ASX RELEASE 26 November 2010 The Manager Company Announcements Office Australian Securities Exchange 4 th Floor, 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Dear Sir or Madam Company Announcement I attach the following announcement for release to the market: • Investor meeting presentation Yours sincerely Mark Knapman Company Secretary APA Ethane Limited
Investor Meeting 26 November 2010
Introductions and Agenda Introductions � – Board of APA Ethane Limited, the Responsible Entity for EPX Robert Wright – Non-Executive Director, Chairman • Dr Rick Coles – Non-Executive Director • Steven Crane – Non-Executive Director • – Management Sam Pearce – Fund Manager • Mark Knapman – Company Secretary • Agenda � – Brief Overview – Robert Wright – Market Performance – Robert Wright – Distributions in FY11 (year to date) – Robert Wright – FY10 Results – Sam Pearce – Key Issues in FY10 – Sam Pearce – Question & Answer Session Presentation � 2
Brief Overview � Principal Activity – Investment in the Moomba to Sydney Ethane Gas Pipeline, through wholly owned subsidiary, Gorodok Pty Limited – Pipeline – 1375km in length, running through regional NSW as well as the urban areas from Wilton into Botany Commercial Arrangements � – Pursuant to a long term Product Transportation Agreement (to 2030) with its sole customer, Qenos, Gorodok provides capacity on the pipeline for the transportation of ethane from the gas processing plant in South Australia’s Cooper Basin to a petrochemical plant near Botany Bay, Sydney owned by Qenos. Operations � – EPX has no employees – Operational roles are undertaken by East Australian Pipeline Pty Limited under long term operations and maintenance contract Presentation � 3
Market Performance over past 12 months EPX price and volume November 2009 - October 2010 $1.70 350,000 $1.60 300,000 $1.50 250,000 $1.40 200,000 volume price $1.30 150,000 $1.20 100,000 $1.10 50,000 $1.00 0 30-Oct-09 30-Nov-09 30-Dec-09 30-Jan-10 28-Feb-10 30-Mar-10 30-Apr-10 30-May-10 30-Jun-10 30-Jul-10 30-Aug-10 30-Sep-10 EPX volume EPX price EPX has traded between $1.25 - $1.47 over the past 12 months � Currently trading at $1.37 (as at 18 November 2010) � Source: Thompson Reuters Presentation � 4
Distributions in FY11 (year to date) FY11 Distributions In FY11, EPX has announced � distribution for quarter ending Sept 10 Period Date Paid Amount of 3.90 cents per security Per Security Today, EPX has announced the � (cents) distribution for the period ending Dec 10 of 3.83 cents per security July 10 - Sept 10 15 Oct 10 3.90 Distribution impacted by: � Oct 10 - Dec 10 14 Jan 11 3.83 – Provision of funds for repayment of the Investec debt facility. This facility will be fully repaid in December 2012. Presentation � 5
FY10 Results Statutory Results FY10 Distributions $’000 % Period Date Amount Per Change Paid Security (cents) 1.7 ▲ Revenue 25,518 July 09 - Sept 09 15 Oct 09 3.39 17.7 ▲ Net Profit After Tax 6,610 Oct 09 - Dec 09 15 Jan 10 3.39 12.2 ▲ Operating Cash Flow 16,229 Jan 10 – Mar 10 15 Apr 10 4.39 17.0 ▲ Operating Cash 23.4 cents Flow/Security Apr 10 - Jun 10 15 Jul 10 4.42 Total 15.59 Statutory results primarily impacted by: • Reduction in borrowing costs Distributions primarily impacted by: • Reduction in insurance costs • Early repayment of the Keybridge facility, ending December 2009 • Partial write back of provision for mine subsidence • Provisioning of funds for expected non-routine maintenance costs Presentation � 6
Key Issues Repayment of Investec $20m Debt Facility � $20m repaid in instalments from Dec 10 Expected to be finalised in Dec 12. � Final repayment due in Dec 12 Non Routine Operating Costs Supervising 3 rd party work in State Rail (SRA) land � Required to ensure public safety and to maintain Timetable for incurring costs is pipeline integrity dependent on SRA works � Commenced in FY09 Current work expected to be finalised in � Forecast to cost ~$0.2m in FY11 FY11. Mine Subsidence Monitoring � Due to underground coal mining activities in Appin Reduced monitoring during FY10, region. Necessary to maintain pipeline integrity compared to expectation. This is a timing issue. � Expected to cost ~$0.6m to 30 June 2011 Metal Fatigue Loss (MFL) Pigging Run � MFL pigging run for Wilton – Botany to commence Required to maintain pipeline integrity. in FY11. This will be capitalised Presentation � 7
Ethane Pipeline – Wilton to Port Botany Presentation � 8
Ethane Pipeline – mine subsidence Presentation � 9
Ethane Pipeline – through Sydney Presentation � 10
Ethane Pipeline – SRA quadruplication project Presentation � 11
Ethane Pipeline Scraper Station Ethane Pipeline 200 mm diameter Presentation � 12
Bulla Park Pump Station Ethane Pump Station From Moomba To Sydney Presentation � 13
Question & Answer Session � Questions on notice � Questions at the meeting Presentation � 14
Disclaimer The information contained in this presentation is given without any liability whatsoever to Ethane Pipeline Income Trust or Ethane Pipeline Income Financing Trust or any of its related entities (collectively “Ethane Pipeline Income Fund”) or their respective directors or officers, and is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the content of the information. Ethane Pipeline Income Fund accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation nor any obligation to furnish the person with any further information. The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained herein and should conduct its own due diligence and other enquiries in relation to such information. The information in this presentation has not been independently verified by Ethane Pipeline Income Fund. Ethane Pipeline Income Fund disclaims any responsibility for any errors or omissions in such information, including the financial calculations, projections and forecasts set forth herein. No representation or warranty is made by or on behalf of Ethane Pipeline Income Fund that any projection, forecast, calculation, forward-looking statement, assumption or estimate contained in this presentation should or will be achieved. Please note that, in providing this presentation, Ethane Pipeline Income Fund has not considered the objectives, financial position or needs of the recipient. The recipient should obtain and rely on its own professional advice from its tax, legal, accounting and other professional advisers in respect of the addressee’s objectives, financial position or needs. This presentation does not carry any right of publication. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by Ethane Pipeline Income Fund. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of Ethane Pipeline Income Fund. Presentation � 15
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