Santos goes from prey to predator with $2.2b deal

After rejecting Harbour Energy's $10.8 bid earlier this year, Santos's management has had a point to prove to shareholders. The purchase of Quadrant Energy does just that.

Australian oil and gas producer Santos showed it had emerged from survival mode with a flourish, by inking an agreement to buy West Australia-based Quadrant Energy for $2.15 billion. 

The deal includes a contingent payment in relation to the recent significant Dorado-1 oil discovery and a royalty over all other future hydrocarbons produced in Quadrant’s Bedout Basin tenements, the companies said in a statement on Thursday.

Santos is paying a slight premium to consultancy Wood Mackenzie's valuation of Quadrant Energy's production portfolio, but the Dorado discovery offers material value upside on the deal.

Key drivers for Santos include rebalancing its...

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