S&P: Santos unaffected

Standard & Poor's said that there would be no change to its BBB+/stable/A-2 ratings and outlook on Santos Ltd. following the announcement of Santos' proposed A$474 million acquisition of Delhi Petroleum Pty Ltd. and the transfer of related Floating Interest Energy LinkeD Securities (Fields).

The ratings on Santos reflect its reliable gas cash flows and increasing asset diversity, the agency said, noting that gas revenues make up about 50% of the company's cash flows, while the more volatile crude oil, condensate and LPG revenues form the balance.

According to the agency, offsetting the certainty of the existing contracted-gas revenues are volatile oil prices, the competitive pricing of new gas contracts, the relatively poor historic reserve-replacement record and significant changes to the company's asset-acquisition profile.

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