Slide 1: 2009 Half Year Results
For personal use only 2009 Half Year Results 20 August 2009 1 Results Highlights & Strategy David Knox CEO & Managing Director 2 1
Slide 2: Profits impacted by lower oil prices
Profits impacted by lower oil prices For personal use only 2009 Half Year Result Change on 2008 Oil Price A$73.28 per bbl (39)% Production 26.6 mmboe (4)% Sales Revenue $1,024 million (26)% EBITDAX $647 million (37)% Net Profit After Tax $102 million (66)% Operating Cash Flow $499 million (20)% Inte
Slide 3: Strategy delivery in 2009
Strategy delivery in 2009 For personal use only Target Delivery 2009 production 26.6 mmboe in first half, on track for full year guidance Base Business 53 – 56 mmboe Next phase of projects Oyong Phase 2 (Indonesia) – first gas 3Q09 on schedule Henry (Vic) – first gas 1H10 Kipper (Vic) – firs
Slide 4: Reported & underlying profits
Reported & underlying profits For personal use only Reported NPAT: 1st half Underlying NPAT: 1st half $m 320 304 283 (161) 280 240 200 160 (20) 120 102 102 prices 80 & fx other 40 0 2008 2009 2008 2009 7 Production Natural Field & On track to meet Asset Field New Gas Other Op'g 2009 production Sal
Slide 5: Sales revenue
Sales revenue For personal use only Liquids prices Liquids Liquids Gas Volume bottomed early in Prices FX Prices Mix 1st half with $m 1,384 (452) 115 25 (48) 1,024 significant recovery 1600 in later months 1400 Offset by weaker exchange rate 1200 which strengthened 1000 through the half 800 USD/
Slide 6: Operating and capital costs a focus
Operating and capital costs a focus For personal use only Levers Actions Materials and Renegotiating supplier contracts; half of key contracts Services completed, reductions range up to 30% Renegotiating development contracts eg Reindeer, Chim Sao Reduced discretionary costs People Reduction
Slide 7: Segment EBITDAX Summary
Segment EBITDAX Summary For personal use only Segment Half Year Half Year Change $m 2009 2008 % Eastern Australia 318 451 (29) WA&NT 285 474 (40) GLNG 8 38 (79) Asia Pacific 64 102 (37) Corporate and unallocated items (28) (33) 15 TOTAL EBITDAX 647 1,032 (37) Eastern Australia | Lower liquids prices
Slide 8: A Strong Balance Sheet Position
Operating cash flow For personal use only Lower prices flow Borrowing ExplorationWorking through into lower EBITDAX Costs Tax Expensed Capital Other operating cash $m 626 (385) 40 165 (37) 87 3 499 flow 700 Lower working 600 capital 500 requirement and tax payments also 400 result from price 300
Slide 9: LNG is a key component of Santos' Growth Strategy
For personal use only Looking Forward David Knox CEO & Managing Director 17 LNG is a key component of Santos’ Growth Strategy Strategy Bonaparte LNG 2mtpa FLNG PNG LNG Components Santos 40% with carry to FID On track for FID 4Q09 6.3mtpa two trains Deliver the Darwin LNG Santos 13.7% Base
Slide 10: GLNG: The Leading CSG to LNG Project
GLNG: The Leading CSG to LNG Project For personal use only Momentum building towards FID in first half of 2010 Freehold land for liquefaction plant Pre FEED work completed PETRONAS selected as partner LNG marketing well underway Reserves build on track Downstream FEED entry
Slide 11: GLNG: Downstream update
GLNG: Downstream update For personal use only Curtis Island site - EIS application for 10mtpa capacity (3 trains) Downstream FEED - Bechtel appointed - 2-train FEED 40% complete - Curtis Island geotechnical site survey work complete Pipeline FEED - GHD appointed - FEED 50% complete Marketing
Slide 12: Strategic partnership with GDF SUEZ
Strategic partnership with GDF SUEZ For personal use only Unlocks value in 2.1 tcf contingent gas resource Santos has sold 60% of Petrel/Tern/ Frigate to GDF SUEZ for up to US$370 NT/RL1 million and a full carry of Santos’ share of NT/P48 Evans Shoal Barossa NT/P61 costs to FID including 2 apprais
Slide 13: Leading position in Gunnedah Basin
Leading position in Gunnedah Basin For personal use only Basin master position in quality basin with >50 tcf prospective potential ESG operated areas (STO 48%)1 Wilga Park Power Station - 9 coreholes drilled of 20 well PPL 3 Narrabri New programme PEL PAL 2 South Wales 434 PEL 238 - Stepping out e
Slide 14: Reference slides: Significant items (after tax)
For personal use only Reference slides Significant items (after tax) Half Year Half Year $m 2009 2008 Underlying profit 102 284 Significant items - 20 Net profit after tax 102 304 Significant items included: Gain on sale of oil and gas assets/controlled entities 21 - Impairment of Thevenard asset (5
Slide 15: Net financing charges
Net financing charges For personal use only 2009 2008 Change% Interest expense 43 67 Less borrowing costs capitalised (14) (3) 29 64 55 Unwind of the effect of discounting on provisions 17 16 Other Financial expenses 46 80 43 Less interest income (34) (6) Net financing costs 12 74 84 29 EBITDAX
Slide 16: 2009 guidance
2009 guidance For personal use only Item Previous Updated Guidance Guidance Production 53 – 56 mmboe No change Production costs $550 - $570 million No change Depreciation, Depletion & $12.80 per boe $12.20 per boe Amortisation (DD&A) expense Royalty related taxation expense1 $80 to $100 million No c
Slide 17: 2009 Capital expenditure outlook
2009 Capital expenditure outlook For personal use only (A$ million) 2009 2008 Capital expenditure 1,600 1,500 Acquisitions 476 5 Disposal proceeds1 (304) (2,052) 1 (pre tax, reported to date for 2009) 33 2009 Second Half Sensitivities Sensitivity Change NPAT Impact A$m US dollar oil price US$1/bbl 8
Slide 18: Strategic partnership with GDF SUEZ
Strategic partnership with GDF SUEZ For personal use only Santos has sold 60% of its Petrel, Tern and Frigate assets to GDF SUEZ for up to US$370 million consisting of: – Initial payment of US$200 million Amount – Payment at FID of FLNG project of US$170 million GDF SUEZ will also fully carry Santos
Slide 19: 2009 Forward Exploration Schedule
2009 Forward Exploration Schedule For personal use only Well Name Basin / Area Target Upside Resource Potential Santos Timing Comments (mmboe) Interest 50 - 100 - 0 – 50 % 100 500 Gulf of Suez / P&A with full South East July 1 Egypt Oil 40 Q1 09 carry East Java / Gas Peluang 1 Indonesia Gas 67.5
Slide 20: Disclaimer & Important Notice
Disclaimer & Important Notice For personal use only This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range