Past year: ▼ 10%(10.76 – 12.38 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
23 Oct 2017flow test result▲ GoodMajor
AWE reports Waitsia-3 (Origin 50%) flowed gas from the Kingia Sandstone at a maximum 50 MMscf/d, better than Waitsia-1. This is the early Q4 flow test planned earlier; Waitsia-2 and -4 follow, with testing due to finish by end November. Supports the Stage 2 final investment decision.
20 Oct 2017director officer appointment● Neutral
Appendix 3Y: CEO Frank Calabria received 401,288 options (exercise price $7.37), 126,866 performance share rights and 136,668 deferred share rights after shareholder approval at the AGM. 67,124 options lapsed. Routine incentive grant, no share trades.
18 Oct 2017agm notice● Neutral
AGM addresses and presentation. The chair sets three priorities: cut debt, lead in Energy Markets, and lead in Integrated Gas. No dividend was paid for 2017, to be reviewed each six months. Underlying ROCE doubled to 6.0%. Repeats known facts.
18 Oct 2017regulatory community update● Neutral
Origin releases its first standalone climate scenario analysis of its generation portfolio, restating support for the Paris Agreement and net zero electricity by 2050 or earlier. It targets over 25% renewables by 2020 and plans an emissions target before end-2017. Not an expected-outcome forecast.
18 Oct 2017agm notice● Neutral
All board-backed resolutions passed at the AGM, including Teresa Engelhard's election and the remuneration report (98.09% for). The shareholder-requisitioned constitution amendment failed. The three contingent climate resolutions were also not passed (disclosure resolution about 13.8% for). Resolves the requisitioned climate vote.
4 Oct 2017drilling progress report● Neutral
Beach's September report shows Cooper Basin JV wells cased as future producers: Merrimelia-63 (1.2m net oil pay) and -65 (7.7m), SA JV Origin 13.19%; Roti-5 and Roti-6 gas wells, Qld JV Origin 16.74%. Follows earlier Roti-5 and Merrimelia-63 drilling. Other wells are Beach's.
28 Sept 2017asset acquisition disposition▲ Good
Beach Energy announces its side of the Lattice purchase for $1,585m, funded by a $301m 3-for-14 entitlement offer plus new debt. It lifts Beach's 2P reserves about 200% to 232 MMboe. Confirms the buyer's funding for Origin's sale; the text does not give the offer price.
28 Sept 2017asset acquisition disposition▲ GoodMajor
Origin agrees to sell Lattice Energy to Beach Energy for $1,585m, effective 1 July 2017, resolving the IPO-or-trade-sale question. Origin keeps long-term gas and LPG supply from Lattice. Proceeds cut debt toward the below-$7bn target by June 2018. Completion needs NZ approvals.
26 Sept 2017annual report● Neutral
Origin publishes its 2017 Sustainability Report covering FY17. The CEO restates support for emissions cuts and net zero electricity by 2050 or earlier, and notes the coal-fired Eraring plant is planned to close by the early 2030s. A dual-track Lattice IPO/trade sale is noted as under way.
14 Sept 2017annual report● Neutral
The 2017 Shareholder Review is a summary of the annual report, repeating the FY17 results: $2.2bn statutory loss, no second-half dividend, and net debt target below $7bn by end FY18. It notes Lawrie Tremaine as CFO, Mark Schubert, and Teresa Engelhard joining the board, with Helen Nugent leaving.
14 Sept 2017annual report● Neutral
Origin's 2017 Annual Report repeats the FY17 results: statutory loss $2.2bn, no second-half dividend, underlying EBITDA up 49% to $2.5bn. FY18 guidance: Energy Markets EBITDA $1.7-1.8bn, Integrated Gas production 245-265 PJ, and adjusted net debt below $7bn by end FY18 pending the Lattice sale, expected by end 2017.
11 Sept 2017asset acquisition disposition▲ GoodMajor
Origin agreed that Lattice Energy will buy Benaris' 27.77% of the Otway Gas Project (plus its exploration JV interests) for $190m, taking Lattice to 95%. It completes only when Lattice is divested. A separate $60m payment adds 11.89 PJ of 2P reserves. This prepares Lattice for sale.
8 Sept 2017contract award▲ Good
Santos, together with Origin, signed a new ethane supply agreement with Qenos for an estimated 27 PJ from the rest of 2017 to end 2019. The ethane comes from the Moomba plant in the Cooper Basin. The text gives no value or Origin's share.
6 Sept 2017regulatory community update● Neutral
AWE says the WA government's roughly 12-month fracking moratorium will not affect Waitsia Stage 2 (Origin 50%), which produces from conventional reservoirs and needs no fracking. Removes a regulatory worry for the Stage 2 development.
6 Sept 2017drilling progress report▲ Good
Beach's August report shows Cooper Basin JV wells cased as producers: Jack Lake-6 and -7 (SA JV, Origin 13.19%, about 40m and 54m net gas pay). Roti-5 (Qld JV, Origin 16.74%) was drilling at 515m, and Merrimelia-63 (SA JV) drilling at 1,280m. Other wells are not Origin's.
24 Aug 2017joint venture update▲ GoodMajor
The remaining US$3.4bn of shareholder guarantees on APLNG's US$8.5bn project finance facility have been released after the project met all lenders' completion tests. This resolves the certification expected in Q1 FY2018, which has come earlier than that. Origin's guarantee exposure on the facility ends.
22 Aug 2017drilling result▲ GoodMajor
AWE says Waitsia-4 (Origin 50%) found 21m of net gas pay in the Kingia, with reservoir quality similar to Waitsia-3 and better than expected. It is cased for production, and no more appraisal drilling is needed before FID. A flow test of Waitsia-2, -3 and -4 is planned early Q4 2017, with a reserves upgrade expected in 1H FY18.
22 Aug 2017agm notice● Neutral
Origin notes that 129 shareholders (about 0.0169% of shares) requisitioned four climate-related resolutions for the 18 October AGM, promoted by Market Forces. They cover climate risk disclosure, low-carbon transition planning, and methane emissions. The board's recommendation will come in the September notice of meeting.
16 Aug 2017annual report▼ Bad
Cover note and Appendix 4E for FY17: statutory loss $2,226m after the $3.1bn impairments flagged on 10 August; revenue $14.1bn; final dividend nil. Confirms the earlier impairment announcement; the underlying profit detail is in the release below.
16 Aug 2017half year report▼ BadMajor
Origin reports FY17 underlying profit of $550m (up 51%) and underlying EBITDA of $2.53bn, but a statutory loss of $2.22bn after $3.1bn of non-cash impairments. No final dividend is paid, to prioritise debt reduction. FY17 net debt fell $1bn to $8.1bn.
16 Aug 2017investor presentation▲ Good
FY17 results presentation: underlying profit $550m (within the $480-590m guidance), underlying EBITDA $2,530m, adjusted net debt down $1.0bn to $8.1bn. Asset sales totalled $1,005m against the $800m target. Lattice IPO or trade sale still expected by end CY17; indicative trade bids received.
11 Aug 2017drilling result▲ Good
AWE reports Waitsia-4 (Origin 50%) reached total depth of 3,744m on 10 August, intersecting all primary targets with elevated gas shows in the Kingia and High Cliff. Wireline logging comes next, so reservoir quality and reserves are still unconfirmed.
10 Aug 2017financial restatement▼ BadMajor
Origin expects a further $1.2bn post-tax non-cash impairment in 2H FY17: $815m for its 37.5% share of APLNG (lower oil price assumption of US$67/bbl from 2022) and $357m for Lattice Energy. Total FY17 impairments reach $3.1bn. Lattice sale execution is targeted by end 2017.
10 Aug 2017admin correction● Neutral
Revised re-release of the impairment announcement, correcting only a typo: the date depreciation stopped on Lattice Energy is 7 December 2016, not 2017. Figures are unchanged.
8 Aug 2017agm notice● Neutral
Origin will hold its 2017 AGM on 18 October 2017 at The Westin Hotel, Sydney. Administrative notice only.
7 Aug 2017drilling progress report▲ Good
Waitsia-4 (Origin 50%) was at 3,486m and has intersected the Kingia, with good gas shows. It is drilling toward the High Cliff Sandstone, and logs are needed to confirm reservoir quality. No reserves or flow result yet.
2 Aug 2017drilling progress report▲ Good
Beach's July report covers Cooper JV wells. In the Queensland JV (Origin 16.74%), Okotoko North-1 is a new gas field discovery with about 8m net gas pay, cased as a producer, completing the six-well campaign. Origin's share in the SA JV (13.19%) includes Koree South-2, with no result shown.
31 July 2017quarterly activities report▲ Good
June quarter production was 89.2 PJe (up 12% on March, 30% on a year earlier); FY2017 production was 323 PJe, up 40%, with revenue of $2.2bn. Excluding APLNG, FY17 output was 95 PJe versus 90 PJe guidance. Largely a routine quarterly, repeating the APLNG test result.
31 July 2017drilling progress report● Neutral
Waitsia-4 (Origin 50%) reached the 3,054m section depth and is preparing to run 9 5/8 inch casing. No result yet.
28 July 2017joint venture update▲ GoodMajor
APLNG finished the 90-day operational phase of its two-train lenders' test, averaging more than 10% above nameplate capacity. Formal certification is expected in Q1 FY2018, after which the remaining US$3.4bn of shareholder guarantees will be released. This resolves part of the earlier test timeline.
