Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (October 2022)
30 slides from Amplitude Energy's investor presentation, Oct 21, 2022
Slide 1: Investor Presentation
For personal use only Biodiversity Project, Coorong, South Australia October 2022 Investor Presentation
Slide 2: Disclaimer
Disclaimer For personal use only This document contains summary information about Cooper Energy and its activities as at the date of this document and should not be considered to be comprehensive or to comprise all the information which a shareholder or potential investor in Cooper Energy may requir
Slide 3: Cooper Energy—snapshot
Cooper Energy—snapshot The pure play on the Australian East Coast gas market For personal use only Introduction Market capitalisation and share register ✓ Domestic gas producer supplying structurally short South-east Australia gas market Ticker ASX:COE ✓ Net zero since FY20 & certified carbon neutra
Slide 4: Tightening East Coast Australia gas supply
Tightening East Coast Australia gas supply Market Cooper Energy Attractive gas market dynamics underwriting new developments For personal use only FY22 results & FY 23 outlook Southern states forecast supply/demand, ACCC (PJ pa)1, 2 Spot gas prices ($/GJ)3 500 60 Victorian spot price Sydney spot pri
Slide 5: Importance of gas grows, as coal reduces, in the NEM supply mix
Importance of gas grows, as coal reduces, in the NEM supply mix Market Cooper Energy Coal plant outages in Q2 2022 provided an insight into a decarbonised future For personal use only FY22 results & FY 23 outlook Large ▼ in coal-powered generation, Q2 2022 v Q2 20211 Large ▲ in gas powered generatio
Slide 6: Cooper Energy—net zero since FY20
Cooper Energy—net zero since FY20 Market Cooper Energy Independently audited and certified by Climate Active For personal use only FY22 results & FY 23 outlook ✓ Committed to maintaining net zero status ✓ Building a portfolio of offset generation projects ✓ Partner of choice ✓ Ability to market carb
Slide 7: Cooper Energy—the pure play on Australia’s East Coast gas market
Cooper Energy—the pure play on Australia’s East Coast gas market Market Cooper Energy Net zero today and a bias to early life-cycle reserves For personal use only FY22 results & FY 23 outlook Gippsland, Otway & Bass Basins, net remaining WoodMac commercial reserves (MMboe)1 Gippsland Basin JV Cooper
Slide 8: Twin hub access to South-east Australia gas market
Twin hub access to South-east Australia gas market Market Cooper Energy Strengthened operating expertise across integrated upstream and midstream gas projects For personal use only FY22 results & FY 23 outlook Otway Basin Adelaide Gippsland Basin NSW • Cooper Energy – 50% and operator • 100% owned a
Slide 9: Orbost Gas Processing Plant acquired in July 2022
Orbost Gas Processing Plant acquired in July 2022 Market Cooper Energy Consolidates Gippsland Basin gas hub; set for future development For personal use only FY22 results & FY 23 outlook Average TJ/d ✓ Consolidates Gippsland Basin gas hub 55.9 ✓ Drives earnings and cashflow boost from FY23 ✓ 33% inc
Slide 10: Otway Basin gas hub
Otway Basin gas hub Market Cooper Energy Foundation to develop Cooper Energy’s proven and prospective Otway gas portfolio For personal use only FY22 results & FY 23 outlook Otway phase-3 development • Development of Annie gas discovery 64.8 PJ 2C (100% basis)1 through Athena • Currently in the Devel
Slide 11: Exploration success rates in the Offshore Otway Basin are world class
Exploration success rates in the Offshore Otway Basin are world class Market Cooper Energy 94% success rate for seismic amplitude supported prospects For personal use only FY22 results & FY 23 outlook Waarre Formation seismic amplitude map showing target prospects • 29 exploration wells drilled in t
Slide 12: Gippsland Basin gas hub
Gippsland Basin gas hub Market Cooper Energy Foundation to develop Cooper Energy’s proven and prospective Gippsland gas portfolio For personal use only FY22 results & FY 23 outlook Manta Contingent Resource estimates1 1C 2C 3C Gas PJ 78 121 190 Condensate MMbbl 2.2 3.4 5.4 • Future development optio
Slide 13: Best-in-class gas price realisations
Best-in-class gas price realisations Market Cooper Energy In-built inflation protection. All contract prices reset to market 2024—2028 For personal use only FY22 results & FY 23 outlook Average Group realised gas prices, $/GJ1 Cooper Energy gas sales agreements Cooper Energy Includes third Peer 1 pa
Slide 14: Increasing exposure to higher term and spot gas prices
Increasing exposure to higher term and spot gas prices Market Cooper Energy Group annual contracted gas quantities (Gippsland/Sole1 + Otway/Casino Henry Netherby) For personal use only FY22 results & FY 23 outlook 2 TJ/day PJ/annum Existing price (indexed) (approximately) 30 Buyer extension option 3
Slide 15: Material upside value at elevated spot prices
Material upside value at elevated spot prices Market Cooper Energy Fixed-cost base provides substantial operating leverage For personal use only FY22 results & FY 23 outlook Combined Sole + OGPP daily contribution to FY23 EBITDAX, A$’0001,2 1,500 Average spot gas price, A$/GJ Q2 CY22 Q3 CY22 Victori
Slide 16: Record FY22 results during a transformational year
Record FY22 results during a transformational year Market Cooper Energy Underpinned by commencement of gas production from Athena and Orbost improvements For personal use only FY22 results & FY 23 outlook Outstanding Lost time incidents TRIFR1 Carbon emissions safety and environment performance 0 0.
Slide 17: FY23 guidance: production, u-EBITDAX & capex
FY23 guidance: production, u-EBITDAX & capex Market Cooper Energy Growth trajectory to continue driven by higher gas production and resultant cash generation For personal use only FY22 results & FY 23 outlook FY23 production: 3.7—4.0 MMboe FY23 u-EBITDAX: $120—150MM FY23 maintenance/growth capex: $2
Slide 18: Growth staircase
Growth staircase Market Cooper Energy High value twin hub growth pipeline of producing, development and exploration prospects For personal use only FY22 results & FY 23 outlook 121 PJ2 Production (MMboe) 1 (Manta 2C Contingent Resource) Manta (Gippsland) 286 Bcf3 (Near field exploration, Otway explo
Slide 19: Near term activity
Near term activity Market Cooper Energy High value twin hub growth pipeline of producing, development and exploration prospects For personal use only FY22 results & FY 23 outlook Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Comments Polishing unit adds capacity ✓ ✓ Step up in processing rates/spot sales Step up
Slide 20: Summary: strong fundamentals and sustained material growth
Summary Market Cooper Energy: strong fundamentals and sustained material growth Cooper Energy For personal use only FY22 results & FY 23 outlook Outstanding market ✓ Attractive South-east Australia gas market fundamentals ✓ Structurally short supply with increasing gas prices ✓ Enabling decarbonisat
Slide 21: Appendix
For personal use only Appendix
Slide 22: AEMO data—2022 integrated system plan for the NEM
AEMO data—2022 integrated system plan for the NEM Market Cooper Energy Gas in the Australian East Coast energy mix For personal use only FY22 results & FY 23 outlook Forecast changes in NEM generation (2022 ISP), GW 15 Distributed solar PV ▪ NEM represents ~20% of total East Coast demand for gas Sto
Slide 23: OGPP transaction consideration/payments
OGPP transaction consideration/payments Market Cooper Energy Deferred payments linked to plant performance during transition For personal use only FY22 results & FY 23 outlook Transaction consideration/payments (A$ million) Average rate 1st 2nd 3rd 4th during APA Upfront deferred deferred performanc
Slide 24: Growth pathway: maturing a broad portfolio of opportunities
Growth pathway: maturing a broad portfolio of opportunities Market Cooper Energy High graded exploration and appraisal prospects to feed Cooper Energy’s twin gas hubs For personal use only FY22 results & FY 23 outlook Development / Future exploration options1 Near Term Exploration1 Appraisal2 Produc
Slide 25: Reserves and Contingent Resources at June 2022
Reserves and Contingent Resources at 30 June 2022 Market Cooper Energy Summary, refer further to ASX announcement on 22 August 2022 For personal use only FY22 results & FY 23 outlook 1P (Proved) 2P (Proved & Probable) 3P (Proved, Probable & Possible) Reserves1 Cooper Otway Gippsland Total Cooper Otw
Slide 26: Cooper Energy tenements
Cooper Energy tenements1 Market Cooper Energy Summary For personal use only FY22 results & FY 23 outlook Otway Basin (onshore South Australia and Victoria) Otway Basin (Victoria) Gippsland Basin (Victoria) 26 Cooper Basin (South Australia)
Slide 27: Footnotes
Footnotes By page For personal use only Slide 4 1. Source: Cooper Energy analysis of January 2022 ACCC Gas Inquiry Report 2. Supply includes Cooper Basin, Otway Basin and Gippsland Basin. Demand includes VIC, NSW, SA, ACT and TAS 3. AEMO data 4. Source: ACCC short-term and medium-term LNG netback pr
Slide 28: Footnotes (cont’d)
Footnotes (cont’d) By page For personal use only Slide 14 1. Indicative annual contract quantity volumes shown assuming OGPP firm capacity of 55 TJ/d 2. Fixed price indexed to CPI 3. Buyer option to extend under current terms 4. Price review subject to +/-20% movement in gas price 5. Scope for parti
Slide 29: Footnotes (cont’d)
Footnotes (cont’d) By page For personal use only Slide 25 1. Reserves and contingent resources were announced to the ASX on 22 August 2022. Totals may not reflect arithmetic addition due to rounding. The method of aggregation is by arithmetic sum by category. As a result, the 1P and the 1C estimates
Slide 30: Notes on calculation of Reserves and Contingent Resources
Notes on calculation of Reserves and Contingent Resources PRMS For personal use only Cooper Energy prepares its petroleum Reserves and Contingent Resources in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2018 Petroleum Resources Management System (PRMS).