Amplitude Energy Limited · ASX:AEL
Amplitude Energy — FY2024 Earnings Presentation
37 slides from Amplitude Energy's earnings presentation, Aug 27, 2024
Slide 1: FY24 Results & FY25 Outlook
FY24 RESULTS & FY25 OUTLOOK 27 August 2024
Slide 2: Disclaimer
DISCLAIMER This document contains summary information about Cooper Energy and its activities as at the date of this document and should not be considered to be comprehensive or to comprise all the information which a shareholder or potential investor in Cooper Energy may require in order to determin
Slide 3: FY24 Review, Strategy Update
Proudly Part Of Australia’s Energy Future 01 SECTION #1 FY24 REVIEW STRATEGY UPDATE 3
Slide 4: FY24 Business Priorities Delivered
FY24 BUSINESS PRIORITIES DELIVERED Orbost performance improvement Numerous production records set over the last 12 months Decommission BMG wells safely Completed May 2024 $10.5mm in annualised net Cost-out / Transformation savings realised at end FY24 Committed to rig and Positioning for growth long
Slide 5: Health, Safety, Environment and Community Performance
HEALTH, SAFETY, ENVIRONMENT AND COMMUNITY PERFORMANCE Results ahead of industry benchmarks through disciplined operations Safety FY23 FY24 Ahead of industry benchmark TRIFR1 Hours worked 228,483 689,398 Zero fatalities One lost time injury Lost time injuries (LTI) 0 1 — Finger injury resulting
Slide 6: Orbost Performance Improvement
ORBOST PERFORMANCE IMPROVEMENT New production records set at Orbost with the plant recently operating near nameplate capacity Orbost Gas Processing Plant (OGPP) average processing rate, TJ/d Recent production records due to sulphur processing improvements and better overall plant reliability 65.7
Slide 7: Stable Performance at Athena & Cooper Basin
STABLE PERFORMANCE AT ATHENA & COOPER BASIN Targeting group production run-rate of >70 TJe/d by end-FY25 AGP average processing rate & Cooper Basin production, TJe/d1 AGP production recovered from downtime in Q3 FY24 — Resolution of legacy compressor issues improving reliability Planned AGP shutdo
Slide 8: June 2024 2P Reserves & 2C Resources
JUNE 2024 2P RESERVES & 2C RESOURCES1 Fields performing as expected; no material 2P or 2C revisions Change in 2P Reserves from 30 June 2023, PJe Annual movement in 2P Reserves 222.2 — FY24 production 1.1 1.3 201.6 — Minor upwards revision to Sole (22.7) (0.2) through updated history matching of th
Slide 9: BMG Wells Decommissioned
BMG WELLS DECOMMISSIONED Project completed in May Major decommissioning project requiring >360,000 worker-hours — No lost time injuries or significant environmental incidents — Commitment to HSE & strong engineering capability Wells permanently plugged and abandoned Total cost expected to be s
Slide 10: Delivered Transformation/Cost-Out Programme
DELIVERED TRANSFORMATION/COST-OUT PROGRAMME $10.5mm1 in annualised net savings realised at end FY24, with potential for further meaningful savings in FY25 FY24 successes FY25 focus areas >100 initiatives group-wide Complete outstanding actions in FY25 ~85% of identified initiatives completed o
Slide 11: Positioning for Growth Through East Coast Supply Project
POSITIONING FOR GROWTH THROUGH EAST COAST SUPPLY PROJECT Potentially the largest source of new domestic gas supply in the Southeast Australian market, targeting first gas in 2028 Otway Basin with East Coast Supply Project (ECSP) infrastructure 1 firm rig slot, multiple optional slots with flexibil
Slide 12: Need for New Local Gas Supply Is Being Recognised
NEED FOR NEW LOCAL GAS SUPPLY IS BEING RECOGNISED Australian Energy Market Operator to issue an alert for gas Labor steps on the gas to fuel its Choke in gas supply makes shortfall climate targets imports, once unthinkable, 19 Mar 2024 8 May 2024 almost inevitable “At current spot LNG pricing, impor
Slide 13: Building a Track Record of Performance
BUILDING A TRACK RECORD OF PERFORMANCE Delivering production growth and cost reductions to drive earnings and cash generation Production, TJe/d Production expenses, $mm \ $ per GJ produced 100 5.00 62.1 90 4.50 80.4 59.8 80 4.00 70 3.97/GJ 61.1 59.2 3.50 60 55.5 3.00 50 40 2.80/GJ 2.50 2.60/GJ 30 2.
Slide 14: Financial Highlights & FY25 Guidance
02 SECTION #1 HIGHLIGHTS FINANCIAL STRATEGY UPDATE & FY25 GUIDANCE 14
Slide 15: Tight Market Conditions Lead to Price Volatility
TIGHT MARKET CONDITIONS LEAD TO PRICE VOLATILITY Volatility expected to continue given increasing reliance on gas-firmed electricity generation in the NEM + tight gas supply Victorian spot gas prices1, $/GJ Quarterly max Quarterly average Coal-fired generation outages 58.44 driving high levels of ga
Slide 16: Record Production & Financial Metrics
RECORD PRODUCTION & FINANCIAL METRICS Step up in revenue, EBITDAX and adjusted cash from operations $mm unless indicated FY23 FY24 Change Record production, 4% due to improved OGPP performance Production, TJe/d1 59.8 62.1 ▲ 4% Record revenue, 11% due to higher sales volumes and price Sales r
Slide 17: Record u-EBITDAX Bridge from FY23
RECORD u-EBITDAX—bridge from FY23 Greater gas sales volume and prices, and higher liquid sales A$mm 1.9 Higher sales volumes and price realisations 4.6 7.6 1.8 5.2 2.3 6.4 Higher crude oil liftings 9.4 Slightly higher gas purchases — OGPP performance improvement trials in Q1 FY24 and pipeline
Slide 18: Group Cash Bridge from June 2023 to June 2024
GROUP CASH—BRIDGE FROM JUNE 2023 TO JUNE 2024 Includes one-off impact of BMG restoration and Orbost deferred consideration A$mm Restoration cash flows primarily relate to costs associated with BMG Total cash and cash equivalents, other financial assets and investments 121.2 Total cash and cash A$78.
Slide 19: Significant Undrawn Capacity Under the RBL
SIGNIFICANT UNDRAWN CAPACITY UNDER THE RBL Low-cost facility with sculpted reducing commitment schedule Reserve based loan (RBL) committed & available funding, $mm Strong RBL bank group — Redetermined borrowing base above $400mm — Fully committed and available 265.0 Commitment schedule reduces f
Slide 20: Net G&A Costs
NET G&A COSTS 24% reduction achieved in FY24 vs FY23, or 36% net of FY24 restructuring and other non-recurring costs Transformation programme G&A initiatives Reported net G&A costs, $mm Headcount Board Consultants 6.8 Travel & Entertainment 2.2 Other 19.1 Savings partly offset by restructu
Slide 21: FY25 Guidance
FY25 GUIDANCE Focus on higher gas production driving cost efficiencies, cash generation and deleveraging, ahead of ECSP FY25 production: 62 – 69 TJe/day FY25 production expenses: $55 – 63mm1 FY25 capex: $50 – 60mm2 69 63 Stay-in- CHN business umbilical maintenance 59.7 62.1 62 61.1 59.2 OGPP 55 ECSP
Slide 22: More Than 80% of Decommissioning Is Beyond 2028
MORE THAN 80% OF DECOMMISSIONING IS BEYOND 2028 Completion of BMG wells decommissioning has materially reduced restoration provisions Next five years (<20% of the remaining provision) Beyond next five years (>80% of the remaining provision) Patricia Baleen wells Cooper Basin Portion of onshore wel
Slide 23: FY25 Priorities
03 SECTION #1 FY25 PRIORITIES STRATEGY & GROWTH UPDATE 23
Slide 24: Focus for FY25 and Near-Term Investment Catalysts
FOCUS FOR FY25 AND NEAR-TERM INVESTMENT CATALYSTS Shareholder returns to be driven by increasing production into a tight market, operational leverage and de-risking growth Targetting group production run-rate of >70 TJe/d by end-FY25 Progress the preferred drilling program to deliver the East Coast
Slide 25: Shaping Gas to Create a Premium Product for Power Customers
SHAPING GAS TO CREATE A PREMIUM PRODUCT FOR POWER CUSTOMERS Bairnsdale agreement is a first step in providing customers with solutions as the shape of gas demand evolves and gas power is increasingly called upon to firm renewable generation in the energy transition 16,000 18.00 Agreement with Bair
Slide 26: A Low Emissions Intensity Portfolio
A LOW EMISSIONS INTENSITY PORTFOLIO With targets to improve further by FY30 New FY30 Emissions Reduction Targets Peer group emissions intensity benchmarking, kgCO2e/boe1 Scope 1: Reduce flaring by 40% by FY30 Scope 2: Integrate renewable electricity to support from FY23 on an equity basis Cooper Ene
Slide 27: Appendices
04 SECTION #1 APPENDICES STRATEGY UPDATE 27
Slide 28: Gippsland Basin Farmout: Next Phase of Exploration
GIPPSLAND BASIN FARMOUT: NEXT PHASE OF EXPLORATION GIPPSLAND FARMOUT UNDERWAY FOR VIC/P80 & VIC/RL13, 14 & 15 Seeking partner for next phase of Gippsland gas exploration and development Significant discovered resources and high-quality prospectivity in proven play trends — 185 PJ1 of 2C discover
Slide 29: Gas Plays a Critical Role in the Future Electricity Market
GAS PLAYS A CRITICAL ROLE IN THE FUTURE ELECTRICITY MARKET South Australia is a window into the future national electricity mix South Australian GPG meeting >90% of demand during peak demand periods, MW1 3,000 Imports Gas Battery (Discharging) Wind Solar 1,500 0 Thursday Friday Saturday Sunday Monda
Slide 30: Increasing Spot/Uncontracted Volumes from 2026
INCREASING SPOT/UNCONTRACTED VOLUMES FROM 2026 Indicative uncontracted volumes assuming Group average production of 70 TJe/day (equity gas) Gas contract stack, existing reserves only1 PJ/annum Excludes any volumes from East ~TJ/d 30 2H FY24 production: Coast Supply Project, targeting 82 ~64TJ/d circ
Slide 31: Reserves and Contingent Resources at June 2024
RESERVES AND CONTINGENT RESOURCES AT 30 JUNE 2024 As announced on 23 August 2024 1P (Proved) 2P (Proved & Probable) 3P (Proved, Probable & Possible) Reserves1 Developed Undeveloped Total Developed Undeveloped Total Developed Undeveloped Total Sales gas PJ 128.6 0.0 128.6 196.1 0.0 196.1 280.0 0.0 28
Slide 32: Recovery Factors in Cooper Energy Otway Basin Interests
RECOVERY FACTORS IN COOPER ENERGY OTWAY BASIN INTERESTS Single well pool recovery factors in Cooper’s Otway Basin interests are consistently strong Single well pool fields1 Single well pool recovery factors (actual, with estimates for Annie)1,2 300 Recovery factor from known single well/pool devel
Slide 33: Otway Exploration Opportunities
OTWAY EXPLORATION OPPORTUNITIES High quality, low risk prospects in amplitude-supported play Otway Basin, Top Waarre Formation Prospective Resource Summary 1 COE Low (P90) Best (P50) Mean High (P10) Prospect Permit Pg4 equity (%) Gross2 Net3 Gross2 Net3 Gross2 Net3 Gross2 Net3 Elanora VIC/L24 50 56.
Slide 34: Gippsland Exploration Opportunities
GIPPSLAND EXPLORATION OPPORTUNITIES Prolific basin adjacent to existing infrastructure Prospective Resource Estimates for Gummy Deep, Manta Deep, Chimaera East and Wobbegong Prospects, offshore Gippsland Basin 1 COE Low (P90) Best (P50) Mean High (P10) Prospect Permit Pg4 equity (%) Bcf 2 MMbbl 3 Bc
Slide 35: Notes on Calculation of Reserves and Contingent Resources
NOTES ON CALCULATION OF RESERVES AND CONTINGENT RESOURCES 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 estimates of petroleum
Slide 36: Reconciliations
RECONCILIATIONS Underlying adjustments include restoration, derecognition of deferred income tax asset and impairment FY23 $mm FY23 FY24 $mm (restated) FY24 Underlying net profit / (loss) after tax (5.6) 1.4 Statutory net profit / (loss) after tax (60.5) (114.1) Adjusted for: Adjusted for: Impairmen
Slide 37: Abbreviations
ABBREVIATIONS $ Australian dollars APA APA Group (ASX: APA) ASX Australian Securities Exchange bbl Barrels Bcf Billion cubic feet of gas boe Barrel of oil equivalent Cooper Energy or Company Cooper Energy Limited ABN 93 096 170 295 GJ Gigajoule mm Millions mmbbl Million barrels MMboe Million barrels