Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — H1 FY2018 Earnings Presentation
32 slides from Amplitude Energy's earnings presentation, Feb 12, 2018
Slide 1: FY18 First half results & business update
For personal use only FY18 First half results & business update 12 February 2018
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: Key messages
3 Key messages For personal use only 1 Strong growth in production, cash generation and earnings. Safe operations • zero recordable injury cases and lost time injuries • 264% growth in half year operating cash flow, 433% growth in underlying EBITDA and 406% growth in production • production in line
Slide 4: Current position and outlook
Current position and outlook Cooper Energy is in the midst of a 6 year growth profile sourced from existing assets and its leverage to the south-east Australian gas market. For personal use only 2012 – 2016 Now: 12 – 24 months: Longer term: Vision execution Suppling & developing Delivery & growth Bl
Slide 5: FY18 First half key outcomes
FY18 First half key outcomes Gas strategy delivering results in key performance indicators and business development For personal use only • HSEC: zero recordable injury cases and reportable environmental incidents • Sole gas project FID in August and 30% complete at 31 January • 2P reserves upgraded
Slide 6: Key financial results
Key financial results For personal use only $ million unless otherwise indicated H1 FY18 H1 FY17 change Production MMbbl 0.81 0.16 ▲ 417% Sales revenue 31.3 11.0 ▲ 185% Gross profit 14.1 4.6 ▲ 206% Gross profit/Sales revenue % 45.0% 41.8% ▲ 8% Statutory profit before tax 21.3 (5.3) ▲ 502% Statutory
Slide 7: Statutory and underlying profit
Statutory and underlying profit Orbost Gas Processing Facility value addition the major item in reconciliation of statutory to underlying profit For personal use only 6 months ending 31 December 2017: $ million Net profit after tax 19.8 Adjustments for: Gain on sale of subsidiary (Orbost Gas Process
Slide 8: First half underlying NPAT movement
First half underlying NPAT movement Addition of gas business and higher oil volume and prices the drivers for profit turnaround For personal use only $ million 25 20 +3.5 Includes, +0.5 acquisition & integration 15 costs, Tunisian -12.6 redundancy 10 +19.5 +1.3 -0.3 -0.8 -2.4 5 -3.0 +2.2 0 -3.5 -5 F
Slide 9: Movement in cash
Movement in cash Cash from operations, capital raising and debt draw-down contributed to $136 million increase For personal use only +78.4 -82.3 -20.0 +41.8 -20.0 +0.6 +127.3 +1.8 +22.5 -7.2 -2.4 -4.8 283.2 Operating cash flow Financing & investing cash flow 147.5 +10.0 157.4 +125.8 +0.0 Jun-17 Oper
Slide 10: Safety
Safety Injury-free. Operator management systems developed and implemented plus ongoing improvement program driven by value of Care. For personal use only • TRCFR = 0.0 (FY16 TRCFR = 1.98) Total Recordable Case Frequency Rate − zero Lost Time Injuries events per million hours worked • Compliance as a
Slide 11: Review of operations: offshore Otway Basin
Review of operations: offshore Otway Basin Gas production and marketing for new contracts to supply from March’ 18 For personal use only First half production H1 FY17 H1 FY18 Sales gas PJ - 3.86 Condensate kbbl - 3 Casino Henry • sales gas of 3.1 PJ produced (Cooper Energy share) • Casino 5 shut-in
Slide 12: Sole gas project
Sole gas project New supply for south-east Australia with blue chip customers & uncontracted gas For personal use only Upstream: Cooper Energy Orbost Gas Processing Facility Midstream: APA Group (APA 100%) • Final Investment Decision • undertaking $250 million plant August ‘17 upgrade to process Sol
Slide 13: Sole gas project: 30% complete to end-January 2018
Sole gas project 30% complete to end-January 2018 For personal use only ORBOST GAS PROCESSING Piling completed FACILITY Works By - APA Group Plant construction contract Plant Upgrade & Operations awarded. HDD Gas Pipeline Crossing Hole Drill Size – 24” 12” Pipeline Length – 1.4 km HDD – Umbilica
Slide 14: Sole gas project schedule – as at January 2018
Sole gas project schedule – as at 31 January 2018 On track for first gas to plant in March 2019 For personal use only H1 FY18 H2 FY18 H1 FY19 H2 FY19 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Phase EXECUTE OPERATE Subsurface Subsurface Team Suppo
Slide 15: Offshore drilling program schedule as at January 2018
Offshore drilling program schedule* as at 31 January 2018 Expect to commence March*, Sole production wells scheduled for completion by May For personal use only Location Project March April May June July Otway Casino-5 workover Sole-3 drill & complete Sole-4 drill & complete Gippsland Sole-2 abandon
Slide 16: Otway Basin, Penola Trough onshore
Otway Basin, Penola Trough onshore Haselgrove drilling results confirm prospectivity for deep conventional gas For personal use only South Australia • Haselgrove-3 discovery in adjoining PPL 62 has confirmed conventional gas prospectivity of the Sawpit sandstone at depths below previous producing le
Slide 17: Review of operations Cooper Basin
Review of operations Cooper Basin Low cost, cash-generating oil production For personal use only • First half production of 137 kbbl vs 130 kbbl in pcp – connection of Callawonga wells drilled FY17 • Average realised price: A$74.51/bbl for H1 FY18 • Operating costs of A$32.40/bbl for H1 FY18 • 2 exp
Slide 18: ACCC view of supply and pricing for south-east Australian gas
ACCC view of supply and pricing for south-east Australian gas For personal use only Forecast gas demand exceeds …necessitating supply …the delivered cost of which is forecast local production from northern fields… the price benchmark, which will be affected by oil & LNG prices Southern states* gas d
Slide 19: Cooper Energy contracted and uncontracted gas profile
Cooper Energy contracted and uncontracted gas profile* Indicative production profile from Casino Henry, Sole and Manta For personal use only Gas sales from current assets contracted & uncontracted 36 PJ pa 34 33 25 21 13 15 11 14 12 Uncontracted 20 20 20 20 20 20 20 14 16 7 13 3 6 Contracted 3 4 FY1
Slide 20: FY18 first half wrap-up
FY18 first half wrap-up Gas strategy gains flowing through, Sole on track, milestones approaching For personal use only FY18 first half results show gains from gas strategy delivery • Value addition from Orbost Gas Processing Facility • Substantial uplift to production, revenue, earnings and cash ge
Slide 21: Appendices
For personal use only Appendices
Slide 22: Cooper Energy - assets
Cooper Energy - assets Portfolio built around winning position on cost curve For personal use only Key statistics* Proved & Probable Reserves 54.1 MMboe Contingent Resources (2C) 34.9 MMboe Production FY18 guidance 1.4 MMboe Market capitalisation $512 million Net cash/(debt) $203.8 million Issued sh
Slide 23: Cooper Energy portfolio: focussed on south east Australia
Cooper Energy portfolio: focussed on south east Australia 305 PJ 2P and 158 PJ 2C gas and exploration acreage located close to market and infrastructure For personal use only Cooper Basin: oil production • historical production source • production of 250 kbbl oil pa • low cost operations Gippsland B
Slide 24: South-east Australia gas supply costs in 2020
South-east Australia1 gas supply costs in 2020* Cooper Energy projects are cost competitive for south-east Australia For personal use only Delivered Melbourne city gate cost for gas from eastern Australia available for delivery to domestic market in 2020* AUD / GJ Typical peak daily quantity for 14
Slide 25: Contracted and uncontracted gas profile by project
Cooper Energy contracted and uncontracted gas profile* by project Existing assets & projects offer growth over 5 years before exploration For personal use only Gas sales profile by project contracted & uncontracted PJ pa Manta uncontracted Gippsland Gas Project Sole uncontracted Phase 2 26 Manta 25
Slide 26: Forecast eastern Australia gas supply and demand outlook
Forecast eastern Australia gas supply and demand outlook Tight market forecast* for 2018 and 2019 For personal use only 2018 2019 PJ PJ Additional demand @ max capacity 311 338 1,293 LNG 1921 1913 1,217 LNG base case= contract + forecasts spot sales Range of ACCC 2018 Range of ACCC 2019 Supply deman
Slide 27: Offshore Otway Basin prospectivity
Offshore Otway Basin prospectivity Attractive prospectivity & extensive acreage in lightly explored gas province For personal use only Current Status Underexplored Four offshore production wells 1,197 km2 under licence offshore producing via pipeline to shore No wells drilled since 2008 Gas
Slide 28: Gippsland Basin
Gippsland Basin Cost competitive resource, existing plant and Sole production planned for FY19 For personal use only 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 resou
Slide 29: Capital expenditure; incurred and outlook
Capital expenditure; incurred and outlook Revision to FY18 capex expectations brought by timing of Otway Basin development For personal use only Capex vs PCP Revised Guidance Prior Revised FY17 H1 FY18 H1 Change FY18 FY18 Cooper Basin 2.1 2.3 0.2 Cooper Basin 6 6 Otway Basin 0.3 3.6 3.3 Otway Basin
Slide 30: Senior management
Senior management For personal use only 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
Slide 31: 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 resources in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources For
Slide 32: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design kbbls thousand barrels m metres MMbbl million barrels of o