Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Euroz Hartleys Institutional Conference 2022
21 slides from Amplitude Energy's conference presentation, Mar 11, 2022
Slide 1: Southern Australia Gas Supply
Athena gas pipeline cutover site 11 March 2022 Southern Australia Gas Supply Euroz Hartleys Institutional Conference
Slide 2: Disclaimer
Disclaimer This presentation may contain forward looking statements, including statements of current intention, statements of opinion and expectations regarding Cooper Energy’s present and future operations, possible future events and future financial prospects. Such statements are not statements of
Slide 3: Introduction
Introduction Elements for a successful Emerging themes growing gas business ➢ Gas supply tight ✓ Record results across key RESOURCE financials ➢ Energy markets volatility Affordable, cost competitive, proven deliverability, long-life, well located relative to market ✓ Step change production and ➢ In
Slide 4: Net zero carbon emissions
Net zero carbon emissions Pursuing partnerships and emission reductions - maintain long-term net zero objective • Continued partnership with Greening Australia and Opt-in Gas Carbon Neutral Product Certification Biodiverse Carbon for the Coorong Biodiversity Project • Enables sale of ‘carbon neutral
Slide 5: Domestic gas market dynamics support new developments
Domestic gas market dynamics support new developments ACCC’s latest gas inquiry report illustrates rapidly declining southern gas production ACCC forecast supply and demand in the Southern states (PJ pa) • Since 2020 the total forecast supply 500 from 2P reserves in the Southern Total 2P Supply 2020
Slide 6: Reliance on Queensland gas to meet southern demand
Reliance on Queensland gas to meet southern demand Growing influence of LNG pricing on domestic gas prices as southern supply declines • Recent trend illustrates LNG producers purchasing ACCC: LNG producers’ net contributions to the east coast gas market more 3rd party gas than gas supplied to domes
Slide 7: A strengthening domestic gas price outlook
A strengthening domestic gas price outlook LNG netback an increasing influence on domestic gas prices Forecast gas prices ($/GJ)1 • Increasing influence of global LNG prices on 12 domestic gas prices Forecast 11 Otway & • LNG netback price is becoming the point of Gippsland, VIC indifference for dom
Slide 8: Cooper Energy - twin hub strategy driving sustainable growth
Cooper Energy - twin hub strategy driving sustainable growth Strategically located gas supply portfolio combining Otway and Gippsland basins • Proven, cost competitive hydrocarbon basins connected to south- eastern markets • Athena Gas Plant1 returned to service on 10 December 2021 ➢ processing at 2
Slide 9: Gas hubs positioned where gas supply is needed
Gas hubs positioned where gas supply is needed Sydney, Melbourne and Adelaide - largest domestic gas market in Australia 2021 South east Australia demand by state and supply by basin • Demand exceeds local supply NSW Demand 111 PJ R&C mass SA Demand 74 PJ market1, GPG, 5% • Cooper Energy’s gas hubs
Slide 10: Gippsland Basin gas hub - balanced production and sales
Gippsland Basin gas hub - balanced production and sales Improving OGPP processing rates + managed GSA1 reshape reduced MDQ2 from 1 January 2022 ✓ 100% customer gas nominations met ✓ Ongoing OGPP optimisation of process parameters ✓ GSA1 reshape with AGL reduced maximum daily quantity from Sole GSAs
Slide 11: Gippsland Basin gas hub
Gippsland Basin gas hub Prolific hydrocarbon basin connected and close to south-eastern markets ✓ 100% Cooper Energy ownership of all permits ✓ Recent performance improvement ✓ APA undertaking work to further increase rates ✓ Production, appraisal and exploration opportunities ✓ Manta appraisal and
Slide 12: Otway Basin gas hub
Otway Basin gas hub Integrated operation, growing gas supply and free cash flow with high quality prospects ✓ Proven cost competitive hydrocarbon basin connected to south- eastern markets ✓ Athena Gas Plant returned to service in Q2 FY22 ➢ low-cost, owned and operated gas processing infrastructure ➢
Slide 13: Future growth potential
Future growth potential High value growth pipeline - producing, development and exploration prospects via two gas hubs Prospective Resource 755 PJ Gippsland exploration, 2 prospects (unrisked recoverable sales gas) Production4 Contingent Resource 121 PJ1 Gippsland Manta 2C to be appraised next drill
Slide 14: Wrap up
Wrap up Cooper Energy is ideally positioned to deliver sustained growth ✓ Base existing business (~70 TJ/day, COE share) with increasing production and margin ✓ Increasing long-term cash flows underpinned by balance of term gas sales agreements with blue chip customers and spot gas sales ✓ Robust ga
Slide 15: Q&A
Q&A Shad Patterson David Maxwell Athena Gas Plant
Slide 16: Average annual spot prices
Average annual spot prices JKM LNG Oil Victoria Spot Gas US$/MMBtu US$/bbl A$/GJ 25 100 12 20 80 10 8 15 60 6 10 40 4 5 20 2 0 0 0 2020A 2021A 2022F 2020A2021A 2022F 2020A 2021A 2022F Source: Cooper Energy analysis of AEMO, ACCC LNG netback price series, and broker forecast data 16
Slide 17: Step-change in total gas production and sales volumes
Step-change in total gas production and sales volumes OGPP improvements and AGP now online provides stability and enables future growth Daily average gas production rates (TJ/day) 2P Reserves, contracted and uncontracted by term (PJ) as at 30 June 2021 60 TJ/day Contracted 1 year or less 50 TJ/day (
Slide 18: Headline financial metrics
Headline financial metrics Impressive half-on-half improvement across all metrics • Gas revenue increased 103% to $88.8 million from $ million unless indicated H1 FY22 H1 FY21 Change commencement of Sole GSAs1 and increased Sole production Production (MMboe) 1.57 1.20 ▲ 31% • Oil and condensate reve
Slide 19: Reserves and Contingent Resources at 30 June 2021
Reserves and Contingent Resources at 30 June 2021 1P (Proved) 2P (Proved & Probable) 3P (Proved, Probable & Possible) Reserves1 Cooper Otway Gippsland Total Cooper Otway Gippsland Total Cooper Otway Gippsland Total Developed Sales gas PJ – 6.7 164.3 171.1 – 11.2 226.8 238.0 – 14.1 309.3 323.4 Oil an
Slide 20: Cooper Energy tenements
Cooper Energy tenements1 Otway Basin (Victoria): Gippsland Basin: Cooper Basin: Otway Basin (onshore): 1Please refer to Cooper Energy’s 2021 Annual Report for further information regarding tenement interests 20
Slide 21: Abbreviations
Abbreviations $ Australian dollars PPL Petroleum Production Licence APA APA Group (ASX: APA) PRL Petroleum Retention Lease bbl Barrels scf Standard cubic feet of gas Bcf Billion cubic feet of gas TJ Terajoules bopd Barrels of oil per day YTD Year to date Cooper Energy Cooper Energy Limited ABN 93 09
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