Origin Energy Limited · ASX:ORG
Origin Energy — UBS 7th Annual Australian Resources, Energy & Utilities Conference 2009
26 slides from Origin Energy's conference presentation, Jun 17, 2009
Slide 1: ASX announcement cover note: presentation
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 17 June 2009 From Bill Hundy Pages 26 Subject PRESENTATION Attached for your information is a presentation being made by Mr Grant King, Managing Director to the UBS 7th Annual Australian Resources,
Slide 2: Ongoing Growth
For personal use only Ongoing Growth UBS 7th Annual Australian Resources, Energy & Utilities Conference 17 June 2009
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: Last year Origin defended a hostile bid; APLNG transformed the balance sheet
Last year Origin was defending a hostile bid from BG and conducting a CSG monetisation process… As at 31 December 2008 For personal use only Undrawn Available Adjusted Committed Funding (1) (2) (1) Gross Debt Cash Debt Facilities Capacity Source: Origin … the subsequent completion of the APLNG trans
Slide 5: CSG position strengthens domestic markets and opens export channel
During last year Origin benefited from a chain of events initiated by the BG bid and underpinned by Origin’s CSG position… For personal use only 400 Gas Demand by Sector LNG Demand Asia Pac 1,800 350 1,600 300 1,400 Gas demand (PJpa) 1,200 250 1,000 mmtpa 200 800 600 150 400 100 200 0 50 08 10 12 14
Slide 6: Climate change policy shapes domestic energy investment
Investment in energy production and power generation for domestic markets will be largely shaped by the Federal Government’s policy response to Climate Change Renewable Energy Target Scheme For personal use only • New scheme starts in January 2010 • 2020 target of 45,000 GWh (from a current base of
Slide 7: Expanded Renewable Energy Target has slow start, faster later growth
The expanded Renewable Energy Target to 45 TWh by 2020 For personal use only has a slow start and a greater rate of increase in later years… • Potential capital investment in excess of $20 billion required to meet this target • Origin, with around 20% electricity market share nationally, will need t
Slide 8: Significant investment in new peaking and base load generation needed
While the RET will drive deployment of renewable generation to meet some of the growing demand for electricity, it is not competitively priced generation for the balance of the market For personal use only • The NEMMCO 2008 Statement of Opportunities has forecast that new capacity is required in the
Slide 9: Gas-fired power and renewable portfolio well placed in carbon-constrained environment
Origin’s portfolio of gas-fired power stations and renewable energy projects is well placed to benefit in a carbon- constrained environment… • Addition of Uranquinty and Quarantine For personal use only expansion has more than doubled Origin’s generation equity interests to 1,494 MW • Origin has com
Slide 10: Uranquinty Power Station fully operational; Quarantine expansion
Uranquinty Power Station is now fully operational and contributing to earnings… For personal use only All 4 completed Uranquinty PS turbines New unit at Quarantine PS Uranquinty Power Station Quarantine Power Station Expansion • 640 MW Peaking Plant (4 x 160 MW OCGT) • 120 MW expansion (1 x 120 MW O
Slide 11: Darling Downs progressing; Mortlake development commenced
Darling Downs Power Station is progressing well… For personal use only Darling Downs PS Turbine Building steel erection Impression of Mortlake PS once constructed Darling Downs Power Station Mortlake Power Station • 630 MW Base Load plant • 550 MW Peaking plant • Largest CCGT plant in Australia • Si
Slide 12: Conditional agreement to acquire ATP 788P
Origin has entered into a conditional agreement to acquire ATP 788P on the southerly extension of the Undulla Nose… • In April 2009 Origin entered into a conditional For personal use only agreement to acquire a 100% interest in ATP 788P from the Pangaea group, subject to certain conditions precedent
Slide 13: South West Queensland Pipeline expansion
The expansion of the South West Queensland Pipeline will provide Origin with long term gas pipeline capacity to link its Eastern Australian portfolio… For personal use only • In June 2009 Origin entered into a conditional agreement with Epic Energy to underpin construction of new capacity on the Sou
Slide 14: Portfolio of renewable energy options: wind
Origin has positioned itself to respond to carbon policies through a portfolio of renewable energy options… Wind For personal use only • Origin initially invested in wind through third parties by underwriting wind-farm developments by others through long term power purchase agreements • Construction
Slide 15: Geothermal and solar long-term options
… with flexibility in achieving long-term cost effective solutions Geothermal • Geodynamics’ Proof of Concept closed loop testing For personal use only completed in late March 2009 • Commercial Demonstration stage commenced • Recent well incident at Habanero 3 under investigation • Origin believes t
Slide 16: New Zealand development projects nearing completion
In New Zealand, a number of development projects are nearing completion… Kupe Gas Project • Construction of the offshore facilities wells, wellhead For personal use only platform, pipeline and controls umbilical is complete • Overall project including the Production Station near Hawera is nearing co
Slide 17: Significant offshore exploration programme
In the coming year Origin is committed to a significant offshore exploration programme targeting substantial reserves increases near domestic markets in Australia and New Zealand… For personal use only Offshore Otway Basin Woodside, as Operator of offshore Otway Basin permit T/34P has secured the Oc
Slide 18: APLNG joint venture with ConocoPhillips
Origin’s 50:50 joint venture with ConocoPhillips called APLNG continues to develop its CSG resources with the objective of establishing a new export channel to market APLNG is progressing well For personal use only • $2.3 billion work program to FID underway • IAS submitted and project declared as S
Slide 19: APLNG largest holder of proved and probable gas reserves in Eastern Australia
APLNG is the largest holder of proved and probable gas reserves in Eastern Australia… For personal use only Source: Origin … and represents over 35% of Australia's total CSG production 18 Notes: Origin has a 50% interest in APLNG Reserves as at 1 January 2009 are shown net of CSG production for H1 F
Slide 20: Short term oil price moved more than long dated price
While the short term oil price has moved significantly in the For personal use only last year, the long dated price has moved much more modestly Source: Origin based on Bloomberg data June 2009 As a result, the netbacks for LNG for delivery commencing in 2013-2015 have not changed materially and the
Slide 21: Continued growth forecast for Asia Pacific LNG demand
Continued growth is forecast for LNG demand in the Asia Pacific in both traditional and emerging markets… 400 LNG Demand Asia Pac For personal use only 350 300 250 mmtpa 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Japan South Korea
Slide 22: Short term market conditions impacted Contact's earnings
With respect to the current year, short term market conditions driven by extreme weather have impacted Contact’s earnings… For personal use only • Historically high hydro inflows in the South Island has seen current hydro storage levels at 136% of mean resulting in lower wholesale electricity prices
Slide 23: Retail margin pressure after QCA tariff decision
Whilst Origin’s Retail business faced margin pressure this year after the QCA’s original tariff decision did not fully reflect the increase in underlying costs… • The QCA had originally determined (late in For personal use only 07/08) that the benchmark tariff increase for FY08/09 should be 5.38% •
Slide 24: Origin continued development of its business
Over the last year Origin has continued the development of its business… For personal use only • Continued to strengthen its competitive position in domestic energy markets in Australia and New Zealand • APLNG joint venture with ConocoPhillips to progress the development of a significant new export
Slide 25: Ongoing Growth
For personal use only Ongoing Growth UBS 7th Annual Australian Resources, Energy & Utilities Conference 17 June 2009
Slide 26: Further Information
Further Information Investors Angus Guthrie For personal use only Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: +61-4-1786 4255 Website www.originenergy.com.au 25
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