Santos Limited · ASX:STO
Santos — Citi Conference, London 2012
28 slides from Santos's conference presentation, Mar 5, 2012
Slide 1: UK Roadshow Investor Presentation
Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000 GPO Box 2455 Adelaide South Australia 5001 Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723 For personal use only TO: ASX Market Announcements ASX Limited FROM: Company Secretary DATE: 5 Ma
Slide 2: Disclaimer and Important Notice
For personal use only Investor Presentation March 2012 Disclaimer and Important Notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, b
Slide 3: Santos overview
Santos overview For personal use only A leading energy company in Australia and Asia Australia’s largest domestic gas Fergana Basin producer Current production of 535 mmscf/d gas and 30 kbbls/d liquids Bay of Bengal Top 25 ASX listed company Phu Khanh Basin Market capitalisation of Nam Con S
Slide 4: Delivering 80-90 mmboe of production by 2020
Delivering 80-90 mmboe of production by 2020 For personal use only Reindeer and Wortel now producing; Fletcher Finucane sanctioned Upside potential Aust: Cooper shale, Amadeus, Zola, Production Winchester, Sole LNG: PNG LNG T3, Browse, Caldita/Barossa mmboe Asia: Chim Sáo upside, Dua, Bay of Bengal,
Slide 5: Working with local landholders and communities
Working with local landholders and communities For personal use only Australia’s largest domestic gas producer, Santos has a 50-year track record of safe, sustainable operations We are committed to working with local landholders and contributing to communities We will work in partnership with
Slide 6: Underlying net profit up 20%
Underlying net profit up 20% For personal use only 2011 Full-year result Change on 2010 Production 47.2 mmboe (5%) Sales revenue $2,530 million 14% EBITDAX $2,126 million 27% Net profit after tax $753 million 51% Underlying net profit $453 million 20% Operating cash flow $1,253 million (2%) Final di
Slide 7: Capex & production guidance
Capex & production guidance For personal use only 2012 capex $3.75 billion and production 51-55 mmboe Capex mmboe Production $billion 4 3.75 60 51-55 3.1 50 47.2 3 40 2 30 20 1 10 0 0 2011 Actual 2012 Forecast 2011 Actual 2012 Forecast Range GLNG PNG LNG EA WA&NT Asia Exploration 2012 capital expend
Slide 8: Strong demand for Australian gas
Strong demand for Australian gas For personal use only Demand set to quadruple by 2025; gas prices will trend towards oil-linked international parity PJ 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 LNG exports Dome
Slide 9: Cooper infill: 6-well pad underway
Cooper infill: 6-well pad underway For personal use only Undrilled slots 6 well slots prior to rig mobilisation 15 Leading the way on unconventional exploration Targeting production and ~5,000 PJ resource by 2015 Prove gas content and Achieve gas flow Demonstrate 2P reserve recoverable volumes to su
Slide 10: Cooper unconventional
Cooper unconventional For personal use only Unconventional resource gas plays to be explored in 2012 Moomba field Moomba 191 shale gas well Dedicated vertical shale gas well drilled in December 2011 with cores taken from Developed each of three shale intervals conventional Microseismic monitored
Slide 11: High-impact WA campaign in 2012
High-impact WA campaign in 2012 For personal use only Exciting drilling campaign, including three offshore Santos- operated rigs Territory of Ashmore & Cartier Browse Basin gas Islands Legend Indian Exploration - Crown Santos acreage Ocean Northern Oil field Carnarvon Basin gas Territory Gas field
Slide 12: Carnarvon Basin oil: Fletcher Finucane
Carnarvon Basin oil: Fletcher Finucane For personal use only Sanctioned 8 months after discovery, an industry-leading transition from exploration to development $490 million gross oil project in the Carnarvon Basin, sanctioned in January 2012 Santos is operator with a 48% effective interest Th
Slide 13: Material Bonaparte Basin position
Material Bonaparte Basin position For personal use only A critical region for Santos now and into the future Caldita Barossa Santos 40% Darwin LNG Evans Shoal Sold to Eni Continued strong production NT/P69 Barossa Joint Petroleum 35-day planned shutdown in 2012 Development NT/P61 Area Caldita JP
Slide 14: Santos' unique LNG Portfolio
Santos’ unique LNG Portfolio For personal use only Darwin (Santos 11.5%) PNG (Santos 13.5%) Conventional gas supply First gas exports from PNG GLNG (Santos 30%) Bonaparte (Santos 40%) CSG-to-LNG Floating LNG 25 Santos’ LNG customers and partners PNG LNG Bonaparte LNG Darwin LNG GLNG 26 13
Slide 15: GLNG: strong progress since FID
Asian LNG pricing For personal use only Three distinct gas pricing structures for long-term LNG contracts; Asia to remain an oil-linked market Gas-on-gas market Oil-linked market Henry Hub NBP Oil Product JCC-linked Henry Hub 27 GLNG: strong progress since FID First LNG expected in 2015 on schedule
Slide 16: Upstream
Upstream For personal use only More than 400 wells drilled to date, with >200 wells commissioned with capacity of 240 TJ/d Santos operates on grazing land, not cropping land − More than 500 agreements in place with 200 landowners Arcadia Area − 34,000 hectares of land owned to be used for key deve
Slide 17: GLNG plant site, Curtis Island
GLNG plant site, Curtis Island For personal use only 1 February 2012 31 GLNG material offloading facility, Curtis Island 1 February 2012 32 16
Slide 18: PNG LNG project
PNG LNG project For personal use only On track for start-up in 2014 6.6 mtpa, US$15.7 billion two-train development, operated by ExxonMobil Santos 13.5% equity Project progressing well, recent milestones include: − Commenced piling work at Hides Gas Conditioning Plant − Significant earthworks
Slide 19: Bonaparte LNG on schedule
Bonaparte LNG on schedule For personal use only BLNG building momentum; >2Tcf resource Santos 40% equity and carried to FID (GDF SUEZ 60% and operator) 150 people working on the project Substantial progress on pre-FEED: Granherne (upstream) and DORIS Engineering (downstream) Project remains
Slide 20: Focused Asian portfolio
Focused Asian portfolio For personal use only Asia will contribute 20% of Santos’ production in 2012 Asia’s growing energy needs are driving higher domestic gas prices Established Indonesian business with strong track record of project delivery Chim Sáo project in Vietnam delivered on time and
Slide 21: Indonesia – South Sumatra CSG
Indonesia – South Sumatra CSG For personal use only Santos farm-in to two CSG licences in South Sumatra Leverages Santos’ CSG experience in Australia and operating experience in Indonesia Perabumulih Ogan Komering II PSC Farm-in agreement with Sugico OIG 7,8,9,10 OIG 6 gives Santos 60% equity an
Slide 22: Bay of Bengal
Bay of Bengal For personal use only Exploration-driven opportunity to meet growing gas markets in Bangladesh and India Bangladesh India − Chittagong market significantly Bangladesh Sangu India under-supplied − Sangu-11 well penetrated a new gas Block 16 Burma reservoir with approximately 20 Bay of
Slide 23: 2012 guidance
2012 guidance For personal use only Item 2011 2012 Actual Guidance Production (mmboe) 47.2 51-55 Production costs ($m) 556 610-640 DD&A expense ($/boe) 13.47 14.00 Royalty related taxation expense1 91 80-100 ($m after tax) Capital expenditure (including $3 billion $3.75 billion exploration & evaluat
Slide 24: Sales revenue increased by 14%
Sales revenue increased by 14% For personal use only $m Sales revenue 3,000 2,762 2,489 2,530 2,500 2,181 2,228 2,000 1,500 1,000 500 0 2007 2008 2009 2010 2011 Oil Sales gas, ethane and LNG Condensate and LPG Higher realised prices for all products; oil price up 32% and gas price up 9% Third pa
Slide 25: Business unit EBITDAX
Business unit EBITDAX For personal use only $m Business unit EBITDAX 1,000 791 800 633 641 600 577 547 400 295 200 157 111 48 (2) 0 Eastern WA&NT Asia Pacific GLNG Corporate Australia 2010 2011 and other Corporate and other in 2011 includes gains on sale of 15% of GLNG and Evans Shoal 47 Net profit
Slide 26: Net profit reconciliation
Net profit reconciliation For personal use only Net profit after tax $m 500 216 (43) (40) (16) (40) (29) 56 215 (66) 753 1,000 900 216 (66) 800 753 216 (43) 700 (40) (16) (40) 56 600 (29) 500 500 400 300 200 100 0 2010 Prices & Sales Effective Prod’n DD&A E&E Net Gain on Other 2011 foreign volumes t
Slide 27: Operating cash flow remains strong
Operating cash flow remains strong For personal use only Operating cash flow $m 1,500 1,385 $m 1,273 1,253 1,214 1,200 1,155 900 600 300 0 2007 2008 2009 2010 2011 Consistent cash flow generation from the base business 51 Capital expenditure $m Capital expenditure 4,000 3,750 3,500 3,069 3,000 2,5
Slide 28: 2012 exploration schedule
2012 exploration schedule For personal use only Santos Well Name Basin / Area Target Timing Interest % Tardrum Bowen CSG 50 Successful Beam-1 Carnarvon Gas 45 Q1 Hoss-1 Carnarvon Oil 37.3 Q2 Indonesia CSG South Sumatra CSG 60 Q2/Q3 Chim Sáo NW-1 Nam Con Son Oil 31.875 Q3 Crown-1 Browse Gas 30 Q3 Van