Santos starts continuous production at Alaska’s Pikka Phase 1, targeting ~80,000 barrels per day in Q3

Santos (ASX: STO) said its Pikka Phase 1 oil project in Alaska has begun continuous production, with output expected to build toward a plateau of about 80,000 barrels per day in the third quarter of this year. The company said the Barossa project is also ramping up, and the two developments are expected to materially increase free cash flow. Santos shares are up 21.6% this year including dividends, and the stock trades on a 4.8% trailing dividend yield. Management has targeted allocating at least 60% of free cash flow to shareholder returns and reducing net debt by $2.5 billion by 2030.