Apa Group · ASX:APA
Apa — Australian Pipeline Trust — Shareholder Meeting (October 2004)
20 slides from Apa's shareholder meeting presentation, Oct 20, 2004
Slide 1: Australian Pipeline Trust Managing Director's Presentation
Australian Pipeline Trust Managing Director’s Presentation Jim McDonald Sydney, 20 October, 2004
Slide 2: Agenda
Agenda Operational Review Acquisition of the Southern Cross Pipeline Group assets. Gas supply for south-east Australia. APA’s Strategy Industry rationalisation - consolidation and diversity 2
Slide 3: Gas Pipelines 2004
Gas Pipelines 2004 APA pipelines Other pipelines AGT CGP GGT RBP MWP MSP CWP PGP APA Pipeline s 2004 Amade us Gas - AGT Ca rp entaria Gas Transmissio n - CGP Ce ntra l West - CWP Goldfie lds Ga s Transmissio n - GGT Mid West Pip eli ne - MWP Moomb a to Sydne y - MSP 7 ia Ga s - PGP Parmel Ro ma to B
Slide 4: Operational Review
Operational Review Innovative Haulage Contracts Roma to Brisbane – Transportation Agreement with Incitec Pivot to commence from 1 October 2007. Gas supplied - coal bed methane. – Transportation agreement with Energex on a spot basis to existing peaking gas-fired power stations. – AGL - Santos / Orig
Slide 5: Operational Review Cont'd: Moomba Gas Plant Fire
Operational Review Cont’d Moomba Gas Plant Fire – Fire at Santos Moomba gas plant in January 2004 disrupted gas supplies – APA met all contractual obligations – No financial impact due to GTD – Moomba now back in full production 5
Slide 6: Operational Review Cont'd: X-Strata mine closure
Operational Review Cont’d X-Strata mine closure in WA – Write-off of Mid West Pipeline following closure of vanadium mine – Meekathara mineral province may offer opportunities from further mine development 6
Slide 7: Operational Review Cont'd: Stress Corrosion Cracking
Operational Review Cont’d Stress Corrosion Cracking – Identified on MSP in remote areas of SA. – Pressure management plan implemented. – Further investigation planned - intelligent pig. – Repair and rehabilitation program being prepared. 7
Slide 8: Industry Rationalisation
Industry Rationalisation Industry rationalisation is now nearly complete. Bid costs of $5.8 million were necessary to ensure APA did not over bid. APA was successful in acquiring Southern Cross Pipeline Group assets at a good price. 8
Slide 9: Consolidation & Diversity
Consolidation & Diversity Industry rationalisation may now lead to consolidation of major gas industry players. APA will consider diversity of asset portfolio through complementary businesses (other fluid pipelines, power generation, power transmission). Diversity will require APA to obtain new skil
Slide 10: Western Australia
Western Australia Broome NORTH WEST SHELF Port Hedland Dampier Onslow Newman GOLDFIELDS GAS TRANSMISSION Carnarvon PIPELINE Mt Magnet DONGARA Geraldton PROCESSING Windimurra FACILITY Kalgoorlie PARMELIA PIPELINE MONDARRA PERTH Esperance FACILITY 10
Slide 11: Acquisition Overview
Acquisition Overview Goldfields Pipeline – 1,380km pipeline – Transports competing gas streams from Harriet and East Spar, NW Shelf to North Eastern and Eastern Goldfields regions in WA – Capacity 105 TJ/d increasing to 164 TJ/d under full compression Major Customers – WMC - MDQ 45.8 TJ/d – Newmont
Slide 12: GGT Growth
GGT Growth Projects under active consideration – Thunderbox Gold - 1.5TJ/d transport contract. – Esperance Lateral – Paraburdoo Iron Ore – Murrin Murrin Expansion Spot Market Development – arising from potential shortage of gas transportation on DBNGP. – Power generated in Kalgoorlie area to be prov
Slide 13: Acquisition Overview cont'd
Acquisition Overview cont’d Parmelia Parmelia gas business – 416km gas pipeline (capacity - 70TJ/d) – Mondarra storage (capacity 6-9PJ) – Dongara gas processing plant – Small Gas Retail business Customers – 24 active contracts - approx 35 TJ/d – long-term contracts to process gas at Dongara gas proc
Slide 14: Growth Potential
Growth Potential Spot market Connection to Alinta Network Pipeline connection between Perth Basin and Perth & southern industrial centres Mondarra Gas storage services 14
Slide 15: Benefits of Acquisition
Benefits of Acquisition Advancing Strategic Goals Positive financial impact on APA (cash and earnings accretive) Enhanced footprint in WA Sound long-term prospects Commercial control by APA Diversification of APA’s portfolio 15
Slide 16: Portfolio Diversification
Portfolio Diversification MSP Reliance Reduced APA 2004 Revenues APA 2004 Revenues Pro forma pre-acquisition Pro forma post acquisition Other Other Parmelia 4% 3% 7% GGT MSP 22% 32% (55% SCP MSP revenue 41% share) (100% SCP GGT revenue 32% share) CGP 12% AGT 7% AGT RBP CGP RBP 9% 12% 9% 10% Note: GG
Slide 17: Gas Supply to South-East Australia
Gas Supply to South-East Australia Coal Bed Methane – becoming commercially viable and producers signing new contracts to supply CBM. PNG Highlands Gas Project – Oil Search has announced Front End Engineering Design program. – Full FEED Program expected to take 12- 18 months. – APA has a right to pa
Slide 18: Strategy
Strategy Continue to build profitability by: - - Filling our existing pipelines and expanding their capacity - Acquiring minority interests - Participating in industry rationalisation; - Diversifying asset base. Requires two- pronged approach: • diversifying asset dominance; • considering complement
Slide 19: Summary
Summary Fourth years of compound profit growth. Acquisitions enhancing and balancing asset portfolio. Balance sheet in good shape. APA positioned for industry consolidation and diversification of asset base. 19
Slide 20: We Deliver
We Deliver www.pipelinetrust.com.au
Australian Pipeline Trust — Shareholder Meeting (October 2004) on 6ix