Beach Energy Limited · ASX:BPT
Beach Energy — H1 FY2015 Earnings Presentation
19 slides from Beach Energy's earnings presentation, Feb 23, 2015
Slide 1: Beach Energy FY15 Half Year Results
Beach Energy FY15 Half Year Results 23 February 2015 1
Slide 2: Compliance statements
Compliance statements Disclaimer This presentation contains forward looking statements that are subject to risk factors associated with oil, gas, geothermal and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety
Slide 3: Highlights
Highlights Reg Nelson Managing Director 3
Slide 4: H1 FY15 highlights
H1 FY15 highlights Financial Half Year Comparison $ million • Record sales volumes of 5.7 MMboe 600 • Sales revenue of $427 million, down 23% from previous corresponding period (PCP) 500 – Average realised oil price of A$101/bbl, 400 down 22% from PCP • Underlying NPAT of $72 million, down 54% 300 f
Slide 5: H1 FY15 highlights
H1 FY15 highlights Operations Success Well Type Wells Successes Rate • Production of 4.8 MMboe, down 3% from record PCP Exploration 13 6 46% • Bauer Field four-well pad development campaign; results better than expected Appraisal 11 8 73% • New oil discoveries in PEL 91 at Balgowan-1 and Burners-1 D
Slide 6: FY15 outlook
FY15 outlook • Production guidance of 8.9 – 9.4 MMboe • Capital expenditure guidance reduced to $430 – $470 million – ~20% cut to H2 FY15 spend • New Bauer Field pad development drilling • Improved sales gas margins expected from oil-linked contracts with other parameters • Processing and interpreta
Slide 7: Financials
Financials Kathryn Presser Chief Financial Officer 7
Slide 8: Summary financial results
Summary financial results H1 FY15 H1 FY14 Change Sales volumes (MMboe) 5.7 5.6 2% Sales revenue ($ million) 426.8 557.2 (23%) Operating cash flow ($ million) 135.6 274.5 (51%) NPAT ($ million) (79.1) 160.5 (149%) Underlying NPAT ($ million) 72.4 158.1 (54%) Cash balance ($ million) 248.6 411.31 (40%
Slide 9: Sales revenue
Sales revenue Decline primarily attributable to lower oil prices and third party sales, partly offset by exchange rate movements 9
Slide 10: Underlying NPAT
Underlying NPAT • Underlying NPAT of $72.4 million, down $ million Underlying NPAT 54% from record PCP, mainly due to: 158.1 160 – Lower realised A$ oil prices; – Lower third party sales volumes; and 120 – Higher depreciation charges, – Partly offset by lower cash production 80 72.4 costs 60.9 51.8
Slide 11: Impairments
Impairments • Area of interest approach for impairment Non-Cash Impairments Before Tax After Tax testing ($ million) • Cooper Basin impairments primarily relate Cooper Basin interests 194 136 to non-operated oil, gas and gas liquids Romanian interests 30 30 – Western Flank oil assets continue to out
Slide 12: Comparison of Underlying NPAT
Comparison of Underlying NPAT $ million H1 FY15 H1 FY14 NPAT (79.1) 160.5 Adjusted for: Unrealised hedging (7.0) 0.0 Mark to market of convertible note derivative (13.3) 8.8 Asset sales - (13.6) Impairment of assets 223.8 0.0 Tax impact of above adjustments (52.0) 2.3 Underlying NPAT 72.4 158.1 12
Slide 13: Operations
Operations Neil Gibbins Chief Operating Officer 13
Slide 14: Production by area
Production by area Area H1 FY15 H1 FY14 Change Cooper / Eromanga basins 2,370.2 2,603.9 (9.0%) Oil (kbbl) Egypt 49.5 32.7 51.4% Total oil 2,419.7 2,636.6 (8.2%) Sales gas and ethane (PJ) Cooper Basin 11.5 11.0 4.4% LPG (kt) Cooper Basin 24.2 25.9 (6.7%) Condensate (kbbl) Cooper Basin 198.9 225.2 (11
Slide 15: Operating results
Operating results • Production of 4.8 MMboe, down 3% from MMboe Actual and Forecast Production record PCP 10.0 9.6 8.9 – 9.4 – Natural field decline offset by better than expected production from Bauer Field Gas* 8.0 2.1-2.3 8.0 7.5 (12-13 PJe) • Production mix: 51% oil / 49% gas and gas Gas* 4.4 li
Slide 16: FY15 revised capital expenditure guidance
FY15 revised capital expenditure guidance FY15 Revised Capital Expenditure Guidance Original Revised ($ million) DEVELOPMENT Cooper Basin (non-SACB and SWQ JVs) 55 – 60 50 – 55 Cooper Basin (SACB and SWQ JVs) 270 – 300 260 – 275 International 10 10 – 15 Total Development 335 – 370 320 – 345 EXPLORAT
Slide 17: Bauer Field development
Bauer Field development • Bauer-16 to -19 development well pad drilling completed • Results high to prognosis – 2P reserves increase expected • Pad drilling achieved time and cost savings – Sideways walk from Bauer-16 to -17 completed in two hours – 34-day drilling campaign for all wells High / Namu
Slide 18: NTNG Stage 1 exploration program
NTNG Stage 1 exploration program Stage 1 exploration program complete; all Beach 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
Slide 19: 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 Chris Jamieson Group Executive External Affairs Email: chris.jamieson@beachenergy.com.au Derek Piper Investor Relations Manager Email: derek.piper@b