Citi sees capex easing for Australia's Santos as Pikka, Barossa projects advance
** Citi expects capital expenditure (capex) to ease for Santos STO in calendar year 2026, driving free cash flow (FCF) higher, as its Pikka and Barossa projects near completion
** Brokerage estimates about $250 million in gross capex savings at the oil and gas giant's Barossa project
** A 30% beat in FCF from operations doesn't translate to a 30% higher interim dividend, all else being equal - Citi
** Company reported $620 million in Q2 FCF
** Brokerage forecasts an interim dividend of 10 Australian cents per share and a final dividend of 12 Australian cents per share
** Last year, company declared an interim dividend of 13 U.S. cents and a final dividend of 10.3 U.S. cents
** Twelve analysts on average rate the stock "buy"; with a median price target of A$8.4, according to data compiled by LSEG
** YTD, STO up 16.3%, as of last close