Slide 1: 2011 Half-year Results
For personal use only Chim Sáo FPSO Lewek Emas. First oil is expected in September 2011. 2011 Half-year Results 19 August 2011
Slide 2: Disclaimer & Important Notice
Disclaimer & Important Notice For personal use only 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, but they may be affected by a range
Slide 3: 2011 Half-year Results – David Knox, Managing Director & CEO
For personal use only 2011 Half-year Results David Knox Managing Director & CEO
Slide 4: First-half overview
First-half overview For personal use only Safety: 60% improvement in three years Reported half-year profit up 155% to $504 million Two-train GLNG project sanctioned in January Halyard/Spar project on-line ahead of schedule Chim Sao, Reindeer and Wortel projects on track for start-up in the second ha
Slide 5: Safety performance
Safety performance For personal use only Santos TRCFR performance (Employees & Contractors) Total recordable case frequency rate 7 (per million hours worked) 6 5 4 3 2 2.4 1 0 2006 2007 2008 2009 2010 2011 YTD 5
Slide 6: Half-year net profit up 155%
Half-year net profit up 155% For personal use only 2011 Half-year result Change on 2010 first-half Production 22.9 mmboe (5%) Sales revenue $1,101 million 1% EBITDAX $1,089 million 66% Net profit after tax $504 million 155% Underlying net profit $236 million 12% Operating cash flow $681 million 27%
Slide 7: 2011 Half-year Results – Andrew Seaton, CFO
For personal use only 2011 Half-year Results Andrew Seaton CFO
Slide 8: Reported & underlying profits
Reported & underlying profits For personal use only Reported NPAT Underlying NPAT $m 600 504 500 400 71 (42) 300 17 (18) (2) 236 198 210 200 100 0 HY- HY- HY- Prices & Sales Net Royalty Other HY- 2010 2011 2010 foreign volumes finance related 2011 exchange income tax 8
Slide 9: Production lower due to GLNG sell-down
Production lower due to GLNG sell-down For personal use only Santos interest in GLNG production reduced from Production 60% to 30% following mmboe 24.2 (0.8) the sale of interests to 25 0.4 (0.9) 22.9 Total and KOGAS 20 Higher Bayu-Undan production due to 15 shutdown in previous first half 10 Jabiru
Slide 10: Sales volumes and revenue
Sales volumes and revenue For personal use only mmboe Sales volumes 30.0 3.5 Third party Higher commodity products 5.5 prices offset by 20.0 stronger AUD 25.0 Own product1 22.1 Higher volumes of third 10.0 party products offset lower own product - HY-2010 HY-2011 volumes Sales revenue 595k bbl crude
Slide 11: Production cost and cost of sales
Production cost and cost of sales For personal use only Cash production Total cost of sales $m costs $m $11.44 300 / boe $11.37 800 $24.70 $25.11 / boe / boe / boe 700 Third party 250 $70m product purchases $117m 600 200 500 $276m 150 $260m 400 $634m Cost of $576m 300 produced 100 hydrocarbons1 200
Slide 12: Business unit EBITDAX
Business unit EBITDAX For personal use only $m HY-2010 HY-2011 400 368 372 350 302 300 287 300 Corporate and other includes gains on sale of assets of $348 million in 250 HY-2011. 200 150 100 65 47 50 13 2 (12) 0 Eastern WA&NT GLNG Asia Pacific Corporate Australia and other Eastern Australia | Highe
Slide 13: DD&A
DD&A For personal use only Higher DD&A primarily Rate Volume due to asset additions and 21 (12) $m 277 286 year end 2010 reserve 300 revisions 250 Partially offset by impact of lower production 200 volumes 150 Full year 2011 guidance unchanged at $12-13/boe 100 50 0 HY-2010 HY-2011 $11.45/boe $12.49
Slide 14: Interest and tax
Interest and tax For personal use only Half-year Half-year $m 2011 2010 EBIT 766 283 Net finance income Interest income 100 55 Interest paid (110) (26) Less borrowing costs capitalised 63 - (47) (26) Unwind of the effect of discounting on provisions (19) (19) Total net finance income 34 10 Profit be
Slide 15: Strong balance sheet to fund growth
Strong balance sheet to fund growth For personal use only Funding position ensures balance sheet capacity to: fund execution of business strategy minimise refinancing risk Debt maturity profile $6.7 billion of funding capacity A$ million A$ billion 1,800 7 1,600 6 1,400 5 1,200 1,000 4 800 3 600 2 4
Slide 16: GLNG capex effectively hedged
GLNG capex effectively hedged For personal use only 70% A$ capex, hedged by A$ cashflows & A$3bn cash GLNG US$16 billion budget capex by currency1 Euro Santos net share of GLNG capex USD at AUD at AUD at USD AUD FID (1) FID (1) spot(2) $bn $bn $bn 4.8 5.5 5.3 1 Based on project weighted average exch
Slide 17: 2011 Half-year Results – David Knox, Managing Director & CEO
For personal use only 2011 Half-year Results David Knox Managing Director & CEO
Slide 18: Santos vision and strategy
Santos vision and strategy For personal use only LNG Markets LNG CHANNEL DOMESTIC CHANNEL Focused Strong Asian A leading Australian Growth energy Base company in Australia and Asia Strategic Domestic Gas positions in EA and WA 18
Slide 19: Halyard/Spar, WA
Halyard/Spar, WA For personal use only Development of Halyard (WA-13-L) and Spar (WA-4-R) Project Halyard/Spar Location Carnarvon Basin, offshore WA Santos interest 45% Partner Apache 55%, operator Project scope Tie-back of Halyard and Spar wells to Varanus Island via existing East Spar pipeline Mod
Slide 20: Reindeer/Devil Creek, WA
Reindeer/Devil Creek, WA For personal use only Reindeer/Devil Creek – WA’s new domestic gas hub Project Reindeer/Devil Creek Location Carnarvon Basin, offshore WA Santos interest 45% Partner Apache 55%, operator Project scope Unmanned, minimum facility wellhead platform Reindeer wellhead platform 10
Slide 21: Devil Creek gas plant, WA
Devil Creek gas plant, WA For personal use only 21
Slide 22: Chim Sáo, Vietnam
Chim Sáo, Vietnam For personal use only Chim Sáo – September first oil Project Chim Sáo Location Block 12W, offshore Vietnam Santos interest 31.875% Partners Premier 53.125%, operator PetroVietnam 15% Project scope Unmanned, minimum facility wellhead platform Liquids processing and export via FPSO G
Slide 23: Chim Sáo FPSO in the field
Chim Sáo FPSO in the field For personal use only 23
Slide 24: Wortel, Indonesia
Wortel, Indonesia For personal use only Wortel – Third operated project in Indonesia Project Wortel Location Sampang PSC, offshore East Java, Indonesia Santos interest 45%, operator Partners SPC 40% Cue Energy Resources, 15% Project scope Unmanned, minimum facility wellhead platform 10-km gas pipeli
Slide 25: LNG is a key component of Santos' growth strategy
LNG is a key component of Santos’ growth strategy For personal use only Strategy Bonaparte LNG Components 2 mtpa FLNG PNG LNG Santos 40% with carry to FID Sanctioned Dec 2009 6.6 mtpa two trains Deliver the First LNG due 2014 Darwin LNG Base Business Production since 2006 Santos 13.5% 3.6 mtpa singl
Slide 26: Strategy delivers material LNG growth
Strategy delivers material LNG growth For personal use only Santos equity LNG production fromGLNG T1 discovered resources existing mtpa 5 BLNG 4 GLNG T2 3 2 GLNG T1 1 Excludes PNG LNG expansion PNG LNG Darwin LNG 0 2010 2020 26
Slide 27: Santos' LNG customers & partners
Santos’ LNG customers & partners For personal use only PNG LNG Bonaparte LNG Darwin LNG GLNG 27
Slide 28: GLNG
GLNG For personal use only Construction progressing to schedule and budget FID Jan 2011 7.8 mtpa, two trains Santos 30% LNG off-take agreements with PETRONAS & KOGAS Clearing of LNG plant site on Curtis Island 60% complete First batch of GLNG line-pipe Bulk earthworks underway Production of line-pip
Slide 29: GLNG plant site, Curtis Island
GLNG plant site, Curtis Island For personal use only LNG plant site schematic 9 August 2011 29
Slide 30: GLNG material offloading facility site
GLNG material offloading facility site For personal use only 9 August 2011 9 August 2011 30
Slide 31: PNG LNG
PNG LNG For personal use only Progressing towards first LNG in 2014 FID Dec 2009 6.6 mtpa, two trains Santos 13.5% Four Asian LNG buyers Design for major EPC contracts nearing completion, procurement well underway LNG train foundations, structural Line-pipe at Kopi shore base steel and LNG tank foun
Slide 32: PNG LNG plant site
PNG LNG plant site For personal use only LNG plant site schematic
Slide 33: Zola discovery
Zola discovery For personal use only Significant gas discovery in strategic location Zola-1 successful gas test of Wheatstone Triassic horst block on trend from Pluto Indian Gorgon field Ocean Over 100m of net gas pay over a Gorgon John Brookes 400m gross interval in excellent Spar Maitland Varanus
Slide 34: Finucane South discovery
Finucane South discovery For personal use only Oil discovery with quick cycle time to first production Fletcher Finucane South-1 oil discovery Mutineer WA-191-P Exeter 18 metre net oil column in excellent Perseus Angel Angel formation reservoir sands Finucane South Goodwyn North Proximity to Fletche
Slide 35: Summary
Summary For personal use only Safety: 60% improvement in three years Reported half-year profit up 155% to $504 million Two-train GLNG project sanctioned in January Halyard/Spar project on-line ahead of schedule Chim Sao, Reindeer and Wortel projects on track for start-up in the second half of 2011 E
Slide 36: 2011 Half-year Results August 2011
For personal use only 2011 Half-year Results 19 August 2011
Slide 37: Reference slides
For personal use only Reference slides
Slide 38: Significant items (after tax)
Significant items (after tax) For personal use only 1st Half 1st Half $m 2011 2010 Underlying profit 236 210 Significant items 268 (12) Net profit after tax 504 198 Significant items included: Net gains/(losses) on asset sales 246 (2) Impairments reversals/(losses) 9 (25) Foreign currency gains 10 3
Slide 39: 2011 Guidance
2011 Guidance For personal use only Item 2011 Guidance Production 47 – 50 mmboe Production costs $550 – $590m DD&A expense $12 – 13/boe Royalty related taxation expense $80 – $100m (after tax)1 Capital expenditure (including $3 billion exploration & evaluation)2 1 Royalty related taxation expense gu
Slide 40: 2011 Exploration schedule
2011 Exploration schedule For personal use only Santos Well Name Basin / Area Target Interest Timing % Zola-1 Carnarvon Gas 24.8 Gas discovery Cana-1 Gunnedah CSG 25.0 CSG discovery Finucane South-1 Carnarvon Oil 33.4 Oil discovery Tuy Hoa-1X Phu Khanh Oil 50.0 Q3 Tardrum-4 Bowen-Surat CSG 50.0 Q4 T
Slide 41: Contact information
Contact information For personal use only Head office Andrew Nairn Adelaide Group Executive Investor Relations Ground Floor, Santos Centre Level 10, Santos Centre 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Facsimile: +61 8 8116 5131 GPO Box 2455 Email: andrew.nairn@sa