Slide 1: 2010 Full-year Results
For personal use only GLNG FID ceremony, January 2011 GLNG FID signing ceremony, 13 January 2011 L to R: Mike Sangster (Total), Heung Bog Lee (KOGAS), David Knox, Datuk Anuar Ahmad (PETRONAS) 2010 Full-year Results 17 February 2011 Disclaimer & Important Notice This presentation contains forward loo
Slide 2: Underlying net profit up 46%
For personal use only 2010 Full-year Results David Knox Managing Director & CEO Underlying net profit up 46% 2010 Full-year Result Change on 2009 Production 49 9 mmboe 49.9 (8%) Sales Revenue $2,228 million 2% EBITDAX $1,672 million 5% Net Profit After Tax $500 million 15% Underlying Net Profit $376
Slide 3: The Santos strategy and delivery in 2010
The Santos strategy For personal use only Using quality assets, Santos will safely deliver: Base business Eastern Australia: Margin growth and resource conversion Indonesia: Established business with incremental growth WA: Growing a material domestic gas business LNG growth GLNG: FID Jan-201
Slide 4: Safety performance; transforming to oil-linked pricing
Safety performance For personal use only Santos TRCFR performance (Employees & Contractors) 7 6 5 TRCFR 4 3.3 3 2 1 0 2006 2007 2008 2009 2010 7 Transforming to oil-linked pricing 70% of 1.4bn boe 2P reserves Asset base is transformed exposed to oil prices through sanctioned projects Cooper to GLNG
Slide 5: Reported & underlying profits
For personal use only 2010 Full-year Results Andrew Seaton CFO Reported & underlying profits Reported NPAT Underlying NPAT $m 500 500 434 163 (39) 400 (5) 376 300 257 200 100 0 2009 2010 2009 Prices & Wet Operating 2010 foreign weather result exchange impact 10 5
Slide 6: Production impacted by flooding; sales volumes and revenue
Production impacted by flooding For personal use only Production in line with Production guidance mmboe 60 Total wet weather and 54.4 (2.9) (2.1) 2.0 (1.5) 49.9 flood impact on Cooper 50 Basin was 2.9 mmboe 40 Stronger gas 30 production in WA and Indonesia 20 Mereenie ((NT)) gas g 10 sales c
Slide 7: Production cost and cost of sales; Business Unit EBITDAX
Production cost and cost of sales For personal use only Production costs Total cost of sales $m $m 600 1600 $532 $532m $537m $24 70 $24.70 $23.67 per boe 500 per boe $9.78 $10.77 1400 Gas Purchases / boe / boe 400 300 1200 Cost of produced 200 hydrocarbons1 1000 100 0 800 2009 2010 2009 2010 1 Inclu
Slide 8: DD&A declines; $7.8 billion of funding capacity
DD&A declines by $17 million For personal use only Lower depletion primarily Volume Rate due to lower production $m volumes 612 (36) 19 595 700 Partially offset by impact of higher rates 600 2011 guidance $12/boe 500 400 300 200 100 0 2009 2010 $11.25/boe $11.94/boe 15 $7.8 billion of funding
Slide 9: Reserves growth and resource conversion; 2011 Guidance
Reserves growth and resource conversion For personal use only Revisions & Acq/ q/ mmboe Divest Expl Acq mmboe Prod Revisions Dives 2498 (130) (110) (5) 8 2261 1440 (50) 35 130 (110) 1445 3000 2000 Commercialisation Commercialisation 2500 1500 2000 1500 1000 To cash To cash 1000 500 500 0 0 2009 2010
Slide 10: Base production grows to record levels
For personal use only 2010 Full-year Results David Knox Managing Director & CEO Base production grows to record levels Four projects in the base commence production in 2011 Project Santos Gross First Production (mmboe) interest production production 70 capacity Reindeer/ 45% 215 TJ/d1 2H 2011 60 Dev
Slide 11: Reindeer/Devil Creek and Spar, WA
Reindeer/Devil Creek, WA For personal use only Reindeer/Devil Creek – WA’s new domestic gas hub Project Reindeer/Devil Creek Location Carnarvon Basin, offshore ff WA Santos interest 45% Partner Apache 55%, operator Project scope Unmanned, minimum facility wellhead platform Reindeer jacket ready fo
Slide 12: Chim Sáo, Vietnam and Wortel, Indonesia
Chim Sáo, Vietnam For personal use only Chim Sao – New oil production for Santos Project Chim Sáo Location Block 12W, offshore Vietnam S Santos i interest 31 875% 31.875% Partners Premier 53.125%, operator PetroVietnam 15% Project scope Unmanned, minimum facility wellhead platform Liquids proces
Slide 13: LNG is a key component of Santos' growth strategy
LNG is a key component of Santos’ growth strategy For personal use only Strategy Bonaparte LNG Components 2 mtpa FLNG PNG LNG Santos 40% with carry to FID Sanctioned Dec 2009 6.6 mtpa two trains Deliver the First LNG due 2014 Darwin LNG Base Business Production since 2006 Santos 13.5%
Slide 14: GLNG sanctioned January 2011; world-class contractors
GLNG For personal use only 7.8 mtpa 2-train GLNG project sanctioned January 2011 FID 13 Jan 2011 7.8 mtpa, p , two trains Santos 30% Binding LNG off-take agreements with PETRONAS & KOGAS for 7mtpa in aggregate Major EPC contracts awarded to Fluor, Saipem and Bechtel Orders placed for lon
Slide 15: GLNG 2P reserves for two trains; PNG LNG
GLNG 2P reserves for two trains For personal use only 2P Reserves (PJ) 5,009 2P CSG reserves at 10,000 Actual Projected Dec-101 - NSAI estimated higher 2P 8,000 reserves of 5,377 PJ as at end Oct-101 6,000 In addition to CSG reserves, Santos to supply 750 PJ of 4,000 portfolio gas, primarily fro
Slide 16: Summary
Summary For personal use only Continued delivery of Santos’ growth strategy Sound operating performance despite Central Australia flooding FID on 7.8 mtpa 2-train GLNG delivered in January PNG LNG construction ramping-up Four projects in the base business commence production in 2011 Strong
Slide 17: Significant items; 2011 forward exploration schedule
Significant items (after tax) For personal use only $m 2010 2009 Underlying y g profit p 376 257 Significant items 124 177 Net profit after tax 500 434 Significant items included: Net gains on asset sales 214 180 Impairment of non-current assets (101) (17) Impairment of receivables (22) - Provision
Slide 18: 2011 Sensitivities and contact information
2011 Sensitivities For personal use only Sensitivity Change NPAT Impact A$m US dollar oil price US$1/bbl 9 Gas price 10 cent/GJ 17 A$/US$ exchange rate 1 cent 8 35 Contact information Head office Andrew Nairn Adelaide Group Executive Investor Relations Ground Floor, Santos Centre Level 10, Santos Ce