Slide 1: 2008 Interim Results
For personal use only 2008 Interim Results 21 August 2008 1 Disclaimer & 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
Slide 2: Results Highlights & Strategy: Sound Operating Performance
For personal use only Results Highlights & Strategy David Knox CEO 3 Sound Operating Performance 2008 Interim Result Change on 1H07 Production 27.6 mmboe (8%) Sales Revenue $1,384 million 14% EBITDAX $1,032 million 6% Net Profit After Tax $304 million 58% Underlying Net Profit $289 million 30% Opera
Slide 3: The Santos Strategy
The Santos Strategy Using quality assets, Santos will safely deliver: Reliable base business in Australia Eastern Australia: price and volume growth For personal use only Cooper Oil: high-value scaleable exploitation opportunity WA: exploit asset position Significant growth in LNG GLNG: tran
Slide 4: Strategy Delivery in 2008: Significant growth in LNG
Strategy Delivery in 2008 Significant growth in LNG Sale of 40% interest in 3 GLNGTM to PETRONAS for For personal use only US$2.5 billion* Dual GLNGTM pre-FEED 3 commenced by Bechtel and Foster Wheeler Gas Agreement signed for 3 PNG LNG and project entry to FEED Receipt of US$2 billion from 3 PETRON
Slide 5: Reported & underlying profits higher
Reported & underlying profits higher $m 320 15 304 62 4 289 280 Significant Exploration For personal use only Expensed Items* 240 30 223 193 Operating 200 Significant Items* 160 Items* 120 80 40 0 1st Half 2007 Underlying Underlying 1st Half 2008 Reported NPAT 1st Half 2007 1st Half 2008 Reported NP
Slide 6: Sales revenue up on higher prices
Sales revenue up on higher prices $m 424 (142) 1600 (129) 16 For personal use only 1450 FX Gas 1,384 rates Prices Volume 1300 1,215 Mix 1150 Liquids Prices 1000 850 700 1st Half 2007 1st Half 2008 11 Production costs higher as expected $m (35) 257 240 (11) 211 Costs 200 New Fields/ 160 Volume 120 80
Slide 7: Operating costs
Operating costs Half Year Half Year 2008 2007 Production costs 257 211 For personal use only Pipeline tariffs, tolls and costs 38* 26 Royalties 50 32 Total Operating Costs 345 269 * Includes $13 million additional provision for Moonie pipeline restoration costs 13 Cash margin per barrel up by 21% Ca
Slide 8: EBITDAX up by 6%
EBITDAX up by 6% $m 1500 1350 298 (129) For personal use only 1200 (48) (22) (56) Mix 11 1,032 1050 978 Prod MBP Costs Costs Other Other 900 Prices Income 750 600 450 1H07 other income: 300 Bayu Undan redetermination 44 150 Sale QGC shares 12 0 1st Half 2007 1st Half 2008 15 Operating cash flow up 3
Slide 9: 2008 Capital Expenditure Outlook
2008 Capital Expenditure Outlook (A$ million) 2008 2007 For personal use only Exploration 230 150 Exploration Evaluation 75 157 Development 1,195 1,000 TOTAL 1,500 1,307 Acquisitions 5 95 17 Capital Management Plan A comprehensive suite of initiatives Off market share buy back of $300 million In
Slide 10: Santos: Leading the Way in CSG to LNG
For personal use only Looking Forward David Knox CEO 19 Santos: Leading the Way in CSG to LNG 3 Resource Captured Freehold land acquired 3 for liquefaction facilities Significant project 3 status awarded Environmental 3 applications lodged Pre-FEED by Foster 3 Wheeler and Bechtel PETRONAS selected a
Slide 11: PNG LNG Builds Towards FID
PNG LNG Builds Towards FID PNG LNG is moving toward final investment decision… Pre FEED work on two train 6.3 mtpa plant 9 Marketing Representative For personal use only Agreement 9 Juha Hides & Angore Kutubu & Agogo Coordinated Development Gobe and Operating Agreement 9 Gas Agreement 9 Mari
Slide 12: An Australian Company Providing Energy for Australia and Asia
An Australian Company Providing Energy for Australia and Asia Through: For personal use only Delivering the base Tapping our resource riches Being a great place to work …and do it all safely and sustainably to deliver a superior shareholder return 23 Q&A 24
Slide 13: 2008 Forward Exploration Schedule
For personal use only Reference Slides 2008 Forward Exploration Schedule Well Name Basin / Area Target Upside Resource Potential (mmboe) Santos Timing Comments Interest 0 – 50 50 - 100 100 - 500 % Bay of Bengal / Hatia 1 Bangladesh Gas 9 37.5 Q1 08 Gas Discovery Johnson 1 Barrow / Australia Oil 9 37
Slide 14: Eastern Australia Gas - Milestones
Eastern Australia Gas - Milestones Project 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FEED FID Startup Fairview CSG For personal use only 115 TJ/Day Henry Discovered FEED FID Startup (VIC/P44 July 2005 Stage 2) Discovered FID Startup Kipper 1986 Patricia- FEED Startup Pre-FEED FID Baleen
Slide 15: LNG Growth - Milestones
LNG Growth - Milestones Project 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Pre-FEED FEED FID Gladstone Startup For personal use only LNG Hides Field Pre-FEED FEED FID Discovered PNG LNG 1987 Startup Discovered Startup DLNG 1 1995 (Bayu Undan) Ichthys North 1 Well Drilled Browse Pre-produ
Slide 16: Prices & Exchange Rates
Prices & Exchange Rates Half Year Half Year Change 2008 2007 % For personal use only Realised Oil Prices (USD/bbl) 113.08 68.19 +66 AUD/USD Exchange Rate 0.9383 0.8189 +15 (after hedging) Realised Oil Price (AUD/bbl) 120.51 83.27 +45 Gas Prices (AUD/GJ) 4.00 3.84 +4 31 Underlying Profit – Operating
Slide 17: Significant Items (after tax)
Significant Items (after tax) Half Year Half Year $m 2008 2007 Net profit after tax 304 193 For personal use only Significant items: Remediation and related costs of Moonie to Brisbane pipeline incident 16 - Capital losses not previously brought to account (28) - Change in fair value of embedded der
Slide 18: Exploration & Evaluation Expensed
Exploration & Evaluation Expensed Half Year Half Year $m 2008 2007 For personal use only Incurred Expensed Incurred Expensed Seismic, G&G, studies 54 49 73 74 Drilling 124 59 59 27 Total 178 108 132 101 $64m of E&E expensed in 1H08 was incurred in areas subject to a royalty related income tax regime
Slide 19: Capital Expenditure
Capital Expenditure FY08 Half Year 2008 - $706m Half Year 2007 - $628m EA Gas 443 190 169 338 For personal use only Cooper Oil 266 139 190 356 WA Oil & Gas 258 110 29 134 LNG incl CSG 308 154 148 297 Asia/International 203 96 71 140 Corporate 22 17 21 42 Full Year 2008 - $1,500m Full Year 2007 - $1,
Slide 20: 2008 Second Half Sensitivities
2008 Second Half Sensitivities Sensitivity Change NPAT Impact A$m For personal use only US dollar oil price US$1/bbl 9 Gas price 10 cent/GJ 6 A$/US$ exchange rate 1 cent 7 Interest rates 1% - 39 Restatement of 2007 Comparatives – Royalty Related Taxes Impact of Per financial of new Restated report I
Slide 21: Contact Information
Contact Information Registered and head office Andrew Nairn Share Register Group Executive Investor Relations Adelaide Level 10, Santos Centre Ground Floor, Santos Centre Direct: + 61 8 8116 5314 60 Flinders Street Facsimile: +61 8 8116 5131 For personal use only Adelaide, South Australia 5000 Email