Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (October 2014)
100 slides from Bhp's investor day presentation, Oct 28, 2014
Slide 1: Western Australia Iron Ore: Maximising value and shareholder returns
Western Australia Iron Ore Maximising value and shareholder returns 27 October 2014 bhpbilliton resourcing the future
Slide 2: Disclaimer: Forward-looking statements
bhpbilliton resourcing the future Disclaimer Forward-looking statements This presentation contains forward-looking statements, which may include statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closu
Slide 3: Disclaimer (continued)
bhpbilliton resourcing the future Disclaimer (continued) Non-IFRS financial information BHP Billiton results are reported under International Financial Reporting Standards (IFRS) including Underlying EBIT and Underlying EBITDA which are used to measure segment performance. This release may also incl
Slide 4: Agenda
bhpbilliton resourcing the future Agenda Maximising value and shareholder returns Andrew Mackenzie Chief Executive Officer Marketing: Uniquely placed to resource the future Mike Henry President – HSE, Marketing and Technology Productivity: Our pursuit of continuous Mike Henry improvement President –
Slide 5: Maximising value and shareholder returns
Escondida Maximising value and shareholder returns Andrew Mackenzie Chief Executive Officer 27 October 2014 bhpbilliton resourcing the future
Slide 6: Key themes
bhpbilliton resourcing the future Key themes We are delivering on our commitments A simplified portfolio will deliver stronger growth and margins Safety is paramount Managing our assets in a sustainable way for the benefit of all stakeholders We are positioned for another year of record production T
Slide 7: We are delivering on our commitments: FY14 scorecard
bhpbilliton resourcing the future We are delivering on our commitments Our FY14 scorecard Portfolio Announced proposed demerger having completed more than US$6.5 billion simplification in divestments over the last two years at attractive valuations Operating Record low Total Recordable Injury Freque
Slide 8: A simpler and more productive organisation
bhpbilliton resourcing the future A simpler and more productive organisation BHP Billiton core portfolio1 Operated Western Australia Olympic Dam Escondida Pampa Norte Minerals Iron Ore Queensland Coal2 NSW Energy Coal Jansen project Petroleum Onshore US Shenzi Angostura Pyrenees Macedon Non-operated
Slide 9: An even stronger and higher margin business
bhpbilliton resourcing the future An even stronger and higher margin business The core portfolio generated stronger performance compared with the broader portfolio over the last 10 years – production CAGR1 of 7% (versus 4%) – Underlying EBIT CAGR1,2 of 21% (versus 15%) – an average Underlying EBIT m
Slide 10: The creation of a new high-quality global metals and mining company
bhpbilliton resourcing the future The creation of a new high-quality global metals and mining company It is intended that NewCo would – be an Australian incorporated company listed on the Australian Securities Exchange (ASX) – have an inward secondary listing on the Johannesburg Stock Exchange (JSE)
Slide 11: Safety is paramount
bhpbilliton resourcing the future Safety is paramount Total Recordable Injury Frequency (TRIF) (number of recordable injuries per million hours worked) 10 8 down 51% 6 4 2 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Andrew Mackenzie, Chief Executive Officer, 27 October 2014 Slide 11
Slide 12: Managing our assets in a sustainable way for the benefit of all stakeholders
bhpbilliton resourcing the future Managing our assets in a sustainable way for the benefit of all stakeholders We aim to minimise our environmental impacts and deliver enduring benefits to biodiversity, ecosystems and other environmental resources We are taking action to address climate change by re
Slide 13: Managing our assets in a sustainable way for the benefit of all stakeholders
bhpbilliton resourcing the future Managing our assets in a sustainable way for the benefit of all stakeholders We engage regularly and openly with those interested in and affected by our operations We support partnerships that promote social and economic development for the benefit of the broader co
Slide 14: Delivering more volume from existing infrastructure and growth projects
bhpbilliton resourcing the future Delivering more volume from existing infrastructure and our growth projects ahead of schedule Total production1 increased by 9% in FY14 or 15% from the core portfolio – guidance exceeded for our major commodities – record Western Australia Iron Ore (WAIO) production
Slide 15: Positioned for another year of record production
bhpbilliton resourcing the future Positioned for another year of record production Our core portfolio is on track to deliver production1 growth of 23% over the two years to the end of FY15 or 16% from the broader portfolio The ramp-up of major growth projects and our productivity agenda will deliver
Slide 16: Cost efficiencies of US$1.9 billion delivered in FY14
bhpbilliton resourcing the future Cost efficiencies of US$1.9 billion delivered in FY14 Our commitment to further improve the competitive position of our assets underpinned a US$1.9 billion reduction in controllable cash costs in FY14 – Queensland Coal unit costs declined by 24% – unit cash costs at
Slide 17: Targeting at least another US$3.5 billion of productivity-led gains
bhpbilliton resourcing the future Targeting at least another US$3.5 billion of productivity-led gains from our core portfolio Productivity-led volume and cost efficiencies1 (US$ billion) 4.0 3.0 Volume 2.0 A minimum US$2.3 billion per annum reduction in cash costs is embedded in our three year plan
Slide 18: Iron Ore: increasing the value of already installed infrastructure
Iron Ore: increasing the value of already installed infrastructure bhpbilliton resourcing the future We plan to increase WAIO supply chain capacity to 290 Mtpa1,2 by the end of FY17 at very low capital cost - increase in mine output to ~275 Mtpa1 for no additional fixed plant investment - Inner Harb
Slide 19: Petroleum: a clear strategy focused on value over volume
bhpbilliton resourcing the future Petroleum: a clear strategy focused on value over volume Prioritising the highest return opportunities in our Petroleum business - investment in our shale liquids acreage generates strong investment returns, typically above 50%1 - high-return brownfield investments
Slide 20: Copper: lowering unit costs despite grade decline
bhpbilliton resourcing the future Copper: lowering unit costs despite grade decline We have a high-value suite of development opportunities in our copper portfolio - evaluating the option to run three concentrators in parallel at Escondida - the hypogene resource at Spence has the potential to add ~
Slide 21: Coal: moving sharply down the cost curve
bhpbilliton resourcing the future Coal: moving sharply down the cost curve The successful delivery of our growth projects has added high-quality metallurgical coal capacity We have closed 6.8 Mtpa1 of our highest-cost metallurgical coal production at Norwich Park and Gregory, and optimised contract
Slide 22: Our framework to maximise shareholder returns
bhpbilliton resourcing the future Our framework to maximise shareholder returns Our purpose when allocating capital is to maximise total shareholder returns Our strategy is to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market Our c
Slide 23: Our strong balance sheet ensures access to capital at a lower cost
bhpbilliton resourcing the future Our strong balance sheet ensures we have access to capital at a consistently lower cost We remain committed to our solid A credit rating - we manage to a single A1 or A21 through the cycle by considering expected cash flows in a low case scenario It is a fundamental
Slide 24: An unbroken dividend with a higher growth rate
bhpbilliton resourcing the future An unbroken dividend with a higher growth rate By having a strong balance sheet and investing in our best businesses we have delivered superior growth in our base dividend - increased at a CAGR of 17%1 - unbroken during the global financial crisis, a key point of di
Slide 25: Disciplined investment process to maximise value and returns
bhpbilliton resourcing the future Disciplined investment process to maximise value and returns Our rigorous process considers all alternatives for capital - continued investment in our business - portfolio simplification - the growth rate of our dividend - an investment in our own shares Capital and
Slide 26: Improving capital productivity
bhpbilliton resourcing the future Improving capital productivity Our opportunity-rich portfolio remains a key point of differentiation By operating within a disciplined framework and by testing all investment decisions against challenging criteria we will increase the capital efficiency of the Group
Slide 27: Our strategy and strong balance sheet have delivered superior returns
bhpbilliton resourcing the future Our strategy and strong balance sheet have delivered superior returns for our shareholders Key enablers for total shareholder returns Metrics over 10 years1 BHP Billiton A+ Peer A- Peer BBB Cost of funding spread (basis points)2 72 106 182 Unbroken progressive divid
Slide 28: Key themes
bhpbilliton resourcing the future Key themes We are delivering on our commitments A simplified portfolio will deliver stronger growth and margins Safety is paramount Managing our assets in a sustainable way for the benefit of all stakeholders We are positioned for another year of record production T
Slide 29: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 30: Uniquely placed to resource the future
Nelson Point Uniquely placed to resource the future Mike Henry President – HSE, Marketing and Technology 27 October 2014 bhpbilliton resourcing the future
Slide 31: Disclaimer: Forward-looking statements
Disclaimer bhpbilliton resourcing the future Forward-looking statements This presentation contains forward-looking statements, which may include statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closu
Slide 32: Key themes
Key themes bhpbilliton resourcing the future Virtuous cycle of industrialisation, urbanisation and consumption in emerging economies is expected to continue to underpin long-term commodities demand growth We retain a margin advantage for our steelmaking raw materials based on our quality and cost po
Slide 33: We consider divergent yet plausible scenarios in portfolio decisions
We consider divergent yet plausible scenarios in our portfolio decisions bhpbilliton resourcing the future Our corporate planning process is underpinned by scenario analysis - encompasses a spectrum of potential outcomes for key global uncertainties - considers technical, economic, political and glo
Slide 34: Emerging economies will continue to drive global growth and commodities demand
Emerging economies will continue to drive global growth and commodities demand bhpbilliton resourcing the future Demand for our commodities continues to be strong, underpinning the long-term outlook for our portfolio of products The transition to consumption-led growth in the developing world is und
Slide 35: The urbanisation and industrialisation of the developing world is far from complete
The urbanisation and industrialisation of the developing world is far from complete bhpbilliton resourcing the future Urbanisation and industrialisation in the developing world continues to underpin commodities demand - potential for ~250 million people to urbanise in China by 2030 The emergence of
Slide 36: We retain a margin advantage for our steelmaking raw materials
We retain a margin advantage for our steelmaking raw materials bhpbilliton resourcing the future Iron ore Growth in low-cost seaborne supply will continue to outpace demand and the cost curve will flatten Longer term, an increase in scrap availability in China will impact demand for pig iron Metallu
Slide 37: Copper will remain supply constrained and a deficit is expected beyond 2018
Copper will remain supply constrained and a deficit is expected beyond 2018 bhpbilliton resourcing the future The outlook for copper demand remains compelling as emerging economies transition to consumption-led growth - Chinese copper semis intensity is equivalent to Japan’s in the 1960s - global co
Slide 38: Energy demand growth will remain positive
Energy demand growth will remain positive… bhpbilliton resourcing the future Increasing energy demand is projected under a variety of scenarios, with electrification and transport leading the growth Electricity generation is forecast to rise strongly across multiple end-use sectors - 1.7 billion peo
Slide 39: Shape of future energy demand is difficult to predict
… although the shape of future energy demand is difficult to predict bhpbilliton resourcing the future Asia is expected to account for two thirds of energy demand growth to 2030 - growth in China and India will be equivalent to current US energy demand Global and regional energy policies, together w
Slide 40: Population growth and higher protein diets will require more productive crops
Population growth and the shift towards higher protein diets will require more productive crops bhpbilliton resourcing the future The long-term demand fundamentals for agricultural products remain attractive - growing global population - greater economic prosperity - changing food consumption patter
Slide 41: A diversified portfolio resourcing the future
A diversified portfolio resourcing the future bhpbilliton resourcing the future Our core portfolio1 reflects our differentiated strategy - large, long-life, low-cost, expandable, upstream assets - diversified by commodity, geography and market It provides broad exposure to steelmaking raw materials,
Slide 42: Key themes
Key themes bhpbilliton resourcing the future Virtuous cycle of industrialisation, urbanisation and consumption in emerging economies is expected to continue to underpin long-term commodities demand growth We retain a margin advantage for our steelmaking raw materials based on our quality and cost po
Slide 43: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 44: Our pursuit of continuous improvement
Western Australia Iron Ore Our pursuit of continuous improvement Mike Henry President – HSE, Marketing and Technology 27 October 2014 bhpbilliton resourcing the future
Slide 45: Disclaimer: Forward-looking statements
Disclaimer bhpbilliton resourcing the future Forward-looking statements This presentation contains forward-looking statements, which may include statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closu
Slide 46: Key themes
Key themes bhpbilliton resourcing the future Our culture underpins safe and productive operations The BHP Billiton Operating Model supports continuous performance improvement Our common systems and processes allow us to accelerate the replication of best practice We have a structured approach to pro
Slide 47: Our productivity agenda is delivering strong results
Our productivity agenda is delivering strong results and will maximise value for shareholders bhpbilliton resourcing the future Our performance focus We aim to sustainably realise the full potential of our assets for maximum value creation We have a structured approach to productivity - we focus on
Slide 48: Our culture underpins safe and productive operations
Our culture underpins safe and productive operations bhpbilliton resourcing the future Our culture and capability Our people strategy complements our Operating Model - senior leaders are committed to all aspects that drive our culture - guided by half-yearly employee surveys and leadership assessmen
Slide 49: Our Operating Model supports continuous improvement
Our Operating Model supports continuous improvement bhpbilliton resourcing the future Our Operating Model A simple and scalable organisational design to deliver sustainable performance Defines how we work, how we are organised and how we measure performance Critical success factors Standardised orga
Slide 50: Common systems and processes accelerate replication of best practice
Our common systems and processes allow us to accelerate replication of best practice bhpbilliton resourcing the future Our integrated management systems provide a rich data source - we measure, track and benchmark performance down to single components Using common systems and processes allows us to
Slide 51: Equipment: availability, utilisation and rate
Equipment: availability, utilisation and rate bhpbilliton resourcing the future We relentlessly target our bottlenecks - a 6% increase in total asset utilisation1 underpinned a 9% increase in Group production2 in FY14 We benchmark the performance of our equipment internally and externally Transparen
Slide 52: People: building the right capability and culture
People: building the right capability and culture bhpbilliton resourcing the future People productivity is a key value driver - labour1 represented 41% of our operating cost base in FY14 - we reduced our total labour spend by 10% in FY14 We have increased people productivity by 38% since FY122 - str
Slide 53: Supply: reducing total cost of ownership
Supply: reducing total cost of ownership bhpbilliton resourcing the future We are extending the life of consumables and pursuing opportunities identified through benchmarking to reduce overall supply costs - procurement cost savings of US$1.6 billion achieved over FY13 and FY14 We are pursuing multi
Slide 54: Capital: competition for capital has increased project returns
Capital: competition for capital and improved processes have increased project returns bhpbilliton resourcing the future Our opportunity-rich portfolio is a key differentiator and underpins an internal focus We have improved our processes and execution capability resulting in less budget over-runs a
Slide 55: Marketing: realising full value for our products
Marketing: realising full value for our products bhpbilliton resourcing the future Our marketing team is a major contributor to the Group’s productivity agenda - we are increasing volumes through supply chain optimisation - changes to quality specifications are enhancing the value of our resource -
Slide 56: Our pursuit of continuous improvement
Our pursuit of continuous improvement bhpbilliton resourcing the future Our structured approach to performance improvement is creating value - productivity-led volume and cost efficiencies of US$2.9 billion achieved in FY14, exceeding target by 61% - more than US$6.6 billion of sustainable productiv
Slide 57: Key themes
Key themes bhpbilliton resourcing the future Our culture underpins safe and productive operations The BHP Billiton Operating Model supports continuous performance improvement Our common systems and processes allow us to accelerate the replication of best practice We have a structured approach to pro
Slide 58: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 59: Safely growing production while lowering costs
Newman Safely growing production while lowering costs Jimmy Wilson President – Iron Ore 27 October 2014 bhpbilliton resourcing the future
Slide 60: Disclaimer: Forward-looking statements
Disclaimer bhpbilliton resourcing the future Forward-looking statements This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestm
Slide 61: Disclaimer (continued): Ore Reserves, Mineral Resources and Exploration Targets
Disclaimer (continued) bhpbilliton resourcing the future Ore Reserves, Mineral Resources and Exploration Targets The information in this presentation that relates to the FY2014 Western Australia Iron Ore (WAIO) Ore Reserves, Mineral Resources (inclusive of Ore Reserves) and Exploration Targets was f
Slide 62: Key themes
Key themes bhpbilliton resourcing the future We value safe and sustainable operations above all else We have the strongest resource position in the Pilbara A relentless focus on availability, utilisation and rate is enhancing performance across our integrated supply chain We are targeting FOB unit c
Slide 63: Iron Ore – a key pillar of BHP Billiton
Iron Ore – a key pillar of BHP Billiton bhpbilliton resourcing the future Our Iron Ore business, comprising Western Australia Iron Ore (WAIO) and Samarco, has delivered exceptional returns over the last five years – 22% of total BHP Billiton production1 – average Underlying EBIT margin2 of 59% – US$
Slide 64: We have the strongest resource position in the Pilbara
We have the strongest resource position in the Pilbara bhpbilliton resourcing the future Our Pilbara Mineral Resource has tripled1 in size during the last seven years – Resources of 23 Bt inclusive of Reserves of 3.7 Bt2 Our current focus is to increase resource definition around existing hubs Our r
Slide 65: Ore body characteristics support high-margin operations
The characteristics of our ore bodies support high-margin operations bhpbilliton resourcing the future Our ore bodies underpin low cost operations – a low strip ratio of 1.3x – current operations are primarily above the water table and only 2% of production is beneficiated We have a suite of high-qu
Slide 66: Fully integrated supply chain from mine to rail to port
At WAIO we operate a fully integrated supply chain from mine to rail to port bhpbilliton resourcing the future Integrated Remote Operations Centre Flow Synchronisation Balance Focus at Mines Focus at Rail Focus at Port Enable SL1 utilisation – Target the factors that mines control Product on specifi
Slide 67: Focus on availability, utilisation and rate has raised mines performance
Focus on availability, utilisation and rate has raised mines performance bhpbilliton resourcing the future Availability of mine reclaimers and train load-outs has increased, improving supply chain performance – centralised shutdown management has resulted in a significant reduction in shutdown frequ
Slide 68: Focus on availability, utilisation and rate has raised rail performance
Focus on availability, utilisation and rate has raised rail performance bhpbilliton resourcing the future Availability of rail has increased – completion of track ballast remediation project has improved track availability and extended track life longevity – centralised coordination of track mainten
Slide 69: Focus on availability, utilisation and rate has raised port capability
Focus on availability, utilisation and rate has raised port capability bhpbilliton resourcing the future Availability of car dumpers and shiploaders has increased following changes to our maintenance strategy – 50% reduction in electrical delays over the last 18 months Utilisation substantially enha
Slide 70: Technology is a key productivity enabler
Technology is a key productivity enabler bhpbilliton resourcing the future Our technology agenda underpins the path to 290 Mtpa1 and beyond – disciplined and value-based approach to technology driven by the business strategy Key technology enablers – our fully functioning Integrated Remote Operation
Slide 71: Targeting FOB unit cash costs of less than US$20 per tonne
Targeting FOB unit cash costs of less than US$20 per tonne bhpbilliton resourcing the future As production grows we will maintain a relentless focus on costs – strong early momentum as we reduced unit cash costs1 by 12% in H2 FY14 to US$25.89/t We are targeting unit cash costs1 of less than US$20/t2
Slide 72: Our plans are built from the bottom up
Our plans are built from the bottom up Bhpbilliton Resourcing the future We are systematically targeting cost savings across the supply chain equipment productivity is reducing demand for new equipment and enabling a reduction in hire gear supply productivity is reducing external expenditure through
Slide 73: A proven track record of project delivery
A proven track record of project delivery Bhpbilliton Resourcing the future Over the last decade we invested US$25 billion in the Pilbara As a result we have more than doubled iron ore production in a strong pricing environment WAIO achieved a fourteenth consecutive annual record in FY14 of 225 Mt1
Slide 74: Plan to grow WAIO production at capital intensity of ~US$30 per annual tonne
We plan to grow WAIO production by 65 Mtpa at a capital intensity of ~US$30 per annual tonne bhpbilliton resourcing the future Delivering value from our installed infrastructure1 (Mtpa, 100% basis) 1 Debottleneck inner harbour 2 Fully utilise inner harbour capacity 290 270 245 225 Optimisation Futur
Slide 75: Raising capacity of our mines without fixed plant investment
Step 1 to 290 Mtpa – raising the capacity of our mines without fixed plant investment bhpbilliton resourcing the future WAIO production is expected to increase by 20 Mt to 245 Mt1 in FY15 Beyond FY15 our relentless focus on productivity will deliver volume growth from already installed infrastructur
Slide 76: Investing in IHD1 and Jimblebar Phase 2
Step 2 to 290 Mtpa – investing in IHD1 and Jimblebar Phase 2 bhpbilliton resourcing the future The two key components to the second step of growth to 290 Mtpa1 have a low capital cost and offer attractive investment returns Inner Harbour Debottlenecking 1 will deliver ~20 Mtpa1 of incremental port c
Slide 77: Key themes
Key themes bhpbilliton resourcing the future We value safe and sustainable operations above all else We have the strongest resource position in the Pilbara A relentless focus on availability, utilisation and rate is enhancing performance across our integrated supply chain We are targeting FOB unit c
Slide 78: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 79: A high-quality portfolio optimised for value
Onshore US A high-quality portfolio optimised for value bhpbilliton resourcing the future Tim Cutt President – Petroleum and Potash October 2014
Slide 80: Disclaimer: Forward-looking statements
Disclaimer bhpbilliton resourcing the future Forward-looking statements This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestm
Slide 81: Disclaimer (continued): Petroleum resources
Disclaimer (continued) bhpbilliton resourcing the future Petroleum resources The estimates of petroleum reserves and contingent resources contained in this presentation are based on, and fairly represent, information and supporting documentation prepared under the supervision of Mr. A. G. Gadgil, wh
Slide 82: Key themes
Key themes bhpbilliton resourcing the future We have a clear strategy focused on value over volume Our Petroleum portfolio is underpinned by large, high-quality, upstream assets High-return brownfield investments will maintain stable Conventional volumes Liquids opportunities with Tier-1 potential a
Slide 83: A large, high-quality, upstream petroleum portfolio
A large, high-quality, upstream petroleum portfolio bhpbilliton resourcing the future Onshore US Gulf of Mexico Trinidad & Tobago Underlying EBIT & EBITDA margin (US$ billion) (margin, %) 35 100 28 80 21 60 14 40 7 20 0 0 FY11 FY12 FY13 FY14 Petroleum BHP Billiton Petroleum Underlying EBITDA margin1
Slide 84: High-return brownfield Conventional investments will offset natural field decline
High-return brownfield Conventional investments will offset natural field decline bhpbilliton resourcing the future Australia and the Gulf of Mexico are our core regions with valuable infrastructure in place Capital expenditure of ~US$1.5 billion per annum is expected to maintain stable conventional
Slide 85: Our focused exploration program
Our focused exploration program bhpbilliton resourcing the future North America Shale Extending our liquids runway Gulf of Mexico US: Progress plays with Tier-1 potential Mexico: Evaluate ahead of Round 1 Brazil Plan for seismic in FY16 Trinidad and Tobago Complete seismic program2 Plan for CY16 dri
Slide 86: Tier-1 oil potential in Trinidad and Tobago
Tier-1 oil potential in Trinidad and Tobago bhpbilliton resourcing the future We have an established operational presence in Trinidad and Tobago with our shallow water Angostura asset The deepwater is largely untested and has Tier-1 oil potential We have a material ‘early-mover’ deepwater position w
Slide 87: Leveraging our Gulf of Mexico expertise
Leveraging our Gulf of Mexico expertise bhpbilliton resourcing the future Recently executed Memorandum of Understanding with Pemex1 to exchange technical knowledge and expertise The Gulf of Mexico (GoM) basin is the third highest oil producing basin in the world2 We produce >350 net kboe/d and inves
Slide 88: We have proven project development capability
We have proven project development capability bhpbilliton resourcing the future Liverpool Bay Zamzama Angostura Neptune Pyrenees Macedon 1996 2003 2005 2008 2010 2013 1994 2003 2007 2009 Griffin Ohanet Stybarrow Shenzi BHP Billiton operated assets Tim Cutt, President - Petroleum and Potash, 27 Octob
Slide 89: Development options competing for capital
Development options competing for capital bhpbilliton resourcing the future Mad Dog Phase 2 One of the largest discovered, undeveloped oil reservoirs in the Gulf of Mexico Partnership is aligned on a semi-submersible floating production unit (FPU) concept BHP Billiton working interest 23.9%, operate
Slide 90: Onshore US is primed to generate strong growth in free cash flow
Onshore US is primed to generate strong growth in free cash flow bhpbilliton resourcing the future We have a premier acreage position over multiple shale plays Strong financial performance will be supported by continued growth in liquids production - 50% increase in liquids production in FY151 - for
Slide 91: Driving improved capital efficiency through productivity
Driving improved capital efficiency through productivity bhpbilliton resourcing the future Repetitive, manufacturing nature of shale is ideally suited to our productivity agenda Application of technology will ensure we achieve the best recoveries while being cost competitive We use internal and exte
Slide 92: Top performer in Black Hawk recovered reserves
We are the top performer in Black Hawk recovered reserves bhpbilliton resourcing the future Using low-cost initiatives to maximise recoveries and unlock substantial value restricted flows optimal stage spacing efficient proppant placement We are best among peers in recovered reserves initial product
Slide 93: Building momentum in the Black Hawk
Building momentum in the Black Hawk bhpbilliton resourcing the future We are a top producer in the Eagle Ford with investment prioritised on liquids-rich acreage ~75% of our Onshore US drilling and development expenditure in FY14 was focused on the Eagle Ford Our Black Hawk acreage is in the heart o
Slide 94: Extending our liquids runway in the Permian
Extending our liquids runway in the Permian bhpbilliton resourcing the future We are leading the appraisal of the Wolfcamp with more than 75 wells drilled to date extensive vertical and lateral appraisal of the resource We are running ahead of plan in FY15 and on track to build a 100 kboe/d business
Slide 95: Generating strong returns at current prices in the Haynesville
Generating strong returns at current prices in the Haynesville bhpbilliton resourcing the future We have the premier acreage position in one of the most productive US shale gas plays – 370 net shale producing wells as at 30 June 20141 Advances in completion optimisation show potential for a signific
Slide 96: Simplifying the portfolio for value
Simplifying the portfolio for value bhpbilliton resourcing the future We manage the portfolio for value - extending our liquids runway in our Shale business through acreage optimisation - targeted exploration program pursuing Tier-1 Conventional oil opportunities - divesting smaller, more mature ass
Slide 97: Key themes
Key themes bhpbilliton resourcing the future We have a clear strategy focused on value over volume Our Petroleum portfolio is underpinned by large, high-quality, upstream assets High-return brownfield investments will maintain stable Conventional volumes Liquids opportunities with Tier-1 potential a
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bhpbilliton resourcing the future
Slide 99: Glossary of selected terms
Glossary of selected terms bhpbilliton resourcing the future Reserves Those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria
Slide 100: Signatures
bhpbilliton resourcing the future SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BHP Billiton Limited and BHP Billiton Plc Date: 28 October 2014 By: /