Origin Energy Limited · ASX:ORG
Origin Energy — Merger or Acquisition (August 2008)
15 slides from Origin Energy's merger presentation, Aug 19, 2008
Slide 1: Target's Statement Presentation
For personal use only Origin Energy Target’s Statement Presentation 19 August 2008
Slide 2: Important Notice
Important Notice • This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose of any securities in Origin, in any jurisdiction (including the USA). For personal use only • This presentation is for information purposes only, is in a summary form,
Slide 3: Directors believe BG's Offer undervalues Origin; reject BG's Offer
Origin’s Directors believe BG’s Offer: For personal use only Undervalues Origin’s existing business and outstanding prospects and unanimously recommend that Origin shareholders: Reject BG’s Offer 3
Slide 4: Reasons BG's Offer of $15.50 per share undervalues Origin
Origin’s Directors believe BG’s Offer of $15.50 per share undervalues Origin for the reasons that follow: BG’s Offer undervalues Origin’s existing business For personal use only Reason 1: Origin has an outstanding fuel-integrated generation and retail business Reason 2: Origin has the largest CSG re
Slide 5: Origin has built an outstanding fuel integrated generation and retail business
Since separately listing on the ASX in 2000 Origin has built an outstanding fuel integrated generation and retail business For personal use only Fuel Retailer Generator Largest holder of 2P gas Largest owner and developer A leading wholesaler and reserves in Eastern Australia & of gas fired electric
Slide 6: Origin has the largest 2P and 3P CSG reserves in Australia
Origin has the largest 2P and 3P CSG reserves in Australia with acreage in both Qld CSG “sweet spots”… For personal use only Source: Origin … and the flexibility to direct these reserves to markets with the greatest potential return 6
Slide 7: Origin is the leading developer of CSG in Australia
Origin is the leading developer of CSG in Australia with the longest production history and more CSG well experience than any other Australian CSG participant… For personal use only …together with the highest CSG production in Australia 7
Slide 8: Well placed to benefit from rising energy prices and increasing gas demand
Origin’s extensive CSG reserves and development expertise mean the company is well placed to benefit from rising energy prices and increasing demand for gas For personal use only • Higher coal and material costs, together with the planned introduction of a carbon emissions reduction scheme, are expe
Slide 9: Reserve quality and CSG transaction benchmarks imply higher values
The quality of Origin’s reserves, its access to markets and the recent benchmarks for CSG transactions imply the potential for higher values than had previously been ascribed to Origin’s CSG assets For personal use only • BG asserts that: Santos PETRONAS Project • the application of the Santos/PETRO
Slide 10: CSG Monetisation Process initiated by the Board
To seek proposals to accelerate the development of Origin’s CSG position the Board initiated the CSG Monetisation Process For personal use only • In June Origin initiated a CSG monetisation process to seek a partner for the further development of the Company’s CSG reserves. • A number of global part
Slide 11: Several companies have proposed CSG to LNG projects
Several companies have now proposed CSG to LNG projects of various sizes… For personal use only …with Origin’s substantial 3P reserves approaching the level required to support a two-train (6 mtpa) LNG 11 development
Slide 12: Some of Origin's CSG interests are subject to reversionary rights
Some of Origin’s CSG interests are subject to reversionary rights For personal use only BG has acknowledged it had the Origin / Tri-Star Sale and Purchase Deed and therefore full knowledge of the contractual arrangements regarding reversion before the 12 release of its Bidder’s Statement
Slide 13: Origin's gas would underpin BG's global LNG proposition
Access to Origin’s natural gas resources in Asia Pacific would underpin BG’s global LNG proposition and be the cornerstone of their Asia-Pacific Activities For personal use only • BG has no existing LNG production in Asia • BG has signed new contracts for delivering LNG into Singapore and Hong Kong
Slide 14: Board unanimously recommends shareholders reject BG's Offer
The Origin Board unanimously recommends that shareholders REJECT BG’s Offer For personal use only • BG’s Offer undervalues Origin’s outstanding fuel integrated generation and retail business. • BG’s Offer undervalues Origin’s position as Australia’s largest holder and leading developer of CSG reserv
Slide 15: For personal use only
For personal use only