19 Oct 2016security holder rights change● Neutral
Origin lodges its constitution with the proportional takeover bid provision renewed, as shareholders approved at the AGM. Administrative follow-up; no new terms are drawn out in the excerpt.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
13 Oct 2016debt financing▲ GoodMajor
Origin extended $4.51bn of bank facilities, due December 2018, to October 2021. Total facility limit stays at $7.4bn, with $6.6bn committed and undrawn at 30 September 2016. This pushes out debt maturities.
12 Oct 2016drilling result▲ GoodMajor
Origin reports a hydrocarbon discovery at Amungee NW-1H, the final Stage 1 well in the Beetaloo Basin (EP98). Gas flowed at 0.8-1.2 mmscf/d while still flowing back frac fluid; testing continues and resource size is not yet estimated.
10 Oct 2016production update▲ GoodMajor
APLNG produced its first cargo from Train 2 and has shipped 47 cargoes in total. The 120-day Train 1 lenders' test is done, with project finance completion expected by end of 2016. This delivers the Train 2 first cargo expected in Q2 FY2017.
5 Oct 2016drilling progress report● Neutral
Beach's September Cooper report. Big Lake-135 (Origin 13.19%) was cased as a future gas producer, with gas pay consistent with a low-side outcome; Big Lake-136 has since been cased as a future producer. Wells 137 and 138 are still at surface hole stage.
23 Sept 2016other● Neutral
Origin lodges an updated Dealing in Securities Policy replacing the May 2014 version. It sets rules on when directors and staff may trade Origin shares. Administrative; no financial or operating information.
22 Sept 2016other● Neutral
Notice of the next interest payment on the ORGHA subordinated notes: $1.43 per note, a 5.74% annual rate (bank bill rate 1.74% plus 4.00%), payable 22 December 2016. It is a routine rate reset, down from $1.51 last quarter.
20 Sept 2016resource reserve update▲ GoodMajor
Partner AWE reports an independent RISC certification of Waitsia (Origin 50%) 2P reserves at 460 Bcf gross, 34% above AWE's 344 Bcf. AWE keeps the lower booked figure until 2017 appraisal drilling. Origin's reserves are not changed by this.
15 Sept 2016annual report● Neutral
Origin's 2016 Annual Report, repeating known results: statutory loss $589m, underlying profit from continuing operations $354m (down 41%), adjusted net debt cut $4bn to $9.1bn. The chairman and MD letter says the company entered the year with an unsustainably high debt level.
15 Sept 2016annual report● Neutral
Origin's 2016 Shareholder Review, a short summary of results already released: statutory loss $589m, underlying profit $365m, and dividends of 10 cents per share against 50 cents in FY2015.
9 Sept 2016asset acquisition disposition● Neutral
Partner Norwest says paperwork for the sale of the Jingemia oil field (L14) to Cyclone Energy and RCMA Australia has gone to WA regulators for approval. Origin holds 49.189% and is a seller. The field has been shut in since December 2012; restart is hoped for first half 2017.
9 Sept 2016admin correction● Neutral
Re-release of the Calabria appointment announcement, correcting the typo in the heading date to 19 October 2016. No other change.
9 Sept 2016director officer appointment● NeutralMajor
Energy Markets CEO Frank Calabria is appointed Managing Director and CEO, taking over from Grant King after the 19 October 2016 AGM; King retires at end October. Fixed pay is $1.7m. The Chairman says the short-term focus remains debt reduction.
7 Sept 2016drilling progress report▲ Good
Beach's August Cooper report. Big Lake-134 (Origin 13.19%) was cased as a future Permian gas producer after 143m of net gas pay, in line with expectations. The other four Big Lake wells are still drilling.
6 Sept 2016material agreement▲ Good
APLNG signed a 20-year agreement with APA Group to build and operate a 50km pipeline from its Reedy Creek site to the Wallumbilla gas hub. It gives APLNG direct access to the east coast domestic market; no cost is stated.
29 Aug 2016production update▲ GoodMajor
Partner AWE reports commercial gas sales from Waitsia Stage 1A (Origin 50%) have begun, on time and within the $18m budget, at 10 TJ/d. This resolves the expected first gas; Stage 2 could lift capacity to 100 TJ/d, with two wells planned in 2017.
29 Aug 2016production update▲ GoodMajor
The 100%-Origin Halladale/Speculant offshore Otway fields have come online, expected to lift Otway Gas Plant output by up to 80 TJ/day and grow EBITDA from FY2017. This delivers the first gas expected in early FY2017.
26 Aug 2016annual report● Neutral
Origin's 2016 Sustainability Report, covering 1 July 2015 to 30 June 2016. It is a cover letter and report on safety, environment and community performance; no new financial or operating figures are drawn out in the excerpt.
18 Aug 2016annual report▼ Bad
Full-year financial documents for FY2016: statutory loss of $589m (FY15: $658m loss), revenue $12.2bn, and no final dividend (FY15: 25 cents). Net tangible assets per share fell to $5.21 from $6.08. Detail is in the accompanying results release.
18 Aug 2016annual report▼ BadMajor
FY2016 underlying profit from continuing operations was $354m, down 41%, with a statutory loss of $589m. No final dividend is paid, resolving the earlier suspension risk. Adjusted net debt fell $4bn to $9.1bn, and Train 2 production is expected in Q2 FY2017.
18 Aug 2016investor presentation● Neutral
Results presentation repeating the FY2016 figures: statutory loss $589m, underlying profit from continuing operations $354m, no final dividend, adjusted net debt down $4bn to $9.1bn. Debt repayment is prioritised, and the Board will review each future dividend decision.
18 Aug 2016other▲ Good
Routine ratio notice for the subordinated notes: interest cover for the six months to 30 June 2016 was 8.9 times against a minimum of more than 3.5. No Mandatory Deferral Event had commenced, so note interest is not deferred.
15 Aug 2016resource reserve update● Neutral
Partner AWE said it will cut its BassGas (Yolla) 2P reserves to match Origin's operator downgrade. Its Waitsia reserves stay unchanged pending its own review, though Origin's report implies a lift to about 39.79 mmboe. Origin operates BassGas with 42.5%.
3 Aug 2016drilling progress report● Neutral
Beach's July Cooper report. Tirrawarra-90 was cased as a producer, and Coolah-4 found gas pay slightly below forecast, completing the successful three-well Coolah campaign (Origin 16.74%). Tirrawarra-89 is deferred to Q2 FY17; the Big Lake campaign began.
29 July 2016resource reserve update● NeutralMajor
Origin's 2P reserves rose 17 PJe to 6,277 PJe at 30 June 2016. Gains in Waitsia (+216 PJe) and Kupe (+71 PJe) were offset by 102 PJe of downgrades in Cooper, Otway and Bass, after 231 PJe of production. APLNG 2P fell to 5,073 PJe.
29 July 2016production update● Neutral
Media release accompanying the production and reserves reports: production up 57% for the year, reserves 6,277 PJe. Train 2 first cargo is on track for Q2 FY2017; 60% of project finance guarantees to be released then, the remaining 40% in CY2017.
25 July 2016drilling spud● Neutral
Origin, as operator with 35%, spudded Beetaloo W-1 in EP117 on 22 July 2016, the fourth of five Stage 1 wells in the Northern Territory basin. Partners are Sasol 35% and Falcon 30%. No result yet.
6 July 2016drilling progress report▲ Good
Beach's June Cooper report. Tirrawarra-92 and -91 (Origin 13.19%) were cased as future producers after gas and oil pay. In the Coolah campaign (Origin 16.74%), Dunadoo-1 and Coolah-3 found gas pay and were cased as future producers.
30 June 2016production update▲ Good
APLNG's first cargo to Kansai Electric left Curtis Island on 29 June 2016, under the 2012 deal for about 1 mtpa over 20 years. It is APLNG's 27th shipment; Train 2's first cargo is now expected by end of CY2016.
22 June 2016other● Neutral
Routine notice that the ORGHA hybrid pays $1.51 per note on 22 September 2016, at a 6.00% annual rate (2.00% bank bill rate plus 4.00% margin). Unfranked, paid in cash. Administrative.