Macquarie Australia Conference 7 May 2015 GLNG Plant, Curtis Island
Santos overview A leading energy company in Australia and Asia Driving value and performance in Australia the base business Bay of Bengal and unlocking Phu Khanh resources to meet Nam Con Son Offshore Malaysia gas demand…
Summary Focus on operating cash flow and GLNG delivery Safety: 2015 LTIFR of zero Operating efficiency and cost savings GLNG project delivery Robust funding position Focus on shareholder returns LNG storage tanks,…
Safety performance 2015 lost time injury frequency rate of zero Safety performance (employees and contractors) Rate per million Work hours hours worked (million) 2 1.9 60 50 1.2 40 1.1 1 0.9 30 0.7 0.64 0.67 20 10 0…
Full-year summary and 2014 production growth, record sales and significant project business outlook milestones Focus on generating operating cash flow and GLNG delivery Safety & Project Delivery Cost Savings Performance…
Focus on operating Delivering higher production and lower capex efficiency and cost savings Production up 15% Capital expenditure down 40% mmboe Amillion 14 1,000 14.0 944 12 12.2 800 10 8 600 566 6 400 4 200 2 0 0 Q1…
Focus on operating Responding to the market environment efficiency and cost Driving efficiencies and reducing costs savings Production cost per barrel down 12% 12% drop in first quarter 2015 production cost per /boe barrel compared to…
7 8.3 BILLION BILLION PEOPLE PEOPLE World population in 2014 (United Nations) World population in 2030 (US National Intelligence Council) 1.3 50 % BILLION MORE PEOPLE ENERGY have no access to electricity required by 2030…
Global LNG demand and A gap between LNG supply and demand continues to supply outlook widen into the next decade Global LNG demand vs. LNG supply by region mtpa 600 500 215 mtpa 350 400 90 mtpa mtpa Other Atlantic 300 US…
Santos LNG portfolio Leveraging existing and new LNG infrastructure and capabilities Darwin 11.5% equity, 3.7 mtpa plant capacity LNG sales revenue up 340% LNG First LNG in 2006, 450+ cargoes delivered Am Fully contracted to 2022…
PNG LNG project Successful delivery of the project ahead of schedule. 87 LNG cargoes shipped in first 12 months Santos well positioned for potential expansion Delivered ahead of schedule and now producing ahead of expectations PNG…
GLNG project update On track for first LNG around the end of the third quarter of 2015 GLNG provides positive free cash flow at US40/bbl oil Surface LNG plant Gas supply facilities & and port pipelines Over 9,000 PJ of…
Gas supply Over 9,000 PJ of dedicated 2P reserves and 2C resources at the end of 2014 YE 2014 GLNG dedicated 2P and 2C GLNG has an integrated gas supply portfolio of (GLNG share PJ) indigenous gas, Santos portfolio gas, third party…
GLNG third party gas Third party gas generates significant value for the supply project Secured 2,228 PJ Santos Supplier Quantity TJ/day Starts Term Delivery point Price basis portfolio and third party supply Santos portfolio 750…
GLNG upstream Upstream is now supplying gas to the plant Performance of Fairview wells Fairview well performance as at March 2015 continues to exceed expectations 347 wells connected Optimum water Optimum gas capacity (bbl/day)…
GLNG Surface facilities Upstream gas hubs are supplying gas to the LNG plant and have produced above nameplate capacity Existing 170 TJ/day existing gross gas capacity at Fairview and Scotia 160 TJ/day gross gas capacity Fairview…
GLNG downstream Commissioning well underway and expect first LNG around the end of the third quarter of 2015 LNG Train 1 piping and cabling nearing completion with loop testing well advanced LNG Train 2 piping installation and…
US18.5 billion1 capex from FID to the end of 2015 GLNG expenditure guidance 2016-20 average capex estimate A900 million average per annum GLNG provides positive free cash flow at US40/bbl oil Vast majority of 2016-20 expenditure is…
GLNG Milestones On track for first LNG around the end of the third quarter of 2015, within US18.5 billion budget Milestone Date Marine crossing tunnelling completed February 2014 Last Train 1 module installed June 2014 First…
Bayu-Undan / Darwin LNG Solid production. Phase 3 offshore expansion completed ahead of schedule. Multiple feed gas options for backfill and expansion emerging Maintain high margin asset Site for new track record of reliable…
Browse Basin Appraisal planning and evaluation of development Greater Crown and concepts progressing Lasseter Browse Basin Multi-tcf resource position established on the back of Crown and Lasseter discoveries Concept evaluation…
Bonaparte Basin Successful carried appraisal drilling program supports Barossa Caldita standalone capability for LNG expansion or backfill Bonaparte Basin Appraisal program completed Barossa-2 drilled in the core of the field…
Asia Pacific Building a high-margin business in Asia, accounting for 27% of Santos 2014 production Block 123, Vietnam Exploration drilling planned for 2016 Warim, Indonesia Bangladesh Block 12W, Vietnam Data acquisition…
Eastern Australia Leveraging value from portfolio of resources and market opportunity infrastructure Tripling of east coast gas demand and associated higher prices Gas demand Cooper Basin capacity build on track to meet 2015+…
Eastern Australia Positioned to capitalise on the changing market gas market portfolio dynamics with Cooper playing central role Changing market dynamics Santos integrated value proposition Tripling of Eastern Australia Gas Demand (PJ)…
World scale Work program: understanding geology, targeting unconventional resource sweet spots, testing well designs to lower costs and potential increase flow rate McArthur Basin Exploration Development Pre-discovery Exploration…
Unconventional Resources Encouraging results across all play types 10 deep coal add-on frac stages now flow tested across Cooper Basin; averaging 0.3 Condensate mmscf/d with up to 1 mmscf/d achieved with associated condensate…
Summary Focus on operating cash flow and GLNG delivery Safety: 2015 LTIFR of zero Operating efficiency and cost savings GLNG project delivery Robust funding position Focus on shareholder returns LNG storage tanks,…
Reference Slides May 2015 Hides Gas Conditioning Plant, PNG LNG
2014 Full-year Growth in production, sales revenues and EBITDAX financial result Underlying profit of 533 million, up 6% Non-cash impairments of 1.6 billion after tax 2014 Full-year Change on 2013 Production 54.1 mmboe +6% Sales…
Production 2014 production of 54.1 mmboe highest in 5 years 2015 guidance of 57-64 mmboe 2014 Q-on-Q production growth Production kboe/day Successful start-up of the PNG LNG project ahead 200 of schedule in April 2014 156 - 175 PNG…
2014 Full-year Underlying profit up 6% to 533 million financials Non-cash impairments of 1.6 billion after tax NPAT and underlying profit Reconciliation of underlying profit million million 800 800 60 (90) 600 188 700 (54) 516…
Capital expenditure Capex in 2014 3.6 billion excluding capitalised interest 2015 forecast spend 44% lower than 2014 Full-year capital expenditure Abillion Breakdown of 2014 capital expenditure (excludes capitalised interest) -13%…
Balance sheet and Robust funding position: 2.6 billion in liquidity funding Minimal debt maturities until 2017 A0.6 billion in cash and A2.0 billion Debt maturity profile Notes mature in 2070, with undrawn debt facilities as at 31…
Dividends Final dividend maintained at 15 cents per share, fully franked, with underwritten DRP Full-year dividend 35 cents, up 17% Fully-franked dividends declared per share Final dividend maintained at Cents per share 15 cents…
Impairment Non-cash impairment charge of 1.6 billion after-tax Impairment loss by asset*0 200 400 600 800 1000 Significant fall in global commodity prices Amillion and a follow-on reduction in future oil price assumptions Gunnedah…
2015 guidance Item 2015 guidance Production 57-64 mmboe Production costs 14.2-14.6/boe DD&A expense 17.5-18.0/boe Capital expenditure (including exploration & evaluation)1 2 billion 1 Capital expenditure guidance excludes…
Contact information Head Office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Email: andrew.nairnsantos.com GPO Box…
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