Origin Energy Limited · ASX:ORG
Origin Energy — Non-Deal Roadshow (April 2012)
34 slides from Origin Energy's roadshow presentation, April 2012
Slide 1: Origin Energy International Roadshow
Origin Energy International Roadshow Grant King, Managing Director Karen Moses, Executive Director, Finance and Strategy March, April 2012
Slide 2: 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 3: An investment in Origin today provides a stake in a company with…
An investment in Origin today provides a stake in a company with… 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 • Largest retail energy c
Slide 4: 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 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 8,000 800 800 6,000 600
Slide 5: 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 … 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 Full benefit from NSW a
Slide 6: Growth in cash flows and earnings will come from underlying businesses
Growth in cash flows and earnings will come from Origin’s underlying businesses… • 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) provisions - approximatel
Slide 7: 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 • 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 costs) 600 • Domestic
Slide 8: Second 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 … 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 5.0x P/E multiple of ar
Slide 9: Additional capital raised to strengthen balance sheet and diversify funding
To support the growth in investment Origin has raised additional capital to further strengthen its balance sheet, improve liquidity and diversify its funding sources FundingDiversity Funding Diversityatat30 31 December 2011 JunJune 201012010 ($5.6b) Dec 20112 ($9.5b) • Given facilities Origin has in
Slide 10: Origin continues to build value through strong and 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 • Extensive fuel position in physical and contracted resources • Large, flexible and diverse generation portfolio • Leading energy retail mar
Slide 11: Segment Review
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 financial statements 11 |
Slide 12: 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 • Final Investment Decision on the first phase of APLNG’s CSG to LNG project • Deepening integration within Origin’s Energy Markets business • Increased development opportunities outsid
Slide 13: Energy Markets
O origin Energy Markets 13 |
Slide 14: Origin is Australia's leading fuel-integrated generator/retailer
Origin is Australia’s leading fuel-integrated generator/retailer • 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 • Operates in all major regio
Slide 15: Legacy fuel contracts will drive growth in earnings as prices rise
Legacy fuel contracts set at previously low domestic prices will drive growth in earnings as wholesale energy prices rise 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 to increase 8.00 towa
Slide 16: Wholesale energy portfolio supports a strategic generation portfolio
The wholesale energy portfolio supports a unique and strategic generation portfolio…. 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 minutes TRUenergy • Fuel-s
Slide 17: 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… Origin customer accounts NEMElectricity Marketand Share of Electricity and Natural Gas Market share 3,075,000 electricity customer accounts Gas retailincustomers the N
Slide 18: Exploration & Production
Exploration & Production 18 |
Slide 19: Approximately 80% of conventional 2P reserves are domestic gas
Approximately 80% of Origin’s conventional 2P reserves are gas supplying domestic markets in Australia and New Zealand… 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 million barrels of oil
Slide 20: Gas demand in eastern Australia is expected to triple
Gas demand in eastern Australia is expected to triple over the next 5 years… 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 opportunities as LNG LNG
Slide 21: 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 … New Zealand: Canterbury Basin: Origin 50%, Operator Anadarko Targeting the Carrack/Caravell prospect with potential recoverable resources in excess of 500 million barrels of oi
Slide 22: Contact Energy
O origin Contact Energy 22 |
Slide 23: Origin owns a 52.8% interest in Contact Energy
Origin owns a 52.8% interest in Contact Energy, one of New Zealand’s leading fuel-integrated generator/retailers … Generation Portfolio • 290 MW geothermal generation • 752 MW hydro generation • 1,176 MW gas generation • Over 2,000 MW in generation development opportunities Energy Retailer • 443,000
Slide 24: Recent investments have added flexibility to Contact's portfolio
Recent investments have added significant flexibility to Contact’s portfolio … 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 natural gas storage facilit
Slide 25: Te Mihi completion marks end of Contact's investment program
Completion of the Te Mihi geothermal development will mark the end of Contact’s significant investment program … 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 2015/16 Whirinaki purchase
Slide 26: Australia Pacific LNG
O origin Australia Pacific LNG 26 |
Slide 27: Origin with ConocoPhillips and Sinopec is 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 • Australia’s largest integrated • Integrated energy company with • Integrated energy and chemical company energy company global operations • One of China’s largest
Slide 28: APLNG is 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 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” – Spring Gully/Fairvie
Slide 29: The 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 … 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 • Initial commitment to one t
Slide 30: Binding sales contracts signed for 8.6 mtpa of LNG
Binding sales contracts have been signed for 8.6 mpta of LNG 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 years • Commencing 20
Slide 31: 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 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 $/share • Further to thi
Slide 32: Corporate
O origin Corporate 32 |
Slide 33: Origin is 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… • Low cost resources • Low cost market entry • Fuel source of the future • Growing demand for energy • Leverage existing experience • Low regulatory environment
Slide 34: Thank you
Thank you Further Information Angus Guthrie Group Manager, Investor Relations Email: [email protected] Office: +61 2 8345 5558 Mobile: + 61 417 864 255 Website www.originenergy.com.au 34 |