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Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000
GPO Box 2455 Adelaide South Australia 5001
Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723
TO: Company Announcements Office ASX Limited FROM: Company Secretary DATE: 22 September 2011 SUBJECT: INVESTOR PRESENTATION September 2011 Please find attached a Santos Investor Presentation, which is being presented in Hong Kong during September, 2011. David Lim Company Secretary
1
1
Investor PresentationSeptember 2011
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 range of variables which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and production results, gas commercialisation, development progress, operating results, engineering estimates, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries approvals and cost estimates
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various countries, approvals and cost estimates.
All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated.
2
Santos overview
One of Australia's leading upstream oil and gas companies and has been operating since 1954
Regional footprint of operations
Kyrgyz RepublicHai Phong Basin
operating since 1954
Current production:- ~600 mmscf/d of gas- ~30 kbbls/d of liquids
Employs 2,400 people
107,000 shareholders
Top-25 ASX listed company: market capitalisation Key statistics (YE 2010)
Production
ExplorationOtway Basin
Bangladesh
India
Phu Khanh Basin
Kutei Basin
Nam Con Son Basin
East Java BasinWest Papua and Papua New Guinea
Carnarvon Basin
Browse Basin
Timor Sea & Timor Gap
Bonaparte Basin
Amadeus BasinCooper Basin
Surat/Bowen Basins
Gippsland BasinGunnedah Basin
3
1P reserves 646 mmboe2P reserves 1,445 mmboeContingent resources 2,261 mmboe2010 production 50 mmboe2010 2P reserve replacement ratio 331%*
pUS$11 billion (Sept 2011)
One of Australia’s largest domestic gas producers and key stakeholder in Darwin LNG, PNG LNG, GLNG and Bonaparte LNG
Key statistics (YE 2010)
*2010 2P organic RRR
Santos vision and strategyLNG
Markets
Strong
LNGCHANNEL
DOMESTICCHANNEL
A leading Focused Asian
4
Australian Base
Strategic Domestic Gas positions in EA and WA
genergy
companyin Australiaand Asia
Growth
3
Cooper to GLNG
Transforming to oil-linked pricing
70% of 1.4bn boe 2P reservesexposed to oil prices
Asset base is transformed through sanctioned projects
80Production (mmboe)
WA legacy d
Asia domgas
EA legacy domgascontracts
NSWCSG
LNG
20
30
40
50
60
70Oil-linked Legacy domgas
5
Crude, Condensate,
LPGWA oil-linked
domgas & uncontracted
domgas
domgascontracts
0
10
20
2010 2011 2012 2013 2014 2015Contingent resources of 2.3bn boehas a similar pattern
Production exposed to oil price rises from 27% in 2010 to 70% in 2015
Safety performance
7
rate
Santos TRCFR performance(Employees & Contractors)
1
2
3
4
5
6
orda
ble
case
fre
quen
cy r
r m
illio
n h
ours
wor
ked)
2.6
6
0
1
2006 2007 2008 2009 2010 2011 YTDTota
l rec
o(p
er
4
Working with local landholders and communities
One of Australia’s largest gas producers, Santos has a 50-year track record of safe, sustainable operations
W itt d t ki ith l l l dh ld d We are committed to working with local landholders and contributing to communities
We will work in partnership with agriculture for sustainable resource management
7
2011 First-half highlights
Safety: 60% improvement in three years
Reported half-year profit up 155% to $504 millionReported half year profit up 155% to $504 million
Two-train GLNG project sanctioned in January
Halyard/Spar project on-line ahead of schedule
Chim Sáo, Reindeer and Wortel projects on track forstart-up in the second half of 2011
Exploration success at Zola and Finucane South
8
p
Strong balance sheet: $6.7 billion of funding capacity
Proposed acquisition of ESG via recommended Scheme of Arrangement and partnership with TRUenergy
5
Production 22 9 mmboe (5%)
Half-year net profit up 155%
Change on2010 first-half
2011 Half-year result
Production 22.9 mmboe (5%)
Sales revenue $1,101 million 1%
EBITDAX $1,089 million 66%
Net profit after tax $504 million 155%
9
Underlying net profit $236 million 12%
Operating cash flow $681 million 27%
Interim dividend 15 cents per share 7 cents
Strong balance sheet to fund growth
$6.7 billion of funding capacityDebt maturity profile
Funding position ensures balance sheet capacity to: fund execution of business strategy minimise refinancing risk
2
3
4
5
6
7A$ billion
$ g p yy p
600
800
1,000
1,200
1,400
1,600
1,800A$ million
10
0
1
2
Cash Undrawn corporate
lines
Undrawn project line(PNG LNG)
0
200
400
2011 2013 2015 2017 2019 Beyond 2020
Drawn facilities Euro subordinated notesUndrawn bank facilities
The Euro subordinated notes mature in 2070. Santos has the option to redeem the notes in 2017. Charts as at 30 June 2011.
6
GLNG FID signing ceremony, 13 January 2011L to R: Mike Sangster (Total), Heung Bog Lee (KOGAS), David Knox, Datuk Anuar Ahmad (PETRONAS)
11
Growth in LNG
LNG is a key component of Santos’ growth strategy
Strategy Components PNG LNG
Bonaparte LNG 2 mtpa FLNG
S t 40% ith t FIDComponents
Darwin LNG Production since 2006 3.6 mtpa single train Santos 11.5%
GLNG
PNG LNG Sanctioned Dec 2009 6.6 mtpa two trains First LNG due 2014 Santos 13.5%
Deliver the Base Business
LNG Growth
Santos 40% with carry to FID
12
GLNG Sanctioned Jan 2011 7.8 mtpa two trains First LNG due 2015 Santos 30%
Focused growth in Asia
7
Strategy delivers material LNG growth
5mtpaGLNG T1
Santos equity LNG productionfrom existing discovered resources
2
3
4
GLNG T1
GLNG T2
BLNG
13
0
1
Darwin LNG
PNG LNGExcludes PNG LNG expansion
2010 2020
Santos’ LNG customers and partners
PNG LNG
14
Bonaparte LNGDarwin LNG
GLNG
8
$16
$18Late 2006
2008-10
Asian Term Prices
Continue to see strong long-term LNG pricing
Recent contracts point to strong underlying
$6
$8
$10
$12
$14
Ex-s
hip
LN
G P
rice
($/M
MB
tu
Mid 2006
Late 2005
LNG
Pri
ce (
$/M
MB
tu)
Oil Parity
US$12/MMBtu
demand
Pricing reflects new supply-demand equilibrium
Long-term Asia-Pacific pricing remains oil-linked
15
$2
$4
$6
$20 $30 $40 $50 $60 $70 $80 $90 $100
JCC ($/Bbl)
Source: Poten & Partners
Early 20052003Ex
-Sh
ip linked
16
GLNG
9
GLNG plant site, Curtis Island
17
LNG plant site schematic
9 August 20119 August 2011
GLNG material offloading facility site
18
9 August 2011
9 August 20119 August 2011
10
GLNG
FID Jan 2011 7.8 mtpa, two trains
Construction progressing to schedule and budget
Santos 30% LNG off-take agreements with
PETRONAS & KOGAS Clearing of LNG plant site on Curtis
Island 90% complete Bulk earthworks 20% complete Production of line-pipe commenced
First batch of GLNG line-pipe
19
Capital expenditure US$16 billion gross includes US$2 billion in contingencies
First LNG due in 2015LNG plant site schematic
Culvert installation, Curtis Island
World-class GLNG contractorsPredominantly fixed price EPC contracting strategy
Project Component
Description Contractor Contract Type
Upstream surface facilities
All coal seam gas and water gathering and processing infrastructure
Cost-reimbursable performance incentive contract based predominantly on fixed unit rates
Gas transmission pipeline
420-kilometre gas transmission pipeline from the gas fields to
Fixed price lump sum turnkey EPC contract
20
gGladstone
LNG Plant 7.8mtpa 2-train LNG plant plus associated infrastructure
Fixed price lump sum turnkey EPC contract
11
Beneficial use of CSG water
21Santos GLNG President Mark Macfarlane with landowners Santos GLNG President Mark Macfarlane with landowners ReeRee and Leon Price on their property.and Leon Price on their property.
22
PNG LNG, Darwin LNGand Bonaparte LNG
12
PNG LNG
FID Dec 2009 6.6 mtpa, two trains
Progressing towards first LNG in 2014
Santos 13.5% Four Asian LNG buyers Design for major EPC contracts
nearing completion, procurement well underway
LNG train foundations, structural steel and LNG tank foundations commenced
Line-pipe at Kopi shore base
23
Delivery of line-pipe nearing completion
Piling for marine jetty commenced First LNG due in 2014
Mubi River bridge, southernlogistics route
PNG LNG plant site
24
LNG plant site schematic
13
Bayu-Undan/Darwin LNG
Project Bayu-Undan/Darwin LNG
Location Timor Gap, Australia/Timor-Leste
Darwin LNG: continuing strong production
Santos interest 11.5%
Partners ConocoPhillips, ENI, INPEX, TEPCO, Tokyo Gas
Project scope Offshore gas & condensate fields Gas transmission pipeline Single train LNG plant at Darwin
Gross production capacity
3.6 mtpa of LNG~100,000 bbl/d of condensate
Bayu-Undan offshore platforms
25
LNG buyers TEPCO Tokyo Gas
Project status Commenced LNG production 2006 LNG capacity upgraded in 2010 to
3.6 mtpa
Darwin LNG plant
Bonaparte LNG
Project Bonaparte LNG
Location Bonaparte Basin, Australia
Innovative floating LNG project; Santos carried to FID
Santos interest 40%
Partners GDF SUEZ 60%
Project scope Floating LNG production
Gross production capacity
2 mtpa of LNG proposed
Project status Project teams in Paris and Perth Pre-FEED progressing on
h d l
26
schedule Drilling underway on an
appraisal well at the Petrel gas field Santos carried to FID
FID Planned for 2014 Proposed floating LNG vessel and LNG tanker
14
Drilling in 2012
Browse Basin
Territory of Ashmore &Cartier Islands Crux
MontaraKeeling
Burnside
Poseidon
WA-281-P
Calliance
Brecknock
Argus
CorneaEchucaShoals
Ichthys
Caswell
IchthysNorth
Adele Heywood
Torosa
WA-274-P
Gwydion
WA-274-PWA-410-P
WA-411-P
LegendSantos acreageOther acreageOil fieldGas field
IndianOcean
27
Burnside
Western Australia
Calliance GwydionWA 411 P
Arquebus
28
Australia Domestic Gas
15
Gas is under-utilised in AustraliaGas penetration as percentage of power generated
71% 70%70%
80%
70%
80%
56%
43%
34%
27%24%
20%
14% 13% 12%
10%
20%
30%
40%
50%
60%
70%
14%
6%
12%17%
47% 48%
10%
20%
30%
40%
50%
60%
70%
29
Source: Wood Mackenzie, EIA, ESAA, AEMO
2%
0%
10%
Thai
land
Sing
apor
e
Mal
aysi
a
UK
Hon
g Ko
ng
Japa
n
US
Sout
h Ko
rea
Aust
ralia
Ger
man
y
Indi
a
Chin
a
6%2%
0%
10%
Aust
ralia
NSW
/ACT VIC
TAS
QLD SA WA
Unique portfolio of Eastern Australia gas supply options to meet higher demand
Santos has assets in every producing basin
Queensland
Large resource base
Low technical risk
Moomba and associated infrastructure offers platform to leverage growth
Gunnedah location suitable for next east coast gas supply hub
Pt Bonython
NewSouth Wales
MoombaBallera
SouthAustralia
Surat/BowenFairview, Roma,Scotia, Arcadia
Gunnedah
30
next east coast gas supply hub
Santos access to Wallumbilla infrastructure enables entry to LNG export projects at Gladstone
Oil pipeline
Gas pipeline
Legend
Santos permits
250km
Victoria
GippslandOtway
16
Moomba
TOOL DARA
Developed Conventional
Santos continues to explore Cooper Basin potential
New state-of-the-art three-rig drilling fleet commissioned in Q2 2011
Effi i i d d i d ill ti d f l ti
ROSE EPSI MTRE
Shale Gas
Tight G
Conventional
Undeveloped Unconventional
Gross gas thickness
~1600 feet
- Efficiencies recorded in drill-time and fuel consumption- Rigs built to suit infill drilling, as well as unconventional
oil and gas shales Shale core analysed from Moomba-185 well
- Results commensurate with US producing shale gas basins
Dedicated shale well planned for fourth quarter 2011
31
PATC
GRANITE
Gas
Deep Coal
Driller’s console & engineers on new drill rig
Proposed acquisition of Eastern Star Gas Ltd
Santos to acquire 100% of Eastern Star Gas Limited (ESG) (1)
- All scrip scheme of arrangement, unanimously recommended by ESG Boardrecommended by ESG Board
- ESG shareholders to receive 0.06881 Santos shares for every 1 ESG share held
- Values ESG at 90 cents per share, or A$924m (2)
- Represents attractive acquisition price of A$0.50per gigajoule of 3P reserve acquired
Sale of interests to TRUenergy- Subsequent sale of a 20% working level interest
in ESG’s permits in the Gunnedah Basin
32
p- Payment to Santos of A$284m
Formation of Santos/TRUenergy JV- Santos to assume operatorship and increase its
ownership in the ESG permits to 80%- TRUenergy JV partner with 20% interest(1) Santos presently holds 20.9% of ESG(2) Based on Santos’ closing price of A$13.23 on 15 July
Kahlua drill site, near Gunnedah, NSW
17
Delivering strategic benefits to Santos
Consolidates Santos’ existing Gunnedah interests, resulting in S nto be oming l ge t holde of
NewSouth Wales
Santos becoming largest holder of NSW CSG reserves
Furthers Santos’ Eastern Australian gas strategy
Balance sheet strength maintained, with cash payment from TRUenergy
TRUenergy an ideal partner to
GunnedahPEL434
Tamworth
Scone
DubboNarromine
NarrabriPEL 238
PEL 450PEL462
PEL 433
PEL12
PEL 1
PEL 452PEL 456
Newcastle
PPL 3PAL 2
33
LegendSantos acreage*Santos and Eastern Star Gas*Joint Venture acreageGas pipeline
TRUenergy an ideal partner to develop ESG’s permits in joint venture with Santos
Newcastle
* Operator
WA Domestic Gas: Increasing Demand
Demand 2010 2020Mining 20% 34%
Electricity (SWIS) 30% 28%
Alumina and Ammonia 41% 31%3%Onslow
DampierPort Hedland
Alumina and Ammonia 41% 31%
Residential/Commercial 9% 7%15%
3%3%
2%
Exmouth2010 Demandby location*
Expect demand to increase from 960 TJ per day (2010)* to 1,230 – 1,535TJ per day (2020)*
Asian demand for WA mineral exports is driving energy demand growth in WA
Mi i h i ifi l
34
9%
3%
29%
27%
PERTH
Bunbury
Kalgoorlie Mining sector growth significantly
outpaces other sectors. Iron ore is the key driver
Growth expected across the market in absolute terms
* Source: Santos
18
Santos supplies gas via one of two existing hubs and one new hub under construction
Hub-led strategy
Varanus Is.
John Brookes
Halyard/Spar
Reindeer
IndianOcean
Focused NFE LegendSantos acreageOil fieldGas fieldOil pipelineGas pipeline
35
Varanus Is.
Devil Creek
/Spar
Spar
Western Australia
Gas pipelineGas hub
Halyard/Spar, WADevelopment of Halyard (WA-13-L) and Spar (WA-4-R)
Project Halyard/Spar
Location Carnarvon Basin, offshore WA
Santos interest 45%
Partner Apache 55%, operator
Project scope Tie-back of Halyard and Spar wells to Varanus Island via existing East Spar pipeline Modifications to John Brookes
platform
Gross production capacity
50 TJ/day (Halyard)100 TJ/day (Halyard + Spar)
36
John Brookes platform with Spar wing deck module
Project status First stage (Halyard well) commenced production in June 2011 ahead of schedule and on budget Second stage (Spar well)
expected online in 2013
First gas 2 June 2011
19
Reindeer/Devil Creek, WAReindeer/Devil Creek –WA’s new domestic gas hubProject Reindeer/Devil Creek
L ti C B i ff h WA
Reindeer wellhead platform
Location Carnarvon Basin, offshore WA
Santos interest 45%
Partner Apache 55%, operator
Project scope Unmanned, minimum facility wellhead platform 105-km pipeline to shore Devil Creek gas plant
Gross production capacity
215 TJ/day (Devil Creek gas plant)1
37
Devil Creek gas plant
Project status All offshore installation work complete Pipelay complete Devil Creek gas plant
pre-commissioning underway
First gas On schedule for fourth quarter 20111 Gross processing capacity of Devil Creek gas plant. Plant is initially planned
to operate at 120TJ/d sales
Zola discovery
Zola-1 successful gas test of Triassic horst block on trend from Go gon field
Significant gas discovery in strategic location
IndianPluto
Wheatstone
Gorgon field Over 100m of net gas pay over a
400m gross interval in excellent quality reservoir
New high resolution 3D recorded and being processed
Follow-up appraisal drilling scheduled in 2012
Devil Creek
DampierVaranus Island
WesternAustralia
IndianOcean
John Brookes
MaitlandSpar
Gorgon
Zola 1
WA-290-P
East Spar
38
scheduled in 2012 Santos increased its equity to
24.75% pre-drillLegend
Santos acreageOil fieldGas fieldOil pipelineGas pipeline
20
Finucane South discovery
Finucane South-1 oil discovery 18 metre net oil column in excellent
Oil discovery with quick cycle time to first production
WA-191-PFletcher
MutineerExeter
Angel formation reservoir sands Proximity to Fletcher oil field
supports a dual-field development Potential tie-back to existing FPSO
at Mutineer-Exeter FEED studies well advanced FID targeted for early 2012 Dampier
Varanus Island
John Brookes
Finucane SouthPerseus
Goodwyn
Reindeer
NorthRankin
Angel
IndianOcean
Maitland
39
g y First oil by the end of 2013 Santos 33.4% and operator
Western Australia
Dampier
Devil Creek
LegendSantos acreageOil fieldGas fieldOil pipelineGas pipeline
40
Asia Pacific
21
Chim Sáo, VietnamChim Sáo – New oil production for SantosProject Chim Sáo
Location Block 12W, offshore Vietnam
Santos interest 31.875%
Partners Premier 53.125%, operatorPetroVietnam 15%
Project scope Unmanned, minimum facility wellhead platform Liquids processing and export via
FPSO Gas export via 100-km pipeline
Gross production 25,000 bbl/day
Chim Sáo FPSO Lewek Emas
41
capacity
Project status Wellhead platform and field pipelines installed Development drilling program
and FPSO conversion continue in accordance with project schedule
First oil On schedule for September 2011
Indonesia: Maleo and Oyong
Maleo
Maleo performing beyond expectation; Oyong Phase 2 delivered
O- Production since 2006- Gross gas production ~115 TJ/d- Long term sales gas contract to
PT Perusahaan Gas Negara
Oyong Phase 1 (oil)- Production since 2007- Gross production ~2,400 bbl/d
MaduraOffshore PSC
East Java
Madura Island
GratiProcessing
Plant50km
Surabaya
SampangPSC
MaleoOyongWortel
42
Gross production 2,400 bbl/d
Oyong Phase 2 (oil and gas)- Production since 2009- Gross gas production of
~ 60TJ/day- Gas sales to PT Indonesia Power
Bali
LegendSantos acreageOil fieldGas fieldOil pipelineGas pipeline
22
Wortel, IndonesiaWortel – Third operated project in IndonesiaProject Wortel
Location Sampang PSC, offshore East Java, IndonesiaIndonesia
Santos interest 45%, operator
Partners SPC 40%Cue Energy Resources, 15%
Project scope Unmanned, minimum facility wellhead platform 10-km gas pipeline to existing
Oyong platform Gas export via existing 60-km
pipeline to Grati
43
pipeline to Grati
Gross production capacity
90 TJ/day from combined Oyong/Wortel fields
Project status Jacket and deck fabrication progressing on schedule
First gas On schedule for the end of 2011
Oyong wellhead platform
Bay of Bengal
Bangladesh
Potential for medium term exploitation business in Bangladesh and long term business in India
India- Chittagong gas market significantly
undersupplied - Sangu well optimisation is extending
field life- Free market gas rights obtained for
Magnama- Three-well drilling program to
commence in Sangu in 4Q 2011
Bangladesh
Burma
India
NEC-DWN-2004/2
NEC-DWN-2004/1
Block 16
Bay of Bengal
Sangu
44
India- Targeting material gas prospectivity
for domestic market- 3D seismic program largely complete- Work programme on hold pending
border resolution
LegendSantos acreageOil fieldGas fieldOil pipelineGas pipeline
23
45
Reference Slides
2011 Guidance is unchanged
Item 2011 Guidance
Production 47 – 50 mmboe
Production costs $550 – $590m
DD&A expense $12 – 13/boe
Royalty related taxation expense (after tax)1 $80 – $100m
Capital expenditure (including exploration & evaluation)2
$3 billion
46
1 Royalty related taxation expense guidance for 2011 assumes an oil price of A$90 per barrel for the remainder of the year.
2 Capital expenditure guidance for 2011 includes $2 billion for LNG projects, $400 million for other sanctioned growth projects (Reindeer, Spar, Chim Sáo, Wortel and Kipper) and $150 million for conventional exploration. Excludes capitalised interest.
24
Well Name Basin / Area TargetSantos
Interest
%
Timing
2011 Exploration schedule
Zola-1 Carnarvon Gas 24.8 Gas discovery
Cana-1 Gunnedah CSG 25.0 CSG discovery
Finucane South-1 Carnarvon Oil 33.4 Oil discovery
Tuy Hoa-1X Phu Khanh Oil 50.0 Q3
Tardrum-4 Bowen-Surat CSG 50.0 Q4
Tonderburine-1 Gunnedah CSG 100 Q4
Green Hills-1 Gunnedah CSG 35.0 Q4
47
South Sangu Exploration Bay of Bengal Gas 100 Q4
Sangu Exploration Bay of Bengal Gas 100 Q4
The exploration portfolio is continuously being optimised therefore the above program may vary as a result of rig availability, drilling outcomes and maturation of new prospects
Reported and underlying profits
600
Reported NPAT Underlying NPAT$m
198
504
71 (42)17 (18)
210(2) 236
200
300
400
500
600
48
0
100
200
HY-2010
HY-2010
HY-2011
HY-2011
OtherPrices & foreign
exchange
Sales volumes
Royalty related
tax
Net finance income
25
(0 8)mmboe
Production lower due to GLNG sell-down
Santos interest in GLNG production reduced from 60% to 30% following
Production
24.2 (0.8) 0.4 (0.9)
5
10
15
20
2560% to 30% following the sale of interests to Total and KOGAS
Higher Bayu-Undan production due to shutdown in previous first half
J bi Ch lli d
22.9
49
0
5
HY-2010 HY-2011
Jabiru Challis and Legendre ceased production in 2010
Full-year 2011 guidance unchanged at 47 to 50 mmboe
GLNG sell-down
Bayu-Undan
Discontinued assets &
downtime
Sales volumes and revenue
3.5 5.5
20.0
30.0
Third party products
mmboe
Higher commodity prices offset by stronger AUD
Sales volumes
1400
HY-20101,091
Liquids prices162
Gas prices22
FX(95)
Volume/mix(79)
HY-20111,101$m
25.0 22.1
-
10.0
HY-2010 HY-2011
Ownproduct1
Higher volumes of third party products offset lower own product volumes
595k bbl crude oil underlift in first half expected to be recovered i d h lf
Sales revenue
50
0
200
400
600
800
1000
1200
HY-2011HY-2010
in second half
Third party productsrevenue $144 million
1 Includes gas from storage
26
Production cost and cost of sales
800
Total cost ofsales
Cash production costs
300 $25.11 $24.70 / b
$m $m$11.44/ boe $11.37
/ b
200
300
400
500
600
700 Third party product
purchases
Cost of produced
hydrocarbons1100
150
200
250
$260m$276m
/ boe/ boe/
/ boe
$576m$634m
$117m$70m
51
0
100
200
HY-2010 HY-2011
0
50
HY-2010 HY-2011
1 Includes production costs, tariffs, tolls and pipeline costs, royalties, inventory and DD&A
Business unit EBITDAX
350
400
HY-2010 HY-2011$m
368
302
372
50
100
150
200
250
300 Corporate and other includes gains on sale of assets of $348 million in HY-2011
300287302
4765
52
0
50
EasternAustralia
WA&NT GLNG Asia Pacific Corporateand other
213 (12)
Eastern Australia | Higher product prices and tolling revenue partially offset by lower liquids volumesWA&NT | Lower production costs and higher other income, offset by lower liquids volumesGLNG | Lower revenue and production costs offset by FX loss due to GLNG sell-downAsia Pacific | Lower product sales revenues due to stronger AUD and lower liquids volumes,
offset by higher liquids prices
27
DD&A
Higher DD&A primarily due to asset additions and year 300
277Rate21
Volume(12) 286$m
end 2010 reserve revisions
Partially offset by impact of lower production volumes
Full year 2011 guidance unchanged at $12-13/boe 100
150
200
250
53
0
50
HY-2010 HY-2011$11.45/boe $12.49/boe
EBIT 766 283
Interest and tax
Half-year Half-year2011 2010$m
66 83Net finance income
Interest income 100 55
Interest paid (110) (26)Less borrowing costs capitalised 63 -
(47) (26)Unwind of the effect of discounting on provisions (19) (19)
54
Total net finance income 34 10
Profit before tax 800 293Income tax expense (239) (81)Royalty-related taxation expense (57) (14)Net profit after tax 504 198
28
2011 Sensitivities
Sensitivity Change NPAT Impact A$m
US dollar oil price +US$1/bbl +9
Gas price +10 cent/GJ +17
A$/US$ exchange rate +1 cent -8
55
Contact Information
Head officeAdelaideGround Floor, Santos Centre60 Flinders Street
Andrew NairnGroup Executive Investor RelationsLevel 10, Santos Centre
Adelaide, South Australia 5000GPO Box 2455Adelaide, South Australia 5001Telephone: +61 8 8116 5000Facsimile: +61 8 8116 5050
Useful email contactsShare register enquiries:[email protected]
,Direct: + 61 8 8116 5314Email: [email protected]
Nicole WalkerInvestor Relations ManagerLevel 10, Santos CentreDirect: + 61 8 8116 5302Email: [email protected]
56
q p
Investor enquiries:[email protected]
Website:www.santos.com
