2014 CLSA Investors Forum Hong Kong, September 2014
Santos overview A leading energy company in Australia and Asia Australias leading domestic gas producer Bay of Bengal 2013 production 140,000 boe/d (70% gas/30% liquids) Phu Khanh Nam Con Son Offshore Malaysia Top-25…
Strong business outlook LNG projects are providing the foundation for further growth and increased shareholder returns Clear production growth outlook Growing margins Robust funding position provides the capacity to fund…
First-half summary PNG LNG start-up ahead of schedule and strong progress on GLNG enables significant lift in interim dividend Safety LTIFR of 0.6 per million hours worked PNG LNG start-up ahead of schedule with first cash…
Production PNG LNG start-up drives sound first half and builds momentum for a stronger second half Average daily production First half production up 2% PNG LNG first LNG in April 2014 boe/day 170,000 Peluang first gas in March…
Dividends Start-up and first cash from PNG LNG has enabled the 33% increase in interim dividend to 20 cents per share fully-franked Fully-franked dividends declared per share Cents per Increased dividend consistent share with…
2014 Highlights Three projects delivered, GLNG progressing well and exploration success in the Browse Vietnam oil Malaysia Dua project delivered on Farm-in to Block S, first schedule in July 2014 exploration well in Q4 2014…
Strong Asian demand for Large opportunity exists for new projects to supply LNG into the Asian market Asian LNG supply and demand mtpa Asia leads global LNG demand with LNG forecast to meet over 50% of 450 Asias gas needs 400…
Santos LNG portfolio Strong project delivery and performance supportive of backfill and expansion opportunities Darwin 11.5% equity, 3.7 mtpa plant capacity LNG First LNG in 2006, 400 cargoes delivered Fully contracted to 2022…
PNG LNG project Successful delivery of the project in April 2014. Over 20 cargoes have been shipped since start-up PNG LNG plant 11 2014 CLSA INVESTORS' FORUM
PNG Drilling Drilling complete on the Hides G-pad wells and PWD well. Hides Deep expected to be spudded in Q4 2014 PNG LNG Drilling All eight Hides development wells successfully drilled to TD Six of these are on production with…
GLNG project summary The GLNG project is more than 85% complete and on track for first LNG in 2015 Project Santos (30% and operator), partners PETRONAS, Total and KOGAS LNG plant 7.8 mtpa of LNG; 7.2 mtpa has been capacity sold to…
GLNG upstream Construction of two upstream gas hubs is complete and commissioning is underway 77 wells were spudded in 1H 2014 Performance of Fairview wells continues to exceed expectations average optimum gas capacity of 2.2…
GLNG downstream Pipeline commissioning commenced, with LNG plant commissioning on track for Q4 2014 Milestone Date Marine crossing tunnelling February 2014 completed Last Train 1 module set June 2014 First LNG tank hydrotest…
Capital expenditure and US18.5 billion1 capex from FID to the end of 2015 opex guidance 2016-20 average capex estimate A1 billion pa Vast majority of 2016-20 expenditure is the upstream, and Capital expenditure estimate includes: FID…
Third party gas supply Third party gas generates significant value for the project Attractive oil-linked Supplier Quantity TJ/day Starts Term Delivery point Price basis gross margins Santos portfolio 750 PJ 140 2015 15 years…
Bayu-Undan / Darwin LNG Strong production in 2014. Progress on Phase 3 offshore expansion. Multiple feed gas options for backfill and expansion emerging Maintain high margin asset Site for new track record of reliable delivery LNG…
Northern Australia Exciting opportunity to target high quality LNG opportunities through partnerships and collaboration Barossa-Caldita Three well appraisal drilling campaign underway Bayu-Undan Phase 3 offshore expansion…
Browse Basin Significant gas-condensate discovery with the Lasseter-1 well, adding to Santos material resource position in the Browse Lasseter gas-condensate discovery Well intersected a gross gas-condensate section of 405 metres…
Eastern Australia gas Additional supply is required to meet increased market transformation demand and Santos well placed to benefit Eastern Australia gas demand (PJ) Tripling of gas demand creating market tightness 2,500 Recent east…
Cooper Basin Building knowledge and technological capacity to unconventional crack the code; second horizontal successfully fracced exploration program Two shale wells are on line and producing Moomba 192 Moomba-191 on line since…
Asia Pacific Building a high-margin business in Asia, accounting for over 20% of Santos first half of production Block 123, Vietnam Exploration drilling planned for 2016 Warim, Indonesia Data acquisition planning underway by…
Appendix September 2014
2014 First-half Growth in sales revenue, EBITDAX and operating cash financial result flow. Underlying profit of 258 million, higher than 2013. 2014 Change First-half on 2013 Production 25 mmboe +2% Sales revenue 1,887 million…
Strong funding position 2.7 billion in balance sheet capacity to fund execution of business strategy and minimise financing risk. Minimal debt maturities to 2016 Available liquidity Debt maturity profile Notes mature in 2070, with…
Capital expenditure Capex of 1,862 million1 in 1H 2014, full year guidance of 3.5 billion is maintained Full year capital expenditure Breakdown of 1H 2014 capital expenditure (excludes capitalised interest) Abillion Other EA2 0.23…
2014 First-half Underlying profit up 3% to 258 million financials Half-year NPAT and underlying profit Reconciliation of half-year underlying profit million million 300 400 271 271 35 -29 251 258 -21 300 41 -28 9 200 206 258…
2014 guidance All 2014 guidance is unchanged Item 2014 guidance Production 52-57 mmboe Production costs 820-880 million DD&A expense 18.50/boe Royalty related taxation expense1 (after tax) 60 million Capital expenditure…
2014 exploration schedule Delivers on our play-based exploration strategy across Australia and south-east Asia Santos Well Name Basin / Area Target Interest Result/Timing % Manta-1 PNG Gas 301 Gas discovery Gas discovery, Mt…
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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