 8 million tonnes, while 2C storage resources increased by 24 million tonnes.

Santos expects product sales revenue of $4.94 billion for 2025, with costs in the $3.25–$3.30 billion range. Net finance costs are forecast at $250–$265 million, and the effective tax rate around 31%. The company anticipates $137 million in impairment losses for the year.

Santos maintains a gas-heavy profile with a long-life reserves base and a focus on carbon management. Investors are encouraged by stable 1P reserves, increased developed 2P volumes, and growing CCS resources, which will impact the company’s long-term financial resilience and transition strategy.

Read more at Yahoo Finance: Santos Reports Stable 2P Reserves and Boosts CCS Resources