Amplitude Energy Limited · ASX:AEL
Amplitude Energy — H1 FY2020 Earnings Presentation
41 slides from Amplitude Energy's earnings presentation, Feb 24, 2020
Slide 1: FY20 First half results & outlook
FY20 First half results & outlook Investor presentation 24 February 2020 Minerva Gas Plant, Otway Basin Victoria
Slide 2: Compliance statements and important information
Compliance statements and important information. This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “the company”) ASX: COE. Summary information: This Presentation contains summary information about Cooper Energy and its activities a
Slide 3: February 2020 status and outlook
February 2020 status and outlook Sole commissioning. Utility-style cash flows close. Gas contracted. New projects. Sole Gas contract book New projects Finance ESG • Plant commissioning with • Fully contracted CY20 • Minerva Gas Plant • Utility-style cash flow • Sustainability Report pipeline gas • 8
Slide 4: FY20 First half key outcomes
FY20 First half key outcomes Production Safety: Single LTI and Recordable case injury million boe 0.66 0.66 Sole Gas Project: Offshore completed. Orbost plant being commissioned. • Offshore project completed within schedule and budget in July 2019 • Orbost Gas Processing Plant upgrade construction c
Slide 5: Health, Safety, Environment and Community
Health, Safety, Environment and Community Safety: one lost time injury aboard Ocean Monarch. Inaugural Sustainability Report published. Safety Safety metrics FY20 H1 FY19 H1 • One LTI aboard Ocean Monarch (September 2019) Hours worked 181,738 271,779 • Contractor injured during rig maintenance opera
Slide 6: Key financial results
Key financial results $ million unless otherwise indicated FY20 H1 FY19 H1 change Production MMboe 0.66 0.66 - 0% Sales revenue 39.1 36.2 ▲ 8% Other income 11.3 0.8 ▲ 1,312% Gross profit 14.1 16.8 ▼ (16)% Gross profit/Sales revenue % 36.1 46.4 ▼ (22)% Statutory profit/(loss) after tax 6.3 (12.6) ▲ 1
Slide 7: Statutory and underlying profit
Statutory and underlying profit Liquidated damages and restoration restatement responsible for difference between statutory and underlying profit For the six months ended 31 December 2019: $ million Net profit after tax 6.3 Adjustments for: Liquidated damages Orbost Gas Plant (9.9) Non-cash income f
Slide 8: Underlying NPAT movement
Underlying NPAT movement Increased gas revenue offset by non-cash expenditure $ million • Cost of sales increased due to higher: 8.0 − non-cash depreciation and amortisation ($5.0 million higher) 6.0 − higher processing tolls in line with higher (0.2) volumes from Casino Henry 3.1 4.0 • Net finance
Slide 9: Movement in cash
Movement in cash Cash $14 million lower after funding $51 million for exploration & development and interest $ million 200 9.0 (6.4) 0.7 5.6 (6.7) (0.6) 4.1 24.6 (44.3) 160 0.4 120 Cash Cash 80 150.7 164.3 195.7 Operating cash flow Financing & investing cash flow 31.4 (45.0) 40 0 Jun-18 Operations L
Slide 10: Balance sheet
Balance sheet $ million 31 Dec 19 30 June 19 Comments Assets Cash 150.7 164.3 Working capital 17.6 24.9 PPE, intangibles and right-of-use assets (leases) 24.8 4.6 Recognition of right-of-use assets per AASB 16 ($10.8 million), Minerva Gas Plant acquisition ($8.7 million) Exploration and evaluation 2
Slide 11: Funding
Funding • Project completion under the facility expected after 90-day facility $ million 31 Dec 19 30 Jun 19 performance test Cash 150.7 164.3 • Discussions ongoing on capital management, facility structuring in a post- Sole project environment of utility-style cash flows Drawn debt 224.0 218.2 • Re
Slide 12: Operations
Operations Portland Supply Depot
Slide 13: Production and sales generation
Production and sales generation Higher gas production and prices drove sales revenue increase Production Sales revenue MMboe $ million 0.8 40 10.4 10.6 0.6 0.13 0.10 30 0.56 Crude oil 28.7 0.53 25.6 0.4 Gas 20 0.2 10 0.0 0 FY19 H1 FY20 H1 FY19 H1 FY20 H1 • Gas: • Gas revenue up 12%: - Minerva ceased
Slide 14: Gas contract portfolio
Gas contract portfolio Fully contracted CY20. Take or pay contracts for volume equal to 87% of planned production to June ’22. • Gas contract strategy prioritises predictable long term stable cash flow and 2P Gas production profile by contract status collaborative customer relationships PJ • Sole fu
Slide 15: Offshore Otway Basin FY20 first half
Offshore Otway Basin FY20 first half Secured the ingredients for growth: gas discovery, gas plant and well located exploration permit • Annie gas discovery • Minerva Gas Plant acquired • VIC/P76 granted. Includes part of Annie gas field and Nestor, an ‘Annie look-alike’ prospect • Commenced work on
Slide 16: Annie gas discovery
Annie gas discovery Contingent Resource assessed. Annie development now progressed to SELECT stage. • Annie-1 drilled and logged gas discovery supported by seismic amplitude Annie Contingent Resource1 estimate: Gross (100% joint venture) field volume • High quality gas reservoir in the Waarre C form
Slide 17: Cooper Basin
Cooper Basin Appraisal program completed. Development and exploration drilling to follow in March quarter • 13 well appraisal program completed Key figures FY20 H1 FY19 H1 - 10 wells prior to 31 Dec 2019, 3 in Jan 2020 Production Crude oil kbbl 0.10 0.12 • Acquired data for better mapping of field A
Slide 18: Otway Basin: Penola Trough onshore
Otway Basin: Penola Trough onshore Dombey-1 gas discovery confirms potential. Further investigation required. Rock properties: • 44.5 metre gross column in Pretty Hill Formation • 25 metre net pay • Gas sample recovered from Sawpit sandstone Production test • 20 metre interval in Pretty Hill Formati
Slide 19: Management and governance
Management and governance New operating model. Upgraded reporting and standards for simplicity, accountability & governance • Progressive upgrades to capabilities, systems and governance to: - deliver requisite structure and accountability - preserve fit-for-purpose, agility and alignment with strat
Slide 20: Projects
Projects Pipeline spooling, Crib Pt
Slide 21: Current growth projects
Current growth projects Status of gas development and exploration projects under CARP (Cooper Energy Asset Realisation Process) Value Chain Explore Develop Construct Operate Project Phase ASSESS SELECT DEVELOP EXECUTE OPERATE FID Sole Commissioning Plant Minerva Gas Plant FEED engineering Selecting
Slide 22: Sole Gas Project
Sole Gas Project Offshore completed and gas plant commissioning underway. Expect full rate production in March. Current status and schedule • Plant first phase commissioning underway using ‘sweet’ gas from pipeline • Second phase using field gas to commission raw gas facilities to follow • Volume bu
Slide 23: Minerva Gas Processing Project
Minerva Gas Processing Project A low-cost, processing hub for Casino Henry gas and new discoveries The Opportunity DEVELOP Phase underway • Integration of low cost processing hub for Casino • Commenced November 2019 Henry and new discoveries • FEED Engineering underway • Ownership of processing capa
Slide 24: Otway Phase-3 Development Project (OP3D)
Otway Phase-3 Development Project (OP3D) Project to bring 100+ PJ1 of gas to market from 2022 onwards, utilising Minerva Gas Plant The Opportunity SELECT Phase underway • Development of >100 PJ1 of gas from Henry and Annie • Commenced February 2020 • Gas to market in CY 2022/20232 • Technical and pl
Slide 25: Outlook
Outlook Otway coastline, Pt Fairy
Slide 26: Second half outlook & summary
Second half outlook & summary Production guidance unchanged • Existing producing assets unchanged: 1.2 MMBoe; > 5 PJ gas ~ 0.24 MMbbl oil • Incorporates Iona shutdown/work in March • Guidance upgrade to be made after Sole firm supply start-up Sole start-up imminent • APA advise commercial operations
Slide 27: Wrap-up
Wrap-up 1. Sole production start-up is imminent. Completion of commissioning and production tests is expected within March and, with it, a transformational change in cash-flow generation. 2. Our gas contract position is rock solid and the merit of our gas strategy is evident. Cooper Energy gas suppl
Slide 28: Q&A
Q&A Ocean Monarch drilling Annie-1 Otway Basin
Slide 29: Cooper Energy snapshot
Cooper Energy Snapshot Key statistics* Proved & Probable Reserves 52.7 MMboe Contingent Resources (2C) 26.9 MMboe Market capitalisation $878 million Cooper Basin Net debt $73.3 million • Oil production & exploration Issued shares (million) 1,626.6 Onshore Otway Basin Register composition Proved & Pr
Slide 30: Capital expenditure; updated guidance
Capital expenditure; updated guidance Incurred first half and forecast full year incurred Original FY20 H1 FY20 H2 FY20 $ million incurred Actual Guidance Updated Guidance FY20 guidance Exploration Development Total Exploration Development Total Exploration Development Total Otway 26.9 1.5 28.4 1-2
Slide 31: Impact of Sole start-up and lease accounting
Impact of Sole start-up and lease accounting Sole: • Gas sales of 68 TJ per day at plant design rates • Amortisation based on production, 2P Reserves and development costs • Interest expense no longer capitalised Lease accounting standard (AASB 16: Leases) effective 1 July 2019: • Impacts property l
Slide 32: Gas business model
Gas business model Optimisation of gas supply to a portfolio of gas contracts from a portfolio of gas assets among the most competitive sources of supply for south-east Australia 2P Gas Reserves1 PJ 43 Otway Hub 24 Gippsland 245 Sole Otway developed Otway undeveloped 1 Proved and probable gas reserv
Slide 33: Profile of contracted and uncontracted gas reserves by project
Profile* of contracted and uncontracted gas reserves by project OP3D provides opportunity for future gas contracts 2P Gas sales profile by project OP3D in SELECT phase contracted & uncontracted for production from FY23 PJ pa 1 1 1 1 1 2 3 5 10 23 23 20 23 23 23 22 20 18 13 6 9 2 5 3 6 5 7 6 5 5 5 4
Slide 34: Pathway from FY20 Second half work program to FY21 and FY22 activities
Pathway from FY20 Second half work program to FY21 and FY22 activities Preparing for Minerva connect & BMG in FY21, offshore exploration & development drilling in FY22 FY20 H2 FY21 FY22 Otway offshore • Minerva Gas Plant FID Minerva Gas Plant EXECUTE • Minerva Gas Plant operating OP3D FID & Proceed
Slide 35: Manta
Manta Next phase of Gippsland development with 121 PJ gas and 3 MMbbl liquids 2C Contingent Resource1 The Opportunity SELECT Phase underway • Second phase Gippsland gas development • Manta-3 well design • Additional gas exploration potential in deeper Manta reservoirs • Engagement with rig contracto
Slide 36: Manta gas and liquids resource
Manta gas and liquids resource Contingent Resource with exploration potential Manta Contingent Resource1 estimate 1C 2C 3C Condensate MMbbl 2.2 3.4 5.4 Gas PJ 78 121 190 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbbl 1.0 1.5 2.3 Condensate MMbbl 6.8 12.9 25.9
Slide 37: Gippsland exploration acreage
Gippsland exploration acreage Two permits located adjacent to producing or produced fields VIC/P72 • Adjoins Patricia Baleen • Seismic inversion study conducted • Economic screening of prospects underway • Commitment of 1 exploration well VIC/P75 • Granted September 2019 • Commitment to conduct seis
Slide 38: Reserves and Contingent Resources at 30 June 2019
Reserves and Contingent Resources at 30 June 2019 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Developed Sales gas PJ 0 15 0 15 0 24 0 24 0 36 0 36 Oil + Cond MMbbl 1.1 0.0
Slide 39: Executive Leadership Team
Executive Leadership Team Managing Director Chief Financial Officer David Maxwell Virginia Suttell David Maxwell has over 30 years’ Virginia Suttell is a chartered accountant experience as a senior executive with with more than 25 years' experience, companies such as BG Group, Woodside including 20
Slide 40: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Cooper Energy has completed its own estimation of Reserves and Contingent Resources for its fully-operated Gippsland Basin assets, and elsewhere based on information provided by the permit Operators (Beach Energy Ltd for PEL 92, Senex Ltd for Worrior Fi
Slide 41: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED front end engineering and design kbbl thousand barrels m metres MMbbl million barrels of oil MMboe million barrel