Beach Energy Limited · ASX:BPT
Beach Energy — FY2024 Earnings Presentation
31 slides from Beach Energy's earnings presentation, Aug 12, 2024
Slide 1: FY24 Full Year Results
FY24 Full Year Results Energy for a gas-supported transition 12 August 2024 Waitsia Gas Plant pre-commissioning, Western Australia
Slide 2: Compliance statements
Compliance statements Disclaimer Assumptions This presentation contains forward-looking statements, including statements of current intention, opinion and predictions regarding Guidance is uncertain and subject to change. Guidance has been estimated on the basis of the following assumptions: 1. vari
Slide 3: Beach Energy value proposition
Beach Energy value proposition Becoming Australia’s leading ✓ domestic energy company ✓ Supplying key markets ✓ Strong financial position Increasing free cash flow for ✓ dividends and growth Multiple near and medium- ✓ term value catalysts CCS to support emissions ✓ reduction 3
Slide 4: FY24 key milestones
FY24 key milestones Progressing near-term priorities Strategic review completed New asset-based organisational structure Early Waitsia cargoes Waitsia Gas Plant progressed Enterprise development completed Key Otway Basin gas sale agreements milestones Perth Basin gas discoveries Cooper Basin drillin
Slide 5: FY24 headline results
FY24 headline results Solid results as major projects near completion 18.2 MMboe 7% $1.8 billion 9% $950 million 3% Production Sales revenue Underlying EBITDA $9.5 /GJ 8% 2.0 cps No change $437m 15% Average realised Final dividend Liquidity Net gearing1 gas and ethane price 5 1. Net gearing defined
Slide 6: Reserves and resources
Reserves and resources Subsurface assessments undertaken as part of the strategic review MMboe 30-Jun-23 30-Jun-24 Decline in 2P reserves attributable to production of 18.2 MMboe and net revisions of 31.5 MMboe including: 1P reserves 118 109 ▪ Evaluation of Enterprise and Thylacine North reservoir 2
Slide 7: Health, safety and environment
Health, safety and environment Renewed focus on safety delivering improved outcomes FY24 personal safety performance Key highlights 8 400 ▪ Stand Together For Safety campaign delivering improved outcomes: Thousand hours 6 300 4.6 4 3.4 200 o >8 months with no recordable injuries 2 100 2 3 o Zero Tie
Slide 8: Sustainability at Beach
Sustainability at Beach Energy for a sustainable transition Environment Social Governance Reporting ▪ Moomba CCS first CO2 injection ▪ 1,350 workplace hours donated ▪ Board oversight on all ESG ▪ Readiness assessment in H1 FY25 targeted by 35% of employees across matters undertaken for the Australia
Slide 9: Refreshed strategy
Refreshed strategy Three pillars to drive shareholder returns CORE HUBS HIGH MARGINS SUSTAINABLE GROWTH Eastern Australia and Owner’s mindset Pivot to long-life, resilient assets Western Australia Low-cost operations Climate Transition Action Plan Grow share of East and West Coast gas markets Struct
Slide 10: Financial results
F Y 2 4 F U L L Y E A R R E S U LT S Financial results Kupe Gas Plant, New Zealand
Slide 11: Headline financial metrics
Headline financial metrics Results supported by early Waitsia swap LNG and condensate cargoes $ million (unless otherwise indicated) FY23 FY24 Change FY24 sales revenue: $1.8 billion Production1 (MMboe) 19.5 18.2 (7%) Sales volumes (MMboe) 20.7 21.3 3% Sales revenue 1,617 1,766 9% NZ West Coast gas
Slide 12: Underlying NPAT movements
Underlying NPAT movements1 Reduced earnings driven by lower production as growth projects progressed $ million (134) Waitsia cargoes Underlying NPAT down 11% due to: 221 ▪ Lower Otway Basin customer nominations (35) and timing of liquids liftings (17) 11 (70) (6) (14) ▪ Higher non-operated Cooper Ba
Slide 13: Cash reserves movements
Cash reserves movements $163 million of pre-growth free cash flow1 $ million ▪ Operating cash flow down 17% to $774 million 370 Growth capital (499) o Net operating receipts down 10% to expenditure $992 million o Income tax payments down 3% to $120 million o Restoration payments of $68 million 774 (
Slide 14: Strong financial position
Strong financial position Balance Sheet capacity and flexibility to pursue disciplined growth Available Liquidity ($ million) 434 437 ▪ Drawdown of debt facilities in FY24 while delivering major projects ▪ Financial strength and flexibility to support disciplined growth 215 265 ▪ Broad syndicate of
Slide 15: Operating principles and capital management framework
Operating principles and capital management framework Rebuilding trust | Disciplined growth | Returns to shareholders Strict Operating Principles Capital Management Framework Free cash flow breakeven oil price Strong Balance Sheet <US$30/bbl Targeting <15% gearing; up to 25% through Field operating
Slide 16: Outlook
F Y 2 4 F U L L Y E A R R E S U LT S Outlook Lang Lang Gas Plant, Victoria
Slide 17: Market dynamics
Market dynamics Long-term structural deficits support Beach strategy horizons East Coast gas supply and demand1 West Coast gas supply and demand2 Sustained, long-term structural deficits across key markets 500 PJ 600 PJ 400 500 ▪ East Coast gas supply decline of ~30% by 300 400 early 2030s 300 200 2
Slide 18: Waitsia Gas Plant
Waitsia Gas Plant1 Nearing mechanical completion and introduction of fuel gas Several milestones despite project challenges Indicative timeline Q3 CY2024 Q4 CY2024 Q1 CY2025 Q2 CY2025 ▪ >80% of plant now under commissioning custody in readiness for introduction of fuel gas Mechanical completion / pr
Slide 19: FY25 guidance
FY25 guidance Production outcomes highly dependent on timing and ramp-up of Waitsia Gas Plant Production: 17.5 – 21.5 MMboe Capital expenditure: $700 – 800 million 12.5% 12.5% 10% ~5% Cooper Basin JV Cooper Basin JV Oil 30% Western Flank ~25% Western Flank 20% Growth2 ~40% Gas Otway Basin ~45% Otway
Slide 20: FY25 targets
FY25 targets Cost and breakeven targets as communicated with the strategic review FY25 Field operating costs: ~$14/boe1 FY25 Free cash flow breakeven oil price: ~US$30/bbl ~18% ➢ Operated plus non-operated ~44% field operating costs ➢ Average annual oil price at which ➢ Excludes tariffs, royalties a
Slide 21: Progress against strategic objectives
Progress against strategic objectives Pathway established to return Beach to being a low-cost operator FY24 milestones Strategic objectives ✓ Refreshed strategy ➢ Further cost and capital reduction targets ✓ New asset-based organisational structure o Reach 30% headcount reduction target by end-CY202
Slide 22: Wrap-up and Q&A
F Y 2 4 F U L L Y E A R R E S U LT S Wrap-up and Q&A Western Flank, Cooper Basin South Australia
Slide 23: Appendix
F Y 2 4 F U L L Y E A R R E S U LT S Appendix Enterprise wellsite, Victoria
Slide 24: Reconciliation of EBITDA and NPAT
Reconciliation of EBITDA and NPAT $ million FY23 FY24 Change Underlying EBITDA 982 950 (3%) Reversal of accrued acquisition costs 17 – Impairment of non-current assets – (1,099) Tariffs and tolls for NWS processing capacity – (51) Insurance recoveries – 31 Loss on disposal of non-current assets – (1
Slide 25: Perth Basin
Perth Basin Advantaged infrastructure to service West Coast domestic gas and global LNG markets Asset overview ▪ Interests: 50% interest and operator of L11 and L22 (Mitsui 50%); 50% interest in L1 and L2 (Mitsui 50% and operator) ▪ Assets: Waitsia Gas Plant (250 TJ/day capacity, under construction)
Slide 26: Otway Basin
Otway Basin Delivering new gas supply for the East Coast market Asset overview ▪ Interest: 60% interest and operator (O.G. Energy 40%) ▪ Assets: Otway Gas Plant (205 TJ/day capacity); Black Watch, Enterprise, Geographe, Halladale, Speculant and Thylacine gas fields; Artisan and La Bella gas discover
Slide 27: Western Flank
Western Flank Refreshing exploration inventory for potential future drilling campaigns Asset overview ▪ Interests: 100% interest and operator of PEL 91, PEL 104/111 and PEL 106; 75% interest and operator of PEL 92 (Cooper Energy 25%) ▪ Assets: Middleton Gas Plant (22 TJ/day capacity); 29 producing o
Slide 28: Cooper Basin JV
Cooper Basin JV Focusing on structural cost and capital expenditure reductions with the operator Asset overview ▪ Interest: Various non-operated interests (Santos operator)1 ▪ Assets: Moomba Gas Plant (310 TJ/day capacity); Moomba CCS (up to 1.7 Mtpa CO2 injection capacity, under construction); ~200
Slide 29: Bass Basin
Bass Basin Assessing potential for gas storage and gas peaking power Asset overview ▪ Interests: 100% interest and operator of T/L1, T/L5, T/RL4 and T/RL51 ▪ Assets: Lang Lang Gas Plant (67 TJ/day capacity); Yolla gas field; Trefoil, White Ibis and Bass gas discoveries ▪ FY24 production: 0.8 MMboe F
Slide 30: Taranaki Basin
Taranaki Basin Supporting New Zealand’s energy security Asset overview ▪ Interest: 50% interest and operator (Genesis Energy 46%, NZOG 4%) ▪ Assets: Kupe Gas Plant (77 TJ/day capacity); Kupe gas field ▪ FY24 production: 1.7 MMboe FY24 milestones ▪ Achieved three years recordable injury free ▪ Four-y
Slide 31: 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 & Treasury T: +61 8 8338 2833