Apa Group · ASX:APA
Apa — Australian Pipeline Trust — Shareholder Meeting (October 2004)
20 slides from Apa's shareholder meeting presentation, Oct 20, 2004
Slide 1: Hlth
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Slide 2: Agenda
Agenda @ Operational Review @ Acquisition of the Southern Cross Pipeline Group assets. @ Gas supply for south-east Australia. @ APA's Strategy @ Industry rationalisation - consolidation and diversity Australian Pipeline Trust
Slide 3: Gas Pipelines 2004
Gas Pipelines 2004 oa APA pipelines — Other pipelines vise APA Pipeline s 2004 Amaceus Gas -AGT Camp entaria Gas Transmission -CGP Centra! West -CWP Gokfiekis Gas Transmission - GGT Mid West Pipeline - MWP- Moombe t Sydney ~ MSP Parmelia Gas - PGP WESTERN AUSTRALIA: «| NORTHERN. TERRITORY a SOUTH AU
Slide 4: Operational Review
Operational Review Innovative Haulage Contracts @ Roma to Brisbane — Transportation Agreement with Incitec Pivot to commence from 1 October 2007. Gas supplied - coal bed methane. — Transportation agreement with Energex on a spot basis to existing peaking gas-fired power stations. — AGL - Santos / Or
Slide 5: Operational Review Cont'd
Operational Review Cont’d @ Moomba Gas Plant Fire — Fire at Santos Moomba gas plant in January 2004 disrupted gas supplies — APA met all contractual obligations — No financial impact due to GTD — Moomba now back in full production Australian Pipeline Trust
Slide 6: Operational Review Cont'd
Operational Review Cont’d @ X-Strata mine closure in WA — Write-off of Mid West Pipeline following closure of vanadium mine — Meekathara mineral province may offer opportunities from further mine development Australian Pipeline Trust
Slide 7: Operational Review Cont'd
Operational Review Cont’d m@ Stress Corrosion Cracking — Identified on MSP in remote areas of SA. — Pressure management plan implemented. — Further investigation planned - intelligent pig. — Repair and rehabilitation program being prepared. Australian Pipeline Trust
Slide 8: Industry Rationalisation
Industry Rationalisation @ Industry rationalisation is now nearly complete. m Bid costs of $5.8 million were necessary to ensure APA did not over bid. @ APA was successful in acquiring Southern Cross Pipeline Group assets at a good price. Australian Pipeline Trust
Slide 9: Consolidation & Diversity
Consolidation & Diversity @ Industry rationalisation may now lead to consolidation of major gas industry players. m@ APA will consider diversity of asset portfolio through complementary businesses (other fluid pipelines, power generation, power transmission). @ Diversity will require APA to obtain n
Slide 10: Western
Western NORTH WEST SHEL Dampier | | GOLDFIELDS GAS TRANSMISSION PIPELIN Mt Magnet \ ee PROCESSING _ =o FACILITY PARMELIA PIPELINE MONDARRA : Esperance FACILITY 4, TMT E
Slide 11: Acquisition Overview
Acquisition Overview Goldfields m Pipeline — 1,380km pipeline — Transports competing gas streams from Harriet and East Spar, NW Shelf to North Eastern and Eastern Goldfields regions in WA — Capacity 105 TJ/d increasing to 164 TJ/d under full compression @ Major Customers — WMC - MDQ 45.8 TJ/d — Newm
Slide 12: GGT Growth
GGT Growth @ Projects under active consideration — Thunderbox Gold - 1.5TJ/d transport contract. — Esperance Lateral — Paraburdoo Iron Ore — Murrin Murrin Expansion @ Spot Market Development — arising from potential shortage of gas transportation on DBNGP. — Power generated in Kalgoorlie area to be
Slide 13: Acquisition Overview cont'd
Acquisition Overview cont’d Parmelia m@ Parmelia gas business — 416km gas pipeline (capacity - 70TJ/d) — Mondarra storage (capacity 6-9PJ) — Dongara gas processing plant — Small Gas Retail business @ Customers - 24 active contracts - approx 35 TJ/d — long-term contracts to process gas at Dongara gas
Slide 14: Growth Potential
Growth Potential @ Spot market @ Connection to Alinta Network @ Pipeline connection between Perth Basin and Perth & southern industrial centres @ Mondarra Gas storage services Australian Pipeline Trust
Slide 15: Benefits of Acquisition
Benefits of Acquisition Advancing Strategic Goals m Positive financial impact on APA (cash and earnings accretive) m@ Enhanced footprint in WA m@ Sound long-term prospects & Commercial control by APA @ Diversification of APA's portfolio Australian Pipeline Trust
Slide 16: Portfolio Diversification
Portfolio Diversification MSP Reliance Reduced APA 2004 Revenues APA 2004 Revenues Pro forma pre-acquisition Pro forma post acquisition Other Parmelia Other 4%, 7% 3% MSP 32% AGT 7% RBP 9% CGP RBP 12% 9% 10% Note: GGT revenues shown on an equity share consolidated basis pre & post acquisition for ac
Slide 17: Gas Supply to South-East Australia
Gas Supply to South-East Australia ™@ Coal Bed Methane — becoming commercially viable and producers signing new contracts to supply m@ PNG Highlands Gas Project — Oil Search has announced Front End Engineering Design program. — Full FEED Program expected to take 12- 18 months. — APA has a right to p
Slide 18: Strategy
Strategy a@ Continue to build profitability by: - - Filling our existing pipelines and expanding their capacity - Acquiring minority interests - Participating in industry rationalisation; - Diversifying asset base. Requires two- pronged approach: * diversifying asset dominance; * considering complem
Slide 19: Summary
Summary @ Fourth years of compound profit growth. @ Acquisitions enhancing and balancing asset portfolio. m Balance sheet in good shape. @ APA positioned for industry consolidation and diversification of asset base. Australian Pipeline Trust
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Australian Pipeline Trust — Shareholder Meeting (October 2004) on 6ix