Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — Merger or Acquisition (July 2024)
24 slides from Woodside Energy's merger presentation, Jul 22, 2024
Slide 1: Woodside to acquire Tellurian and Driftwood LNG
WOODSIDE TO ACQUIRE TELLURIAN AND DRIFTWOOD LNG 22 July 2024 www.woodside.com investor@woodside.com
Slide 2: Disclaimer, important notes and assumptions
Disclaimer, important notes and assumptions Information expressions. Similarly, statements that describe the objectives, plans, goals or expectations of Woodside are forward-looking statements. • This presentation has been prepared by Woodside Energy Group Ltd (“Woodside”). • Forward-looking stateme
Slide 3: Disclaimer, important notes and assumptions (continued)
Disclaimer, important notes and assumptions (continued) Participants in the solicitation assumptions including: (1) US$70/bbl Brent long-term oil price (2022 real terms, inflated at 2.0%); (2) currently sanctioned projects being delivered in accordance with their current project schedules; and (3) a
Slide 4: Acquisition creates a global LNG powerhouse
Acquisition creates a global LNG powerhouse Attractive entry into a scalable, fully permitted, 27.6 Mtpa US LNG development option Providing with a cost-competitive phased development plan energy Pathway to material complementary presence in the Atlantic Basin, enabling value and arbitrage opportuni
Slide 5: Compelling transaction with shareholder value potential
Compelling transaction with shareholder value potential Scope Conditions and timing Transaction overview ▪ Subject to satisfaction of customary ▪ All-cash acquisition of Tellurian (NYSE- ▪ Includes the fully permitted, pre-FID conditions precedent including regulatory listed) Driftwood LNG developme
Slide 6: Increases LNG portfolio and geographical diversification
Increases LNG portfolio and geographical diversification Atlantic LNG Pacific LNG Stage / equity interest Stage / capacity (100%) Operated Operated NWS Project Producing 5.6 Mtpa Driftwood LNG Pre-FID 16.5 Mtpa (Phase 1 and 2) Pluto LNG Producing 4.4 Mtpa Driftwood LNG Scarborough Pre-FID 11.1 Mtpa
Slide 7: Driftwood LNG is a high-quality, scalable development option
Driftwood LNG is a high-quality, scalable development option LA Lake Charles TX Driftwood LNG is fully permitted for 27.6 Driftwood LNG Mtpa Cameron Lump-sum turnkey EPC contract strategy with LNG contractor Bechtel Globally advantaged supply source Port Arthur leveraging abundant low-cost US feedga
Slide 8: Phased development allows flexibility
Phased development allows flexibility 27.6 Mtpa Cumulative Proposed foundation capacity development 22 Mtpa Train 5 Targeting FID readiness for Phase 1 from Q1 (Mtpa) 2025. Pathway to achieving capital allocation Train 4 16.5 Mtpa framework Train 3 11 Mtpa Cost competitive at ~$900-960/tonne for 1 P
Slide 9: Development concept leverages best-in-class technology
Development concept leverages best-in-class technology Trains 1-3 (5.5 Mtpa per train) ▪ Engineering, procurement and construction (EPC) contract awarded to Bechtel ▪ Chart IPSMR liquefaction technology; Chart IPSMR process is a more efficient evolution of proven single-mixed-refrigerant processes ▪
Slide 10: Driftwood LNG is advanced with construction commenced
Driftwood LNG is advanced with construction commenced Permits and contracting ▪ All permits in place ▪ Lump-sum turnkey EPC contract strategy; with LNG contractor Bechtel Trains 2 and 3 Train 1 ▪ Gas turbine and LNG compressor ▪ Piling underway foundations complete ▪ Cryogenic rack foundations under
Slide 11: Leveraging Woodside's LNG expertise to unlock Driftwood LNG
Leveraging Woodside’s LNG expertise to unlock Driftwood LNG Operational excellence Project track record Marketing capability Demonstrated capability in LNG plant Strong reputation as a reliable energy 35 years of LNG operations development supplier World-class reliability Long-term relationships wit
Slide 12: Differentiated approach to US LNG increases margins
Differentiated approach to US LNG increases margins Shipping and LNG value chain Gas sourcing Liquefaction trading Portfolio approach for marketing allows Infrastructure model▪ Operator receives a fixed toll for liquefaction of third-party volumes 1 Typical US LNG flexibility in contract duration, a
Slide 13: A material Atlantic LNG position would enable marketing optionality
A material Atlantic LNG position would enable marketing optionality Volatility in LNG markets enables optimisation and arbitrage Historical US Gulf Coast Netbacks from JKM, European Gas Marker and Brent ($US/MMbtu) 70 Diversification in the Atlantic and Pacific Basins unlocks marketing optimisation
Slide 14: Disciplined investment through capital management framework
Disciplined investment through capital management framework Capital management framework No change to dividend policy; continued capacity to pay strong Special dividends Safe, dividends Dividend reliable Strong policy Investment Share buy-backs and low balance (minimum expenditure 50% payout cost sh
Slide 15: LNG is well positioned in the energy transition
LNG is well positioned in the energy transition Growing demand across both the Atlantic and Pacific Basins 1 Demand drivers LNG demand by region (Mtpa) 700 ▪ Customers’ decarbonisation goals >50% 600 ▪ Energy security 500 ▪ Gas as firming power for renewables >60% 400 Pacific Basin Supply pressures
Slide 16: Driftwood supports Woodside's carbon competitiveness
Driftwood supports Woodside’s carbon competitiveness Potential to reduce the average emissions Favourable future decarbonisation Design-out features 1 intensity of Woodside’s LNG portfolio pathways Scope 1 and 2 gross emission intensity (kg CO -e/boe production) 2 ▪ Flareless restart ▪ Potential CCS
Slide 17: Acquisition creates a global LNG powerhouse
Acquisition creates a global LNG powerhouse Attractive entry into a scalable, fully permitted, 27.6 Mtpa US LNG development option Providing with a cost-competitive phased development plan energy Pathway to material complementary presence in the Atlantic Basin, enabling value and arbitrage opportuni
Slide 18: Q&A
Q&A
Slide 19: Appendix
APPENDIX
Slide 20: Our strategy is to thrive through the energy transition
d e i f i s r e v i D t n e i l i s e R e l b a t Our strategy is to thrive through the energy transition Thrive through the energy transition Goals which drive our strategic direction through a high-quality portfolio, geographically advantaged to meet Providing energy 2 growing LNG demand Creating
Slide 21: Disciplined capital allocation framework
Disciplined capital allocation framework OIL GAS NEW ENERGY OFFSHORE PIPELINE LNG DIVERSIFIED Generate high returns to fund New energy products and lower Leveraging infrastructure to monetise undeveloped diversified growth, focusing on carbon services to reduce customers’ FOCUS gas, including option
Slide 22: Glossary
Glossary $, $m, $B US dollar unless otherwise stated, millions of dollars, billions of dollars IFRS International Financial Reporting Standards Foundation. For more information see www.ifrs.org A$, AUD Australian dollar IRR Internal rate of return Woodside uses this term to describe an aspiration to
Slide 23: Glossary
Glossary Net zero emissions are achieved when anthropogenic emissions of greenhouse gases to the Other indirect GHG emissions. Scope 3 is a reporting category that allows for the treatment of all other atmosphere are balanced by anthropogenic removals over a specified period. Where multiple indirect
Slide 24: Head Office: Woodside Energy Group Ltd
Head Office: Woodside Energy Group Ltd Mia Yellagonga 11 Mount Street Perth WA 6000 Postal Address: GPO Box D188 Perth WA 6840 Australia T: +61 8 9348 4000 F: +61 8 9214 2777 E: companyinfo@woodside.com Woodside Energy Group Ltd ABN 55 004 898 962 woodside.com
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