Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — H1 FY2014 Earnings Presentation
26 slides from Amplitude Energy's earnings presentation, Feb 17, 2014
Slide 1: Half-year results, six months to 31 December 2013
For personal use only six months to 31 December 2013
Slide 2: Conference call details
• Time: 10:30 AEDT Monday 17 February 2014 For personal use only • Toll-free Australia: 1800 123 296 • Toll: + 61 2 8038 5221- (can be used if dialing from international location) • Toll-free international dial in: - Canada 1855 5616 766 - China 4001 203 085 - Hong Kong 800 908 865 - India 1800 3010
Slide 3: Disclaimer and qualified petroleum evaluator
The information in this presentation: For personal use only • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. • Does not take into account the individual investment objectives or the financial sit
Slide 4: Half-year highlights
For personal use only • Best-ever first half featuring NPAT of $13.6 million, record production, higher oil prices, strong margins and cash generation • Production on track for full year guidance of 10% to 18% growth on pcp • Financial strength maintained with cash and investments of $66 million • R
Slide 5: First half results summary
For personal use only • Revenue of $37.0 million, up 58% • Net profit after tax of $13.6 million up 198% from $4.6 million • Cash and investments of $65.7 million • Record half-year production of 0.30MMbbls, up from 0.21 MMbbl • Hammamet West resource confirmation • Successful Cooper Basin developme
Slide 6: Key financial and production metrics
For personal use only $ million unless otherwise indicated H1 14 H1 13 Production MMbbl 0.30 0.21 ▲ + 41% Sales volume MMbbl 0.29 0.21 ▲ + 37% Oil price average AUD$/bbl 126.5 109.8 ▲ + 15% Sales revenue 37.0 23.4 ▲ + 58% EBITDA 21.2 8.1 ▲ + 163 % EBITDA/Sales revenue % 57 35 ▲ + 23 % Net profit aft
Slide 7: Net profit after tax bridge
For personal use only $ million +13.6 -0.8 -1.2 + 0.9 -3.0 -0.5 13.6 4.6 H1 13 Sales revenue Other revenue Production Amortisation of Admin & other Tax expense H1 14 expenses E&D costs
Slide 8: Cash and investments movement
For personal use only $ million +41.8 -18.3 Total Cash & 0.0 +0.7 72.1 -31.6 Total Cash & Investments = 68.1 Investments = 65.7 20.2 25.2 Investments at fair value Investments at fair 47.9 value (1) 0.0 0.0 0.0 40.5 Cash & deposits Cash & deposits Cash from Investing & operations Financing + $24.2 m
Slide 9: Half year production
For personal use only Half year production Half year production by region kbbl six months to December kbbl six months to December 300 29 267 217 225 10 213 Indonesia 271 Cooper Basin 203 2009 2010 2011 2012 2013 2012 2013 • Highest first half production yet for COE • Production growth from both Coop
Slide 10: Basin focussed strategy
For personal use only Cooper Basin Market driven Basin focussed strategy Hammamet West resource Production: >0.5 MMbbl/pa Cooper Basin Production growth Large prospective acreage (12,600 km2) High margin oil production Otway Basin Low risk value-add Attractive fiscal terms Sustained exploration succ
Slide 11: Cooper Basin update
For personal use only • Record half year production from Cooper Basin kbbl First half • Netbacks of A$97/bbl from Cooper Basin average oil price of A$128/bbl • Completion of successful 4 well development 271 program in PEL 92 203 • Worrior 8: identified new Patchawarra oil resource • Completion of D
Slide 12: Otway, Cooper and Gippsland Basin updates
For personal use only Otway Basin • Extended acreage position in Otway Basin through equity equalisation across 3 permits with Beach Energy. • COE holdings now cover most of Penola Trough • 2 well program commenced targeting deep unconventional plays in Casterton Shale (Jolly-1 spudded 11 January) C
Slide 13: Indonesia update
For personal use only Sukananti KSO • Production up from 54 bopd (COE share) to 158 bopd (COE share) due to successful workover initiative • Further workovers planned for H2 14 • Development drilling planned for H2 14 and H1 15 Sumbagsel PSC • Completed 2D survey with zero LTI and under budget • Ide
Slide 14: Tunisia: Hammamet West and divestment
For personal use only Hammamet West discovery • Horizontal well confirmed pre-drill fracture reservoir model • Production test unable to be completed • Planning for ST-2 in second half CY14 to complete production test • Independent contingent resource review being prepared Tunisian portfolio divestm
Slide 15: FY14 production guidance
For personal use only • FY14 production forecast to increase by 10% - 18% 0.58 on FY13 to 0.52 0.49 0.54 • Increased output from Cooper Basin and Indonesia 0.41 • Guidance for production of 0.54 – 0.58 MMbbl • First half production of 0.30 MMbbl 0.30 FY11 FY12 FY13 FY14G H1 14
Slide 16: Activity schedule by region
For personal use only Location License Operator March Qtr June Qtr PEL 92 Beach Energy 3 exploration wells Cooper Basin PEL 90, 100,110 Senex 3D Processing Dundinna 3D processing Worrior-8 completion PPL 207 Senex Worrior-10 (Patchawarra appraisal well) PEL 494, PRL 32 Beach Energy Jolly-1 and Bunga
Slide 17: Capital expenditure outlook
For personal use only Capital expenditure outlook Exploration Development FY14 H2 14 FY 14 H2 14 FY 14 H2 14 Australia • Cooper Basin 15 8 7 4 8 4 • Otway Basin 11 10 11 10 - - Indonesia 13 8 6 2 7 6 Tunisia 25 2 25 2 - - Total 64 28 49 18 15 10 1 Capital expenditure anticipated on incurred and fore
Slide 18: Outlook and strategy
• Strategy will continue to be fundamentals-driven: For personal use only - technical and commercial + care - capital-prudent management • Production and financial results at record levels for FY14 first half • Full year production guidance re-affirmed • Strong balance sheet retained with $65.7 mill
Slide 19: For personal use only
For personal use only
Slide 20: Cooper Basin
For personal use only • Oil production and exploration - current approximately 1,500 bopd (net) • Discovered 5.9 mill bbls (net) to date (1) • Produced 4.1 mill bbls (net) to date (1) • Extensive seismic acquisition in 2013 • Exploration and development continues to add reserves - exploration and de
Slide 21: Otway Basin
For personal use only • Strong regional position across Penola Trough • Proven basin for conventional plays • Close to markets & infrastructure • Jurassic source rocks are gas prone with liquids potential • 2 deep wells being drilled from January 2014 assessing unconventional plays in the Casterton
Slide 22: Gippsland Basin
For personal use only • 22.9% interest in Bass Strait Oil Company (BAS) • BAS assets include 5 offshore Gippsland Basin permits - gas exploration potential along northern margin - sizeable prospects • Range of development and market opportunities • Opportunities under review Conventional gas close t
Slide 23: Indonesia
For personal use only Sukananti KSO (COE 55%) • currently ~300 bopd (100% basis) • multiple low risk opportunities with existing available infrastructure • short pay-back periods • contractor share: oil 15%; gas 20% (after tax) Sumbagsel PSC (COE 100%) • shallow oil targets (1-5 MMbbls) • seismic 20
Slide 24: Tunisia
For personal use only Many attractive features • 3 contiguous permits, 12,600 km2 – equivalent in size to the SA Cooper Basin • Hammamet West oil discovery, a near term development opportunity • multiple prospects and emerging fractured carbonate play potential proved by Hammamet West-3 ST-1 • nearb
Slide 25: Management team
For personal use only David P. Maxwell Jason de Ross Andrew Thomas Managing Director Chief Financial Officer Exploration Manager David Maxwell joined Cooper Energy in Jason de Ross joined Cooper Energy in Andrew Thomas joined Cooper Energy in July September 2011, bringing over 25 years’ September 20
Slide 26: Glossary
bbls barrels of oil For personal use only boe barrel of oil equivalent bopd barrel of oil per day EBIT earnings before interest and tax EBITDA earnings before interest, tax, depreciation and amortisation k thousand LTI lost time incident MM million NPAT net profit after tax TSR total shareholder ret