Slide 1: 2013 Full-year results
2013 Full-year results 21 February 2014
Slide 2: Disclaimer and important notice
Disclaimer and important notice 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 of variables which c
Slide 3: Safety performance
Safety performance Lost time injury frequency rate of 0.6 per million hours worked Safety performance (employees and contractors) Record hours worked in 2013 Rate per million Work hours hours worked (million) Lost time injury frequency 2 60 rate of 0.6, 20% below 2012 50 TRCFR of 3.8, compared to 5.
Slide 4: Delivering the strategy in 2013
Delivering the Strong LNG project delivery in 2013 positions Santos strategy in 2013 to achieve 80 to 90 mmboe of production by 2020 AUSTRALIA LNG ASIA Fletcher Finucane first oil PNG LNG over 95% Dua and Peluang projects on ahead of schedule and complete and on track for track under budget first LN
Slide 5: Strong GLNG project delivery in 2013
Strong GLNG project GLNG is 75% complete and on track delivery in 2013 for first LNG in 2015 Drilling ahead of plan, 237 wells spudded in 2013 Dewatering facilities at Fairview and Roma commissioned Fairview wells continue to produce strongly (1.8 TJ/day) Roma well data supporting predicted capacity
Slide 6: 2013 Full-year financial results
2013 Full-year financial results Andrew Seaton Chief Financial Officer Hides Gas Conditioning Plant, PNG LNG
Slide 7: 2013 Full-year financial result
2013 Full-year Growth in sales revenue, EBITDAX and EBIT. financial result Net profit after tax of $516 million in line with 2012 2013 Change Full-year on 2012 Production 51 mmboe -2% Sales revenue $3,602 million +12% EBITDAX $1,992 million +7% EBIT $886 million +6% Net profit after tax $516 million
Slide 8: Production
Production 2013 production of 51 mmboe. 2014 production guidance unchanged at 52–57 mmboe, growth driven by PNG LNG start-up in Q3 2014 Production Drivers of 2014 production guidance: mmboe 60 52-57 PNG LNG first cargo in Q3 2014 54.4 Start-up of Dua and Peluang 50 52.1 49.9 51.0 projects 47.2 40 Ma
Slide 9: Production costs
Production costs 2013 production costs held flat. 2014 guidance reflects start-up of PNG LNG, Dua and Peluang, and planned shutdowns and workovers Production costs 2013 production costs held $million flat at $690 million; 900 reflecting: 10–70 820–880 800 40 Cost savings in the Cooper 80 Basin opera
Slide 10: Depreciation, depletion and amortisation
Depreciation, depletion 2013 DD&A reflects start-up of Fletcher Finucane. and amortisation 2014 guidance of $18.50/boe DD&A costs Drivers of 2014 DD&A $million guidance: 1,000 (51) 900 $17.36/boe PNG LNG start-up 900 67 800 $14.48/boe 114 885 Dua start-up 700 755 Cooper Basin 600 infrastructure 500
Slide 11: Capital expenditure
Capital expenditure 2013 was peak year for capex. 2014 guidance unchanged at $3.5 billion Capital expenditure 2014 guidance of $3.5 billion (excludes capitalised interest) (excluding capitalised interest) A$billion ─ GLNG $1.4 billion 4 3.5 ─ PNG LNG $0.3 billion 4.1 3 3.2 ─ Eastern Australia $1.1 b
Slide 12: GLNG capex US$18.5 billion
GLNG capex US$18.5 billion GLNG gross capital cost estimate unchanged FID to Dec 2013 Capex estimate from FID 2013 capex capex until the end of 2015 $billion A$1 A$1 US$2 A$3 LNG project capex (100%) 5.7 13.7 18.5 20.7 Santos 30% share 1.7 4.1 5.6 6.2 Non-LNG project capex (Santos 30% share): Stay i
Slide 13: Strong funding position
Strong funding position $3.4 billion in balance sheet capacity to fund execution of business strategy and minimise financing risk. Minimal debt maturities to 2016 Available liquidity Debt maturity profile Notes mature in 2070, with A$billion A$million Santos option to redeem in 2017 4 2,000 0.4 1,60
Slide 14: Strong reserves and resource base
Strong reserves and Well positioned to meet growing energy demand with resource base 1.4 billion boe of 2P reserves and 1.9 billion boe of 2C contingent resources in Australia and Asia. 2P reserves 2008-13 2013 2P reserves and 2C contingent resources (mmboe) mmboe 1,800 1,600 842 -232 1,400 1,368 As
Slide 15: Integrated east coast portfolio
Integrated east coast Santos is well placed to meet increased east coast gas portfolio demand with over 4,600 PJ of net 2P reserves, 6,700 PJ of 2C resources and existing infrastructure East coast gas demand is Santos east coast sales gas net 2P reserves and 2C contingent resources (PJ) expected to
Slide 16: Production growth
Production growth Delivering 80-90 mmboe of production by 2020 from already captured opportunities Santos production Upside potential mmboe Aust: Cooper shale, Cooper tight gas, Zola, 90 Winchester, Amadeus, McArthur LNG: PNG LNG expansion, Darwin expansion, Near-term Browse 80 growth options Asia:
Slide 17: Strong business outlook
Strong business outlook Operating cash flow is expected to double by 2016, providing the foundation for further growth and increased shareholder returns Clear production growth outlook Growing margins Robust funding position provides the capacity to fund execution of strategy Committed to increasing
Slide 18: Delivering major projects
Delivering major projects David Knox Managing Director and Chief Executive Officer Inside LNG tank B, Curtis Island
Slide 19: PNG LNG project nearing completion
PNG LNG project nearing PNG LNG is more than 95% complete and on track completion for first LNG in Q3 2014 Commissioning gas introduced to the Hides Gas Conditioning Plant in December Offshore pipeline, onshore condensate and onshore gas pipelines complete Four of eight production wells complete Com
Slide 20: PNG LNG potential expansion
PNG LNG potential Existing infrastructure can support potential future expansion expansion. As an owner of the foundation project infrastructure, Santos is well placed Multiple options for potential expansion of foundation 2-train project Hides 3P potential within base project Hides Deep (Santos 24%
Slide 21: GLNG project summary
GLNG project summary The GLNG project is 75% complete and on track for first LNG in 2015 Location Queensland, Australia Project Santos (30% and operator), partners PETRONAS, Total and KOGAS LNG 7.8 mtpa of LNG; 7.2 mtpa has plant been sold to PETRONAS and capacity KOGAS Gross US$18.5 billion1 from F
Slide 22: GLNG upstream
GLNG upstream 237 wells drilled in 2013. Continued focus on field development optimisation Drilling performance in 2013 exceeded expectations ─ 237 wells drilled in the GLNG acreage in 2013; 500 wells drilled since project FID ─ Average 2013 drilling and completion costs of $1.35 million per develop
Slide 23: Fairview & Roma field development
Fairview & Roma field Performance of Fairview wells continues to exceed development expectations - average gas capacity of 1.8 TJ/day per well. Roma performing in line with expectations Fairview well performance as at 1 February 2014 Roma well performance as at 1 February 2014 (171 producing wells)
Slide 24: Upstream hub construction
Upstream hub Construction of three hubs progressing well, with first construction new development wells at Fairview and Roma on-line and dewatering Water treatment facility, Fairview Hub 4 24 | 2013 FULL-YEAR RESULTS
Slide 25: Gas transmission pipeline
Gas transmission pipeline Marine crossing tunnel completed in early-February; pipeline remains on track for completion in Q2 2014 Marine crossing tunnel construction is complete: ─ Tunnel preparation works for pipe installation have commenced ─ Preparation at the launch shaft yard for inserting pipe
Slide 26: LNG trains
LNG trains 76 of 82 train 1 modules shipped to site; all train 2 modules are under construction Train 1 in foreground, Train 2 in background 26 | 2013 FULL-YEAR RESULTS
Slide 27: LNG plant site
LNG plant site Excellent construction progress over the last 12 months GLNG plant site, Curtis Island 27 | 2013 FULL-YEAR RESULTS
Slide 28: Asian growth
Asian growth Peluang and Dua projects on track. Acquisition of 50% operated interest in Ande Ande Lumut oil field completed in November 2013 Peluang, Indonesia (Santos 67.5%) ─ 94% complete and on track for first gas in 1H 2014 ─ Development drilling and well completion works have been completed ─ T
Slide 29: Cooper Basin unconventional exploration program
Cooper Basin Significant activity during 2013 across the REM shale unconventional play, BCG play and deep coal play exploration program REM shale gas play Fly Lake 17 Moomba-194 flowed at 3.1 mmscf/day from shale, tight sand and coal targets Tirrawarra South-1 Innamincka Moomba-191 continues to flow
Slide 30: Narrabri Gas Project
Narrabri Gas Project Strong Narrabri stakeholder support; appraisal drilling program underway Leewood water treatment plant Appraisal program Largely completed remediation of legacy issues 16-well appraisal program now underway and rehabilitation program Five core and appraisal wells completed with
Slide 31: Summary
Summary Consistent execution of our strategy positions Santos for growth and increased returns to shareholders LNG projects nearing completion Clear production growth outlook to 2020 Progressive dividend policy Robust funding position provides the capacity to fund execution of strategy 31 | 2013 FUL
Slide 32: 2013 Full-year results
2013 Full-year results 21 February 2014
Slide 33: Net profit after tax
Net profit after tax Net profit in line with 2012. Higher volumes and prices offset by lower interest income, higher DD&A, exploration and other expenses Net profit after tax (NPAT) and underlying NPAT Reported NPAT in line with 2012 $million Higher sales volumes and higher 800 oil and gas prices 70
Slide 34: Sales revenue
Sales revenue Record sales revenue of $3.6 billion in 2013, 12% higher than 2012 Sales revenue Record sales revenue driven by: $billion 4.0 Highest oil production in six 3.6 years 3.5 3.2 Average realised oil price of 3.0 2.7 A$121 per barrel 1.8 2.5 1.4 2.2 2.2 Higher third party product 1.0 2.0 0.
Slide 35: Strong operating cash flow
Strong operating cash Operating cash flow of $1.6 billion reflects higher flow volumes and prices offset by lower interest received and higher tax payments Operating cash flow $million 1,800 1,600 1,642 1,628 1,400 1,200 1,273 1,253 1,155 1,000 800 600 400 200 0 2009 2010 2011 2012 2013 35 | 2013 FU
Slide 36: Significant items after tax
Significant items after tax $million Full-year 2013 Full-year 2012 Net profit after tax 516 519 Add/(deduct) significant items Net gains on asset sales (10) (8) Net impairments 28 77 Foreign currency (gains)/losses (17) 1 Other (13) 17 Underlying net profit after tax 504 606 36 | 2013 FULL-YEAR RESU
Slide 37: 2014 guidance
2014 guidance Item 2014 guidance Production 52-57 mmboe Production costs $820-880 million DD&A expense $18.50/boe Royalty related taxation expense1 (after tax) $60 million Capital expenditure (including exploration & evaluation)2 $3.5 billion 1 Royalty related taxation expense guidance based on an a
Slide 38: 2014 full-year sensitivities
2014 full-year sensitivities Sensitivity Change NPAT impact (A$million) US$ oil price +/-US$1/bbl +/-15 A$ gas price +/-10 cents/GJ +/-14 A$/US$ exchange rate +/-1 cent -/+15 38 | 2013 FULL-YEAR RESULTS
Slide 39: 2014 exploration schedule
2014 exploration schedule Delivers on our exploration strategy across super basins, frontier basins and unconventional basins Santos Well Name Basin / Area Target Timing Interest % C&S pending further Manta-1 PNG Gas 301 evaluation South Sumatra CSG wells Sumatra CSG 102 1H 2014 Mt Kitty-1 Amadeus G
Slide 40: Contact information
2013 Full-year results Contact information Head Office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Email: andrew.nairn@santos.com GPO Box 2455 Andrew Hay Adelaide, South Australia 5001