Amplitude Energy Limited · ASX:AEL
Amplitude Energy — H1 FY2022 Earnings Presentation
31 slides from Amplitude Energy's earnings presentation, Feb 21, 2022
Slide 1: FY22 half year results and outlook
Athena pipeline cutover site 21 February 2022 FY22 half year results and outlook
Slide 2: Highlights
Highlights Record results Step change in Strong across key production fundamentals financials delivered and support improving continuing growth Image: Athena pipeline cutover site and Main Line Valve
Slide 3: Record production, sales revenue and EBITDAX
Record production, sales revenue and EBITDAX Step change delivered Production (MMboe) +31% • 31% production increase and 96% revenue increase in H1 FY22 Production and revenue growth 1.57 • FY22 full year production guidance of 3.0 – 3.4 MMboe (FY21: 2.63) 1.20 H1 FY21 H1 FY22 • $92.2 million cash r
Slide 4: Orbost Gas Processing Plant
Orbost Gas Processing Plant Orbost Gas Processing Plant Improved operating performance and Phase 2B works update • Improved performance in rate with testing of higher rates ongoing • Optimisation of OGPP parameters included improvement in in both rate and extended cleaning intervals • APA has advise
Slide 5: Sole production and GSA sales volumes
Sole production and GSA sales volumes Improved OGPP processing rates + managed GSA reshape which reduced MDQ1 from 1 January 2022 TJ/day Sole GSA MDQ (calendar 2021: 59.7 TJ/d, calendar 2022: 47.7 TJ/day) 60 • 100% customer gas nominations met 50 • 46.5 TJ/day average Sole production 40 via the OGPP
Slide 6: Step-change in total gas production and sales volumes
Step-change in total gas production and sales volumes OGPP improvements and AGP now online provides stability and enables future growth Daily average gas production rates (TJ/day) 2P Reserves, contracted and uncontracted by term (PJ) as at 30 June 2021 60 TJ/day Contracted 1 year or less 50 TJ/day (
Slide 7: Health, Safety and Environment
Health, Safety and Environment Continual improvement across all operations Health • One COVID-19 case reported in the period Safety metrics H1 FY22 H1 FY21 (cumulative eleven cases as of 18 February 2022) Hours worked 122,057 109,072 • Otway production not impacted with effective management and miti
Slide 8: Net zero carbon emissions
Net zero carbon emissions Pursuing partnerships and emission reductions to maintain long-term net zero objectives • Continued partnership with Greening Australia and Opt-in Gas Carbon Neutral Product Certification Biodiverse Carbon for the Coorong Biodiversity Project • Enables sale of ‘carbon neutr
Slide 9: Communities update
Communities update Working with communities where we operate to create legacies and options for the future Royal Flying Doctor Service - Victoria 16 Partnership with Royal Flying Doctor is helping deliver critical eye care to patients in East organisations supported Gippsland. 24 clinical hours and
Slide 10: Financial results
Financial results Athena Gas Plant Control Room
Slide 11: Headline financial metrics
Headline financial metrics Impressive half-on-half improvement across all metrics • Gas revenue increased 103% to $88.8 million from $ million unless indicated H1 FY22 H1 FY21 Change commencement of Sole GSAs1 and increased Sole production Production (MMboe) 1.57 1.20 ▲ 31% • Oil and condensate reve
Slide 12: Demonstrated liquidity management
Demonstrated liquidity management Strengthened cash flows due to commencement of the Sole Gas Sales Agreements $ million • Ample liquidity maintained during execution of the 250 Sole development 200 • Debt facility repayments commenced in FY21 150 100 • Strict focus on optimal capital and cost manag
Slide 13: Reconciliations
Reconciliations $ million H1 FY22 H1 FY21 $ million H1 FY22 H1 FY21 Statutory loss after tax (5.9) (23.1) Underlying loss after tax (6.0) (17.4) Adjusted for: Adjusted for: Restoration income (6.4) (2.2) Net finance costs (incl. accretion) 6.7 7.0 OGPP reconfiguration / commissioning 6.3 11.2 Tax ex
Slide 14: Underlying NPAT movements
Underlying NPAT movements Strong improvement with further benefit expected via minimal exposure to gas purchases in H2 FY22 • Higher gas revenue due to commencement of $ million Sole GSAs and higher oil revenue due to higher prices 1.7 • Cost of sales impacted by: – $15.2 million increase in product
Slide 15: Movement in cash
Movement in cash Cash increased after $18.7 million in debt servicing, highlighting improved operating cash flows $ million (8.8) (2.8) 44.0 0.3 (4.7) (5.7) (0.3) (5.2) (1.6) (14.0) (0.3) 126.5 123.7 124 119.3 119.3 Operating cash flow 113.6 113.3 Other cash 108.1 flow 106.5 91.3 91.3 $28.0 million
Slide 16: Gas market
Gas market Orbost Gas Processing Plant
Slide 17: Domestic gas market dynamics support new developments
Domestic gas market dynamics support new developments Continuing trend of tight gas supply and rapidly declining southern gas production Southern gas 2P production and demand (PJ)1 • Projected supply shortfall of ~80 PJ by 2025 and rapidly growing • Queensland CSG and LNG imports expected to meet sh
Slide 18: A strengthening domestic gas price outlook
A strengthening domestic gas price outlook LNG netback an increasing influence on domestic gas prices Forecast gas prices ($/GJ)1 12 Forecast • Increasing influence of global LNG prices on domestic gas prices 11 Otway & Gippsland, VIC • LNG netback price is becoming the point of 10 indifference for
Slide 19: Reliance on Queensland gas to meet southern demand
Reliance on Queensland gas to meet southern demand Growing influence of LNG pricing on domestic gas prices as southern supply declines • Downward trend in quantities supplied by the QLD LNG producers into the domestic market • Recent trend illustrates LNG producers purchasing more 3rd party gas than
Slide 20: Growth
Growth Athena Gas Plant
Slide 21: Twin gas hub strategy driving sustainable growth
Twin gas hub strategy driving sustainable growth Concentration around processing hubs in the Otway and Gippsland basins ✓ Proven, cost competitive hydrocarbon basins connected to south- eastern markets ✓ Athena Gas Plant1 returned to service on 10 December 2021 ➢ Currently processing at 28 TJ/day, o
Slide 22: Otway Basin gas hub
Otway Basin gas hub Integrated operation enabling growing gas supply and free cash flow with high quality prospects ✓ Proven cost competitive hydrocarbon basin connected to south-eastern markets ✓ Athena Gas Plant returned to service in Q2 FY22 ➢ low-cost, owned and operated gas processing infrastru
Slide 23: Gippsland Basin gas hub
Gippsland Basin gas hub Prolific hydrocarbon basin connected to south-eastern markets ✓ 100% Cooper Energy ownership of all permits ✓ Recent performance improvement ✓ APA undertaking work to further increase rates ✓ Production, appraisal and exploration opportunities ✓ Potential new exploration play
Slide 24: Wrap up
Wrap up Step-change in gas production and revenue delivered with further growth in H2 FY22 ✓ Current gas production of ~60 TJ/day (H1 FY21: 36 TJ/day) ✓ Stable long-term cash flows underpinned by gas sales agreements with blue chip customers ➢ reprofiled Sole MDQ reducing third party gas purchases ✓
Slide 25: Q&A
Q&A Shad Patterson David Maxwell Athena Gas Plant
Slide 26: FY22 Guidance
FY22 Guidance FY22 guidance FY22 guidance FY21 Production 3.0 – 3.4 MMboe 2.63 MMboe Sales volume 3.7 – 4.0 MMboe 3.01 MMboe Underlying EBITDAX1 $53 – 63 million $30.0 million Capital expenditure2 $24 – 28 million $32.3 million 1 EBITDAX excludes any benefits that would arise due to commencement of
Slide 27: Headline financial metrics
Headline financial metrics $ million unless indicated H1 FY22 H1 FY21 Change H2 FY21 Change Production (MMboe) 1.57 1.20 ▲ 31% 1.43 ▲ 10% Sales volumes (MMboe) 2.02 1.21 ▲ 67% 1.80 ▲ 12% Sales revenue 95.4 48.6 ▲ 96% 83.1 ▲ 15% Average realised gas price ($/GJ) 7.44 6.35 ▲ 17% 7.22 ▲ 3% Underlying E
Slide 28: Reserves and Contingent Resources at June 2021
Reserves and Contingent Resources at 30 June 2021 1P (Proved) 2P (Proved & Probable) 3P (Proved, Probable & Possible) Reserves1 Cooper Otway Gippsland Total Cooper Otway Gippsland Total Cooper Otway Gippsland Total Developed Sales gas PJ – 6.7 164.3 171.1 – 11.2 226.8 238.0 – 14.1 309.3 323.4 Oil an
Slide 29: Cooper Energy tenements
Cooper Energy tenements1 Otway Basin (Victoria): Gippsland Basin: Cooper Basin: Otway Basin (onshore): 1Please refer to Cooper Energy’s 2021 Annual Report for further information regarding tenement interests 29
Slide 30: Abbreviations
Abbreviations $ Australian dollars PPL Petroleum Production Licence APA APA Group (ASX: APA) PRL Petroleum Retention Lease bbl Barrels scf Standard cubic feet of gas Bcf Billion cubic feet of gas TJ Terajoules bopd Barrels of oil per day YTD Year to date Cooper Energy Cooper Energy Limited ABN 93 09
Slide 31: Disclaimer
Disclaimer This presentation may contain forward looking statements, including statements of current intention, statements of opinion and expectations regarding Cooper Energy’s present and future operations, possible future events and future financial prospects. Such statements are not statements of