Origin Energy Limited · ASX:ORG
Origin Energy — Macquarie Australia Conference 2009
24 slides from Origin Energy's conference presentation, May 6, 2009
Slide 1: ASX announcement fax cover note
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 6 May 2009 From Bill Hundy Pages 24 Subject PRESENTATION Attached for your information is a presentation being made by Mr Grant King, Managing Director to the Macquarie Australia Conference in Sydne
Slide 2: Origin Energy Macquarie Australia Conference May 2009
For personal use only Origin Energy Macquarie Australia Conference May 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 For personal use only summary form, and
Slide 4: The past year has seen challenging times for global financial markets
The past year has seen challenging times for global financial markets and investors For personal use only Indexed to 100 from 1 April 2008 Source: Origin & Bloomberg data During that time Origin has benefited from a chain of events initiated by the BG bid and underpinned by 3 Origin’s strategic posi
Slide 5: CSG position and carbon policy as key drivers of value
At this conference last year we talked about our CSG position and the opportunities created by emerging carbon For personal use only policy as the key drivers of value for Origin Origin has an extensive acreage position across the two A domestic carbon price above $20-30 per tonne would put prime CS
Slide 6: Origin's CSG assets now in 50:50 joint venture APLNG
Origin’s existing CSG assets now sit in a 50:50 joint venture with ConocoPhillips called APLNG. APLNG is progressing well APLNG Established For personal use only • Board and Senior management appointed • $2.3 billion work program to FID underway • Initial Advice Statement submitted and project decla
Slide 7: APLNG continues strong growth in CSG reserves and production
APLNG continues strong growth in CSG reserves and production For personal use only Source: Origin APLNG now supplies the equivalent of 25% of Queensland’s gas and will increase production into the domestic market to over 100 PJ per annum by 2011 6 Notes: Origin has a 50% interest in APLNG Reserves a
Slide 8: APLNG has the leading CSG reserves position
APLNG has the leading CSG reserves position… For personal use only Source: Origin based on EnergyQuest data … with a plan to mature reserves sufficient to support FID for a multi-train LNG project by the end of 2010 7
Slide 9: 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 For personal use only • On 22 April 2009 Origin entered into a conditional agreement to acquire a 100% interest in ATP 788P from the Pangaea group, subject to certain conditions precede
Slide 10: Continued growth forecast for LNG demand in Asia Pacific
Continued growth is forecast for LNG demand in the Asia Pacific in both traditional and emerging markets For personal use only 400 LNG Demand Asia Pac 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 C
Slide 11: Many LNG projects proposed but history of delays
Many LNG projects are proposed around the world – however projects of this scale and complexity have a history of being delayed – creating opportunities for new, well aligned and well For personal use only credentialed opportunities Fewer projects are now proposed than in past years – with almost al
Slide 12: Trend towards oil price parity in Asian LNG pricing
In the Asian market in particular there has been a trend towards oil price parity... For personal use only LNG Pricing in Asia Pacific Source: Origin based on Wood Mackenzie, Global LNG Online, LNG Insights April 2008 … which has resulted in higher netbacks for gas and has been a key driver of emerg
Slide 13: Short term oil price moves versus long dated price
While the short term oil price has moved significantly in the last year, the long dated price has moved much more modestly For personal use only Source: Origin based on Bloomberg data May 2009 As a result, the netbacks for LNG for delivery commencing in 2013-2015 have not changed materially and the
Slide 14: Federal Government policy response to climate change
The Federal Government’s policy response to Climate Change has followed a dual pathway of a mandated renewable energy target… For personal use only Renewable Energy Target Scheme • New scheme starts in January 2010 • 2020 target of 45,000 GWh (from a current base of 9,500 GWh) • Target maintained un
Slide 15: Expanded Renewable Energy Target to 2020
The expanded Renewable Energy Target to 45 TWh by 2020 has a slow start and a greater rate of increase in later years… For personal use only • 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 16: Significant investment needed in new generation capacity
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 17: Portfolio of renewable energy options
Origin has positioned itself to respond to these policies through a portfolio of renewable energy options… Wind For personal use only • Origin initially invested in wind through third parties – underwriting wind-farm developments by others – and has more than 390 MW of wind farm capacity under long
Slide 18: Origin's support of wind projects through underwriting
Origin has actively supported wind projects since early this decade by underwriting a number of wind-farms with long term power purchase agreements with developers using lower costs of For personal use only capital… Source: Origin With higher renewable energy targets and the withdrawal of developers
Slide 19: Acquisition of Wind Power and its project pipeline
The acquisition of Wind Power represents the most recent addition to this portfolio and its current pipeline reflects the continued high quality of projects developed to date… For personal use only Wind Power's Victorian Project Pipeline Highlights Estimated Capacity Project Location MW Factor* Land
Slide 20: Carbon scheme uncertainty complicating generation investment
Uncertainty around the Carbon Pollution reduction Scheme is complicating investment decisions for generation for the balance of the market For personal use only • The likelihood of an ETS is discouraging investment in new coal fired baseload generation • The currently proposed CPRS does not support
Slide 21: Supply constraints pose greater price risk than carbon value
If there is a delay in the build out of required capacity, supply constraints in the NEM pose a more significant price risk than the imposition of a carbon value… For personal use only Impact of June 2007 Carbon Supply Constraints Impact Year 2 Contract Price Year 3 Contract Price Spot Price Year 1
Slide 22: Strong strategic position and funding capacity
Origin is in a strong strategic position with many opportunities to continue to develop and grow the business… For personal use only As at 31 December 2008 Undrawn Available Adjusted Committed Funding (1) (2) (1) Gross Debt Cash Debt Facilities Capacity Source: Origin … and with access to cash and u
Slide 23: Origin Energy Macquarie Australia Conference May 2009
For personal use only Origin Energy Macquarie Australia Conference May 2009
Slide 24: Further Information
Further Information For personal use only Investors Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: +61-4-1786 4255 Website www.originenergy.com.au 23