Corporate Finance

Credentials
2010

1 | Core Energy Group Credentials - Corporate Finance

Introduction

Core offers a distinctive Public Information

- Annual Reports
Internal IP
- Industry Analysis

blend of strategic
- ASX Announcements - Technical, Operational Insight
- News Releases - Value and Risk
- Industry Information - Competition Analysis

and company level

information and Strategic Review
- Reviewed for strategic consistency

analysis; leveraging
- Review macro assumptions
- First level review

multi disciplinary
Review and Validation
Stage 1 Analysis Stage 2 Analysis - All major assumptions reviewed
- Planning - Access new data - Logic validation
- Modelling - Further analysis

perspective to facilitate
- Scenario and sensitivity analysis
- Scenario analysis - Benchmarking - Peer comparatives
- Company consultation - Identify areas for improvement
- Industry consultation - Modelling revision

rigorous, fact based

investment decisions
Continuous Improvement
Extract - Data cleansed
- Assumptions upgraded
X
- Models enhanced and Reporting & Communication
reviewed - Fundamental vs market value
- Standardised reporting
- Value and risk focus
- Models enhanced

Origin Energy Oil Search Ltd AGL Energy Ltd Santos Ltd
Result
Ltd
Woods
ide Pet
roleum
- “Best in class”
y
Valuation and Company Review
October 2009
Valuation Summary
March 2010
Valuation Summary
April 2010
Valuation Summary
March 2010
fundamental analysis
Summar
Valuation
February
2010
- Practical insight
- Strategic context

Continuous feedback, half yearly and annual valuation updates

Our Clients

2 | Core Energy Group Credentials - Corporate Finance

Service Offering

Our independence, knowledge and fact

based approach provides clients with a
broad range of value adding services, unique
to each client’s needs
Service Areas Covered Value Add

ƒƒ Oil / Liquids ƒƒ Coal

Strategic Research and ƒƒ LNG ƒƒ Services ƒƒ Identify value and risk trends
Analysis ƒƒ Gas ƒƒ Renewable early
ƒƒ Electricity Energy

ƒƒ Santos Limited
ƒƒ Regular updates
ƒƒ Origin Energy
ƒƒ Strong fundamental analysis
Company Analysis ƒƒ Woodside Petroleum Limited
& Valuations ƒƒ Practical insights
ƒƒ Oil Search
ƒƒ Balance of strategy / finance /
ƒƒ AGL Energy
technical / operations analysis
ƒƒ Mid to small cap companies

ƒƒ Detailed cash flow based models ƒƒ Full analysis of assumptions and

Models ƒƒ Rigorous assumptions sensitivities

Client Projects ƒƒ Valuations ƒƒ Tailored to client specific needs

Core Energy Group Credentials - Corporate Finance | 3

 Strategic Research & Analysis

Detailed strategic analysis provides the

foundation for developing creative, value
enhancing solutions for our clients

Core maintains an up to date strategic view of key We are positioning Core for leadership in strategic
elements of the energy value chain to provide a analysis and insight across the energy industry.
clear context for portfolio decisions and company Core provides its strategic business information
level analysis and valuations. and analysis to clients through discussion, reports,
workshops and an online portal designed to meet
Strategic level analysis provides a range of benefits:
client specific needs.
ƒƒ Provides a sound basis for price outlook based on
supply and demand and competitor dynamics –
e.g. gas, electricity, oil price, LNG
ƒƒ Ensures a disciplined approach to deriving market
share forecasts – competitor analysis – e.g.
energy retailing, gas, electricity
ƒƒ Facilitates assessment of differential in quality
between assets and companies – e.g. coal seam
gas, LNG
ƒƒ Enables systematic analysis of emerging value
and risk drivers – e.g. CPRS, MRET – wind versus
gas
ƒƒ Compliments technical and financial analysis to
provide a comprehensive basis for investment
decision making
ƒƒ Promotes consistency across portfolio decisions

4 | Core Energy Group Credentials - Corporate Finance

Strategic Research & Analysis

Our strategic analysis

covers the entire
energy value chain
2025
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32+. Gas
 
Outl nvention

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1972:

1975
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1977: port 1
UAE Ex

1980
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Malays
1983:

1985

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1989:
1990

G
1st LN
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Nigeria port 1 LN
1996: Ex
Qatar
go Export
ba
d & To
Trinida
1999: G
G 1st LN
1st LN Export
2000 :Oman

G
1st LN
Export
Egypt
2004: G
1st LN
2005 Export
: Norway
2006 inea
rial Gu
Equato
2007: st LNG
1 G
Export 1st LN
Export st LNG
Russia 1
2009: Export
Yemen

Core Energy Group Credentials - Corporate Finance | 5

 Company Research & Analysis

Our company analysis has developed a

reputation as being distinctive - strategically
linked, fact based, independent and practical

Core’s team of energy specialists are allocated
responsibility for companies and related sectors to
ensure we fully leverage relevant knowledge for our
clients.
Our analysis is based on detailed discounted cash
flow analysis for each asset which is ultimately
consolidated to provide a whole of company
perspective. The combination of independent
strategic, technical, operational and financial
analysis enables us to deliver projections which are
both rigorous and prudent. We present both the
upside potential and the downside risk without bias.
Core differentiates its analysis in several ways:
ƒƒ Totally independent
ƒƒ Fact based – leverages Core’s significant
investment in industry and company facts
ƒƒ Practical – developed by industry specialists who
remain active in energy markets in a manner
which protects against conflicts
ƒƒ Rigorous – technically and commercially
ƒƒ Strategy oriented – there is a sound basis for key
assumptions and projections
ƒƒ Balanced – risk and value
ƒƒ Timely

6 | Core Energy Group Credentials - Corporate Finance

Company Research & Analysis

We are continually
expanding the list
of companies we
Woodside
Petrol eum Ltd
Origin Ener
gy
cover including large,
Valuation
and Compa
mid and small cap
companies
October 200 ny Review
Summar y 9
Valuation
0
February 201

Oil Search Ltd Santo

s Ltd
d
n e rgy Lt
AGL E
Valuation Summary Valua
tion S
March 2010 March umm
2010 ary

mm ary
ti on Su
Valua
10
April 20

Core Energy Group Credentials - Corporate Finance | 7

Continuous Communication

We ensure we deliver high quality information in a timely way, offering

practical insight into value changing events and trends

Core maintains a five tiered communication program to provide distinctive insights in a timely manner:

Daily Weekly Monthly Quarterly Annually

ƒƒ Daily report highlighting ƒƒ Teleconference discussion ƒƒ Monthly report highlighting key ƒƒ Company valuation and report ƒƒ Full strategic study updates
key news flow, issues and ƒƒ Weekly report addressing key issues, trends and information updates – detailed analysis and workshops
information energy issues ƒƒ Updates of strategic analysis to discuss key findings

ƒƒ Valuation models available ƒƒ Full company valuation and

reports with models available

Continuous access to Core Team, regular meetings and correspondence.

8 | Core Energy Group Credentials - Corporate Finance

Continuous Communication

Our structured
communication
program keeps
clients up to date with
significant issues across
(DVWHUQ$XVWUDOLD*DV the energy value chain
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November 2009
2009
Core Energy Group 

Core Energy Group Credentials - Corporate Finance | 9

Contact Us

Core Energy Group Paul Taliangis

Level 10
Chief Executive Officer
81 Flinders Street
Adelaide SA 5000 T +61 8 8412 6401
M +61 438 604 917
T +61 8 8412 6400
F +61 8 8223 5064 pt@coreenergy.com.au
Or visit our website:
www.coreenergy.com.au
Anthony Kavanagh
Associate Director
T +61 8 8412 6413
M +61 421 570 646
ak@coreenergy.com.au

Kristin Staritski
Senior Analyst (Strategy)
T +61 8 8412 6405
M +61 402 858 978
ks@coreenergy.com.au

Andrew Lee
Energy Advisor
T +61 8 8412 6402
M +61 422 680 323
al@coreenergy.com.au

10 | Core Energy Group Credentials - Corporate Finance