Santos Limited · ASX:STO
Santos — Non-Deal Roadshow (September 2022)
27 slides from Santos's roadshow presentation, Sep 26, 2022
Slide 1: 2022 US and UK investor roadshow
2022 US and UK For personal use only investor roadshow
Slide 2: Disclaimer and important notice
2022 Half-Year Results Disclaimer and 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 ma
Slide 3: Santos - a global energy company
2022 Half-Year Results Santos - a global energy company For personal use only Compelling investment proposition to deliver long term value to shareholders Top-10 global Long-life Pathway to Investor Strong balance independent 1 production decarbonise participation in sheet to fund with a balanced we
Slide 4: Santos is a low-cost producer of LNG and domestic gas
2022 Half-Year Results Santos is a low-cost producer of LNG and domestic gas Diversified portfolio of five core long-life producing assets generating strong free cash flows, For personal use only including globally cost-competitive LNG assets. Australia’s lowest cost onshore operator Market capitali
Slide 5: Diversified and balanced portfolio
2022 Half-Year Results Diversified and balanced portfolio Strong long-life production base weighted towards gas and LNG For personal use only 1H21 production 1H22 production Gas comprised 85% of first half 2022 production volumes % % Increased LNG weighting with increased equity in PNG LNG, partiall
Slide 6: Financial snapshot
2022 Half-Year Results Financial snapshot Strong, sustainable free cash flow generation with current FCF yield of ~19%¹ For personal use only Operating cash flow Investing cash flow, excludes major growth2 Free cash flow (FCF)3 US$million Santos US$million US$million estimate Merger4 ~4,475 Merger4
Slide 7: Asia Pacific LNG demand expected to double by 2040
2022 Half-Year Results Asia Pacific LNG demand expected to double by 2040 For personal use only Santos is a leading global independent LNG supplier and well-positioned to benefit from increasing demand Santos net share LNG capacity Mtpa 8.4 7.8 1.0 Potential increased 3.7 proportion of spot exposure
Slide 8: Santos' LNG portfolio
2022 Half-Year Results Santos’ LNG portfolio For personal use only Diversified portfolio, high-quality oil indexed contracts and long-term backfill strategy PNG LNG Papua LNG Gladstone LNG Darwin LNG Status Producing FEED-entry targeted by end 2022 Producing Producing Santos share LNG ~3.7 1 ~1.0 ~2
Slide 9: PNG LNG and Papua LNG
2022 Half-Year Results PNG LNG and Papua LNG PNG LNG is a tier 1 project. Papua LNG development project targeting FEED entry end 2022 For personal use only PNG LNG (Santos 42.5% at Sep-22) Papua LNG (Santos 17.7%1) ExxonMobil operated with high-quality, oil-indexed LNG offtake contracts TotalEnergie
Slide 10: Pikka Phase 1 FID
2022 Half-Year Results Pikka Phase 1 FID Proven world class oil province with low-cost supply and low emissions intensity with an For personal use only internationally competitive investment environment Pikka Phase 1 project overview Alaska appraisal drilling ~19% IRR at US$60/bbl long-term oil pric
Slide 11: Our goal is to achieve net-zero Scope 1 and 2 emissions by 2040
2022 Half-Year Results Our goal is to achieve net-zero Scope 1 & 2 emissions by 2040 For personal use only New 2030 Scope 1 and 2 absolute and emissions intensity reduction targets 2030 2040 Absolute Intensity Absolute Target Target 30% reduction in Target 40% reduction in Target Reduce Scope 3 Net-
Slide 12: Climate transition action plan
2022 Half-Year Results Climate transition action plan For personal use only Our Climate Transition Action Plan provides a pathway to net-zero scope 1 and 2 emissions with medium and long term targets Categories Description Initiatives and Indicative timeline We will report progress Operational Broad
Slide 13: Strategic competitive advantage enables low-cost CCS hubs
2022 Half-Year Results Strategic competitive advantage enables low-cost CCS hubs For personal use only Ability to leverage infrastructure and depleted reservoirs across our three operated CCS hubs Proven capture technology Transported using pipelines Storage in depleted reservoirs Existing capture f
Slide 14: Three Santos-operated CCS and clean fuels hubs
2022 Half-Year Results Three Santos-operated CCS and clean fuels hubs For personal use only Santos is developing three CCS hubs with >30 mtpa CO2 storage capacity. Moomba CCS under construction Eastern Northern Australia Western Australia Hub & Timor-Leste Hub Australia Hub Annual injection capacity
Slide 15: Midstream and clean fuels hubs
2022 Half-Year Results Midstream and clean fuels hubs For personal use only Three hubs delivering safe, reliable, low-cost operations Eastern Australia Northern Australia and Timor-Leste Western Australia Midstream Moomba and Port Bonython Darwin LNG Varanus Island and Devil Creek infrastructure ass
Slide 16: CCS projects update
2022 Half-Year Results CCS projects update For personal use only Site works have commenced at Moomba and first injection remains on track for 2024 Moomba CCS Phase 1 Bayu-Undan and Timor-Leste CCS Project phase Execution, 20% complete FEED activities 1H22 Works underway on site for CO2 train tie-in
Slide 17: Capital management framework
2022 Half-Year Results Capital management framework For personal use only Disciplined operating model Five core gas producing asset hubs Sustaining capital Target free cash flow breakeven at <$35 per barrel Free cash flow Maintain strong balance sheet Returns to shareholders Invest in major projects
Slide 18: Application of capital management framework
2022 Half-Year Results Application of capital management framework For personal use only Investor participation in oil price upside for the first half of 2022 Key 1H 2022 metrics Forecast 2022 free cash flow breakeven $25/barrel Average Dated Brent $105/barrel Via share buyback3 Actual free cash flo
Slide 19: Appendix
Appendix For personal use only GLNG facility 19
Slide 20: Barossa Project Federal Court decision
2022 Half-Year Results Barossa Project Federal Court decision For personal use only Overview The relevant drilling activities were underway at a site Location in the Timor Sea, approximately 140 kilometres north of the Tiwi Islands The Federal Court set aside the acceptance by the National Offshore
Slide 21: Cash generative operating model continues to drive value
2022 Half-Year Results Cash generative operating model continues to drive value For personal use only EBITDAX margin improved due to higher commodity prices and the addition of PNG interests following the merger 2022 Half-year results summary 1 Northern Queensland Australia & Western Cooper Basin &
Slide 22: Papua New Guinea
2022 Half-Year Results Papua New Guinea For personal use only PNG LNG is a world-class, low-cost asset consistently delivering above nameplate capacity PNG LNG PNG Operated Assets Papua New Guinea First gas from Angore to maintain PNG oil fields contain significant Development plan plateau productio
Slide 23: Onshore Australia
2022 Half-Year Results Onshore Australia For personal use only Low cost of supply and short capex cycles assets connected to domestic markets and strong long- term Asian demand for LNG Cooper Basin Queensland & New South Wales Continuous 2C to 2P Phased development of four Development plan Queenslan
Slide 24: Offshore Australia and Timor-Leste
2022 Half-Year Results Offshore Australia and Timor-Leste For personal use only Strong cash margin, low-cost operating business Northern Australia and Western Australia Timor-Leste Bayu-Undan expected to reach Near field tie back, Spartan end of field life in late 2022 expected online in 2023 Develo
Slide 25: North America
2022 Half-Year Results North America For personal use only Pikka phase 1 project sanctioned and project is well positioned for execution with first oil expected in 2026 Pikka Phase 1 World class No flaring on North Slope, all gas is reinjected environmental Civil works completed for access road, cen
Slide 26: Definitions and abbreviations
2022 Half-Year Results Definitions and abbreviations For personal use only Carbon Capture and Storage (CCS) is a process in which carbon dioxide (CO2) from industrial Gas Natural gas Carbon Capture and energy-related sources is separated (captured), conditioned, compressed, transported and and Stora
Slide 27: Forward-looking statements
2022 Half-Year Results Forward-looking statements For personal use only The Climate Transition Action Plan includes forecasts that are necessarily based on assumptions, contingencies and commercial judgement. The estimates included do not take into account customer demand or any future sell-downs, p