Slide 1: 2012 Full-year results
For personal use only 2012 Full-year results 22 February 2013
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. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range
Slide 3: 2012 Delivery
2012 Delivery For personal use only Production growth Production up 10% to 52.1 mmboe Record sales revenue up 18% to $3.2 billion Earnings growth Underlying net profit up 34% to $606 million Cashflow growth Operating cashflow up 32% to $1,658 million PNG LNG over 75% complete, first LNG in
Slide 4: Safety performance
Safety performance For personal use only Lost time injuries at five-year low Safety performance Rate per (employees and contractors) million hours Record 19 million work worked hours in 2012 8 Total recordable case frequency LTIFR at 5-year low rate (TRCFR) 6 5.0 TRCFR increased to 5.0 however
Slide 5: 2012 Full-year results
For personal use only 2012 Full-year results Andrew Seaton CFO
Slide 6: Underlying net profit up 34% to $606m
Underlying net profit up 34% to $606m For personal use only 2012 Full-year result Change on 2011 Production 52.1 mmboe 10% Sales revenue $3,220 million 18% EBITDAX (excluding asset sales) $1,869 million 17% Net profit after tax $519 million 31% Underlying net profit $606 million 34% Operating cashfl
Slide 7: Production increased by 10%
Production increased by 10% For personal use only Production mmboe 60 53-57 54.4 54.4 49.9 52.1 47.2 45 30 15 0 2008 2009 2010 2011 2012 2013 guidance 2012 production up 10%, driven by Carnarvon gas, Chim Sáo and Cooper oil 2013 guidance unchanged at 53-57 mmboe, driven by Fletcher Finucane oil
Slide 8: Sales revenue increased by 18%
Sales revenue increased by 18% For personal use only Sales revenue $million 3,600 3,220 2,981 2,721 2,700 2,333 2,364 1,800 900 0 2008 2009 2010 2011 2012 Oil Sales gas, ethane and LNG Condensate and LPG Sales revenue up 18% to a record $3.2 billion, driven by a 33% increase in crude oil productio
Slide 9: Underlying net profit up 34%
Underlying net profit up 34% For personal use only $million Net and underlying profit after tax 1200 1,800 1,650 1000 800 753 606 600 548 500 519 434 453 400 376 257 200 0 2008 2009 2010 2011 2012 NPAT Underlying NPAT Full-year underlying profit up 34% due to higher liquids volumes and gas prices,
Slide 10: Net profit reconciliation
Net profit reconciliation For personal use only Net profit after tax $million 1,000 71 13 (400) 89 (32) (22) 800 753 22 600 25 519 400 200 0 2011 Prices and Volume Production Depreciation Taxes Other Gain on asset Impairment 2012 foreign costs and depletion sale exchange 10
Slide 11: Production costs up as new assets on line
Production costs up as new assets on line For personal use only Production costs Breakdown of 2012 cost increase $million $/boe 660 630-660 14 $61m 600 556 New 543 532 537 12 assets $12.7 500 $11.8 $11.7 $10.8 10 $10.0 $9.8 400 8 300 6 $29m Shut- $25m 200 downs Cost 4 inflation 100 2 $10m Mainte- na
Slide 12: Strong growth in operating cashflow
Strong growth in operating cashflow For personal use only Operating cashflow $million 2,000 1,658 1,500 1,385 1,273 1,253 1,155 1,000 500 0 2008 2009 2010 2011 2012 Operating cashflow up 32% to $1,658 million due to higher sales receipts and lower taxes paid, partially offset by higher operating c
Slide 13: Capital expenditure
Capital expenditure For personal use only Capital expenditure $million (includes capitalised interest) 4,500 4,220 Capitalised interest 4,000 Exploration 3,359 Asia 3,069 WA&NT 3,000 Eastern Australia 1,882 PNG LNG 1,629 1,557 1,500 GLNG 0 2008 2009 2010 2011 2012 2013 guidance 2012 capex higher a
Slide 14: GLNG capex effectively hedged
GLNG capex effectively hedged For personal use only 70% A$ capex, hedged by A$ cashflows & A$2.2bn cash GLNG US$18.5 billion1 capex by currency GLNG capex from FID to end 2015 Euro At FID FX rates1 At spot FX rates2 USD US$bn A$bn A$bn AUD 100% Project 18.5 21.5 20.5 Santos 5.6 6.4 6.1 30% share 1 F
Slide 15: $5.8 billion of funding capacity
$5.8 billion of funding capacity For personal use only Balance sheet capacity to fund execution of current business strategy and minimise financing risk Available liquidity Debt maturity profile A$ billion A$ million 1.0 6 1,800 Notes mature in 0.5 2070, with Santos 2.1 option to redeem in 2017 4 1,
Slide 16: 2013-15 Sources and uses of funds
2013-15 Sources and uses of funds For personal use only No requirement for additional funding 2013-15 Sources and uses of funds 2013-15 Sources and uses of funds at US$100/bbl oil A$ billion at US$75/bbl oil A$ billion 12 12 $2.9 billion Undrawn facilities Undrawn and cash $1.9 billion facilities 10
Slide 17: 2P reserves increased to 1,406mmboe
2P reserves increased to 1,406mmboe For personal use only 180% 2P reserves replacement in 2012 260% from 2003 to 2012 Santos 2P reserves 2P reserves reconciliation 2003 to 2012 mmboe mmboe 1,600 1,600 1,379 (129) 1,440 1,445 1,406 1,406 1,364 1,200 1,200 1,013 879 819 774 800 800 636 643 636 (480) 4
Slide 18: GLNG reserves and resources
GLNG reserves and resources For personal use only GLNG has over 8,300 PJ of dedicated 2P reserves and 2C resources at the end of 2012 GLNG dedicated 2P & 2C GLNG dedicated 2P reserves grew (GLNG share) PJ by 12% in 2012 to 6,721 PJ 10,000 9,491 9,295 Deliverability focused drilling 8,359 campaig
Slide 19: Strong growth in Cooper Basin reserves
Strong growth in Cooper Basin reserves For personal use only Cooper Basin 2P sales gas reserves up 40% in two years, in a time of rising east coast gas demand Cooper Basin 2P sales gas reserves (Santos share) PJ 1,400 Added 479 PJ Santos share 1,213 2P sales gas reserves in 2011 1,200 1,130 and 20
Slide 20: Delivering the strategy
For personal use only Offshore installation vessel, Fletcher Finucane Delivering the strategy David Knox Managing Director & CEO
Slide 21: Santos vision and strategy
Santos vision and strategy For personal use only LNG markets LNG CHANNEL DOMESTIC CHANNEL Focused Strong Asian A leading Australian growth energy base company in Australia and Asia A leading gas producer in high-growth markets 21
Slide 22: Delivering 80-90 mmboe of production by 2020
Delivering 80-90 mmboe of production by 2020 For personal use only 6% CAGR production growth 2011-2020 Upside potential Aust: Zola, Winchester, Sole, Pedirka Basin mmboe LNG: PNG LNG T3, Browse, Caldita Barossa 90 Asia: Vietnam, Indonesia CSG 80 Likely Likely sanction sanction Aust: Gunnedah 70 LNG:
Slide 23: Fletcher Finucane first oil ahead of schedule
Fletcher Finucane first oil ahead of schedule For personal use only Project is over 85% complete and first oil is expected ahead of schedule by mid-2013 Santos 44% and operator Three-well subsea tieback to Mutineer-Exeter FPSO − FPSO is undergoing planned dry docking in Q1 2013 and is due back t
Slide 24: Dua on track for first oil in first half of 2014
Dua on track for first oil in first half of 2014 For personal use only Project is over 35% complete and on track Santos 31.875%, Premier Oil operator Dua field located 15km NE of Chim Sáo Three-well subsea tieback to Chim Sáo FPSO Installation of the main pipeline commenced early February
Slide 25: PNG LNG on track for first LNG in 2014
PNG LNG on track for first LNG in 2014 For personal use only Project is over 75% complete Santos 13.5%, ExxonMobil 33.2% and operator Recent milestones include: − Komo nearing completion ahead of first cargo flights − Major foundations at Hides Gas Conditioning Plant are complete with piping and
Slide 26: Komo airfield nearing completion
Komo airfield nearing completion For personal use only 26
Slide 27: Upstream construction progressing
Upstream construction progressing For personal use only 27
Slide 28: LNG plant construction well advanced
LNG plant construction well advanced For personal use only 28
Slide 29: GLNG on track for first LNG in 2015
GLNG on track for first LNG in 2015 For personal use only Project is 47% complete Key milestones delivered in 2012: − Over 15 million work hours worked across the project − 5,200 people working on the project at year end − 40% reduction in drilling costs for Roma deviated wells − Upstream gas hub
Slide 30: Lower well costs and drilling fleet
For personal use only 30 wells completion rigs 200 wells in 2013 drilling rigs and four − 40% reduction in drilling Current rig fleet of eight Expect to drill more than cost for Fairview deviated 2012 were deviated wells − >30% reduction in drilling Delivering lower well costs: Over 80% of w
Slide 31: Upstream construction
Upstream construction For personal use only Fairview and Roma gas hubs progressing well Two hubs at Fairview and one at Roma sanctioned at FID − 565 TJ/day gross compression capacity in addition to 170 TJ/day existing gross capacity at Fairview and Scotia − Site foundations well advanced and equip
Slide 32: Gas transmission pipeline
Gas transmission pipeline For personal use only 420 kilometre pipeline on track for Q2 2014 completion 420 kilometre 42” pipeline All pipeline manufactured and landed in Queensland 900 people working on pipeline at the end of 2012 Mainland section: − 143 kilometres of the right-of-way Mainla
Slide 33: Curtis Island
Curtis Island For personal use only 1 February 33 2013
Slide 34: Trains and
Trains 1 and 2 For personal use only 1 February 34 2013
Slide 35: LNG Tanks
LNG Tanks For personal use only Pictures Key milestones delivered in 2012: 1 February 35 2013
Slide 36: Downstream construction
Downstream construction For personal use only MOF LNG train module LNG Train 36 1 LNG Jetty
Slide 37: GLNG on track for first LNG in 2015
GLNG on track for first LNG in 2015 For personal use only Milestone Date First Curtis Island works May 2011 First permanent structural concrete for Feb 2012 Train 1 propane refrigeration compressors First concrete for LNG tanks – LNG Tank B July 2012 First module complete Feb 2013 First gas through
Slide 38: Unconventional acreage footprint
Unconventional acreage footprint For personal use only Since 2009 Santos has increased its unconventional acreage footprint onshore Australia four-fold to 231,000km2 (57m acres) McArthur Basin Cooper Basin Liquids-rich shale Success with play Moomba-191 Seismic 9-well exploration preparation
Slide 39: Cooper Basin REM shale play
Cooper Basin REM shale play For personal use only Program designed to replicate Moomba-191 success Moomba-191 gas production rate Moomba-191 continues to produce at stable mmscf/day 3.5 2.3 mmscf/day rate Roswell-1 vertical 3 monitoring well 2.5 successfully cased and suspended 2 Roswell-2 hor
Slide 40: Cooper - Basin centred gas discovery
Cooper - Basin centred gas discovery For personal use only Gaschnitz-1 exploration well confirms continuous gas accumulation in Nappamerri Trough; prospective multi-TCF basin centred gas play Gaschnitz-1 successfully cased and suspended - Upside gas-in-place evident: gas bearing through entire ~1,
Slide 41: Browse: Crown success unlocks material play
Browse: Crown success unlocks material play For personal use only Significant gas discovery at Crown, Bassett West drilling ahead Crown gas discovery (Santos 30% and operator) Dufresne Bassett West - 61 metres of net pay in Argus Jurassic-aged Montara, WA-274-P Plover and Malita sandstones WA-408-
Slide 42: Summary
Summary For personal use only Strong year of delivery with base business performing well; further production growth expected in 2013 All growth projects on track; Fletcher Finucane first oil ahead of schedule Strong balance sheet to fund growth; PNG LNG cashflows from next year Consistent tr
Slide 43: Reference slides
For personal use only Reference slides
Slide 44: Eastern Australia
Eastern Australia For personal use only Higher Cooper oil production, higher gas prices and early success with shale gas program Production EBITDAX (mmboe) ($million) Steady production of 22.3 mmboe as 666 higher Cooper Basin oil production 22.4 22.3 633 offset by lower Queensland conventional gas
Slide 45: Western Australia & Northern Territory
Western Australia & Northern Territory For personal use only Production growth driven by record Carnarvon gas output Production EBITDAX (mmboe) ($million) 18.7 Production increased by 18%, 791 792 driven by strong gas production at 15.8 John Brookes/Halyard and Reindeer EBITDAX in line with 2011
Slide 46: Asia Pacific
Asia Pacific For personal use only Chim Sáo drives higher oil production and EBITDAX Production EBITDAX (mmboe) ($million) 372 Production up 24%, driven by a full 9.3 year of oil production from Chim Sáo in Vietnam partially offset by lower 7.5 Indonesian gas production EBITDAX was up 137%, driv
Slide 47: 2013 guidance
2013 guidance For personal use only Item 2013 guidance Production (mmboe) 53-57 Production costs ($million) 630-660 DD&A expense ($/boe) 16.50 Royalty related taxation expense1 50 ($million after tax) Capital expenditure (including $4 billion exploration & evaluation)2 1 Royalty related taxation exp
Slide 48: 2013 exploration schedule
2013 exploration schedule For personal use only Well name Basin / area Target Santos Interest Timing % Bassett West-1 Browse Gas 30 Drilling Winchester-1 Carnarvon Gas 75 Q1 Dufresne-1 Browse Gas 30 Q2 – Q3 Cooper unconventional Cooper Gas 66.6 Q1 – Q3 Cooper NFE Cooper Gas Various Q3 – Q4 NSW CSG G
Slide 49: Significant items after tax
Significant items after tax For personal use only Full-year Full-year $million 2012 2011 Net profit after tax 519 753 Add/(deduct) significant items Net gains on asset sales (8) (408) Net impairments 77 102 Other 18 6 Underlying net profit 606 453 2012 net impairments primarily relate to the Sangu
Slide 50: 2013 full-year sensitivities
2013 full-year sensitivities For personal use only Sensitivity Change NPAT impact A$million US$ oil price +/-US$1/bbl +/-12 A$ gas price +/-10 cents/GJ +/-13 A$/US$ exchange rate +/-1 cent -/+12 50
Slide 51: Contact information
Contact information For personal use only Head office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Level 10, Santos Centre Adelaide, South Australia 5000 Direct: + 61 8 8116 5314 GPO Box 2455 Email: andrew.nairn@santos.com Adelaide, South Au