Slide 1: 2009 Full Year Results: Delivering Transformational Growth
For personal use only 2009 Full Year Results Delivering Transformational Growth 18 February 2010 1 Results Highlights & Strategy David Knox CEO & Managing Director 2 1
Slide 2: 2009 Profits Impacted by Lower Product Prices
2009 Profits Impacted by Lower Product Prices For personal use only 2009 Full Year Result Oil Price A$78.83 per bbl Production 54.4 mmboe Sales Revenue $2,181 million Underlying Net Profit After Tax $257 million Net Profit After Tax $434 million Operating Cash Flow $1,155 million Final Dividend 20 c
Slide 3: Delivering Transformational Growth
Delivering Transformational Growth For personal use only Target Delivery 2009 production 54.4 mmboe in line with guidance Base Business 53 – 56 mmboe Next phase of projects Oyong Phase 2 (Indonesia) – first gas delivered on schedule on schedule Henry (Vic) – first gas 1H10 Kipper (Vic) – fir
Slide 4: Reported & Underlying Profits
For personal use only 2009 Full Year Results Peter Wasow Executive Vice President & CFO 7 Reported & Underlying Profits Reported NPAT Underlying NPAT $m 1750 1650 1500 1250 1000 750 548 (341) 500 434 50 257 250 0 2008 2009 2008 Prices & Operating 2009 foreign result exchange 8 4
Slide 5: Production on Guidance
Production on Guidance For personal use only New Natural production Production from decline and Asset and field continuing sales downtime productivity operations grows mmboe 54.4 (0.8) 53.6 (3.1) 3.9 54.4 0.8 mmboe 60 Natural decline and 50 effect of downtime 40 events offset by new production 3
Slide 6: Production Cost, Cost of Sales Lower
Production Cost, Cost of Sales Lower For personal use only Production Cost Total Cost of Sales $m $m 600 1600 $9.99/ boe $9.78/ $25.50/ $23.67/ 550 boe boe boe 1400 Gas 500 Purchases 450 1200 Cost of 400 produced 1000 gas 1 350 300 800 2008 2009 2008 2009 1 Includes production cost, tariffs, tolls a
Slide 7: DD&A Declines by $50 million
DD&A Declines by $50 million For personal use only Rate Volume Additional reserve $m 662 57 (7) 612 700 bookings in Cooper and Indonesia drive lower 600 depletion rate 500 400 Slight increase in 300 depreciation on GLNG facilities 200 100 0 2008 2009 $12.17/boe $11.25/boe 13 $5 Billion of Fundin
Slide 8: Reserves Growth and Resource Conversion
Reserves Growth and Resource Conversion For personal use only Commercialisation mmboe p q mmboe 3000 2,849 (412) Acq 3000 Divest (342) Revisions 250 2,498 2500 2500 153 2000 2000 Commercialisation 378 (44) 1,440 1500 1500 Prod Revisions Acq/ 1,013 (54) 147 Div To cash 1000 1000 500 500 0 0 2008 2009
Slide 9: 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 2mtpa FLNG PNG LNG Santos 40% with carry to FID Sanctioned Dec 2009 6.6mtpa two trains Deliver the First LNG 2014 Darwin LNG Base Business Production since 2006 Santos 13.5% 3.6m
Slide 10: GLNG Milestones Achieved
GLNG Milestones Achieved For personal use only GLNG is progressing key milestones Two trains, five train site Downstream FEED 90% complete Upstream FEED 75% complete Binding off-take agreement Supplementary EIS lodged - Public submission period closed Long lead engineering orders placed
Slide 11: GLNG Upstream Update
GLNG Upstream Update For personal use only GLNG has a comprehensive program to prove up reserves and deliverability Wells Well Production Comparison - 130 CSG wells were drilled for March 2009 vs January 2010 GLNG in 2009 12 120 - Successful deviated drilling Gas Production Rate (TJ/d) trials: red
Slide 12: Summary
Summary For personal use only Continued delivery of Santos’ growth strategy Robust operating performance - Delivered 2009 production in line with original guidance - Costs lower Delivery of transformational LNG growth strategy Reserve growth and resource conversion Strong financial position
Slide 13: Reference slides: Significant Items
For personal use only Reference slides 25 Significant Items (after tax) $m 2009 2008 Underlying profit 257 548 Significant items 177 1,102 Net profit after tax 434 1,650 Significant items: Gain on sale of oil and gas assets/controlled entities 180 1,188 Impairment of oil and gas assets (17) (140) Pr
Slide 14: 2010 Guidance
2010 Guidance For personal use only Item 2010 Guidance Production (mmboe) 51 – 54 Production costs ($m) 540 - 560 DD&A expense ($/boe) 11.70 Royalty related taxation expense1 90 to 110 ($m after tax) Capital expenditure (including 2,800 exploration & evaluation)2 ($m) 1 Royalty related taxation expe
Slide 15: 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. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range