Santos has given itself more room on its funding capacity, taking out a new $1 billion loan facility with ANZ Bank.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The three-year loan adds to Santos's circa $2 billion of cash and undrawn debt it has available to meet its capital commitments as cash flows are constrained by the collapse in oil prices.
Santos's funding capacity has come into question in recent weeks after the more than 50 per cent drop in global crude oil prices since June, which has led to its credit rating being cut to BBB from BBB+.
Standard & Poor's again cut its assumptions for crude oil prices this week, raising questions about the impact on its new rating, which is on negative outlook. The company's share price has slumped in recent months, closing on Thursday at $7.96, down from around $15 as recently as early September.
Santos chief financial officer Andrew Seaton said the facility further strengthens Santos's "conservative" liquidity profile.
"This facility provides a substantial buffer over and above the company's funding needs in the current uncertain oil price environment," Mr Seaton said in Friday's statement.
