Half Year Results Bruce Clement, Managing Director Ayten Saridas, Chief Financial Officer 25 February 2015
Agenda Highlights Financial Performance Strategy Update Growth Projects Outlook 3
Highlights For the 6 months to 31 December 2014 4
Highlights for the Half Year Production Production of 2.6 mmboe in line with full year guidance Sugarloaf production up 38% over the previous corresponding period 2P Reserves + 2C Contingent Resources up 14% to 191.6 mmboe Development…
Half year financial performance Total Production 2.6 mmboe, down 14% Sales Revenue 161.3 million, down 8% Field EBITDAX 88.1 million, down 25% Statutory NPAT(1) (61.7) million Cash 75 million Drawn debt(2) 60 million Net cash 15…
AWE positioned for low oil prices Operations Diversified asset Disciplined continue to portfolio provides financial perform well optionality management Production on Ability to prioritise Focused on track to achieve development and…
Managing oil price impacts Production assets while Cliff Head and Tui asset values impacted, production remains economic for all assets at current commodity prices Revenue replacement lower oil and condensate revenues to be offset…
Growth in Reserves & Resources 2C up 44% to 110.1 mmboe 2P + 2C up 14% More than 16 years of 2P production* * Based on nominal annual production of 5.0 million BOE Ability to quickly transfer selected 2C Resources into 2P…
Active portfolio management Sale of 11.25% of T/L1 (BassGas facility and Yolla field) and 9.75% of T/18P (Trefoil field) to Prize Petroleum for 85 million completed in November 2014 and reduced AWEs interest to 35% AWE elected to…
Excellent HSE performance AWE Operated 12 Month Rolling Average Performance Indicators * APPEA Total Recordable Injury Rate (2013-2014) is 3.79 injuries per million hours worked, 23% lower than the previous reporting year (which was…
Guidance maintained for FY2014-15 Guidance YTD as at Key Indicator FY2014-15 31 Dec 2014 Production (million BOE) 4.6 5.1 2.6 Sales Revenue (m) 290 - 320 161 Development Expenditure (m) 220 - 250 95 Exploration Expenditure (m)…
Non-cash impairments Oil producing asset Non-cash impairment Non-cash impairment before tax after tax Cliff Head Oil Project 25.2 million 10.6 million Tui Area Oil Project 67.4 million 39.5 million TOTAL 92.6 million 50.1…
Total production Note: Numbers may not add due to rounding 1H FY 2014-15 production in line with full year guidance 15
Sales revenue Note: Numbers may not add due to rounding Sales revenue in 1H FY 2014-15 impacted by lower oil price 16
Earnings analysis Impairment of producing oil assets a result of lower oil price 17
Underlying profit reconciliation Half Year Half Year to Dec 2014 to Dec 2013 million million Statutory NPAT (61.7) 81.7 Adjusted for: Impairment of oil and gas assets 50.1 - Gain on completion of sale of interest in BassGas (2.3)…
Field EBITDAX Diverse portfolio of assets contributing to EBITDAX 19
Investment Analysis Development and exploration expenditure in line with forecasts 20
Cash flow analysis Cash flow impacted by lower revenues during period of higher investment spend 21
Balance sheet management 30% reduction in FY2016 forecast investment expenditure Reduced discretionary spending on exploration Solid operating cash flows to fund future capital commitments Low gearing Prioritise developments…
Strategy built on 3 core platforms Focused on markets with Australia High Value Gas pricing and Indonesia demand upside Long term price Indonesia, upside; China Oil favourable New Zealand currency Australia Liquids rich;…
Geographic spread reflects market focus 25
AWE targeting high value gas markets Substantial uncontracted domestic gas position Industry experts forecast the domestic gas price to rise over the next 5-10 years Two-thirds of AWEs Australian 2P gas reserves are uncontracted…
Prioritising development projects Complete current commitments BassGas MLE development drilling and tie-in of Pateke-4H well at Tui Fast track development of Waitsia conventional gas field and Senecio tight gas field in the Perth…
High value gas projects prioritised Plan to fast track new gas projects to deliver medium term growth AWE remains focused on achieving 10 mmboe production goal by the end of 2018 Lengo offshore gas project Ande Ande development…
More upside at Sugarloaf Eagle Ford horizontal and Production from Sugarloaf up 38% compared to vertical well spacing previous corresponding period At 31 Dec 2014, 187 wells were producing with a further 36 wells in various stages of…
BassGas MLE on track West Telesto jack-up drilling rig Heavy lift phase successfully completed under budget in December Tie-in and commissioning of gas compression and condensate pumping modules to start mid 2015 Drilling of 2…
AAL moves into tendering phase FPSO and wellhead platform tender plans approved by Indonesian government Progress AAL wellhead platform and FPSO tendering processes in CY2015 Operator advised that it will not proceed with G-sand…
Waitsia early development potential Early conventional gas development opportunity close to existing gas plant and pipeline infrastructure Potential low cost development in strong WA domestic market gas marketing has commenced…
Senecio and Waitsia initial volumes Table 1. Initial gross 2C Contingent Resources estimates for the Senecio and Waitsia Fields Field Reservoir Interval Original Gas in Place (Bcf) Recoverable (Bcf) P90 P50 P10 P90 P50 P10…
Lengo achieves POD approval Lengo Gas Project Indonesian government has approved the Plan of Development for the Lengo gas project, located in the Bulu PSC offshore East Java Operator (KrisEnergy) preparing to pursue Lengo Gas…
Looking ahead near term catalysts Exciting developments in the onshore Perth Basin o Conventional flow test of Senecio-3 well targeting Kingia and HCSS (Waitsia gas field) o Two new appraisal wells planned for Waitsia field in CY 2015…
Summary Highlights: Continued to achieve major milestones across the business Production on track to meet guidance Sugarloaf up 38% on pcp 2P Reserves + 2C Resources increased by 14% Financial: Focused on reducing costs and…
Half year production AWE 1H 2014-15 1H 2013-14 REGION AND ASSET CHANGE SHARE PRODUCTION PRODUCTION Australia (000 BOE) (000 BOE) % BassGas Project (Bass Basin) 35% 622 1,076 -42% Casino Gas Project (Otway Basin) 25% 579 699 -17%…
Half year earnings breakdown Half Year Half Year to Dec 2014 to Dec 2013 million million Sales Revenue 161.3 175.4 Operating Costs (73.2) (58.5) Amortisation (60.3) (65.3) Exploration costs expensed (27.8) (17.6) Asset…
Half year segmental reporting South-East Western millions Total New Zealand Australia Australia USA Exploration Sales revenue 161.3 42.4 41.3 28.0 49.5 - Production costs and royalties (73.2) (19.4) (18.4) (16.3) (19.1) - Net field…
Half year cash flow analysis Half Year Half Year to Dec 2014 to Dec 2013 million million Opening cash 42.1 41.1 Net cash flow from operations* 28.1 72.9 Asset acquisitions (Tui) - (7.2) Proceeds from sale of oil and gas assets…
Balance Sheet summary As at As at As at 31 Dec 2014 31 Dec 2013 30 Jun 2014 Balance sheet item million million million Assets Cash and cash equivalents 75.0 77.9 42.1 Receivables and inventory 177.9 139.8 139.9 Exploration and…
AWE 2P Reserves as at 31 December 2014 2P Reserves Project/Area Equity (million boe) BassGas 35.0% 19.2 19.2 22.6 Otway Basin 25.0% 9.2 BassGas Otway Basin Cliff Head 57.5% 2.4 Cliff Head Onshore PB 33-100% 1.9 Onshore PB Tui…
AWE 2C Resources as at 31 December 2014 2C Resources Project/Area Equity (million boe) Bass Basin 40-46.25% 28.2 9.5 Otway Basin 25.0% 1.8 8.8 28.2 Bass Basin Cliff Head 57.5% 0.6 Otway Basin Onshore PB 50-100% 31.1 Cliff Head…
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