Santos hits three-year share price high

Santos has punched through to a three-year trading high on the back of steady first quarter results and a recent takeover offer from Harbour Energy.

The oil and gas company reached $5.99 a share on Thursday, marking the first time it has hit this trading point since mid-2015.  The company was trading at $2.90 last July.

Santos has focused heavily on reducing its debt, cutting it by around 8 per cent since the start of the 2018 and nearly half since the start of 2016.

Net debt currently sits at around $2.5 billion.

RBC Capital Markets analyst Ben Wilson said the reduction in output is still at the higher end of guidance and "are in line with our expectations due to the outage at PNG LNG".

Despite this lower production level, an average realised oil price that is six per cent higher quarter on quarter, and nearly 25 per cent higher compared to this time last year, has ensured sales revenues remain buoyant.

Santos saw an average oil price of $US71.6 ($91.93) per barrel with a break-even price of around $US36 per barrel.

The renewed $6.50 a share bid by Harbour Energy for Santos, a 42 per cent increase on its previous $4.55 bid, continues to hang over the company as it advises shareholders to take no action until a board decision.