Amplitude Energy Limited · ASX:AEL
Amplitude Energy — FY2021 Earnings Presentation
34 slides from Amplitude Energy's earnings presentation, Aug 23, 2021
Slide 1: FY21 full-year results and outlook
FY21 full-year results and outlook 23 August 2021
Slide 2: Solid results during a challenging year
1. Solid results during a challenging year 2. Strong second-half momentum 3. Well positioned for continuing growth Cover: Coorong landscape to be revegetated with carbon offset investment by Cooper Energy Athena Gas Plant, Victoria
Slide 3: FY21 progress demonstrates Cooper Energy's value proposition
FY21 progress demonstrates Cooper Energy’s value proposition Crystalising and growing the value within the existing portfolio A compelling value proposition Twin hub gas strategy with strong fundamentals ➢ Growing cash flow and earnings generation – ~$50 million gas cash margin generated in FY211 –
Slide 4: Solid results during a challenging year
Solid results during a challenging year Underpinned by commencement of Sole GSAs and improving OGPP performance Production Sales volume Revenue Full-year records achieved 2.63 +69% 3.01 +94% $132 +69% MMboe MMboe million Lost time incidents COVID-19 Carbon emissions Improving safety and environment
Slide 5: Strong second-half momentum to continue into FY22
Strong second-half momentum to continue into FY22 Increasing Sole production and sales volume1 Production (MMboe) Sales volume (MMboe) +23-43% +14-37% +19% +49% 1.80 3.7 – 4.3 1.43 3.0 – 3.6 3.01 2.63 1.20 1.21 H1 FY21 H2 FY21 FY21 FY22 H1 FY21 H2 FY21 FY21 FY22 Revenue ($ million) Underlying EBITDA
Slide 6: OGPP Phase 2B works expected to further improve performance
OGPP Phase 2B works expected to further improve performance Extensive testing provides confidence in significantly improving OGPP performance • Phase 2 works were agreed in accordance with the Transition Agreement signed with APA in 20201 • Phase 2A involved reconfiguration of absorbers to enable pa
Slide 7: Athena Gas Plant commissioning in Q2 FY22
Athena Gas Plant commissioning in Q2 FY22 Low-cost processing hub for existing and future Otway Basin developments Pipeline cutover: Iona Gas Plant to Athena Gas Plant Athena Gas Plant ✓ >80% complete ✓ Mechanical completion achieved ✓ Start-up readiness preparations underway ✓ First gas to plant in
Slide 8: Health, safety and environment
Health, safety and environment Continuing focus on improving outcomes Health Safety metrics FY20 FY21 • No COVID-19 cases reported Hours worked 283,672 289,071 • Ongoing monitoring of staff health and wellbeing Recordable incidents 1 2 • Gas plant access restrictions but Otway Basin production not i
Slide 9: Climate Active carbon neutral certification achieved
Climate Active carbon neutral certification achieved Officially recognised as Australia’s first carbon neutral domestic gas producer • Scope 1, Scope 2 and directly controllable Scope 3 fully offset for FY20 and FY21 with Australian Carbon Credit Units (ACCUs) • Independently audited and certified t
Slide 10: Financial results
Financial results Otway coastline, Port Fairy, Victoria
Slide 11: Headline financial metrics
Headline financial metrics FY21 impacted by delayed OGPP ramp-up and Transition Agreement arrangements $ million unless indicated FY20 FY21 Change • Gas revenue up 88% to $119.5 million; oil and condensate revenue down 22% to $12.1 million Production (MMboe) 1.56 2.63 ▲ 69% • Total cash cost of sale
Slide 12: Debt facility
Debt facility Adjustments finalised to re-align debt facility with current outlook for OGPP $ million • Reserves-based lending facility 250 • $218 million limit plus $15 million working capital facility 200 150 • Clear support from banking syndicate 100 • Debt facility adjustments finalised 131.6 50
Slide 13: Reconciliations
Reconciliations Underlying adjustments include OGPP reconfiguration costs and restoration discount rate changes $ million FY20 FY21 $ million FY20 FY21 Statutory net profit / (loss) after tax (86.0) (30.0) Underlying net profit / (loss) after tax (6.6) (25.9) Adjusted for: Adjusted for: Impairment 1
Slide 14: Underlying NPAT movements
Underlying NPAT movements Lower-priced H1 Sole spot gas sales; cost of sales impacted by Transition Agreement arrangements • Higher gas revenue in H2 FY21 from increased $ million Sole production and commencement of Sole (2.3) GSAs • Cost of sales impacted by: – Higher gas sales volumes 55.9 – Initi
Slide 15: Movement in cash
Movement in cash Operating cash flow impacted by Q4 FY21 timing differences and higher PRRT and interest payments $ million (14.3) 48.9 (5.3) (11.1) (10.2) (17.8) (1.7) (5.7) (9.4) (11.4) 166.2 Operating cash flow (2.3) 160.9 $8.0 million 149.8 139.6 139.6 131.6 131.6 121.8 120.1 114.4 105 Other cas
Slide 16: Guidance and outlook
Guidance and outlook Otway coastline, Port Fairy, Victoria
Slide 17: FY22 guidance: production, sales volume and Underlying EBITDAX
FY22 guidance: production, sales volume and Underlying EBITDAX Growth trajectory to continue driven by higher gas production and sales Production1: 3.0 – 3.6 MMboe Sales volume: 3.7 – 4.3 MMboe Underlying EBITDAX: $60 – 70 million +23-43% +14-37% +100-133% 3.7 - 4.3 60 - 70 3.0 - 3.6 3.01 2.63 29.6
Slide 18: FY22 guidance: capital expenditure
FY22 guidance: capital expenditure Capital-light program as OP3D readies for FID FY22 capital expenditure: $25 – 30 million Cooper Basin By category FY21 FY221 • Two oil exploration wells Exploration 2.2 Up to 15 Development 30.1 Up to 15 Total 32.3 25 – 30 By basin FY21 FY221 Otway Basin 27.3 Up to
Slide 19: Set, grow, sustain
Set, grow, sustain A broad pipeline of opportunities to grow gas reserves1 ➢ Multiple development, appraisal and exploration opportunities Sustainable growth ➢ Project timings align with forecast market gas shortfalls Prospects ➢ Progressing high-impact exploration prospects Exploration Four permits
Slide 20: Near-term growth: Otway Phase 3 Development Project
Near-term growth: Otway Phase 3 Development Project Commercialising >120 PJ of gas from the Henry and Annie fields via the Athena Gas Plant OP3D indicative development concept • Two-well drilling campaign – Henry-3 – Annie-2 • Tie-back of wells to the Athena Gas Plant • Potential to add exploration
Slide 21: Longer-term growth: maturing a broad portfolio of opportunities
Longer-term growth: maturing a broad portfolio of opportunities Diverse exploration and appraisal prospects to feed Cooper Energy’s gas hubs at Athena and Orbost Development / Future exploration options1 Exploration1 Appraisal2 Production3 • Multiple prospects across Gippsland and Higher risk Otway
Slide 22: Cooper Energy gas permits and prospects
Cooper Energy gas permits and prospects Prospects close to existing infrastructure and south-eastern markets Otway Basin Gippsland Basin 22
Slide 23: Gas market
Gas market Otway coastline, Port Fairy, Victoria
Slide 24: Gas supply shortage story continues
Gas supply shortage story continues Rapidly declining southern gas production Southern gas production and demand (PJ)1 500 Forecast • Declining Victorian production a key driver of 450 expected gas supply shortages 400 • Expected supply shortfall of ~60 PJ by 2025 350 300 • Macro settings and suppor
Slide 25: Increasing reliance on Queensland gas to meet southern demand
Increasing reliance on Queensland gas to meet southern demand Growing influence of LNG pricing on domestic gas prices as southern supply declines South West Queensland Pipeline Flows (QSN Link)1 404TJ/day pipeline TJ/day capacity constraint 400 during winter subject to 25% expansion by end 20232 Que
Slide 26: Forecast southern gas supply shortages reflected in price outlook
Forecast southern gas supply shortages reflected in price outlook LNG netback pricing an emerging influence Forecast gas prices ($/GJ)1 12 Forecast • LNG netback an emerging benchmark for 11 Victorian domestic price ex-Wallumbilla spot market 10 • Transport to Victoria adds $2.00/GJ - $2.50/GJ to de
Slide 27: Wrap-up
Wrap-up Pipelines for spooling
Slide 28: Wrap-up
Wrap-up Crystalising and growing the value within the existing portfolio ✓ A year of two halves with solid results despite challenges – H1 FY21: OGPP reconfiguration, lower gas sales volumes, lower spot gas prices – H2 FY21: Initiation of Sole GSAs, OGPP improvements, increasing gas prices ✓ Momentu
Slide 29: Appendix
Appendix Otway coastline, Port Fairy, Victoria
Slide 30: Transition Agreement with APA
Transition Agreement with APA As announced on 23 August and 30 October 2020 FY21 impacts Overarching objective • Commence Sole GSAs as early as possible • For gas volumes sold on the spot market prior to reaching • $9.0 million expense for APA’s share of revenue commissioning (Practical Completion)
Slide 31: Reserves and Contingent Resources at 30 June 2021
Reserves and Contingent Resources at 30 June 2021 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 – 6.7 164.3 171.1 – 11.2 226.8 238.0 – 14.1 309.3 323.4 Oil an
Slide 32: 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 33: Abbreviations
Abbreviations $ Australian dollars PEP Petroleum Exploration Permit APA APA Group (ASX: APA) PJ Petajoules bbl Barrels PPL Petroleum Production Licence Bcf Billion cubic feet of gas PRL Petroleum Retention Lease Beach Beach Energy Limited PRRT Petroleum Resource Rent Tax bopd Barrels of oil per day
Slide 34: Disclaimer
Disclaimer This presentation may contain forward looking statements, including statements of current intention, statements of opinion and expectations regarding Cooper Energy’s present and future operations, possible future events and future financial prospects. Such statements are not statements of