Santos Limited · ASX:STO
Santos — Investor Presentation (March 2011)
27 slides from Santos's investor presentation, Mar 3, 2011
Slide 1: ASX cover memo: Investor Presentation March 2011
Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000 GPO Box 2455 Adelaide South Australia 5001 Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723 For personal use only TO: Company Announcements Office ASX Limited FROM: Company Secretary DATE:
Slide 2: Disclaimer & Important Notice
For personal use only Investor Presentation March 2011 1 Disclaimer & Important Notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, b
Slide 3: Santos overview and vision and strategy
Santos overview For personal use only Regional footprint of operations One of Australia's leading upstream oil and gas companies and has been Beibuan Trough Kyrgyz Republic operating since 1954 Phu Khanh Basin Bangladesh Current production: Kutei Basin India Timor Sea & Timor Gap - ~600 mmscf/d
Slide 4: Transforming to oil-linked pricing; base production grows
Transforming to oil-linked pricing For personal use only 70% of 1.4bn boe 2P reserves Asset base is transformed exposed to oil prices through sanctioned projects Cooper to GLNG Production (mmboe) 80 Oil-linked Legacy domgas NSW 70 CSG 60 EA legacy 50 domgas contracts 40 Asia LNG domgas 30 WA legacy
Slide 5: Underlying net profit up 46%; funding capacity
Underlying net profit up 46% For personal use only 2010 full-year result Change on 2009 Production 49 9 mmboe 49.9 (8%) Sales Revenue $2,228 million 2% EBITDAX $1,672 million 5% Net Profit After Tax $500 million 15% Underlying Net Profit $376 million 46% Operating Cash Flow $1,267 million 10% Final
Slide 6: Growth in LNG
For personal use only GLNG FID signing ceremony, 13 January 2011 L to R: Mike Sangster (Total), Heung Bog Lee (KOGAS), David Knox, Datuk Anuar Ahmad (PETRONAS) Growth in LNG 9 LNG is a key component of Santos’ growth strategy Strategy Bonaparte LNG Components 2 mtpa FLNG PNG LNG Santos 40% with
Slide 7: Strategy delivers material LNG growth
Strategy delivers material LNG growth For personal use only Santos equity LNG production fromGLNG T1 discovered resources existing mtpa 5 BLNG 4 GLNG T2 3 2 GLNG T1 1 Excludes PNG LNG expansion PNG LNG Darwin LNG 0 2010 2020 11 Continue to see strong long-term LNG pricing Asian Term Prices $18 Late
Slide 8: GLNG
For personal use only GLNG 13 GLNG Two-train 7.8 mtpa GLNG sanctioned in January 2011 Project GLNG Location Queensland, Australia Santos interest 30% Partners PETRONAS 27.5%, Total 27.5%, KOGAS 15% Project scope Upstream CSG fields 420-km pipeline 2-train LNG plant Gross production 7.8 mtpa of
Slide 9: World-class GLNG contractors; GLNG 2P reserves
World-class GLNG contractors For personal use only Predominantly fixed price EPC contracting strategy Project Description Contractor Contract Type Component Upstream surface All coal seam gas EPC contract with facilities and water gathering material level of and processing fixed price infrastructure
Slide 10: PNG LNG, Darwin LNG and Bonaparte LNG
For personal use only PNG LNG, Darwin LNG and Bonaparte LNG 17 PNG LNG PNG LNG construction continues to ramp-up Project PNG LNG Location Papua New Guinea Santos interest 13 5% 13.5% Partners ExxonMobil 33.2%, Oil Search 29%, State of PNG 16.8%, Nippon Oil 4.7%, MRDC 2.8% Project scope Upstream ga
Slide 11: Bayu-Undan / Darwin LNG; Bonaparte LNG
Bayu-Undan / Darwin LNG For personal use only Darwin LNG: continuing strong production Project Bayu-Undan/Darwin LNG Location Timor Gap, Australia/Timor-Leste Santos interest 11.5% Partners ConocoPhillips, ENI, INPEX, TEPCO, Tokyo Gas Project scope Offshore gas & condensate fields Gas transmissi
Slide 12: Burnside discovery
Burnside discovery For personal use only Exploration success… Montara Legend Crux Santos acreage Argus Territory of Asmore & Oil field WA 274 P WA-274-P Cartier Islands Gas field WA-410-P Ichthys WA-274-P Poseidon WA-274-P North Concerto Cornea Echuca Prelude Shoals Torosa Ichthys Caswell Burnside W
Slide 13: Australia's leading domestic gas producer
Australia’s leading domestic gas producer For personal use only Santos is Australia's Leading Domestic Gas Producer % of Domestic Gas Production 16% 15% 11% 9% 8% 8% 4% 4% 3% 3% ExxonMobil Apache Chevron Origin Energy Woodside ConocoPhillips Santos BG Group BP BHP Billiton 23 Source: Energy Quest No
Slide 14: Eastern Australia
Eastern Australia For personal use only Santos’ gas supply infrastructure in eastern Australia provides Queensland substantial flexibility in gas supply Santos has assets in every Surat/Bowen Fairview, Roma, producing basin Ballera Scotia, Arcadia Moomba Santos’ portfolio gas provides significan
Slide 15: Gunnedah Basin – Next major play in coal seam gas
Gunnedah Basin – Next major play in coal seam gas For personal use only Basin master position with >50 tcf prospective potential Santos and Eastern Star Gas (ESG) Wilga Park Power Station operated permits cover 60,000 km2 PPL 3 Narrabri New PEL PAL 2 Santos holds 35% interest in ESG 434 South Wa
Slide 16: Hub-led strategy; Reindeer/Devil Creek
Hub-led strategy For personal use only Santos supplies gas via one of two existing hubs and one new hub under construction… Reindeer Focused NFE John Brookes Spar / Halyard Varanus Is. East Spar Devil Creek Legend …with focused drilling in shallow water Santos acreage Gas pipeline close to existing
Slide 17: Spar, WA
Spar, WA For personal use only Spar – Development of Halyard (WA-13-L) and Spar (WA-4-R) Project Spar Location Carnarvon Basin, offshore WA S t interest Santos i t t 45% Partner Apache 55%, operator Project scope Tie-back of Halyard and Spar wells to Varanus Island via existing East Spar pipeline
Slide 18: Asia Pacific: Indonesia Madura Offshore PSC
For personal use only Asia Pacific 33 Indonesia: Madura Offshore PSC Maleo performing beyond expectation; incremental growth from Peluang Maleo - Production since 2006 Peluang-1 - Gross gas production Maleo Madura Island ~115 TJ/d Surabaya - Long term sales gas contract to PT Perusahaan Gas Negara
Slide 19: Indonesia: Sampang PSC; Wortel
Indonesia: Sampang PSC For personal use only Oyong Phase 2 delivered; incremental growth from Wortel Oyong Phase 1 (oil) - Production performance above Java Sea expectation at ~3500 bbl/day (gross) Wortel Oyong Oyong Phase 2 (oil and gas) Madura Island - Gas production start-up on time Surabaya
Slide 20: Chim Sao, Vietnam; Bay of Bengal
Chim Sáo, Vietnam For personal use only Chim Sao – New oil production for Santos Project Chim Sáo Location Block 12W, offshore Vietnam S Santos i interest 31 875% 31.875% Partners Premier 53.125%, operator PetroVietnam 15% Project scope Unmanned, minimum facility wellhead platform Liquids proces
Slide 21: Reference Slides: 2011 Guidance
For personal use only Reference Slides 39 2011 Guidance Item 2010 2011 Actual Guidance Production 49.9 mmboe 48 – 52 mmboe Production costs $537m $550 – $590m DD&A expense $11.94/boe $12.00/boe Royalty related taxation expense $51m $80 – $100m (after tax)1 Capital expenditure (including $1 9 billion
Slide 22: 2011 Forward exploration schedule; reported and underlying profits
2011 Forward exploration schedule For personal use only Santos Well Name Basin / Area Target Interest Timing % Zola-1 Carnarvon Gas 24.8 Drilling PEL 1 corehole Gunnedah CSG 25.0 Drilling Finucane South-1 Carnarvon Oil 33.4 Q2 Beam-1 Carnarvon Gas 45.0 Q2 Little Joe-1 Carnarvon Oil 31.3 Q3 Tuy Hoa-1
Slide 23: Production impacted by flooding; sales volumes and revenue
Production impacted by flooding For personal use only Production in line with Production guidance mmboe 60 Total wet weather and 54.4 (2.9) (2.1) 2.0 (1.5) 49.9 flood impact on Cooper 50 Basin was 2.9 mmboe 40 Stronger gas 30 production in WA and Indonesia 20 Mereenie ((NT)) gas g 10 sales c
Slide 24: Production cost and cost of sales; Business Unit EBITDAX
Production cost and cost of sales For personal use only Production costs Total cost of sales $m $m 600 1600 $532 $532m $537m $24 70 $24.70 $23.67 per boe 500 per boe $9.78 $10.77 1400 Gas Purchases / boe / boe 400 300 1200 Cost of produced 200 hydrocarbons1 1000 100 0 800 2009 2010 2009 2010 1 Inclu
Slide 25: DD&A declines by $17 million; reserves growth
DD&A declines by $17 million For personal use only Lower depletion primarily Volume Rate due to lower production $m volumes 612 (36) 19 595 700 Partially offset by impact of higher rates 600 2011 guidance $12/boe 500 400 300 200 100 0 2009 2010 $11.25/boe $11.94/boe 47 Reserves growth and reso
Slide 26: Significant items (after tax); 2011 Sensitivities
Significant items (after tax) For personal use only $m 2010 2009 Underlying y g profit p 376 257 Significant items 124 177 Net profit after tax 500 434 Significant items included: Net gains on asset sales 214 180 Impairment of non-current assets (101) (17) Impairment of receivables (22) - Provision
Slide 27: Contact Information
Contact Information For personal use only Head office Andrew Nairn Adelaide Group Executive Investor Relations Ground Floor, Santos Centre Level 10, Santos Centre 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Facsimile: +61 8 8116 5131 GPO Box 2455 Email: andrew.nairn@sa