6 Dec 2011asset acquisition disposition● Neutral
Contact Energy, 52.76% owned by Origin, agreed to buy the 150MW diesel Whirinaki peaker plant for NZ$33m plus about four million litres of diesel, with ownership expected around end 2011.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
6 Dec 2011farm in farm out completion● Neutral
ERM Power welcomed settlement of Origin's farmin to EP 426. Its interest falls to 13.89% once Origin earns 40% by paying 80% of the seismic survey cost. Third-party repeat of the 5 December settlement.
5 Dec 2011farm in farm out completion▲ GoodMajor
Farmin agreements for North Erregulla permits EP 368 and EP 426 were signed 5 December, settling the August letter deal. Origin earns 40% in each by paying 80% of a 100 sq km 3D seismic survey; Empire stays operator.
5 Dec 2011farm in farm out completion● Neutral
Norwest, a partner in EP 368 and EP 426, confirmed Origin's farm-in and will keep its 20% by paying 20% of the seismic cost. Empire's mapping suggests up to 22 million barrels of oil potential. Restates the Origin deal already announced.
2 Dec 2011capital raising announcement● Neutral
Origin sent eligible shareholders a postcard about the subordinated notes offer, which opened 1 December and closes 14 December. Initial rate is about 8.6%, margin 4.0%, minimum application $5,000. No new terms; administrative.
1 Dec 2011capital raising announcement▲ GoodMajor
Origin allocated $800m of subordinated notes through its bookbuild, above the $500m initial size, with the margin set at 4.00% over bank bills (about 8.60% initially). Retail offers opened; notes mature 22 December 2071. Proceeds help fund APLNG.
1 Dec 2011director officer appointment▲ Good
Ralph Norris, until 30 November 2011 CEO of Commonwealth Bank, will join Origin's board as an independent non-executive director from 1 April 2012. He previously led ASB Bank and Air New Zealand.
29 Nov 2011debt financing● Neutral
Origin lodged the executed trust deed for its subordinated notes, now scheduled for issue on 23 December 2011 (previously 20 December). Legal documentation only; no new financial terms in the readable text.
29 Nov 2011capital raising announcement● Neutral
Origin lodged a replacement prospectus for its subordinated notes after talks with ASIC, amending the mandatory interest deferral test to use interest cover and leverage ratios. It adds the Kansai Electric LNG deal; the offer is expected to open 1 December, closing 14 December.
28 Nov 2011material agreement● Neutral
Drillsearch signed a gas sale agreement with the South Australian Cooper Basin JV, in which Origin holds 13.19%, to sell raw wet gas from the Middleton and Brownlow discoveries to 30 April 2013. Origin is the buyer's JV member, not a party to the drilling.
24 Nov 2011drilling scheduled▲ Good
Geodynamics, operator of the Innamincka Deeps JV (Origin 30%), targets a first-quarter 2012 spud of Habanero 4 to about 4,170m, replacing the suspended Habanero 3. The $90m government grant is being brought forward, covering up to 50% of appraisal costs over two years.
24 Nov 2011investor presentation● Neutral
Contact Energy (52.76% owned by Origin) presented a geothermal update covering the 166MW Te Mihi build, with site works progressing, and future prospects including the consented 250MW Tauhara project. Largely restates known plans; no new financial figures in the readable text.
23 Nov 2011debt financing● Neutral
Contact Energy (52.76% owned by Origin) said its Capital Bond bookbuild was well received. $150m plus $25m of oversubscriptions is reserved for firm allocations, with a public pool open to 15 December. Minimum rate is 8.00% and margin 4.55%; final rate set 16 December.
23 Nov 2011capital raising announcement▼ Bad
ASIC extended the exposure period for Origin's notes prospectus by seven days to 29 November, to consider terms including mandatory deferral of interest payments. Origin says the bookbuild drew very strong demand and it is working to resolve the matter. Delays the planned offer opening.
22 Nov 2011contract award▲ Good
Origin signed a long-term power purchase agreement for ACCIONA's 46.5MW Gunning Wind Farm. It gets renewable certificates from 1 January 2012 for two years, then power and certificates for eight years, to help meet renewable energy target obligations.
21 Nov 2011joint venture update▲ Good
Geodynamics and Origin settled the insurance claim for the April 2009 Habanero 3 well control incident, with $12m gross ($10.8m net) payable to the Innamincka Deeps JV (Origin 30%). It resolves the redrill and environmental cost claim.
18 Nov 2011other▲ Good
Contact Energy (52.76% owned by Origin) reported October data: average wholesale price $94/MWh, with hydro storage recovering to 87% of mean in the South Island and 101% in the North Island, from 72% and 74% in September. No financial results.
18 Nov 2011capital raising announcement● Neutral
Origin forwarded the Contact Energy Capital Bond prospectus (Origin holds 52.76%). Bonds are unsecured, subordinated and mature 15 February 2042, with early redemption from 15 February 2017. This is the documentation for the offer already announced; proceeds are for general corporate purposes.
17 Nov 2011contract award▲ GoodMajor
Australia Pacific LNG (Origin 42.5%) signed a binding heads of agreement to sell about 1 million tonnes a year of LNG to Kansai Electric for 20 years, from mid-2016. It is conditional on a Train 2 final investment decision, targeted for early 2012.
15 Nov 2011investor presentation● Neutral
Origin published its investor presentation for the $500m ASX-listed notes offer, presented by Group Treasurer Peter Rice and IR head Angus Guthrie. The readable text is a disclaimer; the offer terms were set out in the same-day release.
15 Nov 2011debt financing● Neutral
Origin lodged the executed trust deed (with Australian Executor Trustees as trustee) for its Origin Energy Notes, scheduled for issue on 20 December 2011. Legal documentation for the $500m notes offer already announced; no new financial terms in the readable text.
15 Nov 2011capital raising announcement● NeutralMajor
Origin lodged a prospectus to raise $500m, with the ability to raise more or less, through ASX-listed subordinated notes maturing 2071 with a first call in December 2016. The margin is expected at 4.00-4.50% over bank bills. Proceeds help fund APLNG, following the US$500m notes in October.
11 Nov 2011material agreement● Neutral
Carbon Conscious says Origin exercised the 2012 component of its 2009 forestry options and brought forward 2013 plantings, giving about 10 million Mallee trees in 2012. Origin keeps about A$163m of options for 2013-15. Subject to Origin's plantation review within 21 days. Follows the Clean Energy Act passing.
11 Nov 2011investor presentation● Neutral
Contact Energy, 52.6% owned by Origin, published its roadshow presentation for the Capital Bond offer, with rated BBB by S&P and Fitch and bonds expected BB-. It restates strategy, including Te Mihi 166MW under construction, and says retail customer losses were arrested after an August discount. No new Origin news.
10 Nov 2011debt financing● Neutral
Contact Energy, 52.76% owned by Origin, launched an offer of up to $150m of Capital Bonds, with up to $100m oversubscriptions, maturing 2042. The minimum rate for the first five years will be at least 8.00%. The offer opens 23 November and closes 15 December. Follows its 2 November notice.
2 Nov 2011other● Neutral
Contact Energy, 52.76% owned by Origin, said it is considering offering $150m of unsecured subordinated Capital Bonds to New Zealand investors to improve financial flexibility and extend its funding terms. Only an expression-of-interest notice; no money is being sought yet.
2 Nov 2011joint venture update▲ GoodMajor
Origin and Sasol formed a 50:50 joint venture, Kubu Energy Resources, to explore for coal seam gas in Botswana. It agreed to acquire three licences covering about 3,000 km2, subject to government approval, with costs shared over two years. A new greenfield exploration thread.
26 Oct 2011investor presentation● Neutral
Grant King presented to the Citi Australian and New Zealand conference on 26 October. The readable text is a disclaimer and a restatement of strategy (energy markets and APLNG); no new figures or events are evident.
21 Oct 2011other● Neutral
Contact Energy, 52.76% owned by Origin, reported September operating data: average wholesale price $96/MWh, hydro storage below mean (South Island 72%, North Island 74%). Contact will start installing smart meters for up to 150,000 North Island customers next year. No financial results.
7 Oct 2011farm in farm out completion● Neutral
Pancontinental says its farmout of Kenya L8 to Tullow completed on Kenyan ministerial consent. Per the announcement, L8 holders are Apache 50% operator, Origin 20%, Pancontinental 15%, Tullow 15%. Origin's share is stated at 20%, versus the 25% previously recorded. Mbawa rig and timing not yet set.