Beach Energy Limited · ASX:BPT
Beach Energy — APPEA 2016 Conference and Exhibition
27 slides from Beach Energy's conference presentation, June 2016
Slide 1: Positioned for Growth
Positioned for Growth APPEA 2016 Conference and Exhibition June 2016
Slide 2: Compliance statements
Compliance statements Disclaimer This presentation contains forward looking statements that are subject to risk factors associated with oil, gas and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variable
Slide 3: Positioned for growth
Positioned for growth Strong balance sheet Core business generating material free cash flow Proven low cost operator Strategic review and organisational design complete Proven M&A growth and integration capabilities (Drillsearch) Rigorous framework for assessing investment opportunities
Slide 4: Company Overview
Company Overview
Slide 5: Beach Energy
Beach Energy • Diversified oil and gas explorer and Cooper and Eromanga Basins producer Oil Gas Gas Liquids Tight Gas Operated • Australia’s largest onshore oil Non-operated producer, with a major gas business • Core operations in the Cooper and Eromanga basins • Owner of strategic i
Slide 6: Cooper Basin substantial acreage
Cooper Basin substantial acreage Gross acreage of ~69,000 km2 provides exploration and production opportunities Western Flank Gas and Gas Liquids Ex PEL 106 (100%*) - Middleton facility Ex PEL 513 (40%) PEL 182 (43%) Ex PEL 101 (80%*) Unconventional acreage1 Western Flank Oil Delhi – SACB and SWQ JV
Slide 7: Western Flank core production
Western Flank core production • Primary source of Beach oil production – Q3 FY16 net production of 1.0 MMbbl – Field operating cash costs <$5/bbl in operated permits • Material contributor to Beach gas and gas liquids production – Q3 FY16 net production of 124 kboe – Compression project underway • O
Slide 8: Western Flank consolidated footprint
Western Flank consolidated footprint Enlarged gas footprint post Drillsearch merger • Drillsearch merger provided significant acreage within established gas fairway • Seven ex PEL 513 discoveries from eight wells in FY15 • Three wells online in ex PEL 513 • Vanessa discovery in PEL 182 awaiting infr
Slide 9: Delhi – SACB and SWQ joint ventures
Delhi – SACB and SWQ joint ventures • Diverse Cooper Basin acreage position of ~26,800 km2 (~6.6 million acres) • Substantial gas processing infrastructure, connected to key energy markets • Primary source of Beach gas production, and a material oil contributor – Gas / liquids production of 997 kboe
Slide 10: Strategic Cooper Basin infrastructure
Strategic Cooper Basin infrastructure • Infrastructure ideally located to service southern, eastern and LNG markets • ~6,000 kilometres of flowlines into Moomba • Moomba daily gas processing capacity of 375 TJ (~80% utilised) • Moomba / Port Bonython daily processing capacities: – 35 kbbl oil / cond
Slide 11: Production profile
Production profile • Production of 7.0 MMboe for nine Actual and Forecast Production (MMboe) months to 31 March 2016 (+1% on pcp) 9.5 – 9.8 9.6 9.1 – Higher ex PEL 91 oil production from new wells and infrastructure upgrades 8.0 Gas* – Continuing strong gas production Gas* 4.3-4.4 4.4 Gas* (25-26 PJ
Slide 12: Reserves and contingent resources
Reserves and contingent resources1 2P: 74 MMboe 2P and 2C: 751 MMboe Gas and gas liquids 55 MMboe Unconventional 2P reserves 74 MMboe gas and gas liquids 589 MMboe Oil 19 MMbbl Conventional gas/gas liquids 75 MMboe Oil 13 MMbbl 2P oil reserves to increase materially following merger with Drillsearch
Slide 13: Positioned for Growth
Positioned for Growth
Slide 14: Opportunities in a volatile market
Opportunities in a volatile market “Lower for longer” backdrop presents opportunities for those ready to act US$/bbl “We expect companies with stronger balance sheets will start to acquire resource-rich but 120 cash-poor exploration and production 76% decline companies." from peak Bernstein, January
Slide 15: Beach Energy well positioned
Beach Energy well positioned Well positioned to become Australia’s premier multi-basin upstream oil and gas company Market Capitalisation Market Capitalisation 1. Strong financial position Beach Energy 2. Organisation enablers in place 3. Proven operator capability Aspirational 4. Clear strategy for
Slide 16: Financial capacity for growth
Financial capacity for growth Financial capacity preserved during downturn Liquidity to be deployed for appropriate growth opportunities Brent oil $ million Liquidity Profile (US$/bbl) 750 120 643 600 549 100 514 520 450 80 315 320 324 300 60 150 40 0 0 (150) Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-1
Slide 17: Organisation enablers in place
Organisation enablers in place Culture and community Safety-first culture Dedicated workforce Social licence to operate >1 million LTI-free hours Organisation review complete Strong stakeholder support expertise Technical Production Strategic infrastructure Exploration and appraisal Proven low cost
Slide 18: Proven operator capability
Proven operator capability Western Flank Oil Western Flank Gas Health, safety and environment >19 months lost time injury free Workforce Highly motivated, efficient operator / maintainer workforce Operational experience Low supervision status in place Working low supervision case Operating e
Slide 19: Clear strategy for value accretive growth
Clear strategy for value accretive growth Optimise Maintain Grow east coast Expand beyond Cooper Basin core financial strength gas business Cooper Basin Growth Enablers Growth Drivers • Core operations underpin existence • Favourable industry backdrop – Self-sustaining operations during downturns –
Slide 20: Proven M&A delivery – Drillsearch merger
Proven M&A delivery – Drillsearch merger A strengthened platform for growth; proven M&A and integration success ($ million) Beach Drillsearch Combined Transaction Benefits Market capitalisation1 886 379 1,265 +43% Full ownership of core Western Flank assets Q4 FY16E production2 1.8 – 2.0 0.7 – 0.8
Slide 21: Rigorous capital allocation process
Rigorous capital allocation process Organic Inorganic Focus on shareholder returns capex and growth opex capital • Structured framework for all capital allocation decisions Capital Allocation Process • Reduce exposure to assets or activity without clear line of sight to value Strategic fit • Rigorou
Slide 22: Positioned for growth
Positioned for growth Strong balance sheet Core business generating material free cash flow Proven low cost operator Strategic review and organisational design complete Proven M&A growth and integration capabilities (Drillsearch) Rigorous framework for assessing investment opportunities
Slide 23: Appendix
Appendix
Slide 24: Capital expenditure and liquidity
Capital expenditure and liquidity Capital expenditure Actual Guidance Liquidity profile – May 2016 ($ million) H1 FY16 FY16 $ million DEVELOPMENT 600 520 Cooper Basin 10 20 – 30 400 Cooper Basin (SACB and SWQ JVs) 83 115 – 130 350 Total Development 93 135 – 160 200 EXPLORATION 170 0 Cooper Basin 15
Slide 25: Financial results
Financial results ($ million) FY14 FY15 H1 FY16 Q3 FY16 Sales volumes (MMboe) 10.8 10.5 5.1 2.6 Sales revenue 1,052.1 727.7 271.6 119.7 Operating cash flow 582.6 228.5 129.8 Not reported NPAT 101.8 (514.1) (600.1) Not reported Underlying NPAT 259.2 90.7 9.4 Not reported Cash balance 411.3 170.2 164.
Slide 26: Production by area
Production by area Area FY14 FY15 YTD FY161 Cooper / Eromanga basins 5,148 4,490 3,446 Oil (kbbl) Egypt 61 132 137 Total oil 5,209 4,622 3,583 Cooper Basin 21.0 22.1 16.4 Sales gas and ethane (PJ) Egypt – 0.1 0.2 LPG (kt) Cooper Basin 48.6 44.3 33.4 Condensate (kbbl) Cooper Basin 405 361 262.1 Total
Slide 27: Contact information
Contact information Beach Energy Limited 25 Conyngham Street Glenside SA 5065 Tel: +61 8 8338 2833 Fax: +61 8 8338 2336 Website: www.beachenergy.com.au Investor Relations Derek Piper Investor Relations Manager Email: derek.piper@beachenergy.com.au 27