Amplitude Energy Limited · ASX:AEL
Amplitude Energy — FY2023 Earnings Presentation
38 slides from Amplitude Energy's earnings presentation, Aug 29, 2023
Slide 1: Correction: FY23 Results presentation 2P reserves and 2C resources figures
ASX Announcement / Media Release 29 August 2023 Correction: FY23 Results presentation 2P reserves and 2C resources figures Cooper Energy Limited (“Cooper Energy”, or the Company) (ASX:COE) advises that slide 32 in the appendix of the Cooper Energy FY23 full year results presentation released Tuesday
Slide 2: FY23 full year results and FY24 outlook
Orbost GasEast Orbost, Processing Plant Gippsland 29 August 2023 FY23 full year results and FY24 outlook
Slide 3: 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 4: Year in review
01 Year in review
Slide 5: Record FY23 production and u-EBITDAX
Year in review Financial highlights Growth & FY24 guidance Record FY23 production and u-EBITDAX Underpinned by strong safety and environmental performance Lost time incidents TRIFR1 Net organisational emissions2 0 4.38 0 Safety and environment cases (industry 5.68) tonnes (FY23) Production Operating
Slide 6: Health, safety, environment and community
Year in review Financial highlights Growth & FY24 guidance Health, safety, environment and community Results ahead of industry benchmarks through disciplined operations Safety Safety metrics FY22 FY23 Zero lost time injuries Hours worked 220,238 228,483 One medical treatment injury Recordable in
Slide 7: Organisational changes
Year in review Financial highlights Growth & FY24 guidance Organisational changes Refreshed executive team Jane Norman Managing Director & Chief Executive Officer Chad Wilson Dan Young Andrew Thomas Eddy Glavas Nathan Childs Ying Luo Nicole Ortigosa Chief Chief Chief Chief Chief Chief Company Operat
Slide 8: Orbost gas processing plant
Year in review Financial highlights Growth & FY24 guidance Orbost gas processing plant Improving stability following transfer of operatorship OGPP average processing rate, TJ/d FY23 average processing rate 47.1 TJ/d1 (FY22 42.5 TJ/d) 48.2 excluding — Contracted average annual daily volume of ~43.8
Slide 9: Athena gas plant
Year in review Financial highlights Growth & FY24 guidance Athena gas plant Longstanding compressor reliability issue resolved in May 2023 Athena average processing rate, TJ/d (100% gross) 30 FY23 average processing rate 21.4 TJ/d (100% gross) Planned annual — FY22 average processing rate 23.6 TJ/
Slide 10: Non-operated production and other activities
Year in review Financial highlights Growth & FY24 guidance Non-operated production and other activities Focus on safe completion of BMG decommissioning on-time & company-wide cost reductions Cooper Basin oil BMG wells decommissioning Cost reductions Divestment of non-core assets to Bass Oil in F
Slide 11: Government policy support for domestic gas producers
Year in review Financial highlights Growth & FY24 guidance Government policy support for domestic gas producers Encouraging mid cap operators focussed on domestic supply Key details Carve out for domestic suppliers with production of <100 PJ/y — Cooper Energy eligible for exemption from A$12/GJ pr
Slide 12: FY23 highlights
Year in review Financial highlights Growth & FY24 guidance FY23 highlights Focus on operational excellence to maximise production and cashflow Record annual production: 7.8% to 3.56 MMboe FY23 Performance Record annual u-EBITDAX: 35.4% to $109.3mm Record annual operating cash flow: 9% to
Slide 13: Financial highlights
02 Financial highlights
Slide 14: Record production & financial metrics
Year in review Financial highlights Growth & FY24 guidance Record production & financial metrics Step change in operating cashflow, continued deleveraging $mm unless indicated FY22 FY23 Change Production 8% due to improved OGPP performance Revenue 4% due to lower sales volumes Production, TJ
Slide 15: Record u-EBITDAX
Year in review Financial highlights Growth & FY24 guidance Record u-EBITDAX u-EBITDAX—bridge from FY22 A$mm FY23 record u-EBITDAX Lower sales volumes offset by fewer gas purchases and higher 33.3 realised prices 54.0 3.6 5.0 Lower tolling costs as a result of 4.3 OGPP acquisition offset by hig
Slide 16: Group cash—bridge from June 2022 to June 2023
Year in review Financial highlights Growth & FY24 guidance Group cash—bridge from June 2022 to June 2023 Cash flow generation impacted by BMG restoration and capex A$mm 0.5 Restoration cash flows primarily relate to costs associated with BMG Capex includes costs associated with OGPP transition & OP3
Slide 17: Growth, FY24 guidance & wrap-up
03 Growth, FY24 guidance & wrap-up
Slide 18: Focus on delivering business priorities
Year in review Financial highlights Growth & FY24 guidance Focus on delivering business priorities Positioning for the next phase of growth in FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Orbost Orbost performance improvement plan Mid case avg: mid 50’s TJ/d High case avg: high 50’s TJ/d performance BMG BMG
Slide 19: Orbost performance improvement plan
Year in review Financial highlights Growth & FY24 guidance Orbost performance improvement plan Incremental improvements from identified workstreams Orbost production potential, TJ/d 70 66 Operations excellence 63 60 62 — Improve underlying reliability performance FY23 Average = 47.1 TJ/d — Reduce
Slide 20: Basker Manta Gummy wells abandonment in Q2 FY24
Year in review Financial highlights Growth & FY24 guidance Basker Manta Gummy wells abandonment in Q2 FY24 Gippsland Basin subsea decommissioning on track BMG Other near term decommissioning activity Helix nomination of Q7000 arrival window: 1 – 30 Sep Within next 5 years — Subject to completing T
Slide 21: Progressing new gas supply to the short domestic market
Year in review Financial highlights Growth & FY24 guidance Progressing new gas supply to the short domestic market Clear pathway to commercialisation via Athena Gas Plant Immediate priority focus — Completion of BMG wells decommissioning & OGPP performance improvement initiatives OP3D growth pro
Slide 22: FY24 guidance: production, production expenses & capex
Year in review Financial highlights Growth & FY24 guidance FY24 guidance: production, production expenses & capex Focus on higher gas production, completing BMG wells abandonment and driving cost efficiencies Production: 58.5 – 65.2 TJe/day1 FY24 production expenses: $60—68mm2 FY24 capex: $190—210mm
Slide 23: Outlook for production expenses
Year in review Financial highlights Growth & FY24 guidance Outlook for production expenses1 Expectations for FY24 and beyond FY24 production expenses, A$mm Key drivers for changes to production expenses 75 Upstream costs remain in line with FY23 Higher maintenance costs, including absorber clean
Slide 24: FY24—outlook for net debt & leverage
Year in review Financial highlights Growth & FY24 guidance FY24—outlook for net debt & leverage Peak in Q2 FY24 due to BMG wells decommissioning 300 5.0 Senior secured reserve based loan (RBL) Strong group of eight banks — Mix of domestic and international banks active in the global RBL lending
Slide 25: Operational excellence to drive improved production and cashflow
Year in review Financial highlights Growth & FY24 guidance Operational excellence to drive improved production and cashflow FY24 key corporate priorities Orbost performance Delivery of BMG improvement plan abandonment FY24 cost-out Positioning for growth Orbost Gas Processing Plant Repositioning Coo
Slide 26: Appendices
04 Appendices
Slide 27: 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 Exports Imports Battery (Discharging) Wind Solar 3,000 2,000
Slide 28: 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 29: 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 1C 2C 3C estimates (COE 100% interest)1 Gas PJ 95 185 343 Condensate MMbbl 2.5 4.9 9.7 Future development option, COE interest 100% Manta-3 appraisal
Slide 30: Positioned to capture long-term supply gap
Positioned to capture long-term supply gap Market supports long-term growth opportunities at LNG import parity Southern states forecast supply/demand (source: AEMO), PJ/year1 Gippsland, Otway & Bass Basins, WM commercial reserves (PJe)2 500 Developed & committed 3,524 Anticipated 675 Other gas flow
Slide 31: Reconciliations
Reconciliations Underlying adjustments include restoration, OGPP reconfiguration and NOGA levy $mm FY22 FY23 $mm FY22 FY23 Underlying net profit / (loss) after tax 14.4 (5.6) Statutory net profit / (loss) after tax (10.6) (68.5) Adjusted for: Adjusted for: Net finance costs 9.1 8.5 Impairment 26.1 A
Slide 32: June 2023 2P reserves & 2C resources
June 2023 2P reserves & 2C resources1 Overview MMboe 48.4 12.0 2P revisions 0.2 — FY23 production 39.5 0.5 36.3 36.9 0.0 — Extension to end of field life 0.3 3.6 0.2 timing for CHN/Athena Sole 2P reduced by production only Updated assessment of Manta Hub — Increase of mean unrisked prospective
Slide 33: 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 34: Reserves and Contingent Resources at 30 June 2023
Reserves and Contingent Resources at 30 June 2023 1P (Proved) 2P (Proved & Probable) 3P (Proved, Probable & Possible) Reserves1 Cooper Otway Gippsland Total Cooper Otway Gippsland Total Cooper Otway Gippsland Total Developed Sales gas PJ 0.0 16.0 132.5 148.6 0.0 19.5 195.2 214.7 0.0 20.4 276.8 297.1
Slide 35: Notes on calculation of Reserves and Contingent Resources
Notes on calculation of Reserves and Contingent Resources Cooper Energy prepares its petroleum Reserves and Contingent Resources in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2018 Petroleum Resources Management System (PRMS). The estimates of petroleum
Slide 36: Abbreviations
Abbreviations $ Australian dollars APA APA Group (ASX: APA) ASX Australian Securities Exchange bbl Barrels Bcf Billion cubic feet of gas Cooper Energy or Company Cooper Energy Limited ABN 93 096 170 295 FEED Front End Engineering and Design FID Final Investment Decision GSA Gas Sales Agreement kbbl
Slide 37: Footnotes
Footnotes By page Slide 4 1. TRIFR is recordable incidents (Medical Treatment Injuries + Restricted Work/Transfer Case + Lost Time Injuries + Fatalities) per million hours worked. Calculated on a rolling 12-month basis 2. Organisational carbon emissions voluntarily fully offset for FY23. These consi
Slide 38: Footnotes
Footnotes By page Slide 29 1. Cooper Energy analysis of 2023 AEMO GSOO Report 2. Wood Mackenzie Upstream Australasia Insight Report (July 2021). Amounts shown here are Wood Mackenzie assessed commercial reserves. Wood Mackenzie Disclaimer: The data and information provided by Wood Mackenzie should n