Beach Energy Limited · ASX:BPT
Beach Energy — Merger or Acquisition (October 2015)
21 slides from Beach Energy's merger presentation, Oct 23, 2015
Slide 1: Merger of Beach and Drillsearch
Draft - Private and confidential For personal use only Merger of Beach and Drillsearch Positioning for future growth through a logical combination 23 October 2015
Slide 2: Merger benefits
Draft - Private and confidential Merger benefits Creating the leading ASX-listed oil and gas mid-cap For personal use only Primed to pursue growth opportunities Significant benefits for both sets of shareholders Synergies from two complementary businesses Australia’s largest onshore oil prod
Slide 3: Transaction summary
Draft - Private and confidential Transaction summary • Merger to be implemented via a Drillsearch scheme of arrangement Structure • Drillsearch shareholders will receive 1.25 Beach shares for each Drillsearch share held For personal use only • Values Drillsearch at $0.83 per share or a market capita
Slide 4: Pro-forma combined entity
Draft - Private and confidential Pro-forma combined entity Strong balance sheet to support future growth For personal use only • Combined market capitalisation in excess of $1.1 billion1 • Combined FY2016 production guidance of 10.6 – 11.8 MMboe • Drillsearch US$125m convertible notes to be redeemed
Slide 5: Integration plans
Draft - Private and confidential Integration plans Ensuring a seamless transition For personal use only • Recruitment process for a Beach CEO well underway – Priority for the Beach Board, in consultation with Drillsearch • Merger Integration Group formed and led by Beach Acting CEO Neil Gibbins and
Slide 6: Compelling premium for Drillsearch shareholders
Draft - Private and confidential Compelling premium for Drillsearch shareholders Consideration of 1.25 Beach shares for each Drillsearch share held For personal use only 27% 25% 30% 21% A$0.83 A$0.82 A$0.82 A$0.655 A$0.65 A$0.70 A$0.63 A$0.58 Last Close¹ 5-day VWAP² 1-month VWAP² 3-month VWAP² Drill
Slide 7: Shareholders of both companies to benefit
Draft - Private and confidential Shareholders of both companies to benefit Benefits to Drillsearch shareholders Benefits to Beach shareholders For personal use only • Compelling premium whilst retaining • Potential to be earnings accretive exposure to Drillsearch assets • Shareholding in a bigger, m
Slide 8: Leading ASX mid-cap oil and gas company
Draft - Private and confidential Leading ASX mid-cap oil and gas company Enhanced scale with capacity to pursue organic and inorganic growth options For personal use only • Potential for improved liquidity, possible market re-rating and dividend potential – good for shareholders • $313m in FY2015 pr
Slide 9: Oil production from the Cooper and Eromanga basins
Draft - Private and confidential Oil production from the Cooper and Eromanga basins Consolidates position as Australia’s largest onshore oil producer For personal use only 8.0 7.2 7.0 FY2015 Oil Production (MMbbl) 6.0 5.0 4.5 4.0 3.0 3.0 2.7 2.0 1.4 1.0 0.4 0.3 0.2 - Beach + Beach Santos Drillsearch
Slide 10: Targeting synergies and operating efficiencies
Draft - Private and confidential Targeting synergies and operating efficiencies Pre-tax synergies of ~$20 million per annum within two years1 For personal use only • Blending the best talent from both companies 1 Operational • Optimisation of technical and field activities • Opportunities to high-gr
Slide 11: Cooper Basin at the core for both companies
Draft - Private and confidential Cooper Basin at the core for both companies Combined interests in permits covering ~69,000 km2 For personal use only 11
Slide 12: Strong logic for combination
Draft - Private and confidential Strong logic for combination Potential to generate greater efficiencies in the Cooper Basin For personal use only • More than 90% of Drillsearch’s FY2015 production in joint venture with Beach • Combines key interests in: – Western Flank Oil (ex PEL 91)1 60% Drills
Slide 13: Premier Western Flank oil position
Draft - Private and confidential Premier Western Flank oil position Major share of production from the Cooper Basin’s key oil producing region For personal use only The combined group will have: • Exposure to all material oil producing areas in the Western Flank1 • Ownership interests and operatorsh
Slide 14: Substantial gas business
Draft - Private and confidential Substantial gas business Combining ownership of gas infrastructure with an enhanced exploration portfolio For personal use only Broad position in major gas fields • Interests in Santos-operated joint ventures with ownership ranging from 17.14% to 23.2% (gas) and up t
Slide 15: Leveraged to East Coast gas market opportunity
Draft - Private and confidential Leveraged to East Coast gas market opportunity Combines Beach’s gas infrastructure with Drillsearch’s growing wet gas business For personal use only East coast gas demand forecast 2014 – 2020 (PJ)1 Transaction brings together: • Beach’s gas and infrastructure busines
Slide 16: High-grading the gas exploration portfolio
Draft - Private and confidential High-grading the gas exploration portfolio Measured approach to capital spend and prioritisation of activities across the portfolio For personal use only Wet Gas • Consolidate ownership of ex PEL 1061 and leverage knowledge to exploration efforts Nappamerri Trough •
Slide 17: Two companies aligned on strategy
Draft - Private and confidential Two companies aligned on strategy Cooper Basin core provides For personal use only platform to consider the emerging opportunity set created by the weakness in oil prices Cooper Basin East coast gas core market Emerging opportunities in Australia and nearby Strategy
Slide 18: Merger benefits
Draft - Private and confidential Merger benefits Creating the leading ASX-listed oil and gas mid-cap For personal use only Primed to pursue growth opportunities Creating a business based on expertise and a track record of growth Balance sheet strength allowing new opportunities to be pursued A cle
Slide 19: Indicative timetable
Draft - Private and confidential Indicative timetable For personal use only Event Date ASX announcement of scheme 23 October 2015 First Court Date Early December 2015 Despatch Beach Notice of Meeting to Beach shareholders (if required) Early December 2015 Despatch Explanatory Booklet to Drillsearch
Slide 20: Compliance statements
Draft - Private and confidential Compliance statements Forward Looking Statements For personal use only These materials contain forward looking statements. Often, but not always, forward looking statements may be identified by the use of words such as “may”, “will”, “expect”, “intend”, “target”, “an
Slide 21: Compliance statements
Draft - Private and confidential Compliance statements Beach Competent Persons Statement For personal use only The reserves and resources information in this presentation is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of, Mr Tony La