V_H if oil was $70 U.S. per barrel then Santos would be selling the contracted LNG from GLNG at $12 U.S per mmbtu (based on 5.8 mmbtu to 1 mmboe).
At that price GLNG would make sense as an investment, PNG on the other hand makes sense at $8.
Fully agree that they need to invest more to cover depletion and $33 U.S. per barrel breakeven is no sustainable business. That can be said of the whole industry which has restructured itself for $60 U.S per barrel and will someday regret this myopic decision.
STO Price at posting:
$3.40 Sentiment: Buy Disclosure: Held
