Beach Energy Limited · ASX:BPT
Beach Energy — Shareholder Meeting (November 2022)
52 slides from Beach Energy's shareholder meeting presentation, Nov 16, 2022
Slide 1: 2022 Annual General Meeting Addresses and Presentation
Beach Energy Limited (ABN 20 007 617 969) | Level 8, 80 Flinders Street Adelaide, South Australia 5000 GPO Box 175, Adelaide, South Australia 5001 | beachenergy.com.au ASX Announcement 2022 Annual General Meeting Addresses and Presentation Reference #039/22 Date 16 November 2022 To follow is the Cha
Slide 2: Chairman and CEO Addresses
Beach Energy Limited | 25 Conyngham Street Glenside, South Australia 5065 GPO Box 175, Adelaide, South Australia 5001 | beachenergy.com.au Beach Energy 2022 AGM Chairman and CEO Addresses Date 16 November 2022 Chairman’s Address Slide 1 – 2022 Annual General Meeting Good morning ladies and gentlemen
Slide 3: Acknowledgement of Country and housekeeping
We acknowledge that we meet today on the traditional country of the Kaurna People of the Adelaide Plain, and we pay our respect to their Elders past and present. We also recognise and respect their cultural heritage, beliefs and spiritual relationship with the land and acknowledge that they are of c
Slide 4: Directors in attendance and Chairman's address
Phil Bainbridge, Sally-Anne Layman, Margaret Hall, Peter Moore and Richard Richards. Also in attendance today is Anthony Jones from our auditor EY who is available for questions in relation to the 2022 financial accounts and remuneration report. We have received a number of questions from shareholde
Slide 5: Energy supply and decarbonisation fundamentals
risks of shortfalls both on the East and West Coast – in terms of evidence just look at the statements from the Australian Federal Government, the Australian Energy Market Operator and the Australian Competition and Consumer Commission. • Energy pricing is, not surprisingly, a function of supply and
Slide 6: Beach's contribution to energy security
• We are contributing to Australian energy security supplying critical domestic gas into the East and West Coast markets, and that will increase on the East Coast in the short term as we connect further wells to the Otway Gas Plant this year. • We are playing our part in increasing supply: o Waitsia
Slide 7: People and Beach's role
Beach plays an important role in significantly contributing to Australia’s energy security, energy supply and the pathway to decarbonisation, and will continue to do so. People In playing that role, Beach needs and has a team of high quality and committed people led by our CEO Morné. Our people rece
Slide 8: Departing directors
In relation to people I also need to mention two directors leaving us today: • Firstly, Rob Jager. Rob our very best wishes to you and your family. • Secondly, Colin Beckett. Colin joined Beach coming on eight years ago. He has been through a lot in those eight years including the Drillsearch and La
Slide 9: CEO's Address
CEO’s Address Slide 8 – CEO’s Address Thank you, Glenn. Good morning and welcome everyone. First of all, it is a great honour and privilege to have been appointed the CEO of Beach Energy. I recognise and honour the proud 60-year history of the company, and those who have been before me in this role.
Slide 10: CEO observations: strengths
an enviable position, while at the same time we pursue a sustainable low emissions future. • Second, we have demonstrated that we possess the core competencies to deliver major projects both on and offshore. As Glenn mentioned, our delivery of the Otway offshore drilling campaign demonstrates that B
Slide 11: CEO focus areas
• The team and I remain focussed on completing our major projects in the Otway and Perth basins and delivering on our FY24 production target. These major growth projects are progressing and our team is working very hard to deliver them on time and within budget. • Third, by delivering these major pr
Slide 12: Otway and Perth Basin growth
In the Otway Basin, our offshore well connections will deliver more than a 30% increase in our share of supplying East Coast gas demand, from ~12% currently to ~16% in FY24. We are proud to say Beach is the only gas producer of scale increasing its share of the East Coast gas market, and this is com
Slide 13: Warrego Energy offer terms
A Final Investment Decision is yet to be taken meaning we can deploy our gas development expertise for optimal commercialisation. As well as being compelling for Beach, we believe the offer provides full and fair value for Warrego shareholders. We are offering 20 cents per share in cash, which deliv
Slide 14: Warrego board recommendation and Perth Basin objectives
• Warrego’s Board of Directors has unanimously recommended Beach’s offer to its shareholders and the Directors intend to vote their shares in favour of our cash offer. • Beach will bring financial strength to the West Erregulla joint venture, to achieve faster delivery of the project relative to its
Slide 15: Core competencies to deliver major projects
reserves you’ll realise we believe Strike is not something we would acquire at its current share price. • We intend to develop West Erregulla as quickly as we can. • We are not bidding for Warrego to backfill Waitsia Stage 2 volumes with the West Erregulla volumes not permitted to be exported. In cl
Slide 16: Project milestones and health, safety and environment
• Taking a final investment decision for Moomba CCS which is now under construction. • Delivering the Yolla wireline campaign in the Bass Basin; and • Mitigating Western Flank oil decline, with an exploration campaign delivering new discoveries. Delivering these milestones demonstrates our ability t
Slide 17: Emissions intensity reduction and financial strength
Slide 14 – Targeting 35% emissions intensity reduction by 2030 You may have seen that Beach recently announced that we are investigating several initiatives to reduce our scope 1 and 2 emissions, as well as pursuing opportunities in new energy markets. Moomba CCS is just the beginning. We have sever
Slide 18: Momentum building in FY23
Slide 16 – Momentum building in FY23 You will have no doubt seen that we’ve started the new financial year with strong momentum across our operations and major growth projects. In the Otway Basin, connection of the Thylacine wells is underway and tracking to our target for first gas in mid-2023. As
Slide 19: Summary of value proposition
1. First: Beach’s entrance into the global LNG market is truly transformational. We are doing this with our share of volumes sold to an excellent customer in bp, with attractive LNG pricing. The Waitsia Stage 2 project is progressing well, and we have a very exciting Perth Basin exploration campaign
Slide 20: 2022 Annual General Meeting
16 NOVEMBER 2022 2022 Annual General Meeting
Slide 21: Acknowledgement of Country
Acknowledgement of Country Respect is one of our core values at Beach and we respect the traditional custodians of Australia and New Zealand. We acknowledge that we are meeting today on the traditional country of the Kaurna People of the Adelaide Plain, and we pay our respect to their Elders past an
Slide 22: Compliance statements
Compliance statements Disclaimer These future development, appraisal and exploration projects are subject to approvals such as government approvals, joint venture approvals and Board approvals. Beach expresses no view as to whether all required approvals will be This presentation contains forward-lo
Slide 23: Welcome and Introduction
2022 ANNUAL GENERAL MEETING Welcome and Introduction
Slide 24: Chairman's Address
2022 ANNUAL GENERAL MEETING Chairman’s Address Glenn Davis
Slide 25: Energy supply and decarbonisation fundamentals
Energy supply and decarbonisation fundamentals Natural gas to remain an integral component of the energy supply mix Stable gas demand despite global fossil fuel decline1 Increasing south-east gas supply shortfalls2 400 PJ Gas demand 300 LNG imports and 200 new supply 100 0 2022 2024 2026 2028 2030 2
Slide 26: FY23 focus: playing a critical role in local energy security
Playing a critical role in supporting local energy security Active gas development and appraisal across three East Coast basins 7-well offshore Otway Basin drilling campaign completed Largest offshore drilling campaign in the Otway Basin Connection of Thylacine wells to OGP1 underway ✓ Seven-well dr
Slide 27: CEO's Address
2022 ANNUAL GENERAL MEETING CEO’s Address Morné Engelbrecht
Slide 28: CEO observations: strengths and opportunities
CEO observations Strengths and opportunities Beach strengths CEO focus areas ▪ Unique value ▪ Lead corporate culture proposition ▪ Deliver FY24 ▪ In-house production target competencies ▪ Building a base for ▪ Strategic growth further growth opportunities ▪ Pursue new energy ▪ Market diversification
Slide 29: Executing our corporate strategy
Executing our corporate strategy Material long-term cash flows being pursued Grow Grow Grow Gas/LNG Supply Free Cash Flow Sustainably ▪ East Coast and West Coast ▪ Targeting eight plants ▪ 2050 net zero aspiration gas supply increase feeding four markets for ▪ Targeting 35% emissions ▪ Otway Gas Pla
Slide 30: Binding agreement to acquire Warrego Energy
Binding agreement to acquire Warrego Energy1 A compelling acquisition consistent with Beach’s growth strategy Compelling strategic rationale for Beach ✓ Complements existing Perth Basin acreage; consistent with growth strategy ✓ West Erregulla fully appraised; pre-FID project with development option
Slide 31: Core competencies in place to deliver major projects
Core competencies in place to deliver major projects Key project milestones delivered in FY22 Geographe 4 and 5 connected to the Otway Gas Plant SPA with bp for Waitsia Stage 2 LNG volumes Otway production up 47% to 4.1 MMboe Waitsia Stage 2 commenced FY22 milestones ✓ Offshore Otway drilling comple
Slide 32: Health, safety and environment
Health, safety and environment Focused on continual improvement Safety performance FY22 highlights 16 15.6 14.5 ✓ 2021 IADC Safety Award 12 7.9 Outstanding safety performance for the Otway Basin Total Recordable Injuries 8 13 3.8 3.5 3.5 3.7 4.4 drilling campaign, awarded to the rig operator 2.1 4.5
Slide 33: Targeting 35% emissions intensity reduction by 2030
Targeting 35% emissions intensity reduction by 2030 Carbon capture and storage to underpin emissions reduction Assessing several emissions and energy transition initiatives Moomba CCS a key driver of emissions reduction ▪ Targeting up to 1.7 Mtpa CO2 storage (>0.5 Mtpa net Beach) ▪ Potential to stor
Slide 34: Financial strength to support growth and returns
Financial strength to support growth and returns Dividend policy to be released with FY23 half-year results Available Liquidity ($ million) 765 Successful debt ▪ A strengthened financial position in FY22 facility refinance to $600 million ▪ $165 million net cash at 30 June 2022 500 ▪ $765 million to
Slide 35: Momentum building in FY23
Momentum building in FY23 Delivering a >30% increase in East Coast gas market share and transformational LNG revenue Thylacine Diving Manifold Pipeline End FY23 year-to-date highlights Interface Structure Terminal Otway Basin ✓ Thylacine well connections underway in the offshore Otway Basin ✓ Otway
Slide 36: A unique value proposition for investors
A unique value proposition for investors Transformational LNG supply; increasing East Coast gas share; sustainable growth LNG EAST COAST GAS SUSTAINABLE GROWTH 3.75 Mt / ~200 million MMBtu ~16% ECG market share Emissions reductions underway New LNG supply over ~5 years from H2 2023 Targeted increase
Slide 37: Q&A
2022 ANNUAL GENERAL MEETING Q&A
Slide 38: Resolutions for voting
2022 ANNUAL GENERAL MEETING Resolutions for voting
Slide 39: Proxy voting
Proxy voting Vote totals based on the first resolution Valid proxy votes received 1,060,017,500 % of total votes 46.46% 20
Slide 40: Financial statements
Financial statements To receive and consider the financial statements and the reports of the directors and auditors for the financial year ended 30 June 2022. There is no requirement for shareholders to approve the financial statements and reports. 21
Slide 41: Resolution 1: Adoption of the remuneration report
Resolution 1 Adoption of the remuneration report To consider and put to a non-binding vote the following ordinary resolution: “That, for the purposes of section 250R(2) of the Corporations Act, the remuneration report for the financial year ended 30 June 2022, as set out in Beach’s 2022 Annual Repor
Slide 42: Resolution 1: voting results
Resolution 1 Adoption of the remuneration report Total Valid For Against Open-Usable Abstain Available Votes 1,032,029,088 24,688,443 3,299,969 1,060,017,500 964,650 97.36% 2.33% 0.31% 100% 23
Slide 43: Resolution 2: Re-election of Phillip Bainbridge
Resolution 2 Re-election of Phillip Bainbridge as a director To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That Phillip Bainbridge, who retires by rotation pursuant to clause 6.1 of the Beach Constitution and ASX Listing Rule 14.4 and, being eligible, off
Slide 44: Resolution 2: voting results
Resolution 2 Re-election of Phillip Bainbridge as a director Total Valid For Against Open-Usable Abstain Available Votes 1,439,885,263 18,087,508 3,478,635 1,461,451,406 784,239 98.52% 1.24% 0.24% 100% 25
Slide 45: Resolution 3: Re-election of Peter Moore
Resolution 3 Re-election of Peter Moore as a director To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That Peter Moore, who retires by rotation pursuant to clause 6.1 of the Beach Constitution and ASX Listing Rule 14.4 and, being eligible, offers himself fo
Slide 46: Resolution 3: voting results
Resolution 3 Re-election of Peter Moore as a director Total Valid For Against Open-Usable Abstain Available Votes 1,400,941,377 57,131,144 3,491,504 1,461,564,025 671,620 95.85% 3.91% 0.24% 100% 27
Slide 47: Resolution 4: Re-election of Sally-Anne Layman
Resolution 4 Re-election of Sally-Anne Layman as a director To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That Sally-Anne Layman, who retires by rotation pursuant to clause 6.1 of the Beach Constitution and ASX Listing Rule 14.4 and, being eligible, offer
Slide 48: Resolution 4: voting results
Resolution 4 Re-election of Sally-Anne Layman as a director Total Valid For Against Open-Usable Abstain Available Votes 1,429,808,884 28,113,140 3,567,794 1,461,489,818 745,827 97.83% 1.92% 0.25% 100% 29
Slide 49: Resolution 5: Partial takeover provisions
Resolution 5 Reinstatement of Partial Takeover Provisions in the Constitution To consider and, if thought fit, pass the following special resolution: “That, for the purposes of section 648G of the Corporations Act 2001 (Cth) and for all other purposes, clause 14 (Approval of Proportional Takeover Bi
Slide 50: Resolution 5: voting results
Resolution 5 Reinstatement of Partial Takeover Provisions in the Constitution Total Valid For Against Open-Usable Abstain Available Votes 1,454,310,967 3,288,386 3,478,997 1,461,078,350 1,157,295 99.54% 0.22% 0.24% 100% 31
Slide 51: Finalisation of polls
2022 ANNUAL GENERAL MEETING Finalisation of polls
Slide 52: Beach Energy Limited contact details
Beach Energy Limited Level 8, 80 Flinders Street Adelaide SA 5000 Australia T: +61 8 8338 2833 F: +61 8 8338 2336 beachenergy.com.au Investor Relations Derek Piper, General Manager Investor Relations Travis Ban, Investor Relations Advisor T: +61 8 8338 2833