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Analysts led by Neil Beveridge have highlighted that the Barossa gas project in the Timor Sea and the Pikka oil project in Alaska are expected to boost Santos' cash flows, despite a forecast Brent crude price of $65 per barrel for this year. The Barossa project, however, is overdue in delivering its first LNG cargo, initially scheduled for late 2025.

Bernstein estimates Santos' free cash flow yield at 11%, significantly higher than the 5% average for oil and gas producers outside China. Concerns about potential LNG oversupply have led to underperformance for both Santos and Woodside, impacting investor confidence.

Bernstein has raised its 12-month target price for Santos shares to $7.30 from $6.30, suggesting a 20% upside from the January 5 closing price of $6.08. Woodside maintains a 'market perform' rating, with a target price of $24 against a closing price of $23.33.