Slide 1: ASX announcement cover note: Macquarie Conference
To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 1 May 2019 From Helen Hardy Pages 16 Subject Macquarie Conference 1 May 2019 Please find attached a release on the above subject. Regards Helen Hardy Company Secretary 02 8345 5000 Origin Energy Limited ABN 30 000 051 69
Slide 2: Origin Energy Macquarie Conference 1 May 2019
Origin Energy Macquarie Conference 1 May 2019 Frank Calabria, CEO
Slide 3: Origin snapshot
Origin snapshot ➢ Stronger cash flow and financial position ➢ Getting energy right for our customers and communities ➢ Near term headwinds in Energy Markets but well positioned to connect customers to the energy and technologies of the future ➢ Cost out on track at APLNG, reserves growth potential t
Slide 4: Stronger financial position
Stronger financial position Proportionate Free Cash Flow1 ➢ Both businesses generating significant 2,500 20% cash flow 17% 2,000 14% 15% Target capital structure in sight 1,500 ➢ 10% A$m 7% − Credit rating upgraded to BBB 1,000 stable / Baa2 stable 500 5% - 0% FY17 FY18 CY18 ➢ Disciplined capital ma
Slide 5: Getting energy right for our customers
Getting energy right for our customers • Absorbed higher wholesale costs in NSW in FY2018 Price relief • Reduced prices for concession customers • No increases for customers in our hardship program since 2016 • Maximising generation output and flexibility Reliable generation • ~650 MW of contracted
Slide 6: Getting energy right for our communities
Getting energy right for our communities Origin • $24 million to support communities and education since 2010 Foundation • >5,000 employee volunteer hours in HY2019 • Growing Indigenous employment Indigenous support • Increased procurement from Indigenous suppliers • Supported by Native Title holder
Slide 7: Energy Markets - regulatory impact
Energy Markets - regulatory impact Regulatory changes to standing offers ➢ Victorian Default Offer (VDO) ‒ Bottom up methodology ‒ Applies to customers on standing offers in VIC ‒ $20 million annual revenue reduction estimated (based on draft determination) ➢ Default Market Offer (DMO) ‒ Top down me
Slide 8: Energy Markets - wholesale price headwinds
Energy Markets - wholesale price headwinds Lower market prices reduce earnings as they flow into retail prices NSW forward baseload LREC forward prices energy prices 95 90 100 90 85 80 80 70 A$/certificate A$/MWh 75 60 70 50 40 65 30 60 20 55 10 50 - Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19
Slide 9: Delivering Energy Markets strategy
Delivering Energy Markets strategy Energy Supply & Retail Future Energy Operations Simplified business centred Competitive cost of energy Connecting distributed around the customer in a changing world assets and data to customers ➢ Transform customer ➢ Grow low cost renewables ➢ Develop platform to
Slide 10: Integrated Gas – LNG market context
Integrated Gas – LNG market context Asia LNG demand 2018-2025 (MTPA) 200 180 ➢ Continuing strong Asian CAGR: 160 LNG demand growth +7.7% 140 109 102 120 92 87 82 ➢ Significant new US supply 100 66 74 expected 2020 – 2022 80 59 60 40 74 77 80 65 68 71 55 60 20 0 2018 2019 2020 2021 2022 2023 2024 202
Slide 11: APLNG continuing to deliver
APLNG continuing to deliver APLNG Production (100%) APLNG Revenue (100%) 180 2,500 150 2,000 120 1,500 A$m 90 PJ 1,000 60 500 30 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY18 FY19 FY18 FY19 Operated Production Non Operated Production LNG Revenue Domestic Revenue ➢ Stable production despite plan
Slide 12: Delivering Integrated Gas strategy
Delivering Integrated Gas strategy Low cost operator - APLNG Develop resources to meet growing gas demand June-19 Metric Baseline Run Rate APLNG Cost per Well (A$/well)1 2.4 1.2 ➢ Focus on maturing new resources with Operated opex (A $/GJ)2 1.3 1.0 exploration and appraisal activities Operating Brea
Slide 13: Questions
Questions es ©
Slide 14: Important Notice
Important Notice Forward looking statements This presentation contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. Such statements are not statements of fact and there can be no certainty of outcome in rel
Slide 15: For more information
For more information Peter Rice General Manager, Capital Markets Email: peter.rice@originenergy.com.au Office: +61 2 8345 5308 Mobile: + 61 417 230 306 Liam Barry Group Manager, Investor Relations Email: liam.barry@originenergy.com.au Office: +61 2 9375 5991 Mobile: + 61 401 710 367 www.originenergy
Slide 16: Thank You
Thank You es ©