Origin Energy Limited · ASX:ORG
Origin Energy — UBS Australian Energy and Utilities Conference 2007
24 slides from Origin Energy's conference presentation, Jun 26, 2007
Slide 1: ASX announcement cover: UBS conference presentation
Origin energy To Company Announcements Office Facsimite 1300 300 021 Company Australian Stock Exchange Limited Date 26 June 2007 From Bill Hundy Pages 24 Subject PRESENTATION Attached for your information is a presentation being made by Mr Grant King, Managing Director to the UBS Australian Energy a
Slide 2: The Value of Integration - UBS Australia, June 2007
The Value ¢ UBS Australia June 2007
Slide 3: Important Notice
Important Notice Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect and these statements speak only as of the date of this presentation. This presentation should not be relied upon as a recommendation to buy
Slide 4: Origin's strategy of integration across competitive segments of the energy industry
Origin’s strategy of integration across competitive segments of the energy industry is designed to better manage risk... Since late last year Origin Energy has made a number of significant announcements: Mt Stuart power station agreement with Energex terminated - Origin gains full operational flexib
Slide 5: This strategic approach sees Origin well positioned to respond to current circumstances
This strategic approach sees Origin well positioned to respond to current circumstances in the energy market... & Volatility of wholesale electricity and gas prices Rise of CSG & & Darling Downs Power Station & Carbon Issues .. and capture new opportunities for growth as evidenced by the integrated
Slide 6: Tightening of the supply demand balance in the NEM
A tightening of the supply demand balance in the NEM has been predicted for some time and Origin has been positioning to ensure its short-term positions are covered... 350 5 330 4 310 5 290 4 270 + 250 4 230 4 210 190 170 150 NEM Energy Supply and Demand, 2000-2025 NEM available energy (TWh) eo -@ +
Slide 7: Wholesale electricity markets have experienced significant short-term price increases
Wholesale electricity markets across Australia have recently experienced significant short-term price increases... $400 5 $98 4 Victorian Spot and Forward Contract Electricity Prices . Forward Curve} May OY $90 4 = i Forward * Pog) Curve Jun 05 Forward Seana ye : Curve Jun 66 | Approximate time-fram
Slide 8: Convergence and interdependence of gas and electricity markets
The convergence and interdependence of markets for gas and electricity has been emphasised by the shortage of a third commodity - water Victorian gas weighted average spot price and demand July 2005 to June 2007 1,400,000 ‘gr 1,200,000 1,000,000 800,000 600,000 Daily withdrawais (GJ) 400,000 260,000
Slide 9: Origin has established a significant portfolio of CSG acreage in Queensland
Over the last 10 years Origin has established a significant portfolio of CSG acreage in Queensland « Origin’s Bowen Basin CSG interests include: - Fairview (23%) non-operator - Spring Gully (96-99%) operator - Peat (100%) operator - Comet Ridge exploration tenures {~23%) non-operator » Surat Basin C
Slide 10: Current 2P CSG Reserves around 1,400 PJ with upside potential
While Origin’s current Proved and Probable (2P) CSG Reserves are around 1,400 PJ the upside potential is several times this « Origin currently has the following cornerstone CSG assets: - Comet Ridge (Fairview, Spring Gully) - Undulla Nose (Talinga, Orana, Condabri, Argyle, Kenya/East, Spring Guily/
Slide 11: The Spring Gully field is producing at 45-50 TJ/d
The Spring Gully field is producing at 45-50 TJ/d supplying Origin’s portfolio of gas contracts with third parties... 200 « 80 weils ontine 180 Actual Historical Data Spring Gully medium term gas currently flowing ~46 — Production Forecast TJ/d & 32,000 barrels 160 | of water per day « 20 weils dril
Slide 12: Origin has been an active operator in the Walloons areas
In the Walloons areas Origin has been an active operator and Legend | Origin Operated. ___ = _. | Origin Non-O 4 has benefited from work undertaken by QGC and others In the areas which Origin operates, since Jan 2001, we have: - Drilled 22 cored stimholes - Recorded 4 seismic surveys - Drilled 5 pro
Slide 13: Origin carries around 1,400 PJ of 2P CSG reserves
Origin currently carries around 1,400 PJ of 2P CSG reserves and is likely to book significant additional reserves over the next few years, with finding costs less than $0.10 per GJ 2000 100 CSG Reserves — CSG Production 1750 dos a 380 - 3 1500 4 c Darting Downs se = 950 £ o up to 44 PJ/a g 3 5 1000
Slide 14: Electricity retail business provides opportunity for growth in generation
Origin’s electricity retail business provides a substantial opportunity for growth in generation Retail Load Hedge Cover Jemperature Swing Load MW Expansion at existing sites and permitted greenfield opportunities would increase Origin’s own generation to ~50% of purchase requirements at lower carbo
Slide 15: Darling Downs
Darling Downs Darling Downs Power Station Video available at Origin Energy's website: http://www.originenergy.com.au/about/template .php?pageid=208 1#ps 44.
Slide 16: Darling Downs combined cycle power station to be largest CCGT on the NEM
At 630 MW the Darling Downs combined cycle power station will be the largest CCGT on the NEM... « This will be one of the lowest cost power stations in the National Electricity Market. « The power station has a low life cycle cost, which includes construction and long-term maintenance costs. « 630MW
Slide 17: Expansion of Spring Gully and Talinga fields will provide low cost gas supply
... and expansion of the Spring Gully and Talinga fields will provide a low cost flexible gas supply 46 «The gas requirements will underwrite phase 5 of the Spring Gully devetopment. This will be sufficient to take Spring Gully to its optimum production rate of 150 TJ/day. «The Spring Gully developm
Slide 18: Origin has taken an advocacy role in climate change and carbon regime debate
Over many years Origin has taken an advocacy role in the debate surrounding climate change and a carbon regime... O7 CRC Researching co2 a SolarCity Venn SeQuestration technologies *WA AFL) The Business Case for Early Action Carbon hati Neutrat by 2009 ‘Avsteslian Barusss Rounthebts ov Siwsty c2sege
Slide 19: Growing consensus that a carbon trading regime will be required
There now seems to be a growing consensus by both side of politics that a carbon trading regime will be required... The PM’s Task Group Conclusion is that Australia should: + not wait for the development of a global agreement * set its own long term aspirational goal to reduce emissions * embrace th
Slide 20: 100Mt of CO2e will need to be reduced beyond current measures
For Australia’s emissions to be no greater than 2010 levels in 2020, 100Mt of CO,e will need to be reduced beyond current measures 85 We 4 em 4 Emissions Mt CO,-e 356 SH, 108 per cert of ee 1990 Le 1990 level a ' ’ Te ae + or ~ | ‘With Measures! | ! best astimate | ! ! ! | Increase nt | i vpercentof
Slide 21: Greenhouse gas reduction costs range from $20-30/t CO2e
To achieve the greenhouse gas reductions required within the Australian energy industry the costs range from $20-30/t CQ,e... 70 100 MT | Ba) = Distributed PY 50 z Ceaktocoat - new USC Pa Fare EE as ssssissis scauer’ Gamma & New black 1GCC Solar thermal | 230 rz 4 rf o-Hring biomass Nutiegs + rf Cou
Slide 22: The depth of integration of Origin's business is increasingly evident
Origin Retali Natural Gas Suppites (PJ) The depth of integration of Origin’s business is increasingly evident... TP BALD Energy Demand Peak Demand we & potential for Origin te develop and service gas fred power projects by contracts with third parties or devetop equity gas reserves Gas markets - pot
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Slide 24: For more information
For more information For more information on Origin Energy please contact Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: + 61-4-1786 4255 Alternatively visit our website www.originenergy.com,.au and follow the prompts to the Investo
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