Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — FY2022 Earnings Presentation
33 slides from Amplitude Energy's earnings presentation, Aug 22, 2022
Slide 1: FY22 full-year results and FY23 outlook
For personal use only Orbost, East Gippsland 22 August 2022 FY22 full-year results and FY23 outlook
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: Year in review
For personal use only 01 Year in review
Slide 4: Record results during a transformational year
Record results during a transformational year Underpinned by commencement of gas production from AGP and acquisition of OGPP For personal use only Outstanding Lost time incidents TRIFR1 Carbon emissions safety and environment performance 0 0.0 Net 0 cases (industry 6.91) tonnes (FY22) Production Rev
Slide 5: FY22 imperatives delivered, step change in second half performance
FY22 imperatives delivered, step change in second half performance Significant contrast with FY21. Clear progress against strategy For personal use only FY22 imperatives delivered H2 vs H1 FY22—step change at Sole & Orbost TJ/d A$/GJ ✓ Athena Gas Plant commissioned 50 Avg Sole processing rate (TJ/d)
Slide 6: Tightening Australia East Coast gas supply
Tightening Australia East Coast gas supply Attractive market dynamics support new developments For personal use only ACCC forecast supply/demand in the Southern states (PJ pa)1, 2 Spot gas prices ($/GJ)3 500 80 Southern states demand (2022 GSOO) Victorian spot price Sydney spot price 400 60 Total 2P
Slide 7: Importance of gas grows as coal reduces in the NEM supply mix
Importance of gas grows as coal reduces in the NEM supply mix Coal plant outages in Q2 2022 provided an insight into a decarbonised future For personal use only Large ▼ in coal-powered generation, Q2 2022 v Q2 2021 Large ▲ in gas powered generation, Q2 2022 v Q2 2021 600 2,500 300 2,000 Average chan
Slide 8: Cooper Energy—the pure play on the East Coast gas market
Cooper Energy—the pure play on the East Coast gas market Net zero today, and with a bias to early life cycle reserves For personal use only Gippsland, Otway & Bass Basins, net remaining WoodMac commercial reserves (MMboe)1 Average realised gas prices, $/GJ2 12 Cooper Energy Peer 1 Peer 2 10.54 10 8.
Slide 9: Twin hub domestic gas strategy generating cash for future growth
Twin hub domestic gas strategy generating cash for future growth Transformation to an integrated operating gas business with all elements needed for success in place For personal use only RESOURCE Affordable, cost competitive, proven deliverability, long-life, well located relative to market MARKET
Slide 10: Athena Gas Plant commissioned
Athena Gas Plant commissioned Low-cost processing hub for existing and future Otway Basin developments1 For personal use only ✓ Cutover works successfully completed ✓ First gas into the AGP mid December after successful commissioning and start-up ✓ 98.7% uptime since first gas sales on 15 December 2
Slide 11: Orbost Gas Processing Plant acquired
Orbost Gas Processing Plant acquired Consolidates Gippsland Basin gas hub; set for future development For personal use only ✓ Acquired from APA in June1 consolidating the elements for a 50 successful Gippsland Basin gas hub business ✓ Drives earnings boost from FY23 45 ✓ 44% increase in processing r
Slide 12: June 2022 Reserves & Resources
June 2022 Reserves & Resources1 Overview For personal use only MMboe 47.1 • Key 2P revisions are 0.1 0.1 39.5 3.3 3.0 0.0 36.9 — FY22 production 4.5 33.9 0.1 — Henry Undeveloped Reserves reclassified to Contingent Resource due to changed OP3D scope • Sole 2P reduced by production only • Cooper Basin
Slide 13: Cooper Energy in the energy transition
Cooper Energy in the energy transition Growth while supporting decarbonisation and maintaining net zero certification For personal use only Net Zero Enabler Efficiency New Energy • Leverage carbon neutral benefits • Site/operations focus • Gas remains core — access to finance • Reduce gross emission
Slide 14: Financial highlights
For personal use only 02 Financial highlights
Slide 15: Record production & financial metrics
Record production & financial metrics Step change in operating cashflow, continued deleveraging For personal use only $ million unless indicated FY21 FY22 Change • Gas revenue up 57% to $188.1 million; oil and condensate revenue up 42% to $17.3 million Production (MMboe) 2.63 3.31 ▲ 26% • Total cash
Slide 16: Record EBITDAX & operating cash generation
Record EBITDAX & operating cash generation Underlying EBITDAX—bridge from FY21 For personal use only • FY22 record uEBITDAX $ million 5.1 • Higher gas revenue from increased Sole production and higher spot prices (29.8) 25.3 • Opex impacted by 0.1 8.7 — higher gas production (2.0) — third-party gas
Slide 17: Group cash—bridge from June 2021 to June 2022
Group cash—bridge from June 2021 to June 2022 Substantial operating cashflow generation For personal use only $ million 1.8 (24.7) 178.0 (20.8) (1.1) 82.5 247.0 (60.0) 149.1 91.3 Operating cash flow Other cash flow $57.8 million $97.9 million 30-Jun-21 Operations Costs 1 Capex 2 Lease liabilities Bo
Slide 18: Significant further deleveraging and improved liquidity position
Significant further deleveraging and improved liquidity position New debt facility executed on 29 July 2022 For personal use only $ million 300 Cash 1 • June 2022 cash includes $178 million net Drawn debt proceeds from institutional equity issue 2 Undrawn debt 200 — retail portion received post year
Slide 19: Growth, FY23 guidance & wrap-up
For personal use only 03 Growth, FY23 guidance & wrap-up
Slide 20: Otway Basin gas hub
Otway Basin gas hub Integrated operation, growing gas supply and free cash flow with high quality prospects For personal use only ✓ Proven cost competitive hydrocarbon basin connected to south-eastern markets ✓ Athena Gas Plant – low-cost, owned and operated gas processing infrastructure with ~150 T
Slide 21: Gippsland Basin gas hub
Gippsland Basin gas hub Prolific hydrocarbon basin connected and close to south-eastern markets For personal use only ✓ 100% Cooper Energy ownership of all permits ✓ Orbost Gas Processing Plant acquired and preparing for operatorship transfer from APA ✓ Significant potential to accelerate and bring
Slide 22: Growth staircase
Growth staircase High value growth pipeline - producing, development and exploration prospects via two gas hubs For personal use only 121 PJ2 Production (MMboe) 1 (Manta 2C Contingent Resource) Manta (Gippsland) 286 Bcf3 (Near field exploration, Otway exploration 6 low risk prospects, unrisked P50 P
Slide 23: FY23 guidance: production, u-EBITDAX & capex
FY23 guidance: production, u-EBITDAX & capex Growth trajectory to continue driven by higher gas production and resultant cash generation For personal use only FY23 maintenance/growth capex: $28—33 FY23 production: 3.7—4.0 MMboe FY23 u-EBITDAX: $120—150 million million1 4.0 180 40 3.7—4.0 3.0 30 120
Slide 24: Wrap-up
Wrap-up Strategy and operational execution delivered record FY22 results For personal use only Transformational year ✓ Twin hub integrated domestic gas platform—fully set in FY22 Delivered on plans ✓ Imperatives delivered in FY22—all the elements of a successful domestic gas business in place South-
Slide 25: Appendices
For personal use only 04 Appendices
Slide 26: Exceptional health, safety and environment performance
Exceptional health, safety and environment performance Best-in-class results For personal use only ✓ Continued monitoring of staff wellbeing & mental health Safety metrics FY21 FY22 ✓ Flexible work place arrangements implemented Health Hours worked 289,071 220,238 ✓ No production impact from COVID-1
Slide 27: Reconciliations
Reconciliations Underlying adjustments include restoration, OGPP reconfiguration and NOGA levy For personal use only $ million FY21 FY22 $ million FY21 FY22 Statutory net profit / (loss) after tax (30.0) (10.6) Underlying net profit / (loss) after tax (25.9) 14.4 Adjusted for: Adjusted for: Impairme
Slide 28: OGPP integration planning underway with all key personnel identified
OGPP integration planning underway with all key personnel identified Experienced team and key learnings from Athena Gas Plant being adopted For personal use only Overview Core operating objectives • Established integration team for OGPP transition • Minimise operational downtime through implementati
Slide 29: Growth: maturing a broad portfolio of opportunities
Growth: maturing a broad portfolio of opportunities Diverse exploration and appraisal prospects to feed Cooper Energy’s gas hubs at Athena and Orbost For personal use only Development / Future exploration options1 Exploration1 Appraisal2 Production3 • 100% success rate for exploration prospects High
Slide 30: Cooper Energy tenements
Otway Basin (offshore and onshore Victoria: Cooper Energy tenements1 Gippsland Basin (offshore Victoria): For personal use only Cooper Basin (onshore South Australia): Otway Basin (onshore South Australia & Victoria): 1 Please refer to Cooper Energy’s 2021 Annual Report for further information 30 re
Slide 31: Reserves and Contingent Resources at June 2022
Reserves and Contingent Resources at 30 June 2022 For personal use only 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 0.0 11.9 149.7 161.6 0.0 16.8 212.4 229.
Slide 32: Notes on calculation of Reserves and Contingent Resources
Notes on calculation of Reserves and Contingent Resources For personal use only Cooper Energy prepares its petroleum Reserves and Contingent Resources in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2018 Petroleum Resources Management System (PRMS). The
Slide 33: Abbreviations
Abbreviations For personal use only $ Australian dollars km Kilometres APA APA Group (ASX: APA) MHFL Major Hazard Facility License ASX Australian Securities Exchange MMboe Million barrels of oil equivalent MMscf/day Million standard cubic feet of gas per day Average Average processing rate of OGPP i