Slide 1: 2011 Full-year results
For personal use only 2011 Full-year results 17 February 2012 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 reasonab
Slide 2: 2011 delivery
For personal use only 2011 Full-year results David Knox Managing Director & CEO 2011 delivery Target Delivery Safety TRCFR 3.3, best performance in company history Production 47.2 47 2 mmboe mmboe, within guidance range Projects delivered on plan Spar: on time and budget Chim Sáo: on time an
Slide 3: Safety / Underlying net profit up 20%
Safety For personal use only A balanced focus on personnel and process safety Personnel safety Process safety TRCFR performance Safety critical compliance long-term trend (employees and contractors) Total recordable ccase frequency rate (per 7 99.8% 100% hours worked) 6 5 95% 4 33 3.3 million h 90%
Slide 4: Working with local landholders and communities
Working with local landholders and communities For personal use only Australia’s largest domestic gas producer, Santos has a 50-year track record of safe, sustainable operations We W are committed itt d tto working ki with ith llocall llandholders dh ld and d contributing to communities We wil
Slide 5: Production impacted by GLNG sell down
Production impacted by GLNG sell down For personal use only Production mmboe 60 59.1 54.4 54.4 51-55 49.9 50 47.2 40 30 20 10 0 2007 2008 2009 2010 2011 2012 guidance 2011 production impacted by 15% sell-down of GLNG (1.9 mmboe), flooding in Cooper Basin and cyclones offshore Western Australia 2
Slide 6: Production costs increased by 4%
Production costs increased by 4% For personal use only $m Cash production costs 700 $m 610-640 600 543 556 532 537 500 449 400 300 200 100 0 2007 2008 2009 2010 2011 2012 guidance 2011 costs higher due to flood recovery in the Cooper Basin and commencement of production from Chim Sáo Higher cost
Slide 7: Net profit reconciliation
Net profit reconciliation For personal use only Net profit after tax $m 500 216 (43) (40) (16) (40) (29) 56 215 (66) 753 1,000 900 216 (66) 800 753 216 (43) 700 (40) (16) (40) 56 600 (29) 500 500 400 300 200 100 0 2010 Prices & Sales Effective Prod’n DD&A E&E Net Gain on Other 2011 foreign volumes t
Slide 8: Operating cash flow remains strong
Operating cash flow remains strong For personal use only Operating cash flow $m 1,500 1,385 $m 1,273 2 3 1,253 1,214 1,200 1,155 900 600 300 0 2007 2008 2009 2010 2011 Consistent cash flow generation from the base business 15 Capital expenditure $m Capital expenditure 4,000 3,750 3,500 3,069 3,000
Slide 9: $7.5 billion of funding capacity
$7.5 billion of funding capacity For personal use only Balance sheet capacity to fund execution of business strategy and minimise financing risk Available liquidity Debt maturity profile A$ billion A$ million 8 1,800 7 1,600 6 1,400 1,200 5 1,000 4 800 3 600 2 400 1 200 0 0 2012 2014 2016 2018 2020
Slide 10: Santos vision and strategy
For personal use only 2011 Full-year results David Knox Managing Director & CEO Santos vision and strategy LNG markets LNG CHANNEL DOMESTIC CHANNEL Focused Strong Asian A leading g Australian growth energy base company in Australia and Asia A leading gas producer in high-growth markets 20 10
Slide 11: Delivering 80-90 mmboe of production by 2020
Delivering 80-90 mmboe of production by 2020 For personal use only Reindeer and Wortel now producing; Fletcher Finucane sanctioned Upside potential Aust: Cooper shale, Amadeus, Zola, Production Winchester, Sole LNG: PNG LNG T3, Browse, Caldita/Barossa mmboe b Asia: Chim Sáo upside, Dua, Bay of Benga
Slide 12: High-impact WA campaign in 2012
High-impact WA campaign in 2012 For personal use only Exciting drilling campaign, including three offshore Santos- operated rigs Territory of Ashmore & Cartier Browse Basin gas Islands Legend Indian Exploration - Crown Santos acreage Ocean Northern Oil field Carnarvon Basin gas Territory Gas field
Slide 13: Cooper infill: 6-well pad underway
Cooper infill: 6-well pad underway For personal use only Undrilled slots 6 well slots prior to rig mobilisation 25 Cooper unconventional Unconventional resource gas plays to be explored in 2012 Moomba field Moomba 191 shale gas well Dedicated vertical shale gas well drilled in December 2011 with c
Slide 14: GLNG project
GLNG project For personal use only First LNG exports expected in 2015; construction progressing well 7.8 7 8 mtpa, mtpa US$16 billion two two-train train project Santos operator and 30% equity interest Recent activities include: − Two deliveries of gas transmission pipeline received − First 28
Slide 15: PNG LNG project
GLNG material offloading facility, Curtis Island For personal use only 1 February 2012 29 PNG LNG project On track for start-up in 2014 6.6 mtpa, US$15.7 billion two-train development, operated by ExxonMobil Santos 13.5% equity Project progressing well, recent milestones include: − Commenced p
Slide 16: Growth in Indonesia
PNG LNG plant construction For personal use only 31 Growth in Indonesia Wortel delivered on-budget; growth opportunities Wortel delivered in January 2012, on-budget on budget Wortel − Extends economic life of Oyong Madura Island − Gas prices in excess of US$5/mmbtu Surabaya Peluang FID targeted
Slide 17: Vietnam next steps / Summary
Vietnam next steps For personal use only Dua oilfield Chim Sáo online in October 2011, Chim Sáo north-west oil discovery Dua production 25,000 bbl/day development − Chim Sáo NW to be drilled in Q3 2012 area − Explore upside potential of Chim Sáo Chim Sáo oilfield − Potential for significant resour
Slide 18: Reference slides
For personal use only 2011 Full-year results 17 February 2012 Reference slides 18
Slide 19: Production cost and cost of sales / Business unit EBITDAX
Production cost and cost of sales For personal use only Cash production costs Total cost of sales $m $m 600 1600 550 Third party 1400 $162 product $229 500 purchases 450 1200 400 1000 350 300 800 Cost of $537m $556m $1,300 produced 250 $1,333 600 hydrocarbons1 200 150 400 100 200 50 0 0 2010 2011 20
Slide 20: 2012 exploration schedule
2012 exploration schedule For personal use only Santos Well Name Basin / Area Target Timing Interest % Tardrum Bowen CSG 50 Successful Beam 1 Beam-1 Carnar on Carnarvon Gas 45 Q1 Hoss-1 Carnarvon Oil 37.3 Q2 Indonesia CSG South Sumatra CSG 60 Q2/Q3 Chim Sáo NW-1 Nam Con Son Oil 31.875 Q3 Crown-1 Bro