Origin Energy Limited · ASX:ORG
Origin Energy — Non-Deal Roadshow (March 2012)
35 slides from Origin Energy's roadshow presentation, Mar 26, 2012
Slide 1: ASX announcement cover note: presentations
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 26 March 2012 From Helen Hardy Pages 35 Subject PRESENTATIONS Attached for your information is a presentation being made to overseas investors by Mr Grant King, Managing Director and Ms Karen Moses,
Slide 2: Origin Energy International Roadshow
For personal use only Origin Energy International Roadshow Grant King, Managing Director Karen Moses, Executive Director, Finance and Strategy March, April 2012
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: An investment in Origin today provides a stake in a company with…
An investment in Origin today provides a stake in a company with… For personal use only The largest fuel integrated generation retail business in Australia and New Zealand • Large and diversified portfolio of physical and contracted fuel supply • Largest and most diversified generation portfolio • L
Slide 5: Origin has added value by successfully investing capital
Origin has added value by successfully investing capital that has delivered commensurate growth in cash flows and earnings Productive Capital FreeCash Free CashFlow Flow For personal use only 14,000 1,400 1,400 CAGR 18%1 CAGR 26%1 12,000 1,200 1,200 10,000 1,000 1,000 million $$ million $ million 8,
Slide 6: Origin will continue to invest in growing its business
Origin will continue to invest in growing its business and expects to double productive capital over the next five years … For personal use only APLNG Train 2 APLNG Train 1 Potential gas sales to other LNG projects Start of gas sales to QCLNG Te Mihi geothermal project Cash flow Legacy fuel uplift F
Slide 7: Growth in cash flows and earnings from underlying businesses
Growth in cash flows and earnings will come from Origin’s underlying businesses… For personal use only • Mortlake Power Station to be fully operational by mid-2012 • Unwind of NSW provisions, which are suppressing cash flows in FY 2012 by around $230 million • Transition Services Agreement (TSA) pro
Slide 8: Commencement of production from Australia Pacific LNG's CSG to LNG Project
…and from commencement of production from the Australia Pacific LNG’s CSG to LNG Project For personal use only • US$20 billion(1) capital cost estimate for full 2 train development (does not Australia Pacific LNG Gas Production (100%) 700 include capital for domestic operations and non-APLNG project
Slide 9: Sinopec investment values Origin's stake in APLNG
The 2nd Sinopec investment in Australia Pacific LNG values Origin’s stake in APLNG at $5.50 to $6.00 per Origin share … For personal use only 15.00 25.0x Recent share price (1) 21.3x 20.0x 10.00 P/E Multiple 15.9x 15.0x $/share 12.2x 12.5x Sinopec 10.0x 5.00 valuation of APLNG implies ORG ex APLNG 5
Slide 10: Additional capital raised to strengthen balance sheet
To support the growth in investment Origin has raised additional capital to further strengthen its balance sheet, improve liquidity and diversify its funding sources For personal use only FundingDiversity Funding Diversityatat30 31 December 2011 JunJune 201012010 ($5.6b) Dec 20112 ($9.5b) • Given fa
Slide 11: Origin continues to build value with strong predictable cash flows
Origin continues to build value through a business with strong and predictable cash flows and earnings… Strong and predictable earnings from existing business For personal use only • Extensive fuel position in physical and contracted resources • Large, flexible and diverse generation portfolio • Lea
Slide 12: Segment Review
For personal use only Segment Review Origin reports its results in the following segments: • Energy Markets • Exploration & Production • Contact Energy • Australia Pacific LNG • Corporate (including development opportunities) Financial information for these segments is reported in the Company’s fina
Slide 13: Operating segments revised in line with management's view
Operating segments have been revised in line with management’s view of the operational performance of the business For personal use only • Final Investment Decision on the first phase of APLNG’s CSG to LNG project • Deepening integration within Origin’s Energy Markets business • Increased developmen
Slide 14: Energy Markets
13 | For personal use only Energy Markets
Slide 15: Origin is Australia's leading fuel-integrated generator/retailer
Origin is Australia’s leading fuel-integrated generator/retailer For personal use only • Over 5,000 PJe of gas and coal • Portfolio over 5,800 MW1 • 4.4 million electricity, gas and reserves and contracts at • Gas-fired, coal-fired, and LPG customer accounts legacy prices wind power stations • Opera
Slide 16: Legacy fuel contracts will drive earnings growth as prices rise
Legacy fuel contracts set at previously low domestic prices will drive growth in earnings as wholesale energy prices rise For personal use only PJ Origin Origin 2011 and Sources FuelUses Supply/Demand of Fuel Australian Domestic Gas Prices PJ/a 12.00 300 Australian domestic gas 10.00 prices expected
Slide 17: Wholesale energy portfolio supports a strategic generation portfolio
The wholesale energy portfolio supports a unique and strategic generation portfolio…. For personal use only Largest Generation Origin Generation Capacity2 • Fast-ramp generation portfolio Portfolio in Australia1 - Ramp from 20% to 98% capacity by region: Origin ~ 5,800 MW factor in less than 90 minu
Slide 18: Origin's retail business provides a stable and growing channel to market
Origin’s retail business provides a stable and growing channel to market that monetises Origin’s investments in fuel and generation… For personal use only Origin customer accounts NEMElectricity Marketand Share of Electricity and Natural Gas Market share 3,075,000 electricity customer accounts Gas r
Slide 19: Exploration & Production
For personal use only Exploration & Production 18 |
Slide 20: Approximately 80% of conventional 2P reserves are gas
Approximately 80% of Origin’s conventional 2P reserves are gas supplying domestic markets in Australia and New Zealand… For personal use only Origin Reserves (PJe) 1,200 1,000 800 600 803 990 400 200 233 0 - Conventional 2P CSG 3P Liquids Gas CSG 30 June 2011 Petajoule equivalent (PJe) conversion 1
Slide 21: Gas demand in eastern Australia expected to triple
Gas demand in eastern Australia is expected to triple over the next 5 years… For personal use only PJ • Origin currently supplies around 15% of eastern 2,500 East coast gas production Australia’s gas2000-2017 (PJ) • Maintenance & enhancement of offshore assets 2,000 creates flexibility to address op
Slide 22: Staged exploration program in high prospectivity regions
Origin is undertaking a staged exploration program in regions that offer high prospectivity and access to growing markets … For personal use only New Zealand: Canterbury Basin: Origin 50%, Operator Anadarko Targeting the Carrack/Caravell prospect with potential recoverable resources in excess of 500
Slide 23: Contact Energy
22 | For personal use only Contact Energy
Slide 24: Origin owns 52.8% of Contact Energy
Origin owns a 52.8% interest in Contact Energy, one of New Zealand’s leading fuel-integrated generator/retailers … For personal use only Generation Portfolio • 290 MW geothermal generation • 752 MW hydro generation • 1,176 MW gas generation • Over 2,000 MW in generation development opportunities Ene
Slide 25: Recent investments added flexibility to Contact's portfolio
Recent investments have added significant flexibility to Contact’s portfolio … For personal use only Increased Portfolio Flexibility Low cost geothermal generation • 166 MW Te mihi geothermal power station currently Ahuroa Gas Storage under development, expected to be completed in 2013 • First natur
Slide 26: Completion of Te Mihi marks end of Contact's investment program
Completion of the Te Mihi geothermal development will mark the end of Contact’s significant investment program … For personal use only Contact capital expenditure Capital Expenditure – committed1 - Committed 700 600 500 Cost $ 'm 400 300 200 100 0 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015
Slide 27: Australia Pacific LNG
For personal use only Australia Pacific LNG 26 |
Slide 28: Origin with ConocoPhillips and Sinopec developing a CSG to LNG project
Origin, with its strong joint venture partners ConocoPhillips and Sinopec, is developing one of Australia’s largest CSG to LNG projects For personal use only • Australia’s largest integrated • Integrated energy company with • Integrated energy and chemical company energy company global operations •
Slide 29: APLNG underpinned by a large, high quality reserves base
APLNG is underpinned by a large, high quality reserves base with strong, experienced operators in CSG and LNG developments For personal use only Australia’s largest 2P reserves base Quality of the CSG resource • APLNG holds acreage in both of the region’s • Large CSG reserves position “sweet spots”
Slide 30: Joint venture has taken FID on the first phase
The joint venture has taken a Final Investment Decision (FID) on the first phase of its project … For personal use only PROJECT OVERVIEW Description: • CSG to LNG project based on Australia’s largest 2P CSG reserves base Size: • Two trains, each with a nominal production capacity of 4.5 mtpa • Initi
Slide 31: Binding sales contracts signed for 8.6 mtpa of LNG
Binding sales contracts have been signed for 8.6 mpta of LNG For personal use only Sinopec • 7.6* mpta LNG supply for 20 years • Represents the largest LNG supply agreement in Australian history by annual volume • Commencing 2015 for 4.3 mtpa and 3.3* mtpa in 2016 Kansai • 1.0 mtpa LNG supply for 20
Slide 32: APLNG valued at $5.50 to $6.00 per Origin share
APLNG is valued at $5.50 to $6.00 per Origin share using a Sinopec look-through valuation For personal use only Elements of valuation 15.00 • The headline net consideration for the second Sinopec agreement Recent share was US$1.1 billion for a 10% equity interest price (3) A$11 billion(1) 10.00 $/
Slide 33: Corporate
32 | For personal use only Corporate
Slide 34: Origin exploring for resources in markets with high prospectivity
Building on its domestic success, Origin is exploring for resources in markets that offer high prospectivity and access to growing demand… For personal use only • Low cost resources • Low cost market entry • Fuel source of the future • Growing demand for energy • Leverage existing experience • Low r
Slide 35: Thank you
For personal use only Thank you Further Information Angus Guthrie Group Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61 2 8345 5558 Mobile: + 61 417 864 255 Website www.originenergy.com.au 34 |