Beach Energy Limited · ASX:BPT
Beach Energy — H1 2008 Earnings Presentation
18 slides from Beach Energy's earnings presentation, Mar 3, 2008
Slide 1: 2008 Half Year Results Briefing
For personal use only 2008 HALF YEAR RESULTS BRIEFING Reg Nelson - Managing Director Kathryn Presser - Chief Financial Officer Hector Gordon - Chief Operating Officer
Slide 2: Financial Overview
Financial Overview For personal use only • Production: 4.6 mmboe – with oil production up by 46% – Upward trend since 2003 • Sales Revenue: $249 million - 16% increase – Upward trend since 2003 • Operating Cashflow: $52 million - 72% increase – Increased sales volumes and commodity prices – Upward t
Slide 3: Company Strategy
Company Strategy For personal use only ‘Step change’ Hi g h potential O ue pe al ra Increase exposure to rv tio de na high reward exploration and ol la eh nd development opportunities ar HS Sh E er pe liv Capitalise on significant acreage and rfo De rm infrastructure holdings an ce Invest in quality
Slide 4: Key Projects - progress
Key Projects - progress For personal use only • Cooper Oil – record production – increasing reserves • BMG – production resumed in November • Tipton West – increased production – further development planned • Exploration – high reward – international
Slide 5: Underlying Profit
Underlying Profit For personal use only 2007 2006 Net profit after tax (NPAT) $m $m NPAT 58.769 23.705 Significant Items Remove BMG Sale 64.169 - Remove unrealised commodity hedging 22.052 27.984 losses/(gains) Remove exploration write-offs 5.511 0.876 Remove bridging finance setup costs - 8.269 Tax
Slide 6: Underlying Profit
Underlying Profit For personal use only 120.0 100.0 5.5 (8.0) Underlying Profit ($ millions) 11.0 80.0 22.1 60.0 (64.2) 40.0 58.8 20.0 25.2 0.0 Dec-07 Unrealised Tax Write-offs PRRT BMG Sale Adjusted Dec Commodity 2007 Hedging Drivers: sale of BMG, unrealised hedging/FX, exploration write-offs
Slide 7: Operating cash flow
Operating cash flow For personal use only 60 50 Cash Flow ($ million) 40 30 51.6 20 29.9 10 20.5 18.2 0 1H05 1H06 1H07 1H08 Up 72% due to increased sales volumes and commodity prices
Slide 8: Beach Performance
Beach Performance For personal use only 10 9 • Reserves have increased 8 Production (MMboe) 7 approx 20 times since 2003** 6 5 9.4 4 • Production has increased 10 3 times since 2003** 2 1 0.98 1.1 1.4 0 2004 2005 2006 2007 • Current R/P ratio ~ 9 100 90 • Substantial contingent and 80 Reserves (MMbo
Slide 9: Revenue
Revenue For personal use only 400 350 Revenue ($ million) 300 250 200 340.0 150 261.9 100 50 78.8 3 0 .4 0 1H05 1H06 1H07 1H08 Up 30% due to higher production and commodity prices, which outweighed the adverse AUD/USD exchange rate movement
Slide 10: Delhi Hedging Profile
Delhi Hedging Profile For personal use only 1,400,000 1,200,000 1,000,000 Barrels 800,000 600,000 400,000 200,000 0 Jul-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 All Delhi hedging due to run out by June 2009
Slide 11: Operations
Operations For personal use only • Positive outlook • Strong oil price • Increase in reserves
Slide 12: Cooper Oil
Cooper Oil For personal use only • 1H Production - 0.9 mmb – up 9% • Reserves Dec 2007 ~15 mmb – Increase of 24% • Beach Program – Exploration on western and eastern flanks – Parson Discovery – Callawonga Appraisal – 1H Reserve adds 2.4 mmb • Santos Program – Development, Appraisal & Near Field Appr
Slide 13: Basker Manta Gummy
Basker Manta Gummy For personal use only • Beach 30% post divestment – 10% to Itochu (June 2007) – 10% to Sojitz (Dec 2007) • 2008/9 drilling aims to fully develop oil reserves and progress gas appraisal • Mooring repair completed • Production ~11,000 bopd
Slide 14: Tipton West – Coal Seam Methane
Tipton West – Coal Seam Methane For personal use only • Very significant gas resource – 2P Reserves 293 PJ – 3P Reserves 2316 PJ • Sales commenced in Feb 2007 • Three pilot programs producing promising results – increased reserves • Close proximity to growing gas markets and key infrastructure
Slide 15: Outlook
Outlook For personal use only FY08 Production • ~9.5 mmboe ( ~ 30% oil) Development & Appraisal • Basker Oil development • Manta – Gummy gas appraisal • Tipton West CSG expansion • Parsons development Exploration • Total of ~125 wells for FY 2008 – Focus on Cooper Oil – Offshore and international ex
Slide 16: International
International For personal use only • Beach is becoming increasingly active outside of our traditional areas of interest – Albania: Duressi Block (Adriatic Sea) – Spain: Ebro Basin – New Zealand: Canterbury Basin • Opportunities are rigorously analysed and must meet technical and commercial criteria
Slide 17: Disclaimer and important notice
Disclaimer and important notice For personal use only This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety
Slide 18: For personal use only
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