Santos Limited · ASX:STO
Santos — 2022 BofA Global Energy Conference
25 slides from Santos's conference presentation, November 2022
Slide 1: 2022 BofA Global Energy Conference
2022 BofA Global Energy Conference
Slide 2: Disclaimer and important notice
2022 Half-Year Results 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, but they may be affected by a ran
Slide 3: Key messages
2022 Half-Year Results Key messages 1 Upstream business comprises LNG business with oil-linked and JKM exposure and two domestic gas businesses which are predominantly fixed-price contracts 2 Over next two years the LNG business will have ~10% spot exposure increasing to 25% in 2025. Expecting to ma
Slide 4: Santos' new purpose and strategy
2022 Half-Year Results Santos’ new purpose and strategy 4
Slide 5: New organisation to deliver Santos' strategy
2022 Half-Year Results New organisation to deliver Santos’ strategy Santos Energy Solutions is our transition business to a cleaner energy future 1. Santos 2022 first-half EBITDAX excluding Santos Energy Solutions. 2. Santos 2022 first-half EBITDAX excluding GLNG and Upstream Gas and Liquids. 5
Slide 6: Investment proposition
2022 Half-Year Results Investment proposition A natural gas company with a pathway to decarbonise the business 2023-2026 Expected production volume growth ~30 % 1. Operating cash flows less investing cash flows (net of acquisitions and disposal and major project capex) less lease liability payments.
Slide 7: Outlook to 2030
2022 Half-Year Results Outlook to 2030 Targeting backfill for existing assets plus Pikka Phase 1 to deliver sustainable equity upstream production in the range of 100-140 mmboe from 2025-2045 Targeting ~240 million tonnes CO2 storage capacity 1. Assumes PNG LNG at 42.5% interest. 7
Slide 8: Free cash flow from operations
2022 Half-Year Results Free cash flow from operations Strong free cash flow generation. PNG LNG project finance is due to be repaid mid-2026 liberating on average ~$650 million per annum additional cash 1. Assumes weighted average number of shares on issue each year. 2. 2022F assumes FCF sensitivity
Slide 9: Strong long-term demand for LNG
2022 Half-Year Results Strong long-term demand for LNG Targeting ~25% of Santos LNG portfolio to be exposed to JKM-linked pricing by 2025 Global LNG supply and demand1 Santos net share LNG capacity Mtpa Mtpa PNG LNG2 0 GLNG3 DLNG4 Papua LNG (unsanctioned)5 . Santos LNG supply Potential PNG LNG gross
Slide 10: Santos' LNG portfolio
2022 Half-Year Results Santos’ LNG portfolio Disciplined and phased investment to backfill and sustain core LNG assets beyond 2040 10
Slide 11: Committed to our goal to achieve net-zero Scope 1&2 emissions by 2040
2022 Half-Year Results Committed to our goal to achieve net-zero Scope 1&2 emissions by 2040 Santos is on track to achieve all three 2025 targets ahead of schedule, enabling us to focus on 2030 targets 2025 2030 2040 Economically reduce emissions by more Scope 1 and 2 (Absolute target) Target than 5
Slide 12: Capital management framework
2022 Half-Year Results Capital management framework 1. Predominantly comprises short cycle sustaining capex, exploration and decommissioning. 2. Average Dated Brent oil price for any given period. 12
Slide 13: 2023 production and capex guidance
2022 Half-Year Results 2023 production and capex guidance 2023 production guidance 91-98 mmboe Upstream Gas and Liquids1 Sustaining capex Major project capex2 mmboe Included in FCF from operations Excluded from FCF from operations $million $million 120 ~1,200 ~1,835 91-98 100 ~100 ~85 80 Upstream Ga
Slide 14: Cash sources and uses to 2030
2022 Half-Year Results Cash sources and uses to 2030 ~$17-33 billion in forecast cash available for returns to shareholders and unsanctioned development project to 2030 1. $100 per barrel (2022 real), JKM short term average ~$20/mmBtu, long term 2026+ average ~$16/mmBtu. 2. $100 per barrel (2022 rea
Slide 15: Strong balance sheet
2022 Half-Year Results Strong balance sheet Rapid de-gearing whilst providing increased returns to shareholders Strong balance sheet3 Gearing of 20.8% Net debt of $3,833 million (down ~25% since 2021) Returns to shareholders Initial share buy-back for $350 million now ~93% complete with remainder ex
Slide 16: Appendix
Appendix 16
Slide 17: Santos is a low-cost producer of LNG and domestic gas
2022 Half-Year Results Santos is a low-cost producer of LNG and domestic gas Diversified portfolio of five core long-life producing assets generating strong free cash flows, including globally cost-competitive LNG assets. Australia’s lowest cost onshore operator Market capitalisation Capital managem
Slide 18: Cash generative operating model continues to drive value
2022 Half-Year Results Cash generative operating model continues to drive value EBITDAX margin improved due to higher commodity prices and the addition of PNG interests following the merger 2022 Half-year results summary 1 Northern Queensland Australia & Western Cooper Basin & NSW PNG Timor-Leste Au
Slide 19: Pikka Phase 1 currently in early execution
2022 Half-Year Results Pikka Phase 1 currently in early execution 19
Slide 20: Santos' domestic gas portfolio
2022 Half-Year Results Santos’ domestic gas portfolio Diversified portfolio with strong cash flows and backfill opportunities to sustain production 20
Slide 21: Upstream unsanctioned projects
2022 Half-Year Results Upstream unsanctioned projects Pipeline of phased and disciplined projects connected to domestic and Asian markets 1. Timing is subject to ensuring pipeline approvals and Native Title Determination. 2. Post PNG government back-in. 21
Slide 22: Creating value from midstream infrastructure portfolio
2022 Half-Year Results Creating value from midstream infrastructure portfolio Unique portfolio of strategic midstream infrastructure assets 22
Slide 23: Three Santos-operated CCS and clean fuels hubs
2022 Half-Year Results Three Santos-operated CCS and clean fuels hubs Santos is developing three CCS hubs with >30 mtpa gross CO2 storage capacity. Moomba CCS currently under construction 23
Slide 24: Uncommitted Santos Energy Solutions projects
2022 Half-Year Results Uncommitted Santos Energy Solutions projects Santos continues to invest in emerging decarbonisation and clean fuels technologies and transform energy usage to deliver a step-change in emissions reduction 24
Slide 25: Definitions and abbreviations
2022 Half-Year Results Definitions and abbreviations When used in reference to emissions reduction targets means reduction against the CO2 Carbon dioxide Absolute total emissions at the relevant point in time, rather than a relative or comparative Carbon dioxide equivalent, being a measure of greenh