Origin Energy Limited · ASX:ORG
Origin Energy — UBS Australasia Conference 2015
17 slides from Origin Energy's conference presentation, Nov 16, 2015
Slide 1: Focused, fitter, stronger
ORIGIN ENERGY Focused, fitter, stronger Grant King, Managing Director UBS Australasia Conference 16-17 November 2015
Slide 2: Important Notices
Important Notices Forward looking statements This presentation contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. Such statements are not statements of fact and there can be no certainty of outcome in re
Slide 3: Important Notices (cont)
Important Notices (cont) A reference to Australia Pacific LNG or APLNG is a reference to Australia Pacific LNG Pty Limited in which Origin holds a 37.5% shareholding. Origin’s shareholding in Australia Pacific LNG is equity accounted. A reference to $ is a reference to Australian dollars unless spec
Slide 4: On track to deliver on capital initiatives from entitlement offer
Origin is on track to deliver on capital initiatives announced as part of the recently completed entitlement offer, creating a focused, fitter, stronger Origin FOCUSED FITTER STRONGER Track record of strong and stable ENERGY cash flows Strengthened Balance MARKETS Diversity and duration of gas p
Slide 5: Energy Markets Highlights
ENERGY MARKETS HIGHLIGHTS Leading market position with 4.3 million1 Electricity, Natural Gas and LPG customer accounts and 29%2 share of NEM, with sales of 147 PJ3 of natural gas and 36 TWh3 of electricity, and a growing solar business Track record of strong and stable cash flows delivering 10%
Slide 6: Energy Markets is a mature and stable business delivering strong surplus cash flows
ENERGY MARKETS Energy Markets is a mature and stable business delivering strong surplus cash flows as capital expenditure reduces and improved EBIT/Sales margin driven by its gas position Energy Markets Segment Operating Cash Flow less Growth Capex EBIT / Sales Margin $m 1,000 15% 800 10% 600 400 5%
Slide 7: Diversity and duration of gas portfolio creates opportunities from growing gas demand
ENERGY MARKETS Diversity and duration of gas portfolio combined with extensive and flexible gas transport creates further opportunities to benefit from growing gas demand Sources of Energy Markets’ East Coast Gas Portfolio PJ/a 300 Other Purchases (Price Review) Other Purchases (Oil Linked) Other Pu
Slide 8: Flexible and diverse fuel and generation portfolio supplies 4.3 million customer accounts
ENERGY MARKETS Flexible and diverse fuel and generation portfolio supplies 4.3 million Electricity and Natural Gas customer accounts Resources Sales Thermal Electricity - owned Electricity FY2015 Renewable Electricity Electricity Gross Profit 36 TWh1 $1,289m Thermal Electricity - purchased Natural G
Slide 9: Integrated Gas Highlights
INTEGRATED GAS HIGHLIGHTS Benefiting from growing domestic and global gas markets APLNG 37.5% of Australia’s largest CSG to LNG project with 16,174 PJe of 3P reserves1 with a further of 5,012 PJe of 3C2 contingent resources 8.6 mtpa (510 PJe3 pa) of LNG contracts, 145 PJe pa of contracted dome
Slide 10: APLNG's reserves position is sufficient to support domestic and LNG contracts
INTEGRATED GAS APLNG’s reserves position is more than sufficient to support domestic and LNG contracts, with further resource upside in low permeability areas 100% APLNG Reserves and Resources1,3 APLNG’s Production Capacity PJ PJ/a 25,000 800 Potential sales upside As technologies (~100 PJe) 20,000
Slide 11: APLNG operating breakeven approximately US$24/bbl
INTEGRATED GAS APLNG is expected to have an operating breakeven of approximately $US24/bbl and distribution breakeven at approximately A$55/bbl oil on average during steady state operations from FY2017 Cash cost A$ A$/boe1 US$/boe2 (targeted average steady state FY17-23) Operating expenses (upstream
Slide 12: Planned asset sales to further strengthen the balance sheet
Planned asset sales to further strengthen the balance sheet • Planned asset sales of up to $800 million by FY2017, such as • Non-operated interests in Cooper and Perth basins • Wind assets with power purchase agreements • Infrastructure assets including Origin owned gas pipelines • Origin will disco
Slide 13: FY2016 is a transformational year for Origin
FY2016 is a transformational year for Origin as APLNG commences production FY2016 Underlying EBITDA (excluding LNG Underlying EBITDA) expected to be $1.45 - $1.55 billion 1 • Energy Markets contribution expected to be in line with the strong earnings achieved in FY2015 based on • Increasing gas sale
Slide 14: APLNG on track to deliver first cargo from Train 1
FY2016 is a transformational year for Origin as APLNG commences production APLNG is on track to deliver first cargo from Train 1 in November and Train 2 approximately 6 months later • Origin reaffirms that earnings from LNG sales expected to commence in H2 FY2016 following the Bechtel Performance Da
Slide 15: FY2017 expected to provide a step change in earnings
FY2017 is expected to provide a step change in earnings FY2017 Underlying EBITDA (excluding LNG Underlying EBITDA) expected to be $1.9 - $2.1 billion 1 • Strong growth expected in Energy Markets based on • Full year of sales to GLNG under long term contracts • Electricity margin expansion in NSW • S
Slide 16: On track to deliver a focused, fitter, stronger Origin
On track to deliver a focused, fitter, stronger Origin FOCUSED FITTER STRONGER Track record of strong and stable ENERGY cash flows Strengthened Balance MARKETS Diversity and duration of gas portfolio Sheet to benefit from growing gas demand Strong and stable Flexible and diverse fuel and Re-
Slide 17: Thank You
THANK YOU For more information Chau Le Group Manager, Investor Relations Email: chau.le@originenergy.com.au Office: +61 2 9375 5816 Mobile: + 61 467 799 642 www.originenergy.com.au 17