Slide 1: 2007 Full Year Results
For personal use only 2007 Full Year Results John Ellice-Flint - Chief Executive Officer Peter Wasow - Chief Financial Officer 21 February 2008 1. Disclaimer & Important Notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas indu
Slide 2: Webcast Agenda; Transforming Santos: a Leader in Asian Energy
Webcast Agenda John Ellice- Ellice-Flint CEO & Managing Director Result highlights, summary and outlook 2007 performance For personal use only Key strategic value drivers Eastern Australian gas LNG Delivering the strategy Conclusion 3. Transforming Santos: a Leader in Asian Energy A leader in Austra
Slide 3: Result highlights
Result highlights 2007 Full Year Result Change Production 59.1 mmboe (3%) For personal use only Sales Revenue $2,489 million (10%) EBITDAX $1,733 million (19%) NPAT $441 million (32%) Operating Cash Flow $1,214 million (22%) Full Year Dividend 40 cps Unchanged 2P Reserve Replacement Ratio 178% Total
Slide 4: Outlook
Outlook Strong reserves growth from existing discoveries • Contingent resources commercialized For personal use only Creating significant investment opportunities • Delineation, development and LNG facilities 2008 production outlook 56-58 mmboe • Return to growth in 2009 Project milestones provide c
Slide 5: Net Profit After Tax; Production
Net Profit After Tax (A$ million) Significant 800 Items For personal use only Net 42 (138) 700 643 (18) 27 Gas 600 Liquids (16) Prices (83) Prices in A$ Volume Operating 500 (53) 40 & Mix Costs 441 (3) DD&A 400 PRRT/ Other E&E APT Expensed 300 Ded’ns 200 2006 2007 NPAT NPAT Note: P&L movements alloc
Slide 6: Margins; EBITDAX
Margins Netback (A$/boe) Cash margin per boe sold Controllable Items 40 For personal use only 35 32.80 0.69 (1.53) 1.24 (0.49) (0.41) (1.50) 30.80 A$ Volumes Gas Costs Moonie to 30 Liquids PRRT/ & Mix Prices Brisbane Prices Pipeline APT 25 Remediation 20 15 10 2006 2007 11. EBITDAX (A$ million) 2,40
Slide 7: DD&A; Capital Investment
DD&A Higher industry costs driving up DD&A (A$ million) 900 For personal use only 800 (16) 759 (36) (87) 692 46 700 26 Other Infrastructure Lower assets 600 Reserves Future Volume Revisions Costs 500 400 300 200 2006 2007 $11.35/boe $12.84/boe 2008 forecast: ~$12.30/boe 13. Capital Investment (A$ mi
Slide 8: Cooper Basin Oil; Reserves Grow Strongly, at Low Cost
Cooper Basin Oil 2007 results below expectations, 2008 program at reduced pace 2007 actual • 132 wells, 73% success For personal use only • 2P reserves added 8 mmbbl • Capex $306m • Production rate ~ 9,100 bopd net to Santos • Full cycle F&D cost ~ A$45/bbl 2008 outlook • 94 wells, capex $260m • Pro
Slide 9: Contingent Resources Grow; Creating Strong Leverage
Contingent Resources Grow 2.6 bn boe (14.5 tcf) of contingent resource: 22% 3yr CAGR LNG 7.3 tcfe CSG 5.5 tcf For personal use only • PNG LNG • Fairview • Darwin LNG2 • Roma Other 160 mmboe East Aust Gas 0.7 tcfe • Asia: oil & gas • Cooper • WA: oil & gas • Otway 100% exposed to global pricing 17. C
Slide 10: Webcast Agenda; Santos' Five Business Areas
Webcast Agenda John Ellice- Ellice-Flint CEO & Managing Director Result highlights, summary and outlook 2007 performance For personal use only Key strategic value drivers Eastern Australian gas LNG Delivering the strategy Conclusion 19. Santos’ Five Business Areas LNG Asian Growth Inflection point i
Slide 11: GLNG Creates Value Inflection Point
GLNG Creates Value Inflection Point East Australian Gas LNG Darwin LNG1 For personal use only Cooper CSG PNG LNG East Qld to Darwin LNG2 Otway LNG Browse Gippsland Kutei LNG linked 300% pricing Gladstone LNG frees reserves Santos’ large gas resources growth from East Coast volume and price constrain
Slide 12: Energy Market Differentials; Santos' Leading CSG Acreage Position
Energy Market Differentials Prices available in domestic and export markets 14.00 Average Asian Domestic Australian 12.00 netback range (2) LNG Price (1) For personal use only 10.00 8.00 $A/GJ 6.00 4.00 2.00 Santos average realised gas price 0.00 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-
Slide 13: Santos: a Leader in Coal Seam Gas; Leader in East Australian Gas
Santos: a Leader in Coal Seam Gas Santos CSG reserves Santos operates 2 of top 5 fields growth actual forecast Coal Seam Gas Production 25 55 50 For personal use only 20 45 Productioion (mmcf/day) 40 35 15 30 tcf 25 10 20 15 5 10 5 0 0 2006 2007 2009 2013 w h ly h ia n t h t e y le ie ba ul St ot so
Slide 14: Implications for Value of Santos; Gladstone LNG
Implications for Value of Santos Eastern Australia gas value 14 Broker LNG 12 price forecasts, For personal use only netted back to 10 plant inlet value1 8 $A/GJ 6 4 Broker EA gas price forecasts 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Consensus High Low 1 Broker oil price forecasts convert
Slide 15: Gladstone LNG: Progress & Milestones; PNG LNG
Gladstone LNG: Progress & Milestones Progress • Freehold land acquired (up to 10 mtpa) • Queensland significant project status Coal Export For personal use only • Pre- Pre-FEED marine studies complete • Environmental applications lodged • Strong interest from potential partners: evaluation underway
Slide 16: Catalysts for 2008/09
Webcast Agenda John Ellice- Ellice-Flint CEO & Managing Director Result highlights, summary and outlook 2007 performance For personal use only Key strategic value drivers Eastern Australian gas LNG Delivering the strategy Conclusion 31. Catalysts for 2008/09 2008 2009 2010 2011 2012 2013 2014 >A$1bn
Slide 17: Delivery Track Record in 2007
Delivery Track Record in 2007 October 2007 For personal use only February 2007 July 2007 November 2007 May 2007 August 2007 December 2007 May 2007 September 2007 33. Webcast Agenda John Ellice- Ellice-Flint CEO & Managing Director Result highlights, summary and outlook 2007 performance Key strategic
Slide 18: Transforming Santos: a Leader in Asian Energy
For personal use only Transforming Santos: a Leader in Asian Energy A leader in Australia Legacy assets in exploitation phase, price growth Emerging Player in LNG Series of growth assets for globally priced gas Building Asian Position Extending franchise 35. Reference Slides 36.
Slide 19: 2008 Forward Exploration Schedule
2008 Forward Exploration Schedule Well Name Basin / Area Target Upside Resource Potential (mmboe) Santos Timing Interest 0 – 50 50 - 100 100 - 500 % Hatia 1 Bay of Bengal / Bangladesh Gas 9 37.5 Q1 08 Johnson 1 Barrow / Australia Oil 9 37.5 Q2 08 For personal use only Chim Ung 1 Nam Con Son / Vietna
Slide 20: East Java Portfolio Update; Mutineer-Exeter
East Java Portfolio Update Java Sea 0 50 kilometres Wortel Oyong Online Q2 2010 Online September 2007 Avg Production 40 - 60mmscf/d 45% Working Interest Kangean (Subject to FID) Avg Production 8,000bbls/d Islands For personal use only Madura Island Madura Offshore PSC Sampang PSC Jeruk Maleo Maleo S
Slide 21: Darwin LNG Train Update
Darwin LNG Train 1 Update • Increase in Santos Equity - 10.64% to 11.39% • Above budget 2007 For personal use only production • Excellent operating efficiency • Optimisation studies commenced to investigate de- bottlenecking opportunities 41. Darwin LNG Train 2 Update Santos 40% • Key seismic apprai
Slide 22: Reindeer Gas Project Update
Reindeer Gas Project Update Sanction of New Domestic Gas Processing Hub 1Q08 - Santos 45% - New onshore gas plant at Devils For personal use only Creek, 40km SW of Dampier • Facilities comprise - Offshore gas platform - 105km 16” subsea pipeline - Onshore gas processing (215 TJ/d) - Connection to Da
Slide 23: Sidoarjo Mudflow Incident
Sidoarjo Mudflow Incident Estimated Insurance Net Costs Accrual Expensed $m $m $m For personal use only December 2007 Pre-tax 97 22 75 Post-tax 97 22 75 December 2006 Pre-tax 89 22 67 Post-tax 89 22 67 Change Post-tax 8 - 8 45. EBITDA reconciliation $m 2007 EBITDA1 as reported 1,496 Amounts typicall
Slide 24: Underlying Profit; 2008 Sensitivities
Underlying Profit $m 2007 2006 NPAT 441 643 Significant Items: For personal use only Impairment write-down - 14 Gain on asset sales - (41) USA loss on sale 68 - Sidoarjo mud-flow incident 8 67 Gain on sale investments (33) - Moonie pipeline incident costs 26 - Embedded derivatives revaluation loss/(
Slide 25: Prices & Exchange Rates
Prices & Exchange Rates Change 2007 2006 % Realised Oil Price (US$/bbl) 80.35 67.71 19 For personal use only Realised Oil Price (A$/bbl) 92.10 89.35 3 Average Gas Price A$/GJ 3.95 3.71 6 A$/US$ Exchange Rate 87.24 75.78 (15) (after hedging) 49.