Beach Energy Limited · ASX:BPT
Beach Energy — Beach Petroleum — FY2008 Earnings Presentation
26 slides from Beach Energy's earnings presentation, 2008
Slide 1: Results Briefing
BEACH PETROLEUM oa ed Results Briefing
Slide 2: Disclaimer and important notice
2 Disclaimer and important notice This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and ch
Slide 3: Company overview
3 Company overview Net reserves of 145 mmboe A diversified and growing ASX 200 company Track record of capturing value adding opportunities Quality asset and infrastructure holdings in Central and Eastern Australia Domestic and international expansions underway via disciplined investment Significant
Slide 4: Company Strategy
4 Company Strategy Creating shareholder value by… Exploiting existing asset base Appraisal and development Near-field exploration Improving margins Creating ‘step change’ potential via high value exploration Drilling high impact prospects Portfolio optimisation to achieve an appropriate balance of r
Slide 5: FY 2008 Achievements
5 FY 2008 Achievements Record sales revenue Successfully raised of A$564 million A$191 million of new capital to fund Egyptian acquisitions Total oil and gas reserves increased from 90 to 145 Completed sale of 2 x 10% mmboe interests in BMG for ~A$123 million each Cooper Basin oil reserves addition
Slide 6: Financial Overview FY 2008
6 Financial Overview FY 2008 Key Statistics Key Financing Activities Production: Raised A$191 million to fund 9.3 mmboe – oil production up by 14% Egyptian acquisitions Sales Revenue: A$246 million proceeds on sale A$564 million – 19% increase of 20% BMG interest Operating Cashflow: Capital expendit
Slide 7: Profit – Significant Items
7 Profit – Significant Items Net profit after tax (NPAT) 2008 A$m 2007 A$m NPAT 63.7 103.8 Significant Items Remove BMG Sale (64.2) (73.4) Remove unrealised commodity hedge loss / (gain) 12.3 (30.3) Remove commodity hedge close out 50.4 – Remove recognition of Ramelius investment (14.2) – Tax impact
Slide 8: Comparison of Normalised NPAT
8 Comparison of Normalised NPAT 140 120 27.5 13.3 14.4 100 A$ million 58.6 Depreciation 36.9 80 Net Interest Tax and Other 60 52.7 40 31.2 Hedging Gross Profit 20 0 Total movement A$21.5 million Normalised Normalised FY 07 NPAT FY 08 NPAT
Slide 9: Gross profit comparison
9 Sales revenue up by A$147 million as Gross profit a result of commodity prices, offset by A$18 million reduction in volumes and A$54 million reduction due to FX comparison increases. Production cost increase driven by full year of BMG operations and increased royalties arising from increased reven
Slide 10: Shortened Hedging Profile
10 Shortened Hedging Profile All commodity fixed hedging Total number of fixed hedged will run out by June 2009 barrels vs production (mmboe) Closed out capped price hedges 10 over 500 kbbls of future production 9 for A$50 million, in June 2008 Barrels (millions) 8 Subsequent to year end closed out
Slide 11: Upside to hedges closed out
11 Upside to hedges closed out Effective tapis close out price Breakeven tapis price for close out of hedges for capped price hedges was US$113/bbl Year to date average US $130 150 Required for remainder of 140 close-out, tapis US $105 130 Upside US$/bbl 120 Break even US $113 110 100 90 Jul Aug Sep
Slide 12: Exploration & Development Expenditure
12 Exploration & Development Expenditure 2008 A$m 2009 A$m Actual Budget Development & Appraisal Cooper Oil 85.6 55.8 Cooper Gas 79.2 79.4 BMG 42.6 57.4 Tipton 6.2 7.4 Egypt – 26.3 Subtotal 213.6 226.3 Exploration Aust Onshore 17.1 37.5 Offshore/International 29.3 64.0 Subtotal 46.4 101.5 TOTAL 260.
Slide 13: Reserves and Production
13 Reserves and Production 30 June 2008 2P reserves 145 mmboe (62% increase) Significant scope to add to 2P reserves in FY 09 BMG ~16 mmboe and Egypt ~8 mmb FY 2008 production 9.3 mmboe Reserves by asset Production by commodity 160 10 140 9 120 8 7 100 mmboe mmboe 6 80 5 60 4 40 3 2 20 1 0 0 FY 2007
Slide 14: Portfolio of Producing Assets
14 1 2 Portfolio of 3 Producing Assets 1 Cooper Eromanga 2 Surat CSG 3 Gippsland Oil
Slide 15: Cooper Eromanga Oil
15 Cooper Eromanga Oil 2P oil reserves* 15 mmbbl FY08 production ~2 mmbbl Added ~5 mmbbl of 2P reserves at F & D cost of ~A$22 / bbl Production and reserves expected to increase for at least the next 2–3 years Western flank discoveries increase overall margins Excellent balance of oil development an
Slide 16: Cooper Eromanga Gas
16 Cooper Eromanga Gas 2P reserves* 48 mmboe 238 PJ sales gas and ethane 7.1 mmboe gas liquids FY08 production ~6 mmboe Long term gas contracts supplemented by high margin spot contracts Gas prices trending higher plus potential to develop unconventional resources Large scale CO2 geosequestration po
Slide 17: Surat Coal Seam Gas
17 Surat Coal Seam Gas 2P reserves* 443 PJ (~76 mmboe) 282% upgrade on 30 June 2007 reserves 3P reserves 831 PJ Large reserve, resource (and land) position with volumes expected to build Good potential for an additional 2,000 PJ of reserves from land position of ~3,000 km2 Successfully co-mingling g
Slide 18: Surat Coal Seam Gas
18 Surat Coal Seam Gas Becoming very ‘hot’ LNG property LNG deal flow has underpinned value for Queensland CSG assets, eg Santos – Petronas Arrow – Shell Origin – BG Substantially higher valuations now placed on CSG assets Deal valuations range, but average A$1.32 / GJ (2P) and ~A$0.53 / GJ (3P)* Ti
Slide 19: Other Assets with LNG Potential
19 Other Assets with LNG Potential
Slide 20: Gippsland Oil
20 Gippsland Oil 2P oil reserves* 5.9 mmbbl Large contingent gas resource of ~16.5 mmboe Basker – 6 ST1 connection in Sep 08 Substantial two rig drilling campaign for FY 09 and FY 10 LOI signed for replacement 850,000 bbl capacity FPSO (Suezmax tanker) Five years + options to extend Processing capac
Slide 21: Global exploration portfolio
21 Global exploration portfolio Measured balance of risk and reward 1 2 3 4 5 6 7 8 1 SPAIN 2 ALBANIA 3 EGYPT 4 TANZANIA 5 CARVARVON 6 COOPER EROMANGA 7 BASS & OTWAY 8 CANTERBURY BASIN
Slide 22: Global exploration
22 Global exploration Expanding domestic and international activity Key areas of interest include: Australasia Middle East / North Africa Parts of Central Africa Parts of Europe Successful in recently acquiring* highly prospective interests in: Egypt Tanzania Albania * Some acquisitions subject to g
Slide 23: New ventures strategy
23 New ventures strategy Capture technically robust value adding opportunities ‘Step-change’ potential Balance of mature to emerging hydrocarbon provinces Satisfy rigorous investment criteria, including Multiple prospects / play types Technical fit Joint venture and sovereign risk comfort Satisfacto
Slide 24: Significant near-term exploration potential
24 Significant near-term exploration potential Beach is exposed to ~240 mmboe* Net Beach mmboe (Unrisked mean) (unrisked) of possible exploration drilling 70 in the next few years Risked potential ~50–100 mmboe 60 High impact prospects will be drilled 50 in the following areas in FY09: Gulf of Suez
Slide 25: FY 09 Outlook
25 FY 09 Outlook Production estimated ~8–10 mmboe Significant exploration and appraisal program Offshore SE Australia Egypt Gippsland Oil Ongoing development program Cooper Eromanga Gippsland Oil Surat Geothermal Paralana Deep to be drilled in 2009
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