ORG indicated it’s targeting a Crude Oil price of US$40 per barrel distribution break-even for FY20.
ORG hosted its 2017 investor day, this week, at which time they reaffirmed their FY18 guidance with respect to capital expenditure, debt management and APLNG.
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The market is encouraged by the potential for up-to $500m in cost savings, ($110m OPEX and $400m CAPEX), over the next 2 – 3 years.
ORG will likely reinstate dividend distributions, building to $0.40 per share in FY19 and $0.50 in FY20.
These targets have ORG trading on a FY19 forward yield of 5%.
We continue to see ORG as a buy on the dip opportunity and look to keep exposure to the name in portfolios over the next 3 to 5 years.
Origin Energy
