Amplitude Energy Limited · ASX:AEL
Amplitude Energy — H1 FY24 Earnings Presentation
32 slides from Amplitude Energy's earnings presentation, Feb 27, 2024
Slide 1: FY24 half year results
Orbost OrbostGas Processing GasEast Orbost, Processing Plant Plant Gippsland 27 February 2024 FY24 half year results
Slide 2: Disclaimer
Disclaimer This document contains summary information about Cooper Energy and its activities as at the date of this document and should not be considered to be comprehensive or to comprise all the information which a shareholder or potential investor in Cooper Energy may require in order to determin
Slide 3: H1 FY24 in review
01 H1 FY24 in review Jane Norman, Managing Director & CEO
Slide 4: Record production and revenue
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Record production and revenue Safety and environmental performance underpins our operations Lost time incidents Environmental incidents Net emissions2 Safety, environment & sustainability 1 0 0 case reportable incidents ton
Slide 5: Positioned to capture medium-term supply gap
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Positioned to capture medium-term supply gap Market supports medium-term growth opportunities with pricing moving to LNG import parity Southern states forecast supply/demand (source: AEMO), PJ/year1 Contributing factors for
Slide 6: Gas supports renewables by providing firming power when needed
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Gas supports renewables by providing firming power when needed Gas was the key contributor for filling the supply gap in response to the Victorian weather event Victorian electricity supply by type (13 – 14 February), MW1 K
Slide 7: Health, safety, environment, community & sustainability
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Health, safety, environment, community & sustainability Maintained solid safety and environmental performance despite twofold increase in hours worked Safety Safety metrics H1 FY24 H1 FY23 One lost time injury (recordable
Slide 8: Operational highlights
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Operational highlights Improving gas processing plant performance and stability Group average production, TJe/d (net) Group average production trending up 61.9 excluding 63.4 excluding planned planned shutdown shutdown Or
Slide 9: Basker Manta Gummy wells decommissioning
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Operational highlights Basker Manta Gummy wells decommissioning Helix Q7000 vessel on site and progressing through decommissioning programme — Plugged and pressure isolated the reservoir with completion of lower abandonme
Slide 10: Operations & development
02 Operations & development Chad Wilson, Chief Operating Officer
Slide 11: Orbost Gas Processing Plant
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Orbost Gas Processing Plant Orbost improvement project increasing plant stability and processing capability OGPP average processing rate, TJ/d (100% gross1) H1 FY24 average processing rate 47.4 TJe/d (H1 FY23: 47.5 TJe/d)
Slide 12: Athena Gas Plant
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Athena Gas Plant Plant and field optimisation arresting natural decline AGP average processing rate, TJe/d (100% gross1) H1 FY24 average processing rate 22.2 TJe/d (100% gross), Compressor Compressor reliability issues is
Slide 13: Cooper Basin oil
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Cooper Basin oil PEL 92 PEL 92 average production rate, bbls/d (100% gross1) H1 FY24 production ~372 bbls/d, (H1 FY23: ~297 bbls/d), both net to Cooper Energy’s 25% interest 1,486 1,490 Exploration drilling campaign in
Slide 14: Otway Phase 3 Development
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Otway Phase 3 Development Otway drilling campaign to underpin next phase of growth FEED complete Transocean Equinox rig contracted — Firm well plus optional slots under review FID subject to partner alignment, gas sal
Slide 15: Finance
03 Finance Dan Young, Chief Financial Officer
Slide 16: Record H1 production & strong financial metrics
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Record H1 production & strong financial metrics Improved underlying performance including strong underlying operating cashflow $ million unless indicated H1 FY24 H1 FY23 Change Revenue up ~5% versus H1 FY23 Production (TJ
Slide 17: Group cash—record H1 underlying operating cashflow generation
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Group cash—record H1 underlying operating cashflow generation Bridge from June 2023 to December 2023 Excluding BMG restoration spend, and A$ million other non-recurring Cash & cash equivalents items, operating cashflow Othe
Slide 18: Strong liquidity position
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Strong liquidity position Set up to fund decommissioning and support growth A$ million $400 million facility + $20 million working capital facility Additional $120 million accordion (subject to terms and conditions) 218
Slide 19: FY24 cost-out initiative
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up FY24 cost-out initiative Group-wide review targeting savings across the business Accountability/Performance Simplification & efficiency Structure People & Business Planning culture processes Capability Contracto
Slide 20: Substantial efficiency and savings in group production expenses
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Substantial efficiency and savings in group production expenses Breakdown by area and select examples under the transformation programme Ongoing initiatives PEL92 Upstream Contract PEL92 Sole Select examples Labour services
Slide 21: Net G&A costs
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Net G&A costs 20% reduction achieved to date, net of restructuring and other non-recurring costs A$mm Headcount Board Consultants Travel & Entertainment 4.1 Other 2.0 8.4 Restructuring & other non-recurring costs
Slide 22: Transformation programme
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Transformation programme Targeting $10mm or more of annualised savings in FY25 Targeted annualised savings Cost out 90 initiatives Group-wide A$mm target from Overview 16 end of FY24 Target ~85% complete by 30 June 2024
Slide 23: FY24 priorities & wrap-up
04 FY24 priorities & wrap-up Jane Norman, Managing Director & CEO
Slide 24: Operational excellence to drive improved production and cashflow
H1 FY24 in review Operations & development Finance FY24 priorities & wrap-up Operational excellence to drive improved production and cashflow FY24 key corporate priorities Orbost performance Delivery of BMG improvement plan decommissioning FY24 cost-out Positioning for growth Orbost Gas Processing P
Slide 25: Appendix
Appendix
Slide 26: Positioned to support further integration of variable renewables
Positioned to support further integration of variable renewables South Australia is a window into the future role of gas supply in Southeast Australia’s power mix South Australian electricity supply by type (~70% renewables annually), MW1 Imports Gas Battery (Discharging) Wind Solar 3,000 2,000 1,00
Slide 27: Cooper Energy— certified carbon neutral organisation since FY20
Cooper Energy— certified carbon neutral organisation1 since FY20 Independently verified and certified by Climate Active2 Committed to maintaining carbon neutral1 status: Efficiency Site/operations focus Reduce emissions intensity Carbon credit portfolio Investment and partnerships in carbon
Slide 28: Increasing exposure to higher term and uncontracted gas prices
Increasing exposure to higher term and uncontracted gas prices Group annual contracted gas quantities (Gippsland/Sole1 + Otway/Casino Henry Netherby) PJ/annum ~TJ/day 30 82 2 Uncontracted/extension at market price Capped price review 3 Recontracted/repriced in 2023 (CPI indexed) Existing price (CPI
Slide 29: Otway Basin gas hub—visible near-term growth
Otway Basin gas hub—visible near-term growth Six prospects identified with high assessed chance of geological success Otway phase-3 development Development of Annie gas discovery 64.6 PJ 2C (100% basis)1 through Athena Drilling campaign based around Annie + 2 low-risk exploration wells — Close t
Slide 30: Gippsland Basin gas hub
Gippsland Basin gas hub Foundation to develop Cooper Energy’s proven and prospective Gippsland gas portfolio •Manta and Gummy Contingent Resource estimates (COE 100% interest)1 1C 2C 3C Gas PJ 95 185 343 Condensate MMbbl 2.5 4.9 9.7 Future development option, COE interest 100% Future appraisal o
Slide 31: Multiple growth opportunities within portfolio
Multiple growth opportunities within portfolio High graded offshore exploration and appraisal prospects to backfill existing infrastructure Development / Future exploration options1 Near term exploration1 appraisal2 Production3 Manta Deep Higher risk Chimaera East Gummy Deep Wobbegong Elanora Heera
Slide 32: Exploration success rates in the Offshore Otway Basin are world class
Exploration success rates in the Offshore Otway Basin are world class 94% success rate for seismic amplitude supported prospects Waarre Formation seismic amplitude map showing target prospects 29 exploration wells drilled in the Offshore Otway Basin — 16 gas field discoveries to date (success rate