Santos has posted record production, earnings, and cashflow in the first-half of 2022 on increased demand and rising oil and LNG prices.
The Adelaide-headquartered company reported on Wednesday a half-year net profit after tax of $US1.167 billion ($A1.66 billion) for the first half of the financial year, up 230 per cent and an underlying profit of $US1.267 billion ($1.8 billion), up 300 per cent.
Santos also announced a final investment decision has been taken to proceed with the Pikka Phase 1 oil project in Alaska, which it disclosed would cost more than expected.
The updated guidance on 2022 capital expenditure on Pikka is $US1.4 to $US1.5 billion ($2 billion to $2.1 billion) up from $US1.1 billion ($A1.6 to -$A1.7 billion).
Shares in Santos fell eight cents or 1.1 per cent to $7.00 in morning trade.
Free cash flow for the oil and gas exploration and production company was $US1.708 billion ($A2.4 billion), up 230 per cent.
"Today's results demonstrate the strength of Santos, with strong diversified cashflows and capacity to provide sustainable shareholder returns, fund new developments and the transition to a lower carbon future," Chief Executive Kevin Gallagher said in a statement.
Sharing the gains, Santos announced an increased share buyback from $US250 million ($A356 million) to $US350 million ($A498 million) and boosted the interim dividend - up 38 per cent at US 7.6 cents (10.8 cents) per share unfranked.
Record sales revenue reflected higher volumes and strong oil and liquefied natural gas prices on strong global energy demand as the war in Ukraine disrupts leading producers.
There was also higher interest in Papua New Guinea LNG following the Oil Search merger, Santos said.
Amid regulator concerns about gas prices and domestic supply, Santos said the average realised east coast domestic gas price rose 22 per cent to $6.49/GJ and was down five per cent to $4.09/GJ on the west coast.
The average realised oil price was up 67 per cent to $116.28 per barrel, and the average realised LNG price was up 111 per cent to $14.19.
