Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Investor Presentation (February 2019)
40 slides from Amplitude Energy's investor presentation, Feb 11, 2019
Slide 1: FY19 First half results & outlook
FY19 First half results & outlook Investor presentation 11 February 2019
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). Summary information: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Presentation a
Slide 3: Features of FY19 First half
Features of FY19 First half 1. Sole project performance: taken to 86% complete and within budget. 2. Finance position strengthened: funds released and available after redetermination. 3. Gas contracting stepping up: new Otway contracts in first half to be followed by new contract signings in second
Slide 4: FY19 First half key outcomes
FY19 First half key outcomes Gas revenue growth; Sole advancing, within budget; Otway gas exploration accelerated into FY19 • HSEC: zero recordable injury cases and zero reportable environmental incidents • Sole Gas Project: 86% complete, within budget and within schedule for gas to plant in June •
Slide 5: Health Safety Environment Community (HSEC)
Health Safety Environment Community (HSEC) Injury and incident free. Operator management systems developed and implemented plus ongoing improvement program driven by value of Care. Safety performance • TRIFR = 2.97 (FY18 TRIFR = 4.07) Total recordable injury and lost time injury frequency • Zero Los
Slide 6: Key financial results
Key financial results $ million unless otherwise indicated H1 FY19 H1 FY18 change Production MMboe 0.66 0.81 ▼ -15% Sales revenue 36.2 31.3 ▲ 16% Gross profit 16.7 14.1 ▲ 18% Gross profit/Sales revenue % 46.1 45.0% ▲ 2% Statutory profit before tax (10.4) 14.1 ▼ -173% Statutory profit/(loss) after ta
Slide 7: Statutory and underlying profit
Statutory and underlying profit Restoration expense the principal significant item 6 months ending 31 December 2018: $ million Net profit after tax (12.6) Adjustments for: Exit provision gain, Tunisia (0.8) Restoration expense 16.5 Tax impact -0.2 Underlying net profit after tax 3.1 • Significant it
Slide 8: First half underlying NPAT movement
First half underlying NPAT movement Higher gas revenue the major factor in higher underlying profit $ million Underlying $ NPAT million NPAT 0.4 (1.6) (2.2) 6.1 0.1 (0.6) (0.5) (0.8) 3.1 2.2 FY18 H1 Gas revenue Oil price impact Oil sales volume Cost of Sales Interest Finance costs Admin and other Ta
Slide 9: Movement in cash
Movement in cash Operating cash flow impacted by restoration costs, cash applied to capex $ million $ million (4.7) 59.5 (9.5) 21.9 (12.8) 1.9 (3.1) 0.2 19.0 (115.4) Cash & Cash & 236.9 Net operating cash flow 235.3 Financing & investing cash flow 193.9 deposits deposits (1.6) (41.4) Jun-18 Operatio
Slide 10: Funding
Funding Redetermination released funds and increased available debt • Redetermination of project finance facility which recognises Sole $ million 31 Dec 18 30 Jun 18 project performance and outlook Cash 193.9 236.9 • Variations to key terms include: Drawn debt 186.4 125.9 – facility to fund 60% of S
Slide 11: Production and sales generation
Production and sales generation Growth in gas sales revenue Production Sales revenue MMboe $ million 36 0.8 0.14 10.6 30 11.8 0.67 0.12 Crude oil 0.6 24 25.6 0.54 Gas 0.4 18 19.5 12 0.2 6 0.0 0 H1 FY18 H1 FY19 H1 FY18 H1 FY19 • Gas: – Casino Henry shutdown • New 2018 gas contracts – Minerva approach
Slide 12: Review of operations: offshore Otway Basin
Review of operations: offshore Otway Basin Sales under FY18 contracts, new contracts secured for FY19 Casino Henry First half production H1 FY19 H1 FY18 • Lower first half production due to scheduled maintenance shutdown & Sales gas PJ 3.28 3.87 Netherby-1 shut-in Condensate kbbl 2.4 3.6 • new gas c
Slide 13: Sole Gas Project
Sole Gas Project 86%1 complete, $281 million incurred and within budget. On schedule for gas to plant in June. Offshore project Onshore (APA) Shore Crossing Production wells Umbilical Pipeline Orbost Gas Plant ✓ Completed ✓ Completed □ To be completed: □ To be completed: □ To be completed: • Gas com
Slide 14: Southern states gas prices: ACCC view
Southern states gas prices: ACCC view Gas price and LNG netback trend 2019 expected prices Average monthly commodity prices offered for 2019 supply against Expected 2019 wholesale gas commodity prices in the East Coast Gas Market contemporaneous expectations of 2019 LNG netback prices (southern stat
Slide 15: Gas marketing
Gas marketing 120 PJ of uncontracted 2P reserves remains available to market 2P Gas supply profile Uncontracted contracted & uncontracted • First phase of FY19 gas marketing plans completed: PJ pa • 12 month contracts with Origin Energy and O-I from Contracted 1 January 19 • Second phase initiated:
Slide 16: Offshore Otway Basin exploration
Offshore Otway Basin exploration Prospect rich and favourable economics due to pipeline and plant access Seismic inversion and subsequent studies identified 2 leading candidates for drilling Gross unrisked Prospective Resource2 (billion cubic feet, Cooper Energy share 50%) Prospect Low (P90) Best (P
Slide 17: Annie prospect
Annie prospect Annie-1 is low risk and well defined • Subsurface / structure well defined on 3D seismic data • Faulted ‘3-way’ dip closure with well defined seismic amplitude ‘anomaly’ and seismic inversion (QI) gas indicator • High historical success rate (>80%) in Otway for wells drilled on anomal
Slide 18: Elanora prospect
Elanora prospect Elanora-1 is a strategic well with large upside potential • Subsurface / structure well defined on 3D seismic data • Faulted ‘3-way’ dip closure with well defined seismic amplitude ‘anomaly’ and seismic inversion (QI) gas indicator • High quality Waarre A primary reservoir target (s
Slide 19: Review of operations: Cooper Basin
Review of operations: Cooper Basin Low cost, cash-generating oil production Cooper Basin oil production Cooper Energy first half oil price cost & margin kbbl AUD/bbl 140 114.21 120 75.2 58.8 Gross margin 100 Q2 80 72.17 Q1 Direct 60 77.9 operating cost 62.0 61.2 39.7 40 36.3 Avge price 32.5 20 0 H1
Slide 20: FY19 second half drilling and development
FY19 second half drilling and development Sole moving to completion. Gas exploration drilling offshore and onshore Location Activity/Project February March April May June July Exploration: Otway Offshore Otway well 1 Otway well 2 VIC/P44 & VIC/L24 Development: Otway Offshore Umbilical upgrade & main
Slide 21: FY19 Production outlook
FY19 Production outlook Higher production expected in second half FY19 production MMboe, first half actual and second half expectation Factors in second half production • Minerva: 6 month contribution assumed 1.6 • Control umbilical upgrade; 3 week shutdown, collaboration with Lochard Energy to coin
Slide 22: Projects pipeline
Projects pipeline ` 5 year development program that can lift gas production more than 10 times FY19 levels FY19 FY20 FY21 FY22 FY23 FY24 Sole construct Sole: 1 production 68TJ/d (~24 PJ per annum) Minerva Gas Plant: 2 acquire, integrate and operate Henry3 development well: production uplift Potentia
Slide 23: FY19 First half wrap-up
FY19 First half wrap-up 1. Exposure to gas markets through contract pricing and uncontracted gas is adding value. • First half revenue benefitted from alignment of pricing from historical to 2018 contracts • New gas contracts secured for 2019 and commenced 1 January • More to come: discussions advan
Slide 24: Appendices
thd wr) OOPER NERGY Mm Appendices
Slide 25: Cooper Energy snapshot
Cooper Energy snapshot Portfolio built around winning position on cost curve Key statistics* Proved & Probable Reserves 52.4 MMboe Contingent Resources (2C) 34.9 MMboe Production FY19 guidance 1.4 MMboe Market capitalisation $802 million Cooper Basin Net cash/(debt) $7 million Oil production Issued
Slide 26: Capital expenditure; updated guidance
Capital expenditure; updated guidance Revision to FY19 capex expectations brought by timing of Otway Basin exploration FY19 H1 FY19 H2 FY19 $ million incurred Actual Guidance Guidance Exploration Development Total Exploration Development Total Exploration Development Total Otway 1.1 3.4 4.5 40.5 17.
Slide 27: Cooper Energy gas business
Cooper Energy gas business Multi-basin gas portfolio built on 2 hubs well located for supply to south-east Australia 2P Reserves contracted 2P Reserves uncontracted 2C Contingent Resources uncontracted Otway Basin Hub: gas production, Gippsland Hub: gas development & development & exploration explor
Slide 28: ACCC Forecast eastern Australia gas supply and demand outlook
ACCC Forecast eastern Australia gas supply and demand outlook Southern production shortfalls anticipated demand, Cooper Basin gas forecast available to meet market • ACCC forecast “tight” supply for southern states in ACCC forecast southern states gas supply-demand balance 2019 2019 (including a por
Slide 29: Profile of contracted and uncontracted gas by project
Profile of contracted and uncontracted gas by project Existing reserves and resources offer growth before exploration upside Gas sales profile by project Manta uncontracted contracted & uncontracted Sole uncontracted PJ pa Sole contracted Manta Otway uncontracted (subject to appraisal well and FID)
Slide 30: 5 levers for the next wave of growth
5 levers for the next wave of growth Value creation opportunities within existing portfolio to be pursued Gas contracting Infrastructure Undeveloped gas Contingent Resources Exploration • Contract CY 20-22 • Minerva Gas Plant • Develop 285 PJ • 125 PJ • Drill • ~ 43 PJ of gas • Acquire & connect • S
Slide 31: Minerva Gas Plant
Minerva Gas Plant Strategically located offering gains in gas price, processing, recovery rates & production Minerva Gas Plant (10%)* * Equity to increase to 50% on completion of acquisition Minerva Gas Plant acquisition by Casino Henry Joint Venture as announced 1 May 2018 • Casino Henry Joint Vent
Slide 32: Otway Basin, Penola Trough onshore
Otway Basin, Penola Trough onshore Dombey-1 to be drilled to evaluate Pretty Hill Formation and Sawpit Sandstone potential South Australia • Haselgrove-3 discovery in adjoining PPL 62 confirmed conventional gas prospectivity of Sawpit Sandstone at depths below previous producing levels. • Dombey-1 g
Slide 33: Gippsland Basin
Gippsland Basin Cost competitive resource, existing plant and Sole production planned for FY19 Sole Gas Project Key assets: (all 100% equity & Operator) • FID 29 August 2017 • Sole gas project (VIC/L32) • Sole gas project proceeding to first gas sales mid-2019 • Manta gas resource (VIC/RL13,14,15) M
Slide 34: Manta gas and liquids resource
Manta gas and liquids resource Gas and liquids Contingent Resource with exploration potential Manta Contingent Resource1 estimate 1C 2C 3C Oil MMbbl 0.0 0.6 1.2 Condensate MMbbl 1.7 2.6 4.0 Gas PJ 68 106 165 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbbl 1.0
Slide 35: Exploration: Gippsland Basin
Exploration: Gippsland Basin New prospectivity adjacent to existing Patricia Baleen infrastructure • VIC/P72 adjoins VIC/L21 (Cooper Energy 100%) which holds the depleted Patricia Baleen gas field and its associated subsea production infrastructure connected to the Orbost Gas Plant VIC/P72 • Close p
Slide 36: Reserves and Contingent Resources at 30 June 2018
Reserves and Contingent Resources at 30 June 2018 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Developed Sales Gas PJ 0 15 0.0 15 0 26 0 26 0 36 0 36 Oil + Cond MMbbl 1.1 0
Slide 37: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Notes on calculation of Reserves and Contingent Resources Cooper Energy has completed its own estimation of Reserves and Contingent Resources for its fully-operated Gippsland Basin assets, and elsewhere based on information provided by the permit Operat
Slide 38: Senior management
Senior management Managing Director General Manager, Development Company Secretary & General Manager, Commercial David Maxwell Duncan Clegg Legal Counsel & Business Development Alison Evans Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience in Alison Evans is an
Slide 39: Senior Management Team
Senior Management Team Company Secretary & General Manager, General Manager, General Manager, Legal Counsel Operations Iain Development Commercial & Business Alison Evans MacDougall Duncan Clegg Development Eddy Glavas General Manager, General Manager, Managing Director Chief Financial Officer Proje
Slide 40: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design kbbl thousand barrels m metres MMbbl million barrels of oil MMboe million barrel
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