Genesis Energy Limited · NZX:GNE
Genesis Energy — Non-Deal Roadshow (July 2015)
19 slides from Genesis Energy's roadshow presentation, Jul 27, 2015
Slide 1: Kupe and Fuels Portfolio Strategy
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only GENESIS ENERGY KUPE AND FUELS PORTFOLIO STRATEGY Presentation at Woodward Partners Taranaki Investor Tour Rodney Deacon GROUP MANAGER STRATEGY & INVESTOR RELATIONS Steve Rawson COMMERCIAL MANAGER - KUPE July 2015
Slide 2: Disclaimer
WOODWARD PARTNERS TARANAKI INVESTOR TOUR DISCLAIMER For personal use only This presentation has been compiled by Genesis Energy Limited for information purposes only. This disclaimer applies to this document and the verbal and written comments of any person presenting it. Genesis Energy has taken re
Slide 3: A brief history of Genesis Energy's involvement in Kupe
WOODWARD PARTNERS TARANAKI INVESTOR TOUR 1975 - Kupe site originally drilled For personal use only by Shell 1986 – Kupe South-1 discovery drilled by NZOG A brief history of Genesis ECNZ Energy’s involvement in 1998 – 40% stake purchased (with Fletcher Challenge) from Western Mining Kupe 1999 – ECNZ
Slide 4: Kupe now
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only Kupe now ― GNE has 31% equity stake • Origin Energy 50% (operator) • NZ Oil and Gas 15% • Mitsui 4% ― GNE takes • 100% of gas off-take • 31% share of oil and LPG output ― GNE is the only one of the Kupe JV partners who is also a direct N
Slide 5: Genesis Energy's rationale for owning Kupe
WOODWARD PARTNERS TARANAKI INVESTOR TOUR Annual Kupe Gas Production (PJ) For personal use only 30 25 20 Genesis Energy’s PJ 15 10 rationale for owning 5 Kupe 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Source: Genesis Energy ― Original rationale was to provide security of gas supply for Huntly Unit
Slide 6: Kupe's place in Genesis Energy portfolio
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only Kupe’s place in Genesis Energy portfolio ― If GNE was purely an equity owner of the Kupe stake then managing its outputs would be relatively straight forward Source: Genesis Energy FY2015 figures 6
Slide 7: Kupe's place in Genesis Energy portfolio
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only Kupe’s place in Genesis Energy portfolio ― If GNE was purely an equity owner of the Kupe stake then managing its outputs would be relatively straight forward ― However, generation of electricity, the requirement to balance use of other f
Slide 8: Kupe natural gas production
WOODWARD PARTNERS TARANAKI INVESTOR TOUR Toal Kupe Gas Production Volumes (PJ) For personal use only Quarterly Production Volumes Rolling 12 months production volumes (RHS) 8 25 7 20 6 5 15 PJ PJ 4 3 10 Kupe natural gas 2 1 5 production 0 Source: Genesis Energy 0 ― Natural gas taken from Kupe is sol
Slide 9: Kupe oil production
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only Kupe Oil Production Volumes (kbbl) Quarterly Production Volumes Rolling 12 months production volumes (RHS) 200 600 180 540 160 480 thousand of barrels thousand of barrels 140 420 120 360 100 300 80 240 60 180 40 120 20 60 Kupe oil produc
Slide 10: Kupe LPG production
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only Genesis Energy’s estimated share of LPG volumes by segment Total Market Genesis Energy 60 7.5% of segment tonnes (000) 0.6% of segment 40 Kupe LPG 20 production 0 45kg Residential 45kg SME 9kg bottles Bulk Supply Forklift Auto Source: Ge
Slide 11: Kupe Gas Supply Agreements
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only Kupe Gas Supply Agreements ― The GSAs set out the terms by which GNE purchases gas from the Kupe JV partners ― The agreements are bound by certain gas volumes with each partner, rather than being strictly for “life of the field” ― Once c
Slide 12: Gas Usage and Thermal Generation
WOODWARD PARTNERS TARANAKI INVESTOR TOUR Gas Usage and Thermal Generation For personal use only Gas Used In Internal Generation (PJ) Thermal Generation (GWh - RHS) 4.0 800 3.5 700 3.0 600 2.5 500 GWh PJ 2.0 400 1.5 300 Gas used for electricity 1.0 0.5 0.0 200 100 0 generation Jul-09 Nov-09 Mar-10 Ju
Slide 13: Operational update
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only Brent Crude Oil Price 140 120 100 US$ per barrel 80 60 40 20 Operational update 0 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Source: Bloomberg ― Kupe production was increased in 2H 2015 to offset reduced international oil prices • Achieved by s
Slide 14: Kupe and Fuels Portfolio key points
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only Kupe and Fuels Portfolio key points ― GNE’s rationale for its shareholding in Kupe has changed in recent years, but it still delivers consistent gas, oil and LPG outputs and is a source of stable and predictable earnings ― Gas and liquid
Slide 15: Reminder of Genesis Energy investment case
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only REMINDER OF GENESIS ENERGY INVESTMENT CASE 15
Slide 16: Diverse earnings support consistent, reliable and attractive dividends
WOODWARD PARTNERS TARANAKI INVESTOR TOUR Diverse earnings support delivery of For personal use only consistent, reliable and attractive dividends 01 NEW ZEALAND’S 02 DIVERSE 03 OIL LARGEST AND AND GAS RETAILER FLEXIBLE DIVERSIFICATION OF ELECTRICITY AND GAS ELECTRICITY GENERATION THROUGH KUPE INVEST
Slide 17: New Zealand only focus, optimising fuel, generation and retail portfolio
WOODWARD PARTNERS TARANAKI INVESTOR TOUR 01 02 03 For personal use only NEW ZEALAND’S DIVERSE OIL LARGEST AND AND GAS RETAILER FLEXIBLE DIVERSIFICATION OF ELECTRICITY AND GAS ELECTRICITY GENERATION THROUGH KUPE INVESTMENT PORTFOLIO New Zealand only focus, optimising the portfolio of fuel, generation
Slide 18: Q&A
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only Q&A ― Note the following upcoming dates: • 29 July 2015 – announcement of Q4 2015 Operational Report • 25 August 2015 – announcement of FY2015 financial results 18
Slide 19: Thank you
WOODWARD PARTNERS TARANAKI INVESTOR TOUR For personal use only THANK YOU 19