Stocks Down Under 30 June 2020: Santos, Electro Optic Systems, 360 Capital Group
Santos: Multiple upsides
The crash in the oil price that took place earlier this year was not great for the shareholders of Santos, the Adelaide-based oil and gas major, which in calendar 2019 produced 75.5 million barrels of oil equivalent. The oil price dip, however, was temporary. From here we expect Santos will have a lot of free cash. The company believes that it can be cash flow breakeven above US$25 a barrel, meaning that at that price operating cash flows exceeds investing cash flows. Not only that, but we believe there are some attractive core assets that can potentially deliver serious shareholder value in the future.
Also in this edition: A space odessey for Electro Optic Systems (ASX:EOS) and 360 Capital Group (ASX:TGP).
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