26 July 2011other● Neutral
Contact Energy's June 2011 operating data, forwarded by Origin: Haywards averaged NZ$38/MWh, with 1-18 July at NZ$48/MWh. North Island hydro storage fell to 120% of mean from 167% in May. Routine monthly statistics.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
25 July 2011agm notice● Neutral
Contact Energy will release annual results on 22 August 2011 and hold its annual meeting on 19 October 2011 in Rotorua. Director nominations are open until 22 August; the final distribution record date is 2 September, subject to board approval. Administrative notice only.
25 July 2011security holder rights change▲ Good
Origin amended its dividend reinvestment plan rules from the dividend for the year to 30 June 2011. Shares are now rounded down with the residual cash carried forward, rather than lost, and pricing methods become more flexible. A modest change for DRP participants.
15 July 2011regulatory community update● Neutral
Contact Energy, 52.57% owned by Origin, has appealed an Electricity Authority decision that an undesirable trading situation arose on 26 March 2011. It says the decision was an error of law and retrospective price resetting creates regulatory uncertainty.
15 July 2011director officer appointment● Neutral
Contact Energy's General Manager of Development and Acquisitions, Liz Kelly, is leaving after more than 11 years. Her duties pass to Contact's finance and governance teams. No replacement is named.
15 July 2011drilling result▼ BadMajor
Dao Ruang-3, the appraisal well in Thailand's L15/50 where Origin holds 40%, reached 1,800m and will be plugged and abandoned without a flow test. It found gas shows but limited producer potential, resolving the open result and adding to the Salamander farm-in's dry wells.
6 July 2011other● Neutral
Beach Energy's June drilling report covering Cooper Basin and Egypt wells. Origin is not named; its 13.19% interest is in the Santos-operated Cooper JV, which includes Moomba-186 and -187 (cased and suspended as gas producers). No Origin impact is stated.
28 June 2011joint venture update● Neutral
Geodynamics says its review of the Innamincka Deeps work program with Origin (30% partner) is advanced, with approval targeted for July and the 1 MWe pilot plant still aimed for early 2012. Second Shallows well objectives and location are still under discussion.
21 June 2011other▼ Bad
Contact Energy's May 2011 operating data, forwarded by Origin: average wholesale price NZ$36/MWh at Haywards, hydro storage above mean, and electricity customers down to 454,500 from 476,500 a year earlier. Reinforces the weak second-half conditions Contact flagged on 21 June.
21 June 2011investor presentation▼ Bad
Contact's Taupō investor offsite presentation. It says wholesale prices (NZ$36/MWh average at Haywards, 1 May to mid-June) and strong customer churn have limited second-half earnings. It restates Te Mihi (166MW, NZ$623m) and consented Tauhara, Waitahora and Hauāuru mā raki projects.
17 June 2011regulatory community update▼ Bad
Contact Energy admitted two Fair Trading Act breaches over how customer discounts were handled on final bills (April 2008 to April 2011). About 5,681 customers were owed around NZ$25 each, and 18,673 final invoices were short about NZ$8 each. Refunds will be paid.
16 June 2011investor presentation● Neutral
Karen Moses's UBS Resources and Energy Conference presentation, titled 'A Year of Transformation'. The readable portion is disclaimers and a restatement of Origin's strategy and shareholder proposition; no new announcements are visible in the readable text.
15 June 2011farm in farm out completion▲ GoodMajor
Origin completed the sale of 50% of Kenya Block L8 to Apache, which becomes operator. Origin was reimbursed US$13.2m, and Apache will meet part of Origin's cost of the first Mbawa well. Origin now holds 25%; timing of drilling is not set.
14 June 2011debt financing● Neutral
Origin lodged the European offer document (prospectus dated 13 June) for its €500m capital securities due 2071, issued by Origin Energy Finance and guaranteed by Origin. Issue price 99.959%; 7.875% to June 2018. This is a legal document for the already-announced hybrid; it adds no new terms.
14 June 2011asset acquisition disposition● Neutral
Origin lifted its Contact Energy holding to 365,384,258 shares (52.57%). It bought 36,206,220 shares at NZ$5.05 (its full entitlement) and 3,322,068 at NZ$5.85 in the bookbuild, averaging NZ$5.12. This completes the take-up Origin had promised.
14 June 2011capital raising announcement● Neutral
Contact issued 3,797,068 shortfall bookbuild shares on 13 June, taking shares on issue to 695,068,288. Origin's stated holding of quoted shares is now 52.57%. This completes the entitlement offer's administrative steps.
10 June 2011debt financing▲ GoodMajor
Origin priced a €500m (about A$680m) hybrid capital security maturing in 60 years, with a 7.875% fixed distribution for 7 years (7.48% after hedging into US dollars). S&P gives 100% equity credit, Moody's 50%. It supports the BBB+/Baa1 ratings ahead of Origin's APLNG contribution. It is treated as debt and carries no conversion rights.
9 June 2011capital raising announcement● Neutral
Contact allotted 65,741,274 new shares at NZ$5.05 under its entitlement offer, taking shares on issue to 691,271,220. Origin's stated holding of quoted shares rose to 52.37%. Shortfall shares follow on 13 June.
What it means for a shareholder
65.7m new shares at NZD 5.05 to raise about NZD 332m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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8 June 2011capital raising announcement▲ Good
Contact's shortfall bookbuild sold about 3.8 million shares at NZ$5.85, an 80c premium to the NZ$5.05 offer price. Total proceeds are NZ$351.2m, mainly for Te Mihi. This completes the raising that Origin supported.
What it means for a shareholder
3.8m new shares at NZD 5.85 to raise about NZD 22.2m. That's 64% dilution: every existing holder's slice gets 64% smaller. If you held NZD 1,000 of shares (171 at the issue price), your slice goes from 0.00805% to 0.00289% of the company. To keep it you'd need 306 more shares - about NZD 1,790 at the issue price.
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2 June 2011capital raising announcement▲ Good
Contact's entitlement offer closed with acceptances for 65.6 million new shares (about NZ$331.9m), roughly 94.5% take-up. About 3.8 million remaining shares go to a bookbuild on 8 June. Origin had said it would take up its full entitlement.
1 June 2011other● Neutral
Beach Energy's May drilling report covering Cooper Basin and Egypt wells. Origin is not named; its 13.19% interest is in the Santos-operated Cooper JV, which includes the Moomba-185 well (Beach 20.21%). No Origin impact is stated.
31 May 2011other▲ Good
Contact Energy opened the Ahuroa gas storage facility, New Zealand's first, and the 200MW Stratford peaker plant, at a combined cost of over NZ$400m. Contact credited Origin's expertise in developing Ahuroa. Both assets were already built.
27 May 2011regulatory community update▲ Good
Contact Energy, 52.09% owned by Origin, received final consent for its Hauāuru mā raki wind farm: up to 504MW from 168 turbines in Waikato. This resolves the draft-consent thread; no build decision or cost is stated.
20 May 2011production update● Neutral
Partner NZ Oil & Gas (15% of Kupe) says a NZ Herald report of a NZ$95m insurance claim is inaccurate. Kupe's platform power cable failed 27 May 2010; diesel generators have run it since, with no material disruption. A replacement cable is estimated at NZ$95m, but claims lodged are under NZ$6m.
20 May 2011drilling result▼ BadMajor
Celsius 1 geothermal well was cased and suspended: temperatures above 145°C were found, but permeability is below target, a setback for the Innamincka Shallows. Next candidates are Boyle 1 (Origin 100%, GEL 185) and Fahrenheit 1 (50:50 with Geodynamics).
16 May 2011production update● Neutral
Contact Energy's April data: average wholesale price fell to $56/MWh from $130 in March. North Island hydro storage was 155% of mean and South Island 102%. Origin holds 52.09% of quoted shares.
12 May 2011capital raising announcement● Neutral
Contact Energy confirmed it has despatched offer documents for its 1-for-9 entitlement offer at NZ$5.05. Administrative step in the capital raising Origin has said it will support.
9 May 2011asset acquisition disposition▲ GoodMajor
Origin bought a 40% stake in Chilean geothermal explorer Energía Andina from ENAP after a competitive process; Antofagasta Minerals keeps 60%. The company holds eight exploration projects covering 553,400 ha. Price not stated. Extends Origin's geothermal push after Sorik Marapi.
4 May 2011other● Neutral
Beach Energy's April drilling report on Cooper Basin and Egypt activity. Origin is not named; its 13.19% Cooper Basin interest sits in the Santos-operated JV, so no Origin impact is stated.
4 May 2011investor presentation● Neutral
Grant King's Macquarie conference presentation, titled 'From where will the fuel come?'. Text shown is mostly disclaimers and a restatement of the shareholder proposition (EPS growth of 10-15% a year); no new announcements visible in the readable portion.