Origin Energy Limited · ASX:ORG
Origin Energy — Merger or Acquisition (September 2008)
27 slides from Origin Energy's merger presentation, Sep 8, 2008
Slide 1: ASX facsimile cover note
To Company Announcements Office Facsimile 1300 135 638 For personal use only Company Australian Stock Exchange Limited Date 8 September 2008 From Bill Hundy Pages 27 Subject PRESENTATION Attached for your information is a copy of a presentation entitled “Origin selects ConocoPhillips to acquire a 50
Slide 2: Origin selects ConocoPhillips to acquire a 50% share in a CSG to LNG Joint Venture
For personal use only Origin selects ConocoPhillips to acquire a 50% share in a CSG to LNG Joint Venture for up to A$9.6 billion 8 September 2008
Slide 3: 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). This presentation is for information purposes only, is in a summary form, and does not purport to b
Slide 4: Agenda
Agenda For personal use only • Highlights Mr Kevin McCann AM Chairman, Origin • Transaction Overview Mr Grant King Managing Director, Origin • ConocoPhillips Mr John Lowe Executive Vice President, Exploration and Production ConocoPhillips • Looking Forward Mr Grant King Managing Director, Origin 3
Slide 5: Highlights
Highlights • Origin selects ConocoPhillips to acquire a 50% share in a CSG to LNG For personal use only Joint Venture for up to A$9.6 billion (1) Transaction: • Origin and ConocoPhillips to jointly develop up to a 4 train CSG to LNG project • Outstanding CSG 3P benchmark of up to A$1.88/GJ (2) • Sub
Slide 6: Transaction Overview
For personal use only Transaction Overview
Slide 7: Transaction Overview
Transaction Overview ConocoPhillips to subscribe for a 50% interest in Origin Energy CSG Limited Assets Includes all of Origin’s CSG interests, related production facilities and existing For personal use only CSG sales contracts ConocoPhillips to invest up to A$9.6 billion for a 50% share of a CSG t
Slide 8: Transaction includes all of Origin's CSG reserves & resources
Transaction includes all of Origin’s CSG reserves & resources… For personal use only The transaction also includes: • CSG-related production facilities • Origin’s conventional interests of 44 PJe in the Denison Trough • Existing CSG sales contracts to Origin and third parties Some of Origin’s CSG re
Slide 9: Transaction confirms increasing valuations for large scale, high quality CSG resources
Transaction confirms increasing valuations for large scale, high quality, well developed CSG resources capable of supporting multiple train LNG projects For personal use only Trains 3 & 4 Additional Payments: A$1.2 billion Train 2 Additional Payment: A$0.6 billion Train 1 Additional Payment: A
Slide 10: Fully aligned transaction combining Origin's leading position in Australian CSG development
Fully aligned transaction that combines Origin’s leading position in Australian CSG development… Upstream LNG Plant LNG Marketing Domestic Gas For personal use only Operator Origin ConocoPhillips Joint Venture Origin Ownership 50:50 50:50 50:50 50:50 Extent of All gas production LNG Plant into All d
Slide 11: Joint Venture will target first production in 2014
Joint Venture will target first production in 2014… Period Milestone • ConocoPhillips’ recent For personal use only development of Darwin LNG on 2009 Commence FEED time and on budget demonstrates Late 2010 Train 1 FID that it is well placed to fast track 2010/11 Train 2 FID this development 2014 Tra
Slide 12: The joint-venture aligns the interests of Origin and ConocoPhillips
The joint-venture aligns the interests of Origin and ConocoPhillips and leverages the strengths of each company For personal use only Origin ConocoPhillips Outstanding Value: Transaction benchmark of up to Outstanding Value: Leverages ConocoPhillips’ A$1.88/GJ 3P reserves strengths and experience an
Slide 13: Financial Benefits & Capital Management
For personal use only Financial Benefits & Capital Management
Slide 14: The transaction transforms the financial position of Origin
The transaction transforms the financial position of Origin and For personal use only provides immediate benefit to Origin’s shareholders • This will result in an immediate and substantial increase in earnings for Origin from the interest benefit • Origin estimates the transaction will provide accre
Slide 15: A$1.5 billion capital management program
Following completion of the transaction, Origin intends to undertake a A$1.5 billion capital management program For personal use only • An immediate payment of an additional dividend of 25 cents per share fully franked to double the 2008 dividend (~A$225 million), providing a new base for future div
Slide 16: Independent Valuation
For personal use only Independent Valuation
Slide 17: The Independent Expert has valued Origin's shares at $28.55 to $30.71/share
The Independent Expert has valued Origin’s shares at $28.55 to $30.71/share For personal use only • Grant Samuel has completed its independent valuation of Origin including the CSG transaction and has released the abbreviated findings in the letter included in the media release • Grant Samuel is cur
Slide 18: ConocoPhillips
For personal use only ConocoPhillips
Slide 19: ConocoPhillips 2007 Highlights
ConocoPhillips 2007 Highlights For personal use only • Integrated, International Company Adjusted • Operations in nearly 40 countries Earnings1 • Annualized revenues of US$253 B / Assets of US$190 B $16.4 B • 33,100 employees • Headquartered in Houston, Texas • Diversified Portfolio of Legacy Assets
Slide 20: ConocoPhillips' Leading Coal Seam Gas position
ConocoPhillips’ Leading Coal Seam Gas position For personal use only • Over 25 years’ working experience in coal seam gas (CSG) • Current production and operations in San Juan and Uinta Basins (USA) and Horseshoe Canyon (Canada) • Largest producer and acreage holder in San Juan Basin • Conventional
Slide 21: ConocoPhillips' LNG Expertise
ConocoPhillips’ LNG Expertise For personal use only • Over 39 years’ working experience in LNG • Equity portfolio • Kenai, Alaska • Darwin, Australia • QG3, Qatar (under construction) • Pioneer in LNG technology - ConocoPhillips Optimized CascadeSM Process • Licensed and/or operating in: • Alaska •
Slide 22: ConocoPhillips Australia
ConocoPhillips Australia For personal use only • Offices in Perth, Darwin, Dili Timor-Leste • ~ 450 employees • Operator and majority interest holder in Bayu-Undan/DLNG • Approximately 107,000 bpd liquids • 500 km pipeline from Bayu-Undan to Darwin • Darwin LNG facility • Major interest in other Aus
Slide 23: Darwin LNG Facility
Darwin LNG Facility For personal use only • One of only two LNG facilities operating in Australia • Process • 650 MMCFD feedstock from Bayu-Undan • Nominal 3.5 MTPA LNG production • Low emission technology • Sales to Tokyo Electric and Tokyo Gas • Construction commenced June 2003 • Commissioned Febr
Slide 24: Looking Forward
For personal use only Looking Forward
Slide 25: Transaction adds to Origin's portfolio of existing developments
This transaction adds substantially to Origin’s already extensive portfolio of existing developments… For personal use only … with the balance sheet strength to pursue a range of acquisitions and additional development opportunities 24
Slide 26: Completion of this transaction will transform Origin
Completion of this transaction will transform Origin, delivering immediate value to shareholders… For personal use only • Origin selects ConocoPhillips to acquire a 50% share in a CSG to LNG Joint Venture for up to A$9.6 billion • Transaction provides immediate benefit to Origin’s shareholders: subs
Slide 27: Further Information
Further Information Origin ConocoPhillips For personal use only Angus Guthrie Gary Russell (Investors) 212-207-1996 Manager, Investor Relations Kristi DesJarlais (Media) 281-293-4595 Email: angus.guthrie@originenergy.com.au Bill Tanner (Media) 281-293-2801 Office: +61-2-8345 5558 Robin Antrobus (Aus
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