Recent announcements reveal that Citi has increased its price target on Australia’s mega oil and gas firm, Santos (ASX:STO), to A$9 per share, which is an upward revision from the previous A$8.50.

Citi is expecting a greater dividend payout ratio from Santos, one of the key oil and gas producers, for the latter half of the 2023 fiscal year.

While the recent hike in Santos’s interim dividend to 8.7 cents per share did not greatly impress the market due to a reduced payout ratio, Citi still foresees positive prospects.

The brokerage firm anticipates Santos to earn pending environmental approvals for its Barossa project which they believe is crucial for the stock’s performance by October.

As per Refinitiv data, out of 16 analysts, 14 have rated the shares of Santos ‘buy’ or higher, and two maintained a ‘hold’; their median price target stands at A$8.75.

So far this year, the stock has surged by 8.3% up to the last close taken into consideration.

Santos is an Australian oil and gas company primarily engaged in the exploration, production, and distribution of gas and crude oil.