Slide 1: FY14 Preliminary Full Year Results
For personal use only FY14 Preliminary Full Year Results 25 August 2014 1
Slide 2: Compliance statements
Compliance statements For personal use only 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
Slide 3: General
For personal use only General Reg Nelson Managing Director 3
Slide 4: Beach share price performance
Beach share price performance For personal use only Beach has strongly outperformed its peers in FY14 and the Energy and All Ordinaries indices consistently over the past four financial years FY14 share price performance FY10-FY14 share price performance 60% 2.00 +155% 50% (BPT) 50% Rebased to Beach
Slide 5: Overview
Overview For personal use only • Outstanding FY14 performance driven by the Beach operated oil business • Very strong balance sheet with the potential to fund capex until the end of FY16 • Oil linked gas contract with Origin to commence in FY15 • Nappamerri Trough Natural Gas (NTNG) exploration prog
Slide 6: FY14 Financial overview
FY14 Financial overview For personal use only Sales Revenue Underlying NPAT Operating Cash Flow • Record sales revenue of $1.05 billion • Cash balance of $411 million • Record underlying NPAT of $259 million • Full year dividend of 4.0 cps, up 78% • Record operating cash flow of $583 million • Undra
Slide 7: FY14 Operational overview
FY14 Operational overview For personal use only • Excellent safety record with reduced and low injury frequency rate for employees and service providers • Record production of 9.6 MMboe, up 20% • Western Flank oil production at in excess of 10,000 bpd for the full year • 122 wells drilled with succe
Slide 8: Asset portfolio review
Asset portfolio review For personal use only • Certain assets to be considered for divestment to ensure asset portfolio aligned with strategic outlook – International assets under review • Active history of non-core and value driven Various investment divestments: criteria to enhance overall portfol
Slide 9: Financial
For personal use only Financial Kathryn Presser Chief Financial Officer 9
Slide 10: Financial results overview
Financial results overview For personal use only Outstanding financial results, with records achieved for sales volumes, revenue, operating cash flow and underlying NPAT FY14 FY13 Change Sales volume (MMboe) 10.8 9.0 20% Total sales revenue ($ million) 1,052.1 698.2 51% Operating cash flow ($ millio
Slide 11: DPS and underlying EPS growth
DPS and underlying EPS growth For personal use only Dividends per share Underlying earnings per share Shareholder returns continue to grow on a per share basis 11
Slide 12: Sales revenue
Sales revenue For personal use only 1200 $79.3 $16.7 $0.2 $1,052.1 1000 $108.1 Oil and Gas/ethane Liquids Prices Prices FX Rates $149.6 US$/boe A$/GJ 800 Third Party AUD/USD 2013 $112 2013 $5.41 $698.2 Purchases 2013 $1.027 2014 $115 2014 $5.49 2014 $0.919 $ million Volume / Mix 600 400 51% 200 $353
Slide 13: Record underlying NPAT
Record underlying NPAT For personal use only Record FY14 underlying NPAT of $259 $259 million, driven by: million • Strong A$ Brent oil price • Increased oil in the sales volume mix • Oil development, exploration and appraisal success • Maintaining of oil transportation capacity $141 million $122 at
Slide 14: Comparison of underlying profit
Comparison of underlying profit For personal use only FY14 FY13 $ million $ million NPAT 101.8 153.7 Adjusted for: Unrealised hedging (gains) / losses 0.0 0.4 Mark to market of convertible notes derivative 14.3 3.1 Asset sales (15.7) (26.6) Impairment of assets1 162.2 3.5 Tax impact of above changes
Slide 15: Operational
For personal use only Operational Mike Dodd General Manager – Exploration and Development 15
Slide 16: Actual and forecast production
Actual and forecast production For personal use only FY14 9.4 MMboe • Production of 9.6 MMboe 9.6 MMboe to 8.6 MMboe • Production mix: 46% gas and gas liquids, 54% oil 8.0 MMboe • Cooper Basin oil production driven by: 7.5 MMboe Gas* Gas* 4.4-4.9 4.4 MMboe – Development of new and existing fields, 6
Slide 17: FY15 Capital expenditure guidance
FY15 Capital expenditure guidance For personal use only Capex 3D Seismic Wells ($ million) (km2) DEVELOPMENT Cooper Basin – non-SACB/SWQ JVs 55 – 60 10 – 13 – Cooper Basin – SACB/SWQ JVs 270 – 300 70-80 – International 10 3 – Total Development 335 – 370 Up to 96 – EXPLORATION Cooper Basin – non-SACB
Slide 18: Reserves and contingent resources
Reserves and contingent resources For personal use only 2P: 86 MMboe 2P and 2C: 552 MMboe Unconventional Gas and gas liquids Gas and gas liquids 67 MMboe 362 MMboe 2P reserves 86 MMboe Oil 19 MMbbl Conventional Gas and gas liquids 92 MMboe Oil 12 MMbbl Large reserves and resources base supporting fu
Slide 19: FY15 Key activities
FY15 Key activities For personal use only Early success in FY15 program with the Balgowan-1 discovery 19
Slide 20: Contact Information
For personal use only Contact Information Head office Chris Jamieson 25 Conyngham Street General Manager Investor Relations Glenside SA 5065 Tel: +61 8 8338 2833 Tel: +61 8 8338 2833 Mob: +61 8 (0)487 173 244 Website: www.beachenergy.com.au Email: chris.jamieson@beachenergy.com.au 20