Slide 1: 2015 Full-year results
2015 Full-year results For personal use only 19 February 2016
Slide 2: Disclaimer and important notice
Disclaimer and 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 rang
Slide 3: 2015 Full-year results: Peter Coates, Chairman
2015 Full-year results For personal use only Peter Coates Chairman Hides gas conditioning plant, PNG LNG
Slide 4: Full-year summary
Full-year summary Loss of $2.7 billion including impairments of $2.8 billion after tax For personal use only Focus on reducing capital expenditure and improving operating efficiency Safety & Capital Cost savings performance management Lowest lost time injury frequency Unit production costs down 10%
Slide 5: Safety performance
Safety performance Lost time injury frequency rate of 0.1 per million hours worked For personal use only Best safety performance on record Safety performance (employees and contractors) Rate per million Work hours hours worked (million) 2 1.9 40 30 1.2 1.1 1 0.9 20 0.7 0.7 0.6 10 0.1 0 0 2008 2009 2
Slide 6: 2015 Full-year financial and operating results
2015 Full-year financial and operating results For personal use only Andrew Seaton Chief Financial Officer GLNG plant, Curtis Island Queensland
Slide 7: Financial summary
Financial summary Managing the business in a lower oil price environment For personal use only Material and sustainable cost out Balance sheet strengthened $4.8 billion in liquidity Net debt remains flat in 2016 at US$32/bbl No material drawn debt maturities until 2019 First cargo, GLNG, October 201
Slide 8: 2015 Full-year financial result
2015 Full-year EBITDAX down 17% to $1,919 million financial result For personal use only Net loss of $2,698 million, reflecting asset impairments of $2,761 million after tax $million 2015 2014 %Δ Higher sales volumes and Total revenue (inc. third party) 3,307 4,111 (20)% gas prices, more than offset
Slide 9: Impairment
Impairment Impairment charge of $3.9 billion pre-tax, $2.8 billion post-tax For personal use only The impairment charge reflects the Impairment loss by asset* lower oil price environment, subsequent reduction in capital A$million 0 500 1000 1500 2000 2500 expenditure and associated deferral of devel
Slide 10: Production
Production Highest full-year production since 2007 For personal use only Production Full-year production up 7% mmboe LNG production up 68% 70 57-63 ─ Strong PNG LNG production 60 57.7 54.1 ─ Record production from Darwin 52.1 51.0 50 47.2 LNG 40 ─ GLNG first cargo shipped in mid-October 30 ─ GLNG gr
Slide 11: Sales revenue
Sales revenue Sales revenue impacted by significantly lower oil prices For personal use only Sales gas and ethane revenue marginally lower $million 2015 2014 %Δ due to lower third party sales volumes partially Sales revenue (incl. third party) offset by higher average gas prices Sales gas and LNG sa
Slide 12: Production costs
Production costs Unit production costs down 10% to $14.4/boe For personal use only Total unit cash operating costs down 13% $million 2015 2014 %Δ Unit production costs down 10% to Production (mmboe) 57.7 54.1 7% $14.4/boe Production costs Higher LNG plant costs reflect full – Upstream production cos
Slide 13: Capital expenditure
Capital expenditure 2015 capex expenditure $1.7 billion, down 54% For personal use only 2016 capex guidance cut to $1.1 billion $million 2015 2016F Full-year capital expenditure Eastern Australia 568 320 $billion GLNG 463 370 4 4.1 Asia Pacific 140 100 3.6 WA&NT 96 120 3 Combabula, Spring Gully & NS
Slide 14: Liquidity
Liquidity Substantial liquidity position For personal use only $4.8 billion in cash and committed undrawn debt facilities Liquidity as at 31 December 2015 Liquidity will increase to more than $5 billion in Q1 2016 following A$billion receipt of $520 million in cash from the sale of the Kipper asset
Slide 15: Balance sheet and funding
Balance sheet and Net debt reduced to A$6.5 billion funding For personal use only Reduces further following receipt of Kipper proceeds Reconciliation of movement in net debt Net debt reduced to A$billion $6.5 billion 10 2.1 (3.0) Receipt of $520 million from 9 the sale of Kipper further 0.9 (1.1) re
Slide 16: Net debt
Net debt Net debt remains flat in 2016 at US$32/bbl oil For personal use only 2016 Net debt movement Santos forecast free cash A$billion flow positive in 2016 at US$40/bbl US$32/bbl US$32/bbl oil, after asset 8 sales (1.1) 0.8 (1.1) 0.5 7 ─ US$10/bbl increase in oil 0.6 0.6 price lifts 2016 operatin
Slide 17: Debt maturity profile
Debt maturity profile Santos has limited drawn debt maturities until 2019 For personal use only Drawn debt maturity profile as at 31 December 2015 A$million 2,500 Notes mature in 2070, with Santos option to redeem on 22 2,163 September 2017 and at each interest payment date 2,000 thereafter 1,502 1,
Slide 18: Dividends
Dividends Future dividends expected to be a minimum of 40% of underlying net profit, subject to business conditions For personal use only Fully-franked dividends declared per share Final dividend 5 cents per Cents per share share, fully franked 40 Full-year dividend total 20 cents per share, fully f
Slide 19: Reserves
Reserves 2P reserves impacted by lower oil price environment and reclassification of Gunnedah Basin reserves to For personal use only contingent resources Reconciliation of 2P reserves Proved plus probable (2P) reserves mmboe of 945 mmboe, 24% lower than 1,400 2014 (133) Gunnedah Basin 2P reserves 1
Slide 20: 2015 Full-year results: Peter Coates, Chairman
2015 Full-year results For personal use only Peter Coates Chairman Hides gas conditioning plant, PNG LNG
Slide 21: 2015 Full-year results: Kevin Gallagher, CEO
2015 Full-year results For personal use only Kevin Gallagher Managing Director and Chief Executive Officer GLNG plant, Curtis Island Queensland
Slide 22: Reference Slides
Reference Slides For personal use only 19 February 2016 GLNG plant, Curtis Island Queensland
Slide 23: Liquidity and net debt position as at 31 December 2015
Liquidity and net debt $4.8 billion in cash and committed undrawn debt facilities position as at 31 For personal use only Net debt $6.5 billion December 2015 Liquidity (A$ million) 31 December 2015 Cash 1,154 Undrawn bilateral bank debt facilities 3,625 Total liquidity 4,779 Debt (A$ million) Export
Slide 24: Significant items after tax
Significant items after tax Reconciliation of full-year net loss to underlying profit For personal use only Full-year Full-year $million % Change 2015 2014 Net loss after tax (2,698) (935) (189)% Add/(deduct) significant items Impairment losses 2,761 1,563 77% Redundancy and restructuring costs 48 -
Slide 25: 2016 guidance
2016 guidance For personal use only Item 2016 guidance Production 57-63 mmboe Sales volumes (including third party product sales) 76-83 mmboe Upstream production costs (excl. LNG plant costs) $13.5-14/boe produced Depreciation, depletion & amortisation (DD&A) expense $1.1 billion Capital expenditure
Slide 26: Prices and exchange rates
Prices and exchange rates For personal use only Santos average realised 2015 2014 Change % Oil price (US$/bbl) 53.83 103.44 (48)% Oil price (A$/bbl) 71.44 114.21 (37)% LNG price (US$/mmbtu) 8.94 14.81 (40)% LNG price (A$/mmbtu) 11.86 16.35 (27)% Gas price (A$/GJ) 5.39 4.97 8% A$/US$ exchange rate 0.
Slide 27: 2016 Full-year sensitivities
2016 Full-year sensitivities For personal use only OCF impact NPAT impact Sensitivity Change (A$million) (A$million) US$ oil price +/-US$1/bbl +/-40 +/-30 A$ gas price +/-10 cents/GJ +/-12 +/-8 A$/US$ exchange rate +/-1 cent -/+20 -/+5 OCF: Operating cash flow NPAT: Net profit after tax 27 | 2015 FU
Slide 28: 2016 Exploration schedule
2016 Exploration schedule Focus on infrastructure-led exploration For personal use only Santos Well Name Basin / Area Target Result/Timing Interest % Drilling complete, Davis-1 (WA-214-P) # Carnarvon – WA Gas 45 evaluation ongoing Merem-1 (Madura PSC) East Java – Indonesia Gas 67.5 Q1 Melewis-1 (Mad
Slide 29: Contact information
2015 Full-year results Contact information For personal use only 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