Buying Santos shares? Meet your new CFO

Santos Ltd (ASX: STO) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $6.10. During the Friday lunch hour, shares are swapping hands for $6.03 each, down 1.2%.

For some context, the ASX 200 is up 0.5% at this same time.

That’s today’s Santos share price action for you.

Now here’s who’s taking the reins as Santos’ new chief financial officer (CFO).

New CFO steps in today

In an ASX release marked as non-price sensitive to Santos shares, the company announced this morning that Lachlan Harris has been appointed CFO, effective immediately.

Harris has 15 years of experience with Santos and was appointed acting CFO in October.

He was reported to have held a range of leadership positions, including across treasury, finance systems, and risk. Most recently, Harris served as deputy CFO and treasurer.

“I am pleased to confirm Lachlan’s appointment as CFO,” Santos CEO Kevin Gallagher said. “He has a deep knowledge of our business and the complex markets in which we operate.”

Gallagher noted:

Throughout his career at Santos, he has built a reputation with the board, management team, investors and capital markets for his financial acumen, analytical approach, strong risk mindset and leadership capability.

And with a nod to Lachlan’s potential to help support Santos shares over the longer term, Gallagher added:

Lachlan also has a proven track record of driving major initiatives at Santos. Most recently, he led our US$1 billion 10 year-bond offering, which was significantly oversubscribed.

With his experience and capability, Lachlan is well positioned to take on the role of CFO and support the business to maintain its laser focus on executing our strategy, in accordance with our disciplined low-cost operating model and capital allocation framework, to deliver long-term value for our shareholders.

What’s been happening with Santos shares?

On 16 October, Santos released its quarterly update covering the three months to 30 September.

Over the quarter, the ASX 200 energy share generated US$300 million in free cash flow. That brought the company’s year-to-date free cash flow from operations to US$1.4 billion.

And sales revenue of US$1.1 billion for the quarter saw year-to-date revenue reach US$3.7 billion.

Commenting on those results on the day, Gallagher said:

Our focus on operational excellence and our disciplined low-cost operating model has been crucial to achieving these results. With around $1.4 billion of free cash flow from operations generated year-to-date, Santos is well positioned to deliver strong shareholder returns with imminent production growth as we bring Barossa LNG online and move closer to the start-up of Pikka.

Santos shares closed up 0.8% on the day.

The post Buying Santos shares? Meet your new CFO appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.