Slide 1: 2014 Half-year results
2014 Half-year results For personal use only 22 August 2014
Slide 2: Disclaimer and important notice
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 may be affected by a rang
Slide 3: First-half summary
First-half summary PNG LNG start-up ahead of schedule and strong progress on GLNG enables significant lift in interim For personal use only dividend Safety LTIFR of 0.6 per million hours worked • PNG LNG start-up ahead of schedule with first cash received in July Strong project • GLNG more than 85%
Slide 4: Safety performance
Safety performance Lost time injury frequency rate of 0.6 per million hours worked For personal use only Safety performance (employees and contractors) Work hours Rate per million (million) hours worked 2 60 50 40 1 30 20 10 0 0 2008 2009 2010 2011 2012 2013 2014 YTD Santos GLNG Bechtel and Saipem S
Slide 5: 2014 Half-year financial results
2014 Half-year financial results For personal use only Andrew Seaton Chief Financial Officer Unloading the first PNG LNG cargo at TEPCO Futtsu-2 Terminal
Slide 6: 2014 First-half financial result
2014 First-half Growth in sales revenue, EBITDAX and operating cash financial result flow. Underlying profit of $258 million, higher than For personal use only 2013. 2014 Change First-half on 2013 Production 25 mmboe +2% Sales revenue $1,887 million +25% EBITDAX $950 million +13% Net profit after ta
Slide 7: Dividends
Dividends Start-up and first cash from PNG LNG has enabled the 33% increase in interim dividend to 20 cents per share For personal use only fully-franked Fully-franked dividends declared per share Cents per Increased dividend consistent share with prudent capital 50 management PNG LNG FID Plan to ma
Slide 8: Production
Production PNG LNG start-up drives sound first half and builds momentum for a stronger second half For personal use only Average daily production First half production up 2% ─ PNG LNG first LNG in April 2014 boe/day 170,000 ─ Peluang first gas in March 2014 160,000 164,000 Full-year guidance maintai
Slide 9: 2014 First-half financials: sales revenue and EBITDAX
2014 First-half Higher sales revenue and EBITDAX financials For personal use only Sales revenue EBITDAX $million $million 2,000 1,887 1,000 950 25% 13% 844 1,510 505 800 1,500 273 85% 1,382 600 1,237 1,000 400 12% 500 200 0 0 1H 2013 1H 2014 1H 2013 1H 2014 Own product Third party EA WA&NT Asia GLNG
Slide 10: 2014 First-half financials: production costs and DD&A
2014 First-half Production costs and DD&A were both higher, financials impacted by the cost of new assets on line in 1H 2014 For personal use only Production costs DD&A $million $million $17.10/ 450 450 9 boe $15.32/ 22 12 $14.85/ 33 21 boe $13.70/ boe boe 15 383 428 300 335 300 364 150 150 - - 1H 2
Slide 11: Underlying profit up 3% to $258 million
2014 First-half Underlying profit up 3% to $258 million financials For personal use only Half-year NPAT and underlying profit Reconciliation of half-year underlying profit $million $million 300 400 271 271 35 -29 251 258 -21 300 41 -28 9 200 206 258 251 200 100 100 0 0 1H 2013 Prices and Volume E&E
Slide 12: Highest ever first-half operating cash flow
2014 First-half Highest ever first-half operating cash flow of financials $744 million For personal use only Operating cash flow Reconciliation of operating cash flow $million $million 800 1,200 516 6 -15 -349 18% 744 271 600 629 800 -24 -19 744 400 629 400 200 0 0 1H 2013 Receipts Tax Other Payment
Slide 13: Capital expenditure
Capital expenditure Capex of $1,862 million1 in 1H 2014, full year guidance of $3.5 billion is maintained For personal use only Full year capital expenditure Breakdown of 1H 2014 capital expenditure (excludes capitalised interest) A$billion Other EA2 0.23 4 $171m Exploration 4.1 0.25 $179m 3.5 Coope
Slide 14: Strong business outlook
Strong business outlook LNG projects are providing the foundation for further growth and increased shareholder returns For personal use only Clear production growth outlook Growing margins Robust funding position provides the capacity to fund execution of strategy Hides Gas Conditioning Plant, PNG L
Slide 15: Delivering major projects
Delivering major projects For personal use only David Knox Managing Director and Chief Executive Officer LNG jetty, Curtis Island
Slide 16: 2014 Highlights
2014 Highlights Three projects delivered, GLNG progressing well and exploration success in the Browse For personal use only Vietnam oil Malaysia Dua project delivered on Farm-in to Block S, first schedule in July 2014 exploration well in Q4 2014 Indonesia gas PNG LNG Peluang project delivered Delive
Slide 17: PNG LNG project
PNG LNG project Successful delivery of the project in April 2014. 20 cargoes have been shipped since start-up For personal use only PNG LNG plant 17 | 2014 HALF-YEAR RESULTS
Slide 18: PNG Drilling
PNG Drilling Drilling complete on the Hides G-pad wells and PWD well. Hides Deep expected to be spudded in For personal use only Q4 2014 PNG LNG Drilling ─ All eight Hides development wells successfully drilled to TD ─ Six of these are on production with the two G-pad wells currently being completed
Slide 19: GLNG project summary
GLNG project summary The GLNG project is more than 85% complete and on track for first LNG in 2015 For personal use only Project Santos (30% and operator), partners PETRONAS, Total and KOGAS LNG plant 7.8 mtpa of LNG; 7.2 mtpa has been capacity sold to PETRONAS and KOGAS Gross US$18.5 billion1 from
Slide 20: GLNG upstream
GLNG upstream Construction of two upstream gas hubs is complete and commissioning is underway For personal use only 77 wells were spudded in 1H 2014 Performance of Fairview wells continues to exceed expectations – average optimum gas capacity of 2.2 TJ/day per well Roma wells on line and dewatering,
Slide 21: GLNG downstream
GLNG downstream Pipeline commissioning commenced, with LNG plant commissioning on track for Q4 2014 For personal use only Milestone Date Marine crossing tunnelling February 2014 completed Last Train 1 module set June 2014 First LNG tank hydrotest July 2014 Pipeline commissioning August 2014 commence
Slide 22: Browse Basin
Browse Basin Significant gas-condensate discovery with the Lasseter-1 well, adding to Santos’ material resource For personal use only position in the Browse Lasseter gas-condensate discovery ─ Well intersected a gross gas-condensate section of 405 metres ─ Wireline logging has confirmed 78 metres of
Slide 23: Cooper Basin unconventional exploration program
Cooper Basin Building knowledge and technological capacity to unconventional ‘crack the code’; second horizontal successfully fracced For personal use only exploration program Two shale wells are on line and producing Moomba 192 ─ Moomba-191 on line since October 2012 and currently producing 1.7 mms
Slide 24: First-half summary
First-half summary PNG LNG start-up ahead of schedule and strong progress on GLNG enables significant lift in interim For personal use only dividend Safety LTIFR of 0.6 per million hours worked • PNG LNG start-up ahead of schedule with first cash flow received in July Strong project • GLNG more than
Slide 25: Reference slides
Reference slides For personal use only 22 August 2014
Slide 26: Significant items after tax
Significant items after tax For personal use only $million Half-year 2014 Half-year 2013 Net profit after tax 206 271 Add/(deduct) significant items Net impairments 67 (8) Other (15) (12) Underlying profit 258 251 26 | 2014 HALF-YEAR RESULTS
Slide 27: Strong funding position
Strong funding position $2.7 billion in balance sheet capacity to fund execution of business strategy and minimise financing risk. For personal use only Minimal debt maturities to 2016 Available liquidity Debt maturity profile Notes mature in 2070, with A$billion A$million Santos option to redeem in
Slide 28: 2014 guidance
2014 guidance All 2014 guidance is unchanged For personal use only Item 2014 guidance Production 52-57 mmboe Production costs $820-880 million DD&A expense $18.50/boe Royalty related taxation expense1 (after tax) $60 million Capital expenditure (including exploration & evaluation)2 $3.5 billion 1 Ro
Slide 29: 2014 exploration schedule
2014 exploration schedule Delivers on our play-based exploration strategy across Australia and south-east Asia For personal use only Santos Well Name Basin / Area Target Interest Result/Timing % Manta-1 PNG Gas 301 Gas discovery Gas discovery, Mt Kitty-1 Amadeus Gas 70 evaluation operations suspende
Slide 30: Contact information
Contact information For personal use only 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