Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Investor Presentation (August 2019)
42 slides from Amplitude Energy's investor presentation, Aug 12, 2019
Slide 1: FY19 Results, FY20 Outlook
FY19 Results, FY20 Outlook Investor presentation 12 August 2019
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). Summary information: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Presentation a
Slide 3: FY19 results: 4 features
FY19 results: 4 features 1. Operational capability: • Sole offshore project • Casino Henry umbilical upgrade • Safety performance 2. Gas contracts and cashflow: • 5 new gas contracts • Cashflow response to 2019 gas contracts • 2020 contracts start January 3. Sole: • Gas field development ready to go
Slide 4: Key outcomes
Key outcomes Key project and commercial workstreams completed, safely. • HSEC: zero lost time injuries and zero reportable environmental incidents • Sole Gas Project: offshore project construction completed LTI-free and within budget • Gas contracting: 5 new gas sales agreements, Sole term contract
Slide 5: Safety
Safety Over 500,000 hours worked. Zero recordable injuries. Zero lost time injuries. • Improvement to zero rating achieved against backdrop of increased hours and demanding breadth and nature of work Safety metrics FY19 FY18 – Offshore drilling rig operations Hours worked 505,300 491,100 – Onshore p
Slide 6: Key financial results
Key financial results $ million FY19 FY18 change Sales revenue 75.5 67.5 ▲ 12% Gross profit 31.7 29.0 ▲ 9% Statutory profit/(loss) after tax (12.1) 27.0 ▼ -145% Underlying EBITDA 32.9 32.6 ▲ 1% Underlying EBITDAX 34.3 33.5 ▲ 2% Underlying profit/(loss) after tax 13.3 9.8 ▲ 36% Cash flow from operati
Slide 7: Statutory and underlying profit
Statutory and underlying profit Restoration expense largely accounts for difference between statutory and underlying result For the year ended 30 June 2019: $ million Net profit after tax (12.1) Adjustments for: Restoration expense Previously announced at FY19 First Half 16.5 FY19 Second Half 9.7 To
Slide 8: Underlying NPAT movement
Underlying NPAT movement Increased gas revenue the principal factor in higher underlying net profit after tax $ million (3.4) 11.4 (5.4) (2.8) 5.2 (1.5) 13.3 9.8 FY18 Underlying Gas revenue Oil revenue Cost of Sales Net finance costs Admin and other Tax impacts FY19 Underlying NPAT (incl. E&E expens
Slide 9: Movement in cash and cash equivalents
Movement in cash and cash equivalents Cash from operations and debt draw-downs funded significant capital expenditure $ million 90.7 Total cash, term deposits, other Total cash, term deposits, other financial assets & investments at financial assets & investments at June 18: $259.3 million (11.0) Ju
Slide 10: Funding
Funding • Redetermination on basis of Sole project performance to result $ million 30 Jun 19 30 Jun 18 in surplus facility and restricted cash available for other purposes Cash 165.8 236.9 after project completion Drawn debt 218.2 125.9 • Project completion under the facility expected after 90-day D
Slide 11: Production and sales generation
Production and sales generation Revenue growth driven by new gas contracts Production Sales revenue MMboe $ million 1.5 75 23.2 0.27 26.9 1.2 0.24 7.0 PJ Crude oil 6.6 PJ 50 52.3 0.9 Gas 40.6 0.6 25 0.3 0.0 0 FY18 FY19 FY18 FY19 • Gas: • Gas: new 2019 gas contracts - Casino Henry shutdown • Oil: low
Slide 12: Proved and Probable Reserves at June 2019
Proved and Probable Reserves1 at 30 June 2019 Production replaced by revisions Movement in 2P Reserves at 30 June 2P Gas Reserves MMboe PJ 1.8 1.8 (1.3) +1.6 43 Sole 24 Gas & gas liquids Otway developed 50.6 50.9 Crude oil Otway 245 undeveloped 2018 Production Revisions 2019 • Total 2P Reserves at 3
Slide 13: Gas contracting
Gas contracting ~30 PJ contracted in 5 agreements since 1 July 2018 Customer Supply Period Comments 2018 Sept Origin Energy Casino Henry CY19 October O-I Casino Henry CY19 Make available up to 3 TJ/day from Casino Henry 2019 June AGL Energy Sole Start of Sole production Majority of commissioning gas
Slide 14: Gas marketing portfolio
Gas marketing portfolio Long term stable production. Mix of customer types and terms. Gas sales profile Start or tail gas* contracted & uncontracted PJ pa Uncontracted Gas contract book by term Contracted PJ 17 Contracted 1 yr or less 11 100 4 9 8 7 8 8 11 6 Contracted > 3 years 6 14 194 25 23 23 23
Slide 15: Offshore Otway Basin FY19
Offshore Otway Basin FY19 Gas production, new gas contracts commenced and further contracts under negotiation Production FY19 FY18 Casino Henry: Sales gas PJ 6.6 7.0 • New gas contracts from 1 January 2019 Condensate kbbl 4.7 6.2 • Umbilical replacement and upgrade: readiness for new fields Total MM
Slide 16: Cooper Basin FY19
Cooper Basin FY19 Reserves maintained. High margin oil production. Key figures FY19 FY18 • Production and reserves outcome reflective of no drilling activity for the year Production Crude oil kbbl 0.24 0.27 Average oil price A$/bbl 106.19 85.55 • 2P Reserves replacement ratio 100% as a result of rev
Slide 17: Sole Gas Project
Sole Gas Project Onshore and offshore workstreams. Onshore commissioning activities to commence in September. Onshore project: APA Group Offshore project: Cooper Energy $3551 million offshore project: • $250 million upgrade to Orbost Gas Plant • construction completed • APA expect commissioning to s
Slide 18: Sole Gas Project safety performance
Sole Gas Project safety performance Offshore construction completed with zero lost time injuries • Project performance 1 June 2017 to 30 June 2019 • 561,362 hours worked • Project activities ranging from onshore pipe welding, horizontal drill shore crossing, drill, complete and test 2 production wel
Slide 19: Outlook
NY COOPER Outlook
Slide 20: Otway Basin FY20
Otway Basin FY20 Gas exploration resuming. New contracts commencing. Development project for FY20/21. Capital expenditure FY20f FY19 Exploration: Exploration ~40 7.4 • 2019 offshore campaign: Annie-1 and Elanora-1: currently underway Development ~20 15.3 • Dombey-1 onshore Otway, South Australia Tot
Slide 21: Gippsland Basin FY20
Gippsland Basin FY20 Sole to come online. Preparing for Manta and exploration in FY21. Capital expenditure FY20f FY19 Sole Exploration ~10 4.7 • Field production to plant to commence with commissioning Development ~10 171.0 • Commissioning expected to commence September Total 20-25 175.7 • Firm supp
Slide 22: Operations: Cooper Basin FY20
Operations: Cooper Basin FY20 Drilling to ramp up to highest level yet in low-cost high margin oil acreage Capital expenditure FY20f FY19 Exploration ~10 - Development ~15 1.6 Total 20-25 1.6 • Drilling to ramp up with PEL 92 step-out appraisal program similar to employed on Bauer field in PEL 91 –
Slide 23: Indicative drilling outlook
Indicative drilling outlook High significance program in FY20 shaping rig requirements for 2020/21 FY20 FY21-on2 Otway offshore • Annie-1 Follow up wells • Elanora-1 (pending 2019 results) • Henry development to FID • Henry development well1 Gippsland Basin • Manta-3 front end design • Manta-3 app/e
Slide 24: Growth projects
Growth projects FY20 work program to advance several projects offering growth from 2020 to 2025 Project Description Impact FY20 Planned action Current Sole New field start-up 24 PJ pa at plant design rates Commission, commence, performance test then Upside from de-bottleneck de-bottleneck Henry Deve
Slide 25: Wrap-up
Wrap-up Stepping off into growth Our work in 2019.….. Sole Gas Project Gas contracts has set up growth in 2020 Geotechnical analysis and modelling o Sole production and cash flows Bank facility redetermination o New gas contracts Safety performance o Offshore Otway gas exploration Commun
Slide 26: Appendices
Vhs wr) OOPER NERGY Mm Appendices
Slide 27: Cooper Energy
Cooper Energy Snapshot Key statistics* Proved & Probable Reserves 52.7 MMboe Contingent Resources (2C) 26.9 MMboe Market capitalisation $884 million Net (debt)/cash $(53.9) million Issued shares (million) 1,621.6 Cooper Basin • Oil production & exploration Onshore Otway Basin Register composition Pr
Slide 28: Gas market outlook
Gas market outlook Gap between local production and supply creating favourable market for south-east Australian gas AEMO forecast of south-east Australian gas production, demand and supply • South-east Australia is reliant on Queensland PJ gas to meet shortfall between local production 500 and local
Slide 29: Southern states gas prices: ACCC view
Southern states gas prices: ACCC view Gas price and LNG netback trend 2020 expected prices Average monthly commodity prices offered for 2019 supply against Expected 2020 wholesale gas commodity prices in the East Coast Gas Market contemporaneous expectations of 2019 LNG netback prices (southern stat
Slide 30: Profile of contracted and uncontracted gas by project
Profile of contracted and uncontracted gas by project Existing reserves and resources offer growth before exploration upside. Gas sales profile by project contracted & uncontracted PJ pa Manta (subject to appraisal well and FID) 18 18 18 18 9 17 1 1 12 1 1 1 2 3 7 Up to Up to Manta uncontracted 6 PJ
Slide 31: Reserves and Contingent Resources at June 2019
Reserves and Contingent Resources at 30 June 2019 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Developed Sales gas PJ 0 15 0 15 0 24 0 24 0 36 0 36 Oil + Cond MMbbl 1.1 0.0
Slide 32: Minerva Gas Plant
Minerva Gas Plant Strategically located offering gains in net cash/GJ, processing, recovery rates & production Minerva Gas Plant (10%)* * Equity to increase to 50% on completion of acquisition by Casino Minerva Gas Plant acquisition Henry Joint Venture as announced 1 May 2018 • Casino Henry Joint Ve
Slide 33: Projects pipeline: indicative
Projects pipeline: indicative 5 year development program can lift gas production more than 10 times FY19 levels, excluding exploration FY20 FY21 FY22 FY23 FY24 Sole:1 production 68TJ/d (~24 PJ per annum) Minerva Gas Plant:2 acquire, integrate and operate Henry:3 development well: production uplift P
Slide 34: Manta gas and liquids resource
Manta gas and liquids resource Contingent Resource with exploration potential Manta Contingent Resource1 estimate 1C 2C 3C Condensate MMbbl 2.2 3.4 5.4 Gas PJ 78 121 190 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbbl 1.0 1.5 2.3 Condensate MMbbl 6.8 12.9 25.9
Slide 35: Otway Basin: Penola Trough onshore
Otway Basin: Penola Trough onshore Dombey-1 to be drilled to evaluate Pretty Hill Formation and Sawpit Sandstone potential Dombey-1 (planned) • Spud expected late August 2019 to test similar stratigraphic section as Haselgrove gas field in adjoining PPL 62 which confirmed conventional gas prospectiv
Slide 36: FY20 Expenditure guidance
FY20 Expenditure guidance Indicative incurred* capital expenditure by region $ million Exploration Development Total Notes Annie-1 and Elanora-1 Henry development preparation to FID Otway Basin ~40 ~20 55-60 Minerva Gas Plant front-end engineering, planning etc Onshore Otway exploration: Dom
Slide 37: Impact of Sole start-up and lease accounting
Impact of Sole start-up and lease accounting Sole: • Gas sales of 68 TJ per day at plant design rates • Amortisation based on production, 2P reserves and development costs • Interest expense no longer capitalised Lease accounting standard (AASB 16: Leases) effective 1 July 2019: • Impacts identified
Slide 38: Underlying EBITDAX
Underlying EBITDAX • EBITDAX is earnings before interest, tax, depreciation, amortisation, restoration, exploration and evaluation expense and impairment • Proxy for cash profit before tax and interest $ millions 2019 2018 Comments Underlying profit/(loss) 13.3 9.8 Net finance costs 1.6 (1.4) Includ
Slide 39: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Notes on calculation of Reserves and Contingent Resources Cooper Energy has completed its own estimation of Reserves and Contingent Resources for its fully-operated Gippsland Basin assets, and elsewhere based on information provided by the permit Operat
Slide 40: Senior management team
Senior management team From left: Amelia Jalleh,, Duncan Clegg, David Maxwell, Eddie Glavas, Virginia Suttell, Iain MacDougall, Andrew Thomas, Mike Jacobsen 40
Slide 41: Senior management
Senior management Managing Director General Manager, Development General Manager, Commercial General Manager, Projects David Maxwell Duncan Clegg & Business Development Michael Jacobsen Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience in Eddy Glavas has more th
Slide 42: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise APA APA Group Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design FID Final Investment Decision kbbl thousand barrels m metres MMbbl
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