0055 GMT - If Santos's sale of a 5% stake in the PNG LNG gas-export facility in Papua New Guinea fetches a price in line with investors' expectations then that would be a strong outcome, Macquarie says. Santos says it is in advanced talks with counterparties on a deal for the 5% equity interest, which Macquarie says could be worth US$1.3 billion. When combined with free cash flow, a deal would reduce Santos's gearing to 15% by the year end, Macquarie says in a note. "We cut our dividend expectations, reflecting our expectation all windfall cashflows above US$65/bbl will be paid out in form of buybacks in 2H of 2022e and 2023," says Macquarie, which rates Santos at outperform. ([email protected]; @dwinningWSJ)