Beach Energy Limited · ASX:BPT
Beach Energy — Morgan Stanley Australian Next Leaders Conference 2015
48 slides from Beach Energy's conference presentation, September 2015
Slide 1: Morgan Stanley Australian Next Leaders Conference
Morgan Stanley Australian Next Leaders Conference September 2015
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: Table of contents
Table of contents 1. Company Overview 4 2. Strategic Outlook 12 3. Cooper Basin: Western and Eastern Flanks 18 4. Cooper Basin: Other Operated Interests 30 5. Cooper Basin: Delhi (SACB and SWQ JVs) 35 Appendix 40 3
Slide 4: Company Overview
Company Overview
Slide 5: Company overview
Company overview A re-aligned focus closer to home Cooper and Eromanga Basins Oil Gas Gas Liquids Tight Gas • Diversified hydrocarbon explorer Operated and producer; core expertise in the Non-operated Cooper and Eromanga basins – Australia’s largest onshore oil producer • Owner of st
Slide 6: Multi-play Cooper Basin acreage
Multi-play Cooper Basin acreage Australia’s most prolific onshore hydrocarbon basin, with gross acreage of c.50,000 km2 6
Slide 7: Our refreshed vision, purpose and values
Our refreshed vision, purpose and values Vision Hours Worked and Lost Time Injuries • To be Australia’s premier multi-basin upstream oil Hours (million) LTIs and gas company 1.5 8 Purpose • To deliver sustainable growth in shareholder value Values 6 • Safety: Takes precedence in everything we do 1.0
Slide 8: Financial overview
Financial overview Sales Revenue Underlying NPAT Operating Cash Flow $ million $ million $ million 1,200 270 600 240 1,000 500 210 800 180 400 150 600 300 120 400 90 200 60 200 100 30 0 0 0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY15 financial results • Sales reve
Slide 9: Production profile
Production profile Financial year ended 30 June 2015 Actual and Forecast Production MMboe • Production of 9.15 MMboe 10.0 9.6 – 51% oil; 49% gas and gas liquids 9.1 7.8 – 8.6 • Operated oil production driven by: 8.0 8.0 7.5 – Bauer facility upgrade; Gas* 4.4 Gas* (25 PJe) 4.5 – Six of 10 Bauer Field
Slide 10: 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 1. As per announcement to the Australian Securities Exchange on 24 Augus
Slide 11: FY16 capital expenditure guidance
FY16 capital expenditure guidance Capital Expected Expenditure Other Major Activities Wells ($ million) DEVELOPMENT Bauer facility upgrade; Middleton Cooper Basin 45 – 50 7–8 gas compression Connection of Windorah-Marama Cooper Basin (SACB and SWQ JVs) 145 – 160 28 – 30 area development Total Develo
Slide 12: Strategic Outlook
Strategic Outlook
Slide 13: Four-pillar strategy
Four-pillar strategy Optimise our core Build a Pursue other Maintain in the Cooper complementary compatible growth financial strength Basin gas business in opportunities in east coast basins Australia and nearby Growth in core Establish gas business Disciplined approach Supporting exploration, busin
Slide 14: Broad opportunity set in Cooper Basin
Broad opportunity set in Cooper Basin • Maximise returns from existing assets – Safety improvements – Operating efficiencies – Facility upgrades and optimisation • Re-invigorate exploration – Comprehensive basin analysis – Unlock new play types – Technological advancements • Basin adjacencies – Cons
Slide 15: Compelling east coast gas market thematic
Compelling east coast gas market thematic • Three Queensland LNG plants at various East coast gas demand 2014 – 2020 (PJ)1 stages of completion – QCLNG first cargo in January 2015 – GLNG and APLNG first cargo expected in H2 CY151 • Potential coal seam gas feedstock shortfall for LNG export requireme
Slide 16: Multi-basin production
Multi-basin production • Existing footprint beyond Cooper Basin provides established platform for expansion – Otway, Gippsland and Bonaparte basins; New Zealand • Inorganic opportunities may include farm-ins, joint ventures and acquisitions Multi-basin production a core element of Beach’s vision 16
Slide 17: Robust financial position
Robust financial position • Operating cash flows of $303 million Pre-tax Operating Cash Flows $ million in FY15 (pre-tax) 640 Net operating cash flows 606 – Underpinned by high margin Tax payments Western Flank oil operations 480 • FY15 cash flows framed FY16 capital expenditure program • Year-end l
Slide 18: Cooper Basin: Western Flank
N Cooper Basin: Western Flank
Slide 19: Western Flank oil migration path
Western Flank oil migration path 19
Slide 20: Ex PEL 91
Ex PEL 91 • Beach 40% and operator, Drillsearch 60% Retention licences 151 to 172 granted • FY15 gross production of 4.1 MMbbl (11,263 bopd) • FY15 successes include: – Balgowan and Burners discoveries, confirming north-eastern extension of fairway; – Ten development wells in the Bauer Field, adding
Slide 21: Bauer Field evolution
Bauer Field evolution July 2011 Bauer Field • Bauer-1 targeted closure of 0.7 km2 area 2P EUR Cum. production (MMbbl, gross) (MMbbl, gross) and 6.0 metre height 20 Mean resource estimate 20 • Mean prospective resource of 850 kbbl 2P EUR Cumulative production • Mapped on Modiolus 3D seismic 15 15 Jun
Slide 22: Ex PEL 91 activities in FY16
Ex PEL 91 activities in FY16 • Facility commissioning – Stunsail and Pennington facilities, each with 20,000 bfpd handling capacity – Pipelines to Bauer-Lycium network • Facility upgrades – Bauer facility upgrade to 133,000 bfpd (+58,000 bfpd), subject to approvals • Seven-well drilling campaign – B
Slide 23: Ex PEL 92
Ex PEL 92 • Beach 75% and operator, Cooper Energy Retention licences 85 to 104 granted 25% • FY15 gross production of 1.5 MMbbl (4,110 bopd) • FY15 successes include: – Two-well appraisal / development campaign in Callawonga Field; – Additional flowlines and separator cleaning campaign; and – Invers
Slide 24: Ex PEL 104 / 111
Ex PEL 104 / 111 • Beach 40%, Senex 60% and operator Retention licences 136 to 150 granted • FY15 gross production of 1.6 MMbbl (4,502 bopd) • FY15 successes include: – Martlet-1 and Martlet North-1 Namur Sandstone oil discoveries; and – Production growth, with strong performance from Spitfire Field
Slide 25: Ex PEL 106
Ex PEL 106 • Beach 50% and operator, Drillsearch 50% Retention licences 129 and 130 granted • FY15 gross production of 0.7 MMboe (1,794 boepd) • Two of five exploration wells cased and suspended in FY15 • Planned FY16 activities include: – Two exploration wells; – Well completions and testing; – Fou
Slide 26: Cooper Basin: Eastern Flank
4|BEACH SaIENERGY Cooper Basin: Eastern Flank
Slide 27: ATP 924: Maroochydore-1
ATP 924: Maroochydore-1 • Farming-in 45% with Drillsearch Enviable address between existing fields • Located ~250 kilometres north-east of Moomba – Enviable address between Inland and Cook oil fields • Targeting Jurassic oil and Permian gas reservoirs on large structural ridges • Agreement to drill
Slide 28: PL 184: Thylungra-2
PL 184: Thylungra-2 • Beach 80.4% and operator, Australian Gas Targeting Hutton Sandstone oil Fields 19.6% • Thylungra-1 drilled in 1995; encountered oil shows in the Hutton Sandstone and Basal Jurassic Formation (BJF) • Thylungra-2 to be drilled 15 metres up-dip of Thylungra-1 – Targeting Hutton Sa
Slide 29: ATP 732
ATP 732 • Farming-in 50% with Bengal Energy Proximal to long-producing oil fields • Enviable address proximal to long- producing oil fields • Nassarius 3D seismic covering 306 km2 acquired in 2014 • Seismic processing complete and interpretation underway – Excellent data quality • Targeting Birkhead
Slide 30: Cooper Basin: Other Operated Assets
Cooper Basin: Other Operated Assets
Slide 31: Deep Coals: PEL 94 / 95
Deep Coals: PEL 94 / 95 • PEL 94: Beach 50% and operator, Strike New play type in south of Cooper Basin Energy 35%, Senex Energy 15% • PEL 95: Beach 50% and operator, Strike Energy 50% • Targeting deep coals at 1,500 metres – 2,000 metres depth in PEL 94 • Well costs of ~$3 million • Davenport-1 gas
Slide 32: Nappamerri Trough Natural Gas
Nappamerri Trough Natural Gas An aerially extensive resource, with permits covering more than 800,000 acres Ex PEL 218 (PRLs 33 to 49) – Beach 100%; ATP 855 – Beach 64.9% and operator, Icon Energy 35.1% 32
Slide 33: NTNG Permian cross-section
NTNG Permian cross-section In excess of 1,000 metres of gas saturated section across entire permit areas 33
Slide 34: NTNG Stage 1 exploration phase
NTNG Stage 1 exploration phase Stage 1 exploration phase complete – all technical objectives met Key Objectives Key Highlights Geographically and vertically delineate 1. 18 wells drilled across permits target zones Test fracture stimulation techniques and 2. 16 wells fracture stimulated technolo
Slide 35: Cooper Basin: Delhi (SACB and SWQ JVs)
Cooper Basin: Delhi (SACB and SWQ JVs)
Slide 36: Delhi – SACB and SWQ JVs
Delhi – SACB and SWQ JVs • Significant acreage with strategic infrastructure • Gross joint venture area of ~26,800 km2 (~6.6 million acres) • ~6,000 kilometres of flowlines • Primary processing and transportation facilities • Upside from shale and basin centred gas plays • Beach ownership interests:
Slide 37: Strategic infrastructure servicing key markets
Strategic infrastructure servicing key markets • Strategic infrastructure interlinking key energy markets • Moomba facility (Beach 20.21%) daily processing capacity of: – 375 TJ gas; – 35 kbbl oil / condensate; and – 600 tonnes LPG • Moomba to Port Bonython flowlines – ~48 kbbl daily capacity (oil a
Slide 38: Key Delhi gas transactions
Key Delhi gas transactions • Origin gas sales agreement High value - Signed April 2013 opportunities - 139 PJ over eight years; potential to extend to 173 PJ over ten years Exposure to oil linked - Supply commenced 1 July 2015 gas prices with other • Transitional GSA for 2.3 PJ to 30 June 2015 param
Slide 39: Delhi drilling program
Delhi drilling program South Australia • Reduced drilling activities in FY16, with c.40 wells planned – Three rigs currently drilling • More appraisal / near-field exploration activities relative to past infill drilling – SACB JVs: Focus on liquids-rich fields; Permian source rock plays – SWQ JVs: F
Slide 40: Appendix
Appendix
Slide 41: Financial results year-on-year
Financial results year-on-year FY14 FY15 Change Sales volumes (MMboe) 10.8 10.5 (2%) Sales revenue ($ million) 1,052.1 727.7 (31%) Operating cash flow ($ million) 582.6 228.5 (61%) NPAT ($ million) 101.8 (514.1) (605%) Underlying NPAT ($ million) 259.2 90.7 (65%) Cash balance ($ million) 411.3 170.2
Slide 42: FY15 production by area
FY15 production by area Area FY14 FY15 Change Cooper / Eromanga basins 5,148 4,490 (13%) Oil (kbbl) Egypt 61 132 117% Total oil 5,209 4,622 (11%) Cooper Basin 21.0 22.1 5% Sales gas and ethane (PJ) Egypt – 0.1 – LPG (kt) Cooper Basin 48.6 44.3 (9%) Condensate (kbbl) Cooper Basin 405 361 (11%) Total
Slide 43: Other Australian interests
Other Australian interests Otway Basin Gippsland Basin Various Beach interests, from 30% to 75% Beach 35%, Cooper Energy 65% and operator 43
Slide 44: Other Australian interests
Other Australian interests Bonaparte Basin Browse and Carnarvon Basins Browse Basin: Beach 7.34%, Santos 47.83% and operator, Chevron 24.83%, Inpex 20.0% Beach 100% Carnarvon Basin: Beach 10.0%, Santos 37.33% and operator, APACHE 34.03%, Eni 18.66% 44
Slide 45: New Zealand
New Zealand South Island – Canterbury Basin North Island – Taranaki Basin PEP 57080: Beach 50%, Todd Energy 50% and operator Beach 50%, NZOG Energy 50% and operator PEP 52181: Beach 25%, NZOG Energy 35% and operator, TAG 40% 45
Slide 46: Egypt – Sale process underway
Egypt – Sale process underway Egypt Permit Interests Abu Sennan Concession Beach 22%, KEE 50% and operator, Dover 28% 46
Slide 47: Tanzania – Farm-down underway
Tanzania – Farm-down underway Lake Tanganyika South Block Seismic Surveys Beach 100% 47
Slide 48: 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 48
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