APA Group · ASX:APA

APA — Ethane Pipeline Income Fund (EPX) — Investor Presentation (November 2014)

20 slides from APA's investor presentation, Nov 20, 2014

  1. Slide 1: ASX Release cover letter

    ASX RELEASE 20 November 2014 The Manager ASX Market Announcements Australian Securities Exchange 4th Floor, 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Dear Sir or Madam Company Announcement I attach the following announcement for release to the market: • Investor meeting presentation Your

  2. Slide 2: Investor Presentation 20 November 2014

    Investor Presentation 20 November 2014

  3. Slide 3: Introductions and Agenda

    Introductions and Agenda  Introductions – Board of APA Ethane Limited, the Responsible Entity for EPX • Robert Wright – Non-Executive Director, Chairman • Rick Coles – Non-Executive Independent Director • Nancy Fox – Non-Executive Independent Director – Management • Sam Pearce – Fund Manager • Mark

  4. Slide 4: Brief Overview

    Brief Overview  Principal Activity - Investment in the Moomba to Sydney Ethane Gas Pipeline, through wholly owned subsidiary, Gorodok Pty Limited. - Pipeline – 1375km in length, running through regional NSW as well as the urban areas from Wilton into Botany.  Commercial Arrangements - Pursuant to

  5. Slide 5: Distributions in FY15 (year to date)

    Distributions in FY15 (year to date) Sept Dec  On 25 August 2014, EPX announced the Distribution distribution for the quarter ending September (paid (payable (cps) 2014 of 3.20 cents per security and franking 15 Oct 14) 15 Jan 15) credits of 1.05 cents per security. The cash Cash 3.20 3.25 distribu

  6. Slide 6: FY14 Results

    FY 14 Results Statutory Results FY14 Distributions $’000 % Period Date Cash Franking Change Paid per credits security per Revenue from PTA 22,217 16.2▼ (cents) security Net Profit After Tax 5,135 35.7▼ (cents) Operating Cash Flow 10,549 14.6▼ July 13 - Sept 13 15 Oct 13 3.29 1.09 Operating Cash Flow

  7. Slide 7: Balance Sheet Summary

    Balance Sheet Summary Actual FY14 ($000) FY15 Expectations Cash and cash equivalents Current 6,442 Non-current 2,169  Full year of Pay-As-You-Go tax Total cash and cash equivalents 8,611 instalments for FY15 of $2.9 million Property, plant and equipment 33,640 Intangible assets 41,158 Other  Comme

  8. Slide 8: Product Transportation Agreement changes

    Product Transportation Agreement changes Background • Qenos approached EPX seeking some relief under the PTA to match their volume expectations under their proposed new ethane supply arrangements. • After detailed negotiations, terms acceptable to EPX were agreed in November, with effect from 1 Janu

  9. Slide 9: Key Issues

    Key Issues Product Transportation Agreement  PTA changes with effect 2015 to 2018 Distribution guidance reflects the impacts on revenues  Increased revenue certainty  Removal of termination risk prior to 1 Jan 2019 Non Routine Operating Costs Mine Subsidence Monitoring  Due to underground coal m

  10. Slide 10: FY15 Distribution Guidance

    FY15 Distribution Guidance Distribution Sept Dec Mar June (cps) (actual) (announced) (forecast) (forecast) Cash 3.20 3.25 3.0 – 3.25 3.0 – 3.25 Franking 1.05 1.07 ~1.0 ~1.0 Total 4.25 4.32 4.0 – 4.25 4.0 – 4.25  Based on the above guidance distributions will be paid: – around 80% from EPIT fully fr

  11. Slide 11: Ethane Pipeline – Wilton to Port Botany

    Ethane Pipeline – Wilton to Port Botany Investor Presentation  10

  12. Slide 12: Ethane Pipeline – mine subsidence

    Ethane Pipeline – mine subsidence Investor Presentation  11

  13. Slide 13: Ethane Pipeline – through Sydney

    Ethane Pipeline – through Sydney Investor Presentation  12

  14. Slide 14: Ethane Pipeline Scraper Station

    Ethane Pipeline Scraper Station Ethane Pipeline 200 mm diameter Investor Presentation  13

  15. Slide 15: Bulla Park Pump Station

    Bulla Park Pump Station Ethane Pump Station From Moomba To Sydney Investor Presentation  14

  16. Slide 16: Question & Answer Session

    Question & Answer Session  Questions on notice 1. It is clear that revenue has dropped markedly since the terms of the contract with Qenos were re-negotiated in October 2013 placing a greater reliance on volume carried – why was such a deleterious contract modification entered in to and is the chan

  17. Slide 17: Disclaimer

    Disclaimer This Presentation has been prepared by APA Ethane Limited (ACN 132 157 290) the responsible entity of the Ethane Pipeline Income Trust (ARSN 118 961 167) and Ethane Pipeline Income Financing Trust (ARSN 118 961 023) (Ethane Pipeline Income Fund (the Fund)). Summary information This Presen

  18. Slide 18: ASX Release: Product Transportation Agreement Variation

    ASX RELEASE 13 November 2014 PRODUCT TRANSPORTATION AGREEMENT VARIATION APA Ethane Limited, the responsible entity of Ethane Pipeline Income Fund (ASX: EPX) (“Fund”) advises that the Fund’s only customer, Qenos Pty Limited (“Qenos”) has informed the Fund that it has reached agreement with its ethane

  19. Slide 19: ASX Release: PTA variation and distribution expectations

    • from 1 January 2019, the tariff reverts to that previously agreed under the PTA, instead of the Fixed Minimum Charge, and there is a mechanism that affords the Fund another opportunity to recover the revenue shortfall referred to above. On the basis of Qenos having reached agreement on variations

  20. Slide 20: Attachment: Summary of key changes to PTA

    ATTACHMENT Summary of key changes to PTA with effect from 1 January 2015 1 January 2015 – 31 December 2018 • For the period from 1 January 2015 to 31 December 2018, the tariff structure is adjusted so that the Fund’s revenue depends on the following annual thresholds: o the quantity of ethane transp

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