Little glimpses of improvement... might COE be on the cusp of some sustainable performance delivery...

Operations update

• Stable processing rates at the Orbost Gas Processing Plant in August – average processing rate of 41 TJ/day (Q4 FY21: 33 TJ/day)

• Sole gas sales continued at maximum daily contract quantities in August – average gas sales volume of 59 TJ/day (Q4 FY21: 54 TJ/day)

• Athena Gas Plant commissioning commenced – sales gas introduced into the plant

Serial under-performer Cooper announced results today.  It might be possible that they are starting to get on top of things and with a gas price likely to rise, there might be light at the end of the tunnel.

• Record sales and revenue: sales volume up 94% to 3.01 MMboe; revenue up 69% to $132 million

• Record production: up 69% to 2.63 MMboe

• Sole Gas Sales Agreements driving improved gas returns: ~$50 million cash margin from the Otway and Gippsland basins1; Sole cash margin kept broadly whole2

• Strong second-half momentum to continue: expect material growth in FY22

  • –  Sales volume guidance of 3.7 – 4.3 MMboe (FY21: 3.01 MMboe)

  • –  Underlying EBITDAX guidance of $60 – 70 million (FY21: $30.0 million)

• Athena Gas Plant commissioning in Q2 FY22: on schedule and on budget

• Sound Balance Sheet maintained: debt adjustments finalised

• Climate Active carbon neutral certification: independent audit and Australia’s first carbon neutral oil and gas producer

• Crystalising and growing the value within the existing portfolio: significant gas reserves position and gas prices increasing

• Results webcast scheduled for 8.30am ACST (Adelaide) / 9.00am AEST (Sydney, Melbourne)

  Cooper Energy (ASX: COE) has announced record full-year production, sales volume and revenue. Commencement of the Sole Gas Sales Agreements (GSAs) and improving performance at the Orbost Gas Processing Plant (OGPP) helped drive a 69% increase in production to 2.63 MMboe, a 94% increase in sales volume to 3.01 MMboe and a 69% increase in revenue to $132 million.

  Earnings and cash flow in FY21 were impacted by OGPP processing rates, OGPP reconfiguration and commissioning costs, and impacts of the Transition Agreement with APA Group (ASX: APA). Underlying EBITDAX of $30.0 million (FY20: $29.6 million) and an Underlying Net Loss After Tax of $25.9 million (FY20: $6.6 million loss) were recorded.

  Managing Director David Maxwell said that despite a challenging year the strong momentum in the second half demonstrates Cooper Energy’s underlying value proposition.

  “FY21 was a year of two halves, with Orbost reconfiguration works and lower production in the first half and improving Orbost performance and higher sales volume in the second half.

  “Initiation of our Sole Gas Sales Agreements was a key milestone for Cooper Energy which delivered a material step-up in revenue and earnings in the second half.