Original thinking

Summaries - Australian Financial Review
Friday 13/3/2009 Page: 18

Top executives at Origin Energy have always engaged in rigorous internal debate about their business, not least when considering a takeover offer from BG Group last year, and that looks set to continue with a number of acquisitions in the pipeline, according to experts. Grant King, Origin Energy's managing director said the debate among the firm's hierarchy, including chief operating officer Karen Moses - formerly of Esso and BP, chief financial officer Frank Calabria, chairman Kevin McCann and chief executive of its New Zealand utility, Contact Energy, David Baldwin, is crucial to its success.

BG Group's bid came as Origin Energy set about tapping Queensland's rich coal seam gas resources and Mr King initially recommended it to Origin Energy's board but performed a U-turn 36 hours later after Santos and Petronas struck a deal and set a price for coal seam gas resources. His decision proved correct when he announced a deal with ConocoPhillips which valued Origin Energy's coal seam gas assets at $19.6 billion - far more than BG Group had valued them at.

Analysts say Origin Energy's future continues to look bright with more than three million customers using its energy and ownership of four power stations including in Mortlake in Victoria, Spring Gully in Queensland. It also has investments in renewable energy sources.