Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (June 2022)
57 slides from Amplitude Energy's investor presentation, Jun 20, 2022
Slide 1: Correction letter to ASX re Orbost investor presentation
Level 8 70 Franklin Street Adelaide SA 5000 Australia GPO Box 1819 Adelaide SA 5001 For personal use only Tel (Aust.): +61 8 8100 4900 Fax (Aust.): +61 8 8100 4997 20 June 2022 customerservice@cooperenergy.com.au www.cooperenergy.com.au Mr Justin Nelson Principal Adviser, Listings Compliance ASX Lim
Slide 2: Orbost Gas Processing Plant
DRAFT STRICTLY PRIVATE 12/10/2020 & CONFIDENTIAL For personal use only 20 June 2022 Orbost Gas Processing Plant NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Transformational acquisition of Orbost Gas Processing Plant. Accelerating the next phase of growth
Slide 3: Important notice
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Important notice For personal use only This investor presentation (“Presentation”) is issued by Cooper Energy Limited ACN 096 170 295 (“Cooper Energy” or “the Company”). This Presentation has been issued by Cooper Energy in rela
Slide 4: Important notice
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Important notice For personal use only Investment risk An investment in Cooper Energy shares is subject to investment and other known and unknown risks, some of which are beyond the control of Cooper Energy. None of Cooper Energ
Slide 5: Table of contents
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Table of contents For personal use only 1. Transaction Overview 5 2. Acquisition Highlights 9 3. OGPP Overview 20 4. Funding 24 5. Adding value and accelerating growth options 31 6. Appendices 34 A. International Offer Restricti
Slide 6: Transaction overview
For personal use only 01 Transaction overview
Slide 7: Orbost Gas Processing Plant – a transformational acquisition
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Orbost Gas Processing Plant – a transformational acquisition Strategic and accelerated growth underpinned by market fundamentals For personal use only ✓ Binding asset sale agreement to acquire the Orbost Gas Processing Plant (“O
Slide 8: Transaction and funding summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Transaction and funding summary Upfront cash consideration of $210 million plus deferred payments ranging from $60-120 million linked to OGPP For personal use only performance Sources and Uses1 Overview • Binding Asset Sale Agre
Slide 9: Transaction consideration/payments
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Transaction consideration/payments Deferred payments linked to plant performance during transition For personal use only Transaction consideration/payments ($ million) • Total payments range from $270-330 million Average rate 1s
Slide 10: Acquisition highlights
For personal use only 02 Acquisition highlights
Slide 11: Tightening South-east Australia gas supply
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Tightening South-east Australia gas supply Attractive market dynamics support new developments which are enabled by the Acquisition For personal use only ACCC forecast supply and demand in the Southern states (PJ pa)1, 2 Spot ga
Slide 12: Remaining reserves in South-east Australia
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Remaining reserves in South-east Australia Cooper Energy - pure play East Coast gas status with a bias to early life reserves For personal use only Gippsland, Otway & Bass Basins, net remaining WoodMac assessed commercial reserv
Slide 13: Transformational acquisition
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Transformational acquisition Adding strategic value and accelerating execution of the South-east Australia twin hub gas supply strategy For personal use only Average gas spot price (A$/GJ) Mar-22 Apr-22 May-22 Jun-222 • Twin gas
Slide 14: Twin hub access to East Coast gas market
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Twin hub access to East Coast gas market Strengthened operating expertise across integrated upstream and midstream gas projects For personal use only Adelaide Otway Basin Gippsland Basin NSW • Cooper Energy – 50% and operator SA
Slide 15: Integration enables greater optionality and value creation
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Integration enables greater optionality and value creation Across the full value chain, Otway & Gippsland For personal use only • Enhanced alignment between upstream, processing and customer supply • Greater flexibility across t
Slide 16: Highly accretive to operating margins, cashflow and earnings
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Highly accretive to operating margins, cashflow and earnings ~$60 million increase in post-tax cashflow and at an average OGPP processing rate of 55 TJ/day1,2,4 For personal use only Sole project daily EBITDAX (A$’000)1,2,3 Incr
Slide 17: Material upside value at elevated spot prices
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Material upside value at elevated spot prices Fixed-cost nature of OGPP enhances the combined project economics as processing rates increase For personal use only Combined Sole + OGPP Project – Indicative Daily EBITDAX (A$’000)1
Slide 18: Growth acceleration opportunity – Otway Basin
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Growth acceleration opportunity – Otway Basin Foundation to facilitate development of Cooper Energy’s proven and prospective gas portfolio For personal use only Otway Phase-3 Development • OP3D development concept involves devel
Slide 19: Growth acceleration opportunity – Gippsland Basin
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Growth acceleration opportunity – Gippsland Basin Foundation to facilitate development of Cooper Energy’s proven and prospective gas portfolio For personal use only Manta Contingent Resource Estimate1 1C 2C 3C Gas PJ 78 121 190
Slide 20: Industry leading net zero carbon position
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Industry leading net zero carbon position1 Will offset incremental emissions For personal use only Cooper Energy is carbon neutral today/before OGPP acquisition OGPP emissions to be offset from FY23 • Scope-1, Scope-2 and contro
Slide 21: OGPP overview
For personal use only 03 OGPP overview
Slide 22: OGPP - commercial and operational overview
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS OGPP - commercial and operational overview Strengthens twin hub, flexible gas supply strategy For personal use only Operational overview Plant & equipment summary • Processes raw gas exclusively from the Sole Gas Project (~227 P
Slide 23: Sole production and GSA sales volumes
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Sole production and GSA sales volumes Improved OGPP processing rates + managed GSA reshape increase spot sales opportunity For personal use only 100 50 90 40 Sydney Spot Price Victoria Spot Price 80 30 70 20 60 10 Processing Rat
Slide 24: OGPP integration planning underway with all key personnel identified
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS OGPP integration planning underway with all key personnel identified Experienced team and key learnings from Athena Gas Plant being adopted For personal use only Overview Core operating objectives • Established integration team
Slide 25: Funding
For personal use only 04 Funding
Slide 26: Underwriting commitments in place for $400 million debt facility
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Underwriting commitments in place for $400 million debt facility New facility refinances the existing loan and supports the Group’s future activities For personal use only Underwritten facility overview • Commitment papers execu
Slide 27: $244 million fully underwritten equity raising
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS $244 million fully underwritten equity raising For personal use only Equity raise • Fully underwritten Institutional Placement to raise $84 million, combined with a 2-for-5 pro-rata, accelerated, non-renounceable Entitlement Off
Slide 28: Equity raising timetable
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Equity raising timetable For personal use only Institutional Placement and Institutional Entitlement Offer opens Monday, 20 June 2022 Institutional Placement and Institutional Entitlement Offer closes Tuesday, 21 June 2022 Tradi
Slide 29: Pro-forma cash and facilities available
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Pro-forma cash and facilities available OGPP transaction and the new debt facility significantly improve Cooper Energy’s capital base For personal use only Proforma cash and facilities as at 31 December 2021 Cooper Energy Transa
Slide 30: Funding for growth
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Funding for growth Acquisition of OGPP and the new debt facility resets the balance sheet for the next phase of growth For personal use only Indicative funding sources and uses to the end of FY25 ($ millions) ✓ Improved operatin
Slide 31: FY2022 Underlying EBITDAX
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS FY2022 Underlying EBITDAX Highly levered to OGPP processing rate For personal use only Outlook for FY2022 Underlying EBITDAX at various OGPP processing rates (excluding cleans) and A$40/GJ spot gas price 1 85 • Revised guidance
Slide 32: Adding value and accelerating growth options
For personal use only 05 Adding value and accelerating growth options
Slide 33: Growth staircase
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Growth staircase High value growth pipeline - producing, development and exploration prospects via two gas hubs For personal use only 121 PJ2 Production (MMboe) 1 (Manta 2C Contingent Resource) Manta (Gippsland) 286 Bcf3 (Near f
Slide 34: Wrap-up
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Wrap-up Transformational, value adding and accelerating Cooper Energy’s next growth phase in South-east Australia gas For personal use only Gippsland Basin • Fully integrated gas supply from Sole upstream through to high quality
Slide 35: Appendices
For personal use only 06 Appendices
Slide 36: International offer restrictions
For personal use only A International offer restrictions
Slide 37: International offer restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS International offer restrictions For personal use only This document does not constitute an offer of New Shares of Cooper Energy in any jurisdiction in which it would be unlawful. In particular, this document may not be distribu
Slide 38: International offer restrictions (continued)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS International offer restrictions (continued) For personal use only This document has been prepared in compliance with Australian law and has not been registered, filed with or approved by any New Zealand regulatory authority. Th
Slide 39: Reserves and resources
For personal use only B Reserves and resources
Slide 40: Reserves and Contingent Resources at 30 June 2021
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Reserves and Contingent Resources at 30 June 2021 For personal use only 1P (Proved) 2P (Proved & Probable) 3P (Proved, Probable & Possible) Reserves1 Cooper Otway Gippsland Total Cooper Otway Gippsland Total Cooper Otway Gippsla
Slide 41: Cooper Energy tenements
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Cooper Energy tenements1 For personal use only Otway Basin (Victoria): Gippsland Basin: Cooper Basin: Otway Basin (onshore South Australia & Victoria ): 40 1 Please refer to Cooper Energy’s 2021 Annual Report for further informa
Slide 42: Risks
For personal use only C Risks
Slide 43: Key Acquisition risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Key Acquisition risks For personal use only Risk Description Regulatory approvals The key regulatory approvals and licences required in connection with the Acquisition are the approval of the transfer of: • the Major Hazard Faci
Slide 44: Key Acquisition risks - continued
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Key Acquisition risks - continued For personal use only Risk Description Reliance on Cooper Energy has undertaken a due diligence review in respect of the OGPP Assets, including engaging external legal, insurance, technical, ope
Slide 45: Key Acquisition risks - continued
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Key Acquisition risks - continued For personal use only Risk Description Gas processing Cooper Energy and APA have agreed extend the Transition Agreement entered into on 20 August 2020 (and last extended on 19 April 2022) to com
Slide 46: Cooper Energy business risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Cooper Energy business risks For personal use only Risk Description Debt refinancing As outlined in more detail on slide 25, Cooper Energy has recently announced a refinancing of its existing SFA and replacing it with a new debt
Slide 47: Cooper Energy business risks - continued
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Cooper Energy business risks - continued For personal use only Risk Description Operations There are a number of risks associated with operating in the oil and gas industry, including fire, explosions, blow outs, pipe failures,
Slide 48: Cooper Energy business risks - continued
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Cooper Energy business risks - continued For personal use only Risk Description Counterparties The ability of Cooper Energy to achieve its stated objectives may be impacted by the performance of counterparties under material agr
Slide 49: Cooper Energy business risks - continued
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Cooper Energy business risks - continued For personal use only Risk Description Climate and Cooper Energy has taken an industry leading position in becoming the first Australian upstream gas company to become carbon neutral in F
Slide 50: Cooper Energy business risks - continued
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Cooper Energy business risks - continued For personal use only Risk Description COVID-19 Cooper Energy continued its response to the COVID-19 pandemic in line with its focus on: • prioritising the safety and welfare of its emplo
Slide 51: Cooper Energy business risks - continued
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Cooper Energy business risks - continued For personal use only Risk Description Community Cooper Energy conducts gas and oil exploration, development, and production operations. The Company processes gas near regions with reside
Slide 52: Cooper Energy business risks - continued
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Cooper Energy business risks - continued For personal use only Risk Description Access to capital Cooper Energy must undertake significant capital expenditure in order to fund field, exploration, appraisal, development and resto
Slide 53: General risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS General risks For personal use only Risk Description General market and There are general risks associated with investments in equity capital such as Cooper Energy shares. The trading price of Cooper Energy shares may fluctuate
Slide 54: New Shares and equity raise risk
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS New Shares and equity raise risk For personal use only Risk Description Underwriting Cooper Energy has entered into an underwriting agreement with the Underwriters under which the Underwriters have agreed to fully underwrite the
Slide 55: New Shares and equity raise risk
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS New Shares and equity raise risk For personal use only Risk Description Underwriting • trading in all securities in any financial market, trading board or services is suspended or materially limited for one or a substantial part
Slide 56: Abbreviations
For personal use only E Abbreviations
Slide 57: Abbreviations
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS Abbreviations For personal use only $ Australian dollars kbbl Thousand barrels APA APA Group (ASX: APA) km Kilometres ASA Asset Sale Agreement executed between Cooper Energy and APA on Monday 20 MHFL Major Hazard Facilities Lice