By David Winning


SYDNEY--Santos Ltd. doubled the size of its share buyback program as it outlined a new capital management framework targeting higher shareholder returns.

Santos said it would increase its existing share buyback by US$350 million, with purchases of stock likely to begin this month. That is on top of the US$350 million buyback announced in August, which is 98% complete.

Santos said it now has a policy of returning at least 40% of free cash flow to shareholders each year, comprising cash dividends or share buybacks, or a combination of both.

"In addition, the board shall give consideration to additional shareholder returns from any net proceeds derived from asset divestments through portfolio optimisation once those divestments reach completion and proceeds have been received," Chair Keith Spence said.

"Once the Barossa and Pikka Phase 1 projects commence production, the Board's intention is to consider increasing shareholder returns to at least 50% of free cash flow generated per annum," he added.


Write to David Winning at david.winning@wsj.com


(END) Dow Jones Newswires

12-06-22 1721ET