Slide 1: 2014 Full-year results
2014 Full-year results 20 February 2015 GLNG Plant, Curtis Island
Slide 2: Disclaimer and important notice
Disclaimer and important notice 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 of variables which c
Slide 3: Full-year summary and business outlook
Full-year summary and Production growth, record sales and significant project milestones business outlook Focus on operating efficiencies and cost savings Safety & Project Delivery Cost Savings Performance LTIFR of 0.67 per million hours GLNG over 90% complete and 2015 Capex 44% lower than 2014 work
Slide 4: Safety performance
Safety performance Lost time injury frequency rate of 0.67 per million hours worked Safety performance (employees and contractors) Rate per million Work hours hours worked (million) 7 60 6 5.8 50 5.0 5 40 4 3.6 3.8 3.5 3.3 3.3 30 3 1.9 20 2 1.1 1.2 1 0.9 0.7 0.67 10 0.64 0 0 2008 2009 2010 2011 2012
Slide 5: Focus on operating efficiency and cost savings
Focus on operating Responding to the market environment efficiency and cost Financial and operating discipline savings Capital expenditure Working with suppliers to reduce costs $billion 4 ─ Subsurface contracts: 5-30% cost savings 3.6 -44% ─ Surface contracts: 10-20% cost savings 2 2.0 Reduce drill
Slide 6: 2014 Full-year financial results
2014 Full-year financial results Andrew Seaton Chief Financial Officer Hides Gas Conditioning Plant, PNG LNG
Slide 7: Summary of 2014 results
Summary of 2014 results Underlying net profit up 6% despite lower oil prices Reported net loss after previously announced non-cash impairments Underlying business performance remains strong Major growth expenditure behind us Financial and operating discipline Robust funding position Focus on shareho
Slide 8: 2014 Full-year financial result
2014 Full-year Growth in production, sales revenues and EBITDAX financial result Underlying profit of $533 million, up 6% Non-cash impairments of $1.6 billion after tax 2014 Full-year Change on 2013 Production 54.1 mmboe +6% Sales revenue $4,037 million +12% EBITDAX $2,153 million +8% EBIT (excludin
Slide 9: 2014 production of 54.1 mmboe – highest in 5 years
Production 2014 production of 54.1 mmboe – highest in 5 years 2015 guidance unchanged at 57-64 mmboe 2014 Q-on-Q production growth Production kboe/day › Successful start-up of the PNG LNG project ahead 200 of schedule in April 2014 156 - 175 − PNG LNG producing ahead of expectations 180 8% › Cooper
Slide 10: 2014 Full-year financials: sales revenue and EBITDAX
2014 Full-year Record sales revenue and growth in EBITDAX financials Sales revenue $million EBITDAX 4,500 $million 4,037 2,500 4,000 3,602 12% 2,153 1,992 8% 3,500 932 2,000 830 3,000 3,105 2,500 2,772 1,500 2,000 1,000 1,500 1,000 500 500 0 0 2013 2014 2013 2014 Own product Third party EA WA&NT Asi
Slide 11: Production costs and DD&A in line with guidance
2014 Full-year Production costs and DD&A were in line with guidance financials Targeting 10% reduction in production costs per barrel in 2015 Production Costs DD&A costs $million $million 1,000 1,200 900 42 $16.0/boe 29 115 (15) $18.26/boe 102 1,000 800 863 $17.41/boe $13.6/boe 988 988 700 888 888 8
Slide 12: Underlying profit up 6% to $533 million
2014 Full-year Underlying profit up 6% to $533 million financials Non-cash impairments of $1.6 billion after tax NPAT and underlying profit Reconciliation of underlying profit $million $million 800 800 60 (90) 600 188 700 (54) 516 504 533 692 400 271 662 (45) 600 (30) 608 200 500 563 533 533 0 504 5
Slide 13: Operating cash flow up 13% to $1.8 billion
2014 Full-year Operating cash flow up 13% to $1.8 billion financials Forecast free cash flow positive in Q4 2015 at US$60/bbl oil Operating cash flow Reconciliation of operating cash flow $million $million 2,000 3,000 13% 1,843 2,500 45 (437) 673 60 1,500 1,628 2,000 (85) (41) 1,843 1,000 1,500 1,62
Slide 14: Dividends
Dividends Final dividend maintained at 15 cents per share, fully franked, with underwritten DRP Full-year dividend 35 cents, up 17% Fully-franked dividends declared per share Final dividend maintained at Cents per share 15 cents per share fully 50 PNG LNG FID franked First PNG LNG Brings full-year d
Slide 15: Capital expenditure
Capital expenditure Capex in 2014 $3.6 billion excluding capitalised interest 2015 forecast spend 44% lower than 2014 Full-year capital expenditure Breakdown of 2014 capital expenditure (excludes A$billion capitalised interest) -13% 4 4.1 Other EA, PNG LNG , 3.6 4.1 Exploration, -44% $426m $234m $32
Slide 16: Reserves and resources
Reserves and resources 2014 2P reserves reflect previously advised reduction in Gunnedah Basin reserves 2P reserves 2013 - 2014 Proved plus probable (2P) reserves mmboe were 1,245 mmboe, 9% lower 1,600 than 2013 2P Reserves life of 23 years, based 15 (61) 1,400 (15) (8) (54) on 2014 production of 54
Slide 17: Balance sheet and funding
Balance sheet and $2.9 billion in liquidity funding Minimal debt maturities until 2017 A$0.8 billion in cash and A$2.1 billion Debt maturity profile Notes mature in 2070, with Santos A$million option to redeem in 2017 undrawn debt facilities as at 3,000 31 December 2014 2,500 Net debt A$7.5 billion
Slide 18: Project delivery
Project delivery David Knox Managing Director and Chief Executive Officer GLNG Plant, Curtis Island
Slide 19: 2014 Highlights
2014 Highlights Three projects delivered, GLNG in commissioning and exploration success in the Browse Vietnam oil Dua project delivered on schedule in July 2014 Malaysia Farm-in to two deepwater Indonesia gas blocks, drilling underway Peluang project delivered ahead of schedule in March 2014 PNG LNG
Slide 20: GLNG project
GLNG project On track for first LNG in the second half of 2015 GLNG provides positive free cash flow at US$40/bbl oil Surface LNG plant Gas supply facilities & and port pipelines Fairview wells performing strongly Fairview Hub 5 commissioning All 111 T1 and T2 modules set complete and facility opera
Slide 21: GLNG upstream
GLNG upstream Upstream is ready to supply gas to the plant Performance of Fairview wells continues to exceed expectations ─ Field well capacity ~500 TJ/d ─ Well capacity expected to be ~600 TJ/day by the end of 2015 Roma well capacity growing in line with expectations Fairview Hub 5 commissioning co
Slide 22: GLNG downstream
GLNG downstream Significant milestones achieved in 2014 Commissioning well underway and on track for first LNG in 2H 2015 Gas transmission pipeline complete and gassed-up to Curtis Island QGC interconnects complete and pre-commissioned All 111 LNG train modules set on their foundations ─ Piping inst
Slide 23: PNG LNG project
PNG LNG project Successful delivery of the project ahead of schedule. 55 cargoes shipped in 2014 Santos well positioned for potential expansion Delivered ahead of schedule and now producing ahead of expectations ─ First LNG train in April ─ Second train in May PNG LNG Drilling ─ All eight Hides deve
Slide 24: Browse Basin Greater Crown and Lasseter
Browse Basin Appraisal planning and evaluation of development Greater Crown and concepts progressing Lasseter Multi-tcf resource position established on the back of Crown and Lasseter discoveries Concept evaluation and appraisal strategy to underpin development options underway Opportunity for syner
Slide 25: Bonaparte Basin Barossa Caldita
Bonaparte Basin Successful carried 3 well appraisal drilling program Barossa Caldita supports standalone capability for LNG expansion or backfill Drilling last of three well appraisal program ─ Barossa-2 drilled in the core of the field intersected 88 metres of net pay across a 217 metre gross inter
Slide 26: Summary
Summary Production growth, record sales and significant project milestones Focus on operating efficiencies and cost savings LNG project delivery Continued exploration success Underlying business performance remains strong Financial and operating discipline Robust funding position Focus on shareholde
Slide 27: Reference Slides
Reference Slides 20 February 2015 Tanumbirini 1, McArthur Basin Exploration well drilled in Q4 2014
Slide 28: Impairment
Impairment Non-cash impairment charge of $1.6 billion after-tax Impairment loss by asset*0 200 400 600 800 1000 Significant fall in global commodity prices A$million and a follow-on reduction in future oil price assumptions Gunnedah Basin 566 808 ─ Oil producing assets affected ─ Oil exploration and
Slide 29: 2015 guidance
2015 guidance Item 2015 guidance Production 57-64 mmboe Production costs $14.2-14.6/boe DD&A expense $17.5-18.0/boe Capital expenditure (including exploration & evaluation)1 $2 billion 1 Capital expenditure guidance excludes capitalised interest, which is forecast at approximately $135 million in 20
Slide 30: Significant items after tax
Significant items after tax Reconciliation of full-year net (loss)/profit to underlying profit Full-year Full-year $million Change 2014 2013 Net (loss)/profit after tax (935) 516 (281)% Add/(deduct) significant items Net impairments 1,563 28 Other (95) (40) Underlying net profit after tax1 533 504 6
Slide 31: 2015 full-year sensitivities
2015 full-year sensitivities Sensitivity Change NPAT impact (A$million) US$ oil price +/-US$1/bbl +/-20 A$ gas price +/-10 cents/GJ +/-10 A$/US$ exchange rate +/-1 cent -/+10 31 | 2014 FULL-YEAR RESULTS
Slide 32: 2015 Exploration schedule
2015 Exploration schedule Delivers on our exploration strategy across super basins, frontier basins and unconventional basins Santos Well Name Basin / Area Target Timing Interest % Hides-F1 (Hides Deep)# Papuan – PNG Gas 24 Drilling Gaschnitz-2 Cooper – SA Gas 66.6 Drilling Ehsan-1# (Block S) Deep W
Slide 33: 2014 Full-year results Contact information
2014 Full-year results Contact information Head Office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Email: andrew.nairn@santos.com GPO Box 2455 Andrew Hay Adelaide, South Australia 5001