Announcing $250 Million Buyback, The Show Goes on?

Santos Ltd $Santos Ltd(STO.AU)$ announced an on-market share buyback worth up to $250 million on Wednesday.

Santos Chief Executive Officer Kevin Gallagher stated the goal of this operation is to improve shareholder returns in the face of soaring commodity prices.

Furthermore, the operation also accounts for a dividend policy of 10-30% of free cash flow and other shareholder returns in additional share buybacks or dividends of at least 40% of incremental free cash flow.

Oil and gas prices were already at solid levels at the beginning of the year, after the war led to supply disruptions in the face of intense demand, and as a result, resource prices spiked significantly in March.

Also, it booked record annual sales revenue in January and is expected to reap significant gains following its $6.2 billion takeovers of Oil Search $Oil Search Ltd(OSH.AU)$ , and it is experiencing strong cash flow generation.