Stock Spotlight: Origin Energy Limited (ASX:ORG)
This week's Stock Spotlight is ASX-listed Origin Energy Limited.
About Origin Energy Limited.
Origin Energy Limited, an integrated energy company, engages in the exploration and production of natural gas, electricity generation, wholesale and retail sale of electricity and gas, and sale of liquefied natural gas in Australia and internationally. The company operates through, Energy Markets, and Integrated Gas segments. Its exploration and production portfolio includes the Bowen and Surat basins in Queensland; the Browse basin in Western Australia; and the Cooper-Eromanga basin in Queensland. The company also generates electricity from coal, wind, pumped hydro, and solar plants; sells electricity, natural gas, and LPG; and provides GreenPower products. In addition, it offers electric and gas hot water systems. Origin Energy Limited was incorporated in 1946 and is based in Barangaroo, Australia.
Source: Yahoo Finance
Key Stats
Key Stats
Source: Yahoo Finance, ASX. Data as of 04/09/24.
Price Performance

Growth Potential
- Higher oil prices benefit ORG’s APLNG project (higher revenues).
- Balance sheet position is being restored with management focused on getting the debt covenants back to an investment grade level.
- Achieving milestones within the APLNG project.
- On-going focus on operating cost and capital expenditure reduction.
- Increasing dividend profile and with a restored balance sheet the Company can also consider other capital management initiatives.
- Rationalisation of asset portfolio, including asset sales and the IPO of its conventional upstream business should help improve the balance sheet position.
Key Risks
- Exploration and production risks.
- Lower energy prices, particularly oil prices (for its APLNG project).
- Structural change in energy markets & increased competition.
- Not meeting cost-out targets.
- Highly geared balance sheet, with the company not being able to reduce debt fast enough.
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Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.





