Origin Energy Limited · ASX:ORG
Origin Energy — Macquarie Australia Conference 2016
15 slides from Origin Energy's conference presentation, May 2016
Slide 1: Delivering on Commitments
ORIGIN ENERGY DELIVERING ON COMMITMENTS Grant King, Managing Director Macquarie Australia Conference 4-6 May 2016
Slide 2: Important Notices
Important Notices Forward looking statements This presentation contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. Such statements are not statements of fact and there can be no certainty of outcome in re
Slide 3: Origin's strategy of connecting resources to markets: 2 businesses and 3 priorities
Origin’s strategy of connecting resources to markets is pursued through a clear focus on its 2 businesses and 3 priorities designed to drive continued improvement in Origin’s performance A leader in A regionally significant energy markets position in natural gas and LNG production Growing contributi
Slide 4: Two external influences: Oil Price and COP 21
Since last year’s Macquarie Conference two external influences have impacted Origin’s priorities and prospects – Oil Price and COP 21 Increasing global commitment to Fall in Oil Price reduction in carbon emissions 140 Actual and Projected Global Greenhouse Gas Emissions1 120 100 80 60 40 Spot Brent
Slide 5: Delivering on commitments to reduce debt and increase resilience
In responding to lower oil prices Origin is delivering on commitments to reduce debt and increase resilience, targeting net debt below $9 billion in FY2017 Debt Reduction Cash Preservation Risk Reduction Sale of Contact, reducing Reduced capex Purchased oil put options debt by $3 billion Red
Slide 6: Sale agreements in place for Mortlake terminal station and Indonesian geothermal project
Sale agreements in place for Mortlake terminal station and an Indonesian geothermal project, confidence in target of at least $800 million • Signed agreements • Mortlake Terminal Station for A$110 million announced on 12 February 2016 • 12.9x FY2017 EBITDA multiple • ~$25 million pre-tax gain on sal
Slide 7: Continued strong performance in Energy Markets
Continued strong performance in Energy Markets Strong operational progress to date … Energy Markets Energy Markets Cash Increased Natural Gas contribution Underlying EBITDA Flow From Operating Activities Stabilised Electricity contribution 800 800 Reduction in cost to serve 721 117 Improved
Slide 8: Halladale / Speculant development progressing to schedule
Halladale / Speculant development is progressing to schedule and will drive increased production and earnings in FY2017, utilising existing infrastructure in the Otway Basin • Final well (Speculant 2 sidetrack) drilled • Speculant 1 and Speculant 2 flow test results as expected • Construction progre
Slide 9: APLNG project now largely de-risked
The APLNG project is now largely de-risked with strong operational performance both in upstream and downstream Strong operational progress to date … UPSTREAM PROJECT 100% COMPLETE $1 billion of annual cost reductions implemented DOWNSTREAM PROJECT 97% COMPLETE Train 1 operational, 16 LNG cargoes
Slide 10: Well positioned for a carbon constrained future through gas and renewables
Origin supports measures to reduce global carbon emissions and is well positioned for a carbon constrained future through its gas and renewable portfolio World primary energy demand and CO2 emissions Energy in a carbon constrained world Mtoe Gt • The world is facing the challenge of meeting increasi
Slide 11: Renewables more attractive as solar and wind generation costs fall
Renewables are more attractive than ever as utility scale solar and wind generation costs fall 14TWh of new renewable build required1 LREC price rising and renewables cost falling2 TWh $/MWh 35 140 30 120 Solar PPA 25 100 Wind PPA 20 80 15 60 10 40 5 Existing New Build 20 0 0 FY2014 FY2015 FY2016 FY
Slide 12: LREC and generation portfolios placed to accelerate renewables development
Origin’s LREC and generation portfolios are uniquely placed to accelerate development of renewables, with two utility scale solar PPAs signed to date Origin’s Renewable Certificate (LREC) Position1 Origin’s Energy Position (FY2015) 10 40 9 35 8 Number of LREcs (millions) 30 Pool or 7 Contract Busine
Slide 13: Near term milestones and guidance for FY2016 and FY2017
Near term milestones Timing Bechtel Performance Test Completed 30 April 2016 Asset sales progress Through FY2016 and FY2017 Strength of operating performance FY2016 Results Train 1 project finance lender tests met and guarantees H1 FY2017 fall away Train 2 completion H1 FY2017 Train 2 project financ
Slide 14: Important Notices
Important Notices A reference to Australia Pacific LNG or APLNG is a reference to Australia Pacific LNG Pty Limited in which Origin holds a 37.5% shareholding. Origin’s shareholding in Australia Pacific LNG is equity accounted. A reference to $ is a reference to Australian dollars unless specificall
Slide 15: Thank You
THANK YOU For more information Chau Le Group Manager, Investor Relations Email: [email protected] Office: +61 2 9375 5816 Mobile: + 61 467 799 642 www.originenergy.com.au 15