Beach Energy Limited · ASX:BPT
Beach Energy — Shareholder Meeting (November 2014)
56 slides from Beach Energy's shareholder meeting presentation, Nov 27, 2014
Slide 1: Chairman's opening address
For personal use only Good morning ladies and gentlemen. I declare open the 2014 Beach Energy Annual General Meeting. Thank you to all of you for taking the time to be here today. As we always do at Beach, I want to begin with a safety message. In the very unlikely event of an emergency evacuation y
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: Introduction of directors and company secretaries
For personal use only There are of course a few others on stage here with me today and just to make sure everybody knows who we are, moving down the line from my immediate right: • Reg Nelson – Managing Director; • the four non-executive directors – John Butler, Belinda Robinson, Doug Schwebel and F
Slide 4: FY14 results
For personal use only Standing here today we reflect on two opposing worlds. One, a world of a positive oil price environment which we experienced last financial year, and the second, a world of a negative price environment that we are experiencing today. FY14 Starting with last financial year, the
Slide 5: Egypt impairment
portfolio. As we go into new exploration with the strategy of discovering commercial quantities of hydrocarbons, we accumulate on our balance sheet as an asset the exploration expenditure incurred. In some of the regions of our Egyptian exploration portfolio that search for commercial hydrocarbons h
Slide 6: Community engagement
For personal use only FY14 saw us continue our engagement with stakeholders in the communities in which we work. We take that engagement very seriously. Respect, integrity, trust and responsible conduct are part of our core values at Beach. We recognise we have a responsibility to the communities in
Slide 7: Community engagement roundtable
with broad representation from industries in the region. The first meeting of this Roundtable was held last week. I am told the meeting was productive with all members committing to future participation on the Roundtable. Beach looks forward to these important and ongoing discussions as part of disc
Slide 8: FY15 first quarter and oil price
For personal use only FY15 And so to the new world, the world of a negative oil price environment. Operationally, the first quarter was very good. We produced 2.4 million barrels of oil equivalent and sold 2.9 million barrels of oil equivalent, both up on the prior quarter. Exploration results were
Slide 9: FY15 outlook and programs
For personal use only And that feverish work, despite the challenges of our current lower oil price environment, means we have much to look forward to for the remainder of FY15. FY15 will be a milestone year in relation to the Nappamerri Trough Natural Gas program. The Stage 1 exploration phase is a
Slide 10: Low cost producer and new Managing Director
So a full year ahead with much to look forward to. And in looking forward don’t forget that, globally, we are one of the world’s lowest cost oil producers. Even at today’s prices we make a very healthy margin on our oil compared to others. In relation to our gas sales, as we trigger our Origin contr
Slide 11: Managing Director's address
Managing Director’s address Reg Nelson
Slide 12: Global oil supply and pricing
For personal use only Thank you, Glenn. I would like to begin by touching on the subject front of mind for all of us at the moment – global dynamics affecting oil supply and pricing, and my view of where prices may trend over the short to medium term. As can be seen in this chart, oil has historical
Slide 13: Oil price outlook
year average; • The beginning of the northern hemisphere winter; and • Seasonal pick-up in refinery runs after shut-in for annual maintenance. In addition, current price levels are unsustainable from cost of production and For personal use only OPEC budget breakeven perspectives. Publicly available
Slide 14: Australian energy outlook
For personal use only Today I would like to provide my perspective on the outlook for the Australian energy industry and provide an update on how Beach expects to benefit from this demand driven growth. A simple slide to set the scene - the map here shows that the majority of the world’s population
Slide 15: East coast gas market and LNG demand
For personal use only As a result, significant investment has been made into the development of Australia’s LNG industry. Initially built to leverage the vast coal seam gas reserves now known to exist, approximately $60 billion has been invested with three facilities soon to be brought online in Gla
Slide 16: Basin strategy
For personal use only We have undertaken a very deliberate strategy of building valuable positions in each of what we see as the key basins in Australia. These include the essential ‘old warhorses’ of the Cooper Basin and the Otway Basin. Our basin exposure is designed to ensure we have channels int
Slide 17: Cooper Basin
For personal use only The Cooper Basin has been in uninterrupted production for the better part of 40 years, with over 3,000 wells drilled and more than 700 of these fracture stimulated. It is Australia’s largest onshore oil and gas producing basin – possibly soon to be the largest for oil in the na
Slide 18: Cooper Basin exploration permits
Energy. For a 50% interest and operatorship, we have committed to drilling two wells and acquiring of 306 km2 of 3D seismic. One well has now been drilled and the seismic acquired. We will be targeting Birkhead/Hutton reservoirs beneath the stratigraphic section disturbed by the Tookanooka meteorite
Slide 19: Origin gas contract and NTNG project
us with the data required to confirm the timing of our oil linked gas contract with Origin Energy. For those unaware, in March 2013 we signed an agreement with Origin to provide them with 139 PJ of gas over eight years, with Origin having the option to extend this to 173 PJ of gas over ten years, on
Slide 20: Western Flank
For personal use only The Western Flank of the Cooper Basin continues to be one of the great success stories for Beach. Following record oil production in FY14, our current efforts are focused on supporting our record levels of production through active exploration and development programs, and expa
Slide 21: Bauer facility expansion
Infrastructure upgrades are also planned, including the Bauer facility expansion from 50,000 bpd of fluid to 75,000 bpd, due to be completed in second half of FY15. For personal use only 14
Slide 22: Nappamerri Trough Natural Gas project
For personal use only Beyond the engine room of the Western Flank, it is hard not to get excited when talking about the NTNG project, our joint venture with Chevron and Icon. We believe there are material and transformational gas molecules in place within our acreage. Such gas-in-place will prove tr
Slide 23: Sweet spots and Etty-1
Particularly pleasing has been our effort to successfully identify and exploit sweet spots. The Holdfast-1 and Encounter-1 wells were early examples, and most recently we have been excited by the prospects of Etty-1. Etty-1 produced approximately 0.9 MMscfd, primarily from a single stage in the Dara
Slide 24: Etty-1 Daralingie Formation results
For personal use only I am extremely encouraged by the results from the single fracture stimulation stage in the Daralingie Formation at Etty-1. To have flowed a single zone at in excess of 870,000 standard cubic feet per day on a restricted basis is very exciting for the program. The Daralingie For
Slide 25: Otway Basin
For personal use only As mentioned earlier, we have positioned ourselves in a number of key basins around Australia. Being located near to infrastructure with access to key gas markets is an essential criteria when we consider entering new plays. Without access to infrastructure linked to markets, t
Slide 26: Browse and Bonaparte Basins
While our exposure to the Burnside permit in the Browse Basin is small at 6.67%, we were pleased by the Santos discovery during the year at Lassiter. From the Santos mapping it appears as though this field has the potential to extend into the Burnside permit. We are currently assessing the possibili
Slide 27: Portfolio review
For personal use only Following the release of our FY14 results, we announced a review of all assets would be undertaken to ensure our portfolio is suitably structured to create ongoing value and achieve our core objectives. Firstly, I would like to make the point that a portfolio review and optimis
Slide 28: Tribute to Reg Nelson
For personal use only Whilst you are on feet Reg, we do have a small presentation for you today. Ladies and gentlemen, I suspect you do not need me to tell you of the magnificent contribution that Reg has made to your company. Reg was originally appointed to the Board of Beach in May 1992 as an exec
Slide 29: Tribute to Reg Nelson
Reg is a man of many talents. The talent of greatest strength to your company has been his intellect and entrepreneurial spirit. Reg has a unique ability to think about issues in the oil and gas sector in an expansive, holistic and at the same time lateral way. That ability and his entrepreneurial s
Slide 30: Resolutions for voting
Resolutions for voting Glenn Davis | Si BEACH ENERGY 20
Slide 31: Proxy votes
Proxy votes ° Beach has received 687,564,520 valid proxy votes ° Representing 53% of the votes 21
Slide 32: Financial Statements
Financial Statements ° The first item of business is to receive and consider the financial statements and the reports of the directors and auditors for the financial year ended 30 June 2014 22
Slide 33: Adoption of Remuneration Report
Resolution 1 — Adoption of Remuneration Report ° To consider and put to a non-binding vote the following resolution: “That the remuneration report for the financial year ended 30 June 2014 be adopted.” 23
Slide 34: Adoption of Remuneration Report results
For personal use only Resolution 1 4 PNENGY — Adoption of Remuneration Report 669,615,781 12,174,548 5,774,191 687,564,520 6,625,706 694,190,226 Adoption of Remuneration Report 51.61% 0.94% 0.45% 53.00% 24
Slide 35: Adoption of Remuneration Report
Resolution 1 — Adoption of Remuneration Report ° To consider and put to a non-binding vote the following resolution: “That the remuneration report for the financial year ended 30 June 2014 be adopted.” 25
Slide 36: Re-election of Mr G S Davis
Resolution 2 — Re-election of Mr G S Davis as a Director ° Mr Glenn Davis 26
Slide 37: Re-election of Mr G S Davis results
For personal use only Resolution 2 — Re-election of Mr G S Davis as a Director Re-election of GS Davis asa Director 651,050,942 33,805,275 5,792,699 690,648,916 4\|BEACH SEIENERGY 9,808,097 700,457,013 50.18% 2.61% 0.45% 53.24% 27
Slide 38: Re-election of Mr G S Davis
Resolution 2 — Re-election of Mr G S Davis as a Director ° Mr Glenn Davis 28
Slide 39: Re-election of Mr G S Davis
Resolution 2 — Re-election of Mr G S Davis as a Director ° To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That Glenn Stuart Davis, who retires by rotation pursuant to clause 13.3 of the constitution of Beach and ASX Listing Rule 14.4 and who, being eligibl
Slide 40: Re-election of Ms B C Robinson
Resolution 3 — Re-election of Ms B C Robinson as a Director ° Ms Belinda Robinson 30
Slide 41: Re-election of Ms B C Robinson results
For personal use only Resolution 3 4 PNENGY — Re-election of Ms B C Robinson as a Director 684,340,462 6,373,844 5,801,649 696,515,955, 3,941,058 700,457,013 Re-election of BC Robinson as a Director 52.74% 0.49% 0.45% 53.68% 31
Slide 42: Re-election of Ms B C Robinson
Resolution 3 — Re-election of Ms B C Robinson as a Director ° Ms Belinda Robinson 32
Slide 43: Re-election of Ms B C Robinson
Resolution 3 — Re-election of Ms B C Robinson as a Director ° To consider and, if thought fit, pass the following resolution as an ordinary resolution: "That Belinda Charlotte Robinson, who retires by rotation pursuant to clause 13.3 of the constitution of Beach and ASX Listing Rule 14.4 and who, be
Slide 44: Approval of issue of securities to Mr R G Nelson
4\BEACH Resolution 4 — Approval of the issue of securities Wsjanjs-reny to Mr RG Nelson, Managing Director ° To consider, and if thought fit, pass the following resolution as an ordinary resolution: "That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, the acquisition of perf
Slide 45: Issue of securities to Mr R G Nelson results
For personal use only Resolution 4 — Approval of the issue of securities to Mr RG Nelson, Mana Approval of the issue of securities to MrRG Nelson 657,585,585 24,871,773 Director 5,725,464 688,182,822 7,091,613 4\|BEACH SEIENERGY 695,274,435, 50.68% 1.92% 0.44% 53.04% 35
Slide 46: Approval of issue of securities to Mr R G Nelson
4\BEACH Resolution 4 — Approval of the issue of securities Wsjanjs-reny to Mr RG Nelson, Managing Director ° To consider, and if thought fit, pass the following resolution as an ordinary resolution: "That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, the acquisition of perf
Slide 47: Retirement benefit to Mr R G Nelson
4\BEACH Resolution 5 — Approval of the giving of a retirement Woanys=rews benefit to Mr R G Nelson, Managing Director ° To consider, and if thought fit, pass the following resolution as an ordinary resolution: "That, for the purposes of section 200B of the Corporations Act and for all other purposes
Slide 48: Retirement benefit to Mr R G Nelson results
For personal use only Resolution 5 — Approval of the giving of a retirement benefit to Mr R G Nelson, Managing Director Approval of the giving of a retirement benefit to Mr R G Nelson, Managing Director 660,057,729 22,970,490 5,674,138 688,702,357 6,522,078 4\|BEACH SEIENERGY 695,224,435 50.87% 1.77
Slide 49: Retirement benefit to Mr R G Nelson
4\BEACH Resolution 5 — Approval of the giving of a retirement Woanys=rews benefit to Mr R G Nelson, Managing Director ° To consider, and if thought fit, pass the following resolution as an ordinary resolution: "That, for the purposes of section 200B of the Corporations Act and for all other purposes
Slide 50: Remuneration of Non-Executive Directors
Resolution 6 — Remuneration of Non-Executive ° To consider, and if thought fit, pass the following resolution as an ordinary resolution: "That, for the purposes of ASX Listing Rule 10.17, clause 13.9.2 of the constitution of Beach and for all other purposes, the maximum aggregate remuneration of the
Slide 51: Remuneration of Non-Executive Directors results
For personal use only Resolution 6 — Remuneration of Non-Executive Remuneration of Non- Executive Directors 673,144,993 8,448,012 5,753,637 687,346,642 4\|BEACH SEIENERGY 6,843,584 694,190,226 51.88% 0.65% 0.44% 52.97% 41
Slide 52: Remuneration of Non-Executive Directors
Resolution 6 — Remuneration of Non-Executive ° To consider, and if thought fit, pass the following resolution as an ordinary resolution: "That, for the purposes of ASX Listing Rule 10.17, clause 13.9.2 of the constitution of Beach and for all other purposes, the maximum aggregate remuneration of the
Slide 53: Appointment of Auditor
Resolution 7 — Appointment of Auditor ° To consider, and if thought fit, pass the following resolution as an ordinary resolution: “That, pursuant to section 327B(1)(b) of the Corporations Act, KPMG be appointed as auditor of Beach, such appointment to take effect from the time at which the resignati
Slide 54: Appointment of Auditor results
For personal use only Resolution 7 — Appointment of Auditor 687,086,633 Appointment 2,197,177 5,810,271 695,094,086 4\|BEACH SEIENERGY 4,512,927 699,607,013 of Auditor 52.95% 0.17% 0.45% 53.57% 44
Slide 55: Appointment of Auditor
Resolution 7 — Appointment of Auditor ° To consider, and if thought fit, pass the following resolution as an ordinary resolution: “That, pursuant to section 327B(1)(b) of the Corporations Act, KPMG be appointed as auditor of Beach, such appointment to take effect from the time at which the resignati
Slide 56: Questions and meeting close
Questions and meeting close 4\BEACH SEIENERGY 46