Slide 1: 2010 Half-year Results
For personal use only Chim Sáo wellhead platform topsides installation, July 2010 2010 Half-year Results 26 August 2010
Slide 2: Disclaimer & Important Notice
Disclaimer & Important Notice For personal use only This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by
Slide 3: 2010 Half-year Results – David Knox, Managing Director & CEO
For personal use only 2010 Half-year Results David Da id Knox Kno Managing Director & CEO
Slide 4: Sound Operating Performance
Sound Operating Performance For personal use only 2010 Half-year Result Change on 2009 Production 24.2 mmboe (9%) Sales Revenue $1,091 million 7% EBITDAX $655 million 1% Net Profit After Tax $198 million 94% Underlying Net Profit $210 million 121% Operating Cash Flow $537 million 8% Inte im Dividend
Slide 5: The Santos Strategy
The Santos Strategy For personal use only Using quality assets, Santos will safely deliver: Base business Eastern Australia: Margin growth and resource conversion Indonesia: Established business with incremental growth WA: Growing a material domestic gas business LNG growth GLNG: A leading C
Slide 6: Reserves and Resources for Growth
Reserves and Resources for Growth For personal use only mmboe CAGR 14% Reserves & resources/ production* 3 862 3,862 3,937 , 4000 3,474 3,067 3000 2,745 , 2,497 72 years 2,849 2,086 2,595 2000 2,248 1 971 1,971 1,443 1000 793 26 years 394 495 360 378 295 485 518 647 12 years 348 414 441 0 2004 2005
Slide 7: 2010 Half-year Results – Peter Wasow, Executive Vice President & CFO
For personal use only 2010 Half-year Results Peter Waso Pete Wasow Executive Vice President & CFO
Slide 8: Reported & underlying profits
Reported & underlying profits For personal use only 1st Half Reported Underlying NPAT $ $m NPAT 300 120 (5) 210 198 200 102 95 100 0 1st Half 1st Half 1st Half Prices & Other 1st Half 2009 2010 2009 foreign 2010 exchange 8
Slide 9: Production impacted by flooding
Production impacted by flooding For personal use only 2010 full year guidance mmboe 26.7 (0.2) (0.7) (2.0) (1.9) 2.3 24.2 off 49 to 52 mmboe b 30 unchanged 25 Wet weather and flood impact on Cooper 20 Basin production in first half was 2 mmboe 15 Stronger gas 10 production in WA and Indonesia
Slide 10: Sales Volumes and Revenue
Sales Volumes and Revenue For personal use only mmboe 40 29.0 28.5 Higher realised prices for 30 Purchased 28 2.8 allll products d Gas 35 3.5 20 Cooper gas sales volumes 26.2 Produced 25.0 met by production and gas 10 Reserves from storage 0 Higher volumes of third 1st Half 2009 1st Half 2010
Slide 11: Production Cost and Cost of Sales
Production Cost and Cost of Sales For personal use only Production Cost Total Cost of Sales $m $m 300 $266m $276m $23.82 $24.70 per boe per boe Gas 650 p purchases 200 Cost of 450 produced 100 hydrocarbons1 0 250 1st Half 2009 1st Half 2010 1st Half 2009 1st Half 2010 1 Includes production costs, ta
Slide 12: Segment EBITDAX Summary
Segment EBITDAX Summary For personal use only Seg e t Segment Half Year Half Year Change $m 2010 2009 % Eastern Australia 278 303 (8) WA&NT & 312 3 285 85 9 GLNG 15 5 200 Asia Pacific 65 54 20 Gain on sale of assets (3) 22 Corporate and unallocated items (12) (22) 45 TOTAL EBITDAX 655 647 1 Eastern
Slide 13: DD&A Declines by $37 million
DD&A Declines by $37 million For personal use only Rate Volume $m 314 (24) (13) 277 Lower Cooper volumes 350 drive lower depletion rate 300 250 2010 full year guidance of $11.70/boe 200 maintained 150 100 50 0 1st Half 2009 1st Half 2010 $11.76/boe $ / $11.45/boe $ / 13
Slide 14: Funding Growth
Funding Growth For personal use only Committed to maintaining current investment grade credit rating - Maintain strong liquidity profile to provide financial flexibility - Prudent management of capital through the cycle Strong liquidity with A$6.4 billion of cash and facilities Other funding o
Slide 15: 2010 Half-year Results – David Knox, Managing Director & CEO
For personal use only 2010 Half-year Results David Da id Knox Kno Managing Director & CEO
Slide 16: Moomba Plant, February 2010
Moomba Plant, February 2010 For personal use only 16
Slide 17: Reindeer gas plant, July 2010
Reindeer gas plant, July 2010 For personal use only 17
Slide 18: Chim Sao, July 2010
Chim Sao, July 2010 For personal use only Chim Sáo wellhead platform topsides installation, July 2010 18
Slide 19: LNG is a key component of Santos' Growth Strategy
LNG is a key component of Santos’ Growth Strategy For personal use only Strategy Bonaparte LNG Components 2 mtpa FLNG PNG LNG Santos 40% with carry to FID Sanctioned Dec 2009 6.6 mtpa two trains Deliver the First Fi t LNG 2014 Darwin LNG Base Business Production since 2006 Santos 13.5%
Slide 20: Strategy Delivers Material LNG Growth
Strategy Delivers Material LNG Growth For personal use only Santos equity LNG production GLNG T1 from existing discovered resources mtpa 6 BLNG 5 4 GLNG T2 3 GLNG T1 2 1 Excludes PNG LNG expansion PNG LNG Darwin LNG 0 2010 2020 Assumes Santos equity of 45% in GLNG 20
Slide 21: GLNG Milestones Achieved
GLNG Milestones Achieved For personal use only GLNG is progressing key milestones Two trains, five train site Project fully staffed GLNG Operations Pty Ltd, owned by the project shareholders, operates the pipeline and LNG plant FEED complete for upstream, pipeline and two trains on Curtis Is
Slide 22: GLNG Path to FID
GLNG Path to FID For personal use only FID in 2010 and first cargo in 2014 Federal environmental decision expected in October Complete further binding offtake q y sell down to underpin and equity p a two train project Santos maximum equity at FID expected to be 45% Final EPC costs 4Q 2010
Slide 23: GLNG Upstream Update
GLNG Upstream Update For personal use only Wells - 59 CSG wells were drilled for GLNG in 1H10 - Key successes with pad drilling and directional drilling in coals (24 wells) - 11 drilling d illi and d completion l ti rigs i devoted d t d to t CSG program Water - 1.3 1 3 million trees planted Up
Slide 24: Papua New Guinea LNG
Papua New Guinea LNG For personal use only PNG LNG Project construction commences FID approved pp Dec 2009 6.6 mtpa two trains Santos 13.5% Four Asian buyers Financial Close achieved March 2010 Earlyy works construction, facilities detailed design and procurement activities underway Fi
Slide 25: Summary
Summary For personal use only Continued delivery of Santos’ growth strategy Sound operating performance despite Central Australia flooding GLNG progressing to FID by year end PNG LNG construction underway Strong financial position to fund growth 25
Slide 26: Reference slides
For personal use only Reference slides
Slide 27: 2010 Guidance
2010 Guidance For personal use only Item 2010 G id Guidance Production (mmboe) 49 – 52 Production costs ($m) 560 – 580 DD&A expense ($/boe) 11.70 Royalty related taxation expense1 ($m after tax) 70 – 90 Capital expenditure (including exploration & 2,300 evaluation)2 ($m) 1 Royalty related taxation e
Slide 28: $6.4 billion of Funding Capacity
$6.4 billion of Funding Capacity For personal use only 30 June 2010 $m Cash & term deposits 2,405 2 405 Undrawn, committed corporate lines** 2,038 Undrawn, committed project line* 1,947 C h & committed Cash itt d debt d bt lines li 6 390 6,390 * Converted at 30 June 2010 exchange rate * *Commences o
Slide 29: EBITDAX
EBITDAX For personal use only Volume and Operating Gas Prices Mix Costs Purchases Other $m 647 156 (89) (24) (14) (21) 655 1,000 800 600 400 200 0 1st Half 1st Half 2009 2010 29
Slide 30: Significant items (after tax)
Significant items (after tax) For personal use only 1st Half 1st Half $m 2010 2009 Underlying profit 210 95 Significant g items ((12)) 7 Net profit after tax 198 102 Significant items included: Net (losses)/gains on sales and impairment losses (27) 16 Foreign currency gains/(losses) 3 (15) Fair valu
Slide 31: Second Half 2010 Sensitivities
Second Half 2010 Sensitivities For personal use only Sensitivity Change* NPAT Impact A$m US dollar oil price US$1/bbl 5 Gas price 10 cent/GJ 9 A$/US$ exchange rate 1 cent 4 Inte est rates Interest ates 1% 1 * Change from average YTD price/rate 31
Slide 32: Contact Information
Contact Information For personal use only Head office Andrew Nairn Adelaide Group Executive Investor Relations Ground Floor, Floor Santos Centre Level 10, 10 Santos Centre 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Facsimile: +61 8 8116 5131 GPO Box 2455 Email: andrew