Santos on Wednesday reported a 19 per cent fall in net profit to US$636 million in the six months to June 30 as sales revenue fell nine per cent to US$2.7 billion.
Sales volumes eased one per cent to 46.4 million barrels, with lower volumes from Bayu-Undan and the Cooper Basin partly offset by higher gas volumes in Western Australia.
Chief executive Kevin Gallagher said Santos had strong cash flow from operations of more than US$1 billion as a result of its high-performance culture and disciplined low-cost operating model.
Santos said it was progressing the Narrabri domestic gas project in NSW, including working towards land access agreements, environmental surveys and preliminary works for the Hunter gas pipeline route.
Asia was driving demand for gas, with LNG demand in the region set to remain strong well into the future, Santos said.
The Barossa gas project is almost 80 per cent complete and on schedule with first gas expected in the third quarter of 2025.
"At full production rates, Barossa is expected to add around 1.8 mtpa (million tonnes per annum) to Santos' expanding LNG portfolio," Mr Gallagher said.
The Moomba carbon capture and storage project, one of the lowest-cost such projects in the world, remains on track for first injection and ramp up to full capacity this year.
Phase one of Moomba would have capacity to permanently store up to 1.7 million tonnes of carbon dioxide annually, making it "a significant part of Australia's journey to net-zero emissions," he said.
Net cash fell 12 per cent to US$1.44 billion during the first half of the financial year on lower LNG prices and the fall in sales volumes.
"We continue to manage our cost base to be resilient through all scenarios and price cycles," Mr Gallagher said.
Sales volume guidance for the full year was unchanged at 87 to 93 million barrels of oil equivalent (mmboe) and production guidance in the range of 84 to 90 mmboe.
Santos declared a record unfranked interim dividend of US 13 cents per share.
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