Origin Energy has sought to reassure its suffering shareholders, telling them its flagship Queensland coal seam gas (CSG) project is unlikely to be affected by weak oil prices.
Origin predicts the upcoming Australia Pacific LNG project will break even at an oil price of $US23 to $US25 per barrel, significantly lower than the current price of around $US48 a barrel.
Crude oil and natural gas prices are co-related as the two commodities are close substitutes for each other.
Managing director Grant King said Origin's existing businesses were performing well despite the its year being defined by oil price falls and the impact on the company's share price.
"Australia Pacific LNG's project will commence production shortly and even at current low oil prices will make an earnings contribution to our company," Mr King told the company's annual general meeting on Wednesday.
Origin is raising $2.5 billion and implementing $2.2 billion in savings measures to cut debt, which peaked above $13 billion as oil prices trade around six-year lows.
Chairman Gordon Cairns said he understood shareholders' frustration with the company's poorly performing share price and a recent cut to the dividend which would be re-examined if oil prices rebound.
"We agonised over this, as we are sensitive to how important these dividends are to you," Mr Cairns said.
Origin shares have fallen in line with the oil price over the past year, precipitating the dividend cut and capital raising.
Mr Cairns said the board felt the company would be largely insulated from share price falls as the price of oil did not really affect the company until 2017 when APLNG is expected to produce LNG from two trains.
APLNG is scheduled to begin production within a month, with shipments to follow several weeks later.
Origin is also contesting a legal claim from a Texas company relating to its interests in APLNG.
Tri-Star has served APLNG with a claim in relation to a 2002 purchase deal, insisting that interests should now revert back to it after conditions were met.
"APLNG is of the view that reversion has not occurred and intends to defend the action," a statement from APLNG said.
Origin also announced that finance director Karen Moses was retiring.
Shares in the company were 24 cents, or 4.48 per cent, higher at $5.60.
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