RBC Capital Markets anticipates a robust fourth quarter for Santos, driven by increased production in Western Australia and a return to normal output from the Cooper Basin. Santos is an Australian oil and gas company. The company explores, develops, produces, and markets hydrocarbons across Australia and internationally. The analyst report suggests that free cash flow is slated to increase by 2026, with at least 60 per cent allocated for shareholder returns.
Conversely, Woodside is projected to experience a weaker quarter due to reduced production and sales volumes, despite a strong performance from the Sangomar project. Amplitude Energy, however, is expected to demonstrate modest growth, buoyed by record output from Orbost and elevated spot gas prices.
Beach Energy faces the prospect of the most significant revenue decline, estimated at 21 per cent quarter-on-quarter, attributed to diminished volumes from Waitsia and Otway. Karoon Energy’s performance remains closely tied to fluctuations in Brent oil prices, making it particularly vulnerable to market volatility.
In the refining sector, Ampol and Viva Energy are predicted to capitalise on stronger margins. RBC Capital Markets estimates that every $US1 increase in the price of a barrel of oil would boost their 2026 EBITDA by $54 million and $64 million, respectively.
