Origin Energy Limited · ASX:ORG

Origin Energy — Merger or Acquisition (December 2016)

12 slides from Origin Energy's merger presentation, Dec 6, 2016

  1. Slide 1: IPO of Conventional Upstream Business

    IPO of Conventional Upstream Business Frank Calabria, CEO 6 December 2016 Confidential DRAFT

  2. Slide 2: Important Notices

    Important Notices This document does not contain or constitute an offer or invitation to purchase or subscribe for any shares in NewCo in any jurisdiction including the United States and should not be relied on in connection with any decision to purchase or subscribe for any such shares. A Prospectu

  3. Slide 3: Origin to focus the business and accelerate debt reduction with the planned IPO

    Origin to focus the business and accelerate debt reduction with the planned IPO of its conventional upstream business • Origin has taken the strategic decision to focus on its Energy Markets business and simplified Integrated Gas business • Origin intends to divest by IPO its conventional upstream b

  4. Slide 4: Energy Markets vision is to be Australia's most trusted energy solutions provider

    Energy Markets vision is to be Australia’s most trusted energy solutions provider ENERGY MARKETS • Predictable and improving earnings • Customer led strategy focused on customer lifetime value and delivering innovative products and services • Flexible gas supply portfolio - a source of competitive s

  5. Slide 5: Integrated Gas is focused on reducing cost and improving productivity of onshore unconventional resources

    Integrated Gas is focused on reducing cost and improving productivity of onshore unconventional resources INTEGRATED GAS • Australia’s largest onshore unconventional gas developer • Clear scale and capability in exploring, developing, and producing resources to supply both LNG and the east coast dom

  6. Slide 6: Gas integration benefits preserved through contractual arrangements with NewCo

    Gas integration benefits preserved through contractual arrangements with NewCo Sources of Energy Markets East Coast Gas Portfolio PJ 300 250 200 150 100 50 Contracts with NewCo to support - Energy Markets east 2016 2017 2018 2019 2020 2021 2022 coast gas supply Calender Year Origin's existing equity

  7. Slide 7: NewCo will be established as an independent company, listed on the ASX

    NewCo will be established as an independent company, listed on the ASX • ASX-listed mid cap upstream company with a sound capital structure and capabilities as an on-and-offshore operator and developer of conventional resources • Diversified exposure to the Australian east coast, west coast and New

  8. Slide 8: NewCo will include a mix of conventional production and development assets

    NewCo will include a mix of conventional production and development assets across the Australian east and west coast as well as New Zealand NewCo 2P Reserves Gas 805 PJ of Gas (138 mmboe ) Gas Liquids Liquids 143 PJe of Liquids (25 mmboe) Bonaparte exploration Status: Exploration Working interest: V

  9. Slide 9: Transaction Details

    Transaction Details • Listing of NewCo targeted for 2017 • It is expected that proceeds of the NewCo IPO will be applied to debt reduction less a close out of two oil forward sale agreements at an estimated cost of around $350 million based on current market pricing. At the time of entering into the

  10. Slide 10: Update on Origin's asset sales program

    Update on Origin’s asset sales program • $482 million of proceeds received as at November 2016 • Perth Basin asset sale process terminated and assets included in NewCo’s portfolio to add geographic diversification and exploration potential • Sale processes for Darling Downs pipeline and Stockyard Hi

  11. Slide 11: Origin to focus the business and accelerate debt reduction with the planned IPO

    Origin to focus the business and accelerate debt reduction with the planned IPO of its conventional upstream business Benefits to Origin  Accelerates debt reduction  Reduces ongoing capex requirements  Preserves access to gas  EPS accretive from FY19  Return on capital improvement from completi

  12. Slide 12: Thank You

    THANK YOU For more information Peter Rice General Manager, Capital Markets Email: peter.rice@originenergy.com.au Office: +61 2 8345 5308 Mobile: + 61 417 230 306 www.originenergy.com.au 12

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