Another consistent and firm quarterly result from SXY in 3Q21, as it builds on its track record as a capable low-cost onshore gas producer. Above-nameplate production from Roma North (19tj/d v 16tj/d) and ramping up Atlas delivered strong group gas sales of 4.6PJ (vs MorgE 4.5PJ). 3Q21 sales revenue A$35.9m (vs MorgE A$36m), average gas price A$6.8/GJ. Roma North expansion by 1Q’FY22 with Atlas expansion to follow once gas contracted to support capex. Enjoying sustained production/earnings/dividend growth from its de-risked upstream assets, we maintain our Add rating with SXY a top sector preference.
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