Slide 1: 2007 Interim Results
For personal use only 2007 Interim Results John Ellice-Flint - Chief Executive Officer Peter Wasow - Chief Financial Officer 23 August 2007 1. Webcast Agenda John Ellice- Ellice-Flint CEO & Managing Director Operational and financial highlights Financial performance Strategic value drivers and outlo
Slide 2: Solid Operating Performance
Solid Operating Performance Production Sales Revenue EBITDAX 30.1 mmboe 5% $1,215m 7% $964m 4% (2) 21% pa (2) (2) 40 6% pa 1500 1500 27% pa 30 mmboe 1000 1000 For personal use only A$m A$m 20 10 500 500 0 0 0 ) (1 ) ) (1 (1 05 06 07 05 06 07 04 05 06 07 04 04 20 20 20 20 20 20 20 20 20 20 20 20 NPAT
Slide 3: Delivering Value
Delivering Value GOALS Shifting to higher Contingent resource Operational delivery margin conversion Record production Cooper Oil Project and acreage extension For personal use only ACHIEVEMENTS Consistently meeting WA gas price increase, Reindeer FEED guidance EA gas price increase, CSG expansion C
Slide 4: Reported and Underlying Profit
Reported and Underlying Profit $m 2007 Profit 500 450 For personal use only 37 407 (108) * Significant Items detailed in Reference Slides 400 370 350 Significant 305 (43) 6 300 Items* 262 Operating Exploration 250 Items Expensed Significant 200 Items* 150 100 50 0 1st Half 2006 Underlying Underlying
Slide 5: Sales and Production Costs
Sales $m Market Controllable 1400 1,313 (68) For personal use only 1300 9 (39) 1,215 1200 Liquids Gas Prices Prices Mix 1100 1000 900 800 700 1st Half 2006 1st Half 2007 9. Production Costs $m 220 (11) 211 (15) 200 185 180 Costs New 160 field/volume 140 120 100 80 60 40 20 0 1st Half 2006 1st Half 2
Slide 6: Netback and EBITDAX
Netback (Cash margin per boe sold) $/boe Controllable Items 35 33.67 (2.39) 31.28 (0.20) 0.41 (0.36) 0.43 31.56 For personal use only 30 A$ Mix Gas Costs Expln Prices Prices Dedns 25 20 15 10 1st Half 2006 1st Half 2007 11. EBITDAX ($m) 1100 1,007 (49) 1000 (9) (29) 44 964 900 Prices Mix Other Bayu
Slide 7: Depreciation, Depletion & Amortisation; Operating Cash Flow
Depreciation, Depletion & Amortisation $m Volume Impacts YE06 Impacts 325 (19) 314 (34) 300 (9) 14 271 5 275 Asset For personal use only 250 New USA Additions Other Reserves 225 Fields & FDC’s 200 175 150 125 100 1st Half 2006 1st Half 2007 $9.44/boe DDA $/boe $10.42/boe 12 11 10 9 8 1H05 YE05 1H06
Slide 8: Capital Expenditure
Capital Expenditure 1st Half 2007 - $628m 1st Half 2006 - $497m EA Gas 426 195 138 374 For personal use only Cooper Oil 388 192 96 277 WA Oil & Gas 156 29 55 147 LNG 148 104 22 93 Asia/International 180 86 174 373 Corporate 40 22 12 42 Full Year 2007 - $1,338m Full Year 2006 - $1,306m 15. Webcast Ag
Slide 9: Portfolio Leveraging Core Competencies
Portfolio Leveraging Core Competencies Basin Excellence For personal use only Exploration Development Expertise Cooper Basin oil Skills Eastern Australian gas Western Australian oil and gas LNG projects Marketing Asian growth Operating Approach Expertise Deep Relationships 17. Cooper Basin Oil - Jou
Slide 10: Cooper Basin Oil - Enhanced Recovery
Cooper Basin Oil - Enhanced Recovery Increased recovery through secondary / tertiary techniques • Primary recovery Mulberry 5 Production History - Free flow or artificial lift 600 n r Oil Production (bbls/d) Injert Wate • Secondary recovery For personal use only ctio 400 - Water injection Sta - Init
Slide 11: Cooper Basin Oil – Production Outlook
Cooper Basin Oil – Production Outlook Some production deferred to 2008 • Production capacity 2007 Production Capacity Build increasing (Santos Net) 20,000 • Production deferred Production Capacity (bopd) For personal use only - Rain, wax and pipeline 15,000 issues 10,000 - Current impact Forecast ~3
Slide 12: EA Gas - LNG Netback
EA Gas - LNG Netback GLNG facilitates exposure to global LNG pricing 10.00 Average Asian LNG Price (1) 8.00 For personal use only $US/mmBtu 6.00 4.00 Domestic Australian netback range (2) 2.00 Santos average realised gas price 0.00 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-0
Slide 13: WA Oil & Gas – John Brookes & Reindeer
WA Oil & Gas – John Brookes & Reindeer Higher gas price facilitates new development project John Brookes (STO 45%) Reindeer Indian Ocean • Proven, reliable supplier John Brookes For personal use only • ~170PJ net uncontracted Stag 2P reserve Maitland • Several new contracts signed Spar Varanus Dampi
Slide 14: LNG Projects - Gladstone LNG
LNG Projects - Gladstone LNG A ‘game changing’ investment opportunity • Access LNG pricing and volume growth for CSG Bridge to mainland resource For personal use only • Site secured Curtis Island • Project “State Significance” Hamilton status achieved Point • A$5 to A$7bn investment • First LNG targ
Slide 15: LNG Projects - PNG LNG
LNG Projects - PNG LNG Project building strong momentum • Underpinned by Hides (STO 25%) Hides Papua New Guinea • Pre-FEED engineering contracts PRL 5 PDL 1 SE Gobe For personal use only - Bechtel Proposed - KBR and JGC Elevala PDL 3 LNG Facility PRL 9 • Preferred LNG sites identified Barikewa • PNG
Slide 16: Asian Growth – Acreage Expansion
Asian Growth – Acreage Expansion 0 2 50 China 0 100 Kazakhstan kilo met res Vietnam kilometres Burma Hanoi Song Hong Bishkek Laos Basin Block 101- 101- West Mailisu Kyrgyzstan 100/04 Arkyt Ashvaz Nanai East Mailisu Thailand Charvak Uzbekistan Naryn Naushkent SKaag West Soh Aksai For personal use onl
Slide 17: Asian Growth – Song Hong Basin
Asian Growth – Song Hong Basin Rapid progress in first year – exploration underway • Prospective and lightly 3D Seismic - 2007 China explored area Vietnam 679 sq km Roc / 0 50 Horizon For personal use only • Large number of fields Kilometres Discovery discovered in area to 101- northwest (China) Pet
Slide 18: Summary
Summary Leverage to strong energy environment Focus on Track record Transition toward For personal use only monetising of operational higher margin contingent delivery businesses resources 35. Disclaimer & Important Notice This presentation contains forward looking statements that are subject to ris
Slide 19: Reference slides
For personal use only Reference slides 37. Prices & Exchange Rates 1st Half 1st Half Change 2007 2006 % Realised Oil Prices (USD/bbl) 68.19 68.44 -0.4% AUD/USD Exchange Rate 0.8189 0.7459 -9.8% (after hedging) Realised Oil Price (AUD/bbl) 83.27 92.20 -9.7% USA Gas Price (USD/mcf) 7.30 7.42 -1.6% Aus
Slide 20: Significant Items (after tax)
Significant Items (after tax) 1st Half 1st Half $m 2007 2006 Impairment write-down (75) (20) For personal use only Net gain on redetermination of unitised field 32 - Incremental depletion and depreciation due to impairment reversal - 2 Banjar Panji provision - (19) (43) (37) 39. Underlying Profit –
Slide 21: Impairment Charge
Impairment Charge Impairment write-down 1st Half 1st Half $m 2007 2006 For personal use only Before tax (75) (26) After tax (75) (20) • 2006 write-down related to Patricia Baleen and US assets • 2007 write-down related to US assets 41. Exploration & Evaluation Expensed 1st Half 1st Half $m 2007 2006
Slide 22: Cost of Sales
Cost of Sales 1st Half 1st Half Change 2007 $m 2006 $m % Production costs 211 185 14.0 For personal use only Pipeline tariffs 27 24 12.5 Royalties 36 44 -18.2 PRRT & other similar taxes 10 26 -61.2 Total Operating Costs 284 279 1.8 Gas Purchases 6 41 Inventory Movement (19) (21) D, D & A 313 271 15.
Slide 23: 2007 Capital Expenditure Outlook
2007 Capital Expenditure Outlook $m 2007 2006 Exploration 174 258 For personal use only Exploration Evaluation 141 171 Development Delineation 133 83 Development 890 794 Total 1,338 1,306 Acquisitions - 11 45. Capital Expenditure $m 2007 2006 DEV E&E 500 250 EA Cooper Gas Oil 400 200 300 150 Asia 20
Slide 24: 2007 Second Half Sensitivities
2007 Second Half Sensitivities • US$1 change in the unhedged oil price per barrel leads to change of A$9 million in profit after tax For personal use only • One cent movement in the exchange rate will cause a profit after tax movement of A$4 million • A 1% change in interest rates will cause a profi