Beach Energy Limited · ASX:BPT
Beach Energy — Investor Presentation (October 2009)
23 slides from Beach Energy's investor presentation, Oct 21, 2009
Slide 1: For personal use only
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Slide 2: Disclaimer
Disclaimer For personal use only 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: The Great Financial Crisis
The Great Financial Crisis For personal use only A year in which many companies On the other hand, Beach • Experienced shrinking • Had record production of oil operations and gas • Delivered lower earnings • Had improved earnings • Announced lower profits • Announced a record profit • Increased its
Slide 4: Beach Overview – Basic Facts
Beach Overview – Basic Facts For personal use only • Market capitalisation: • 2P reserves of 66 MMboe $780 million* • Contingent resource base of • ASX200 E&P company 293 MMboe • Top 10 ASX Energy Index oil • Substantial, diverse and gas producer** exploration portfolio • Dividend yield: 3.8%* • Nil
Slide 5: FY09 – Stellar Operational Performance
FY09 – Stellar Operational Performance For personal use only • Record NPAT of $260 million: – Normalised NPAT of $64 million (21% increase on FY08) • Record sales revenue of $581 million • Record production of 9.6 MMboe: – Approx. 26,300 boed • FY09 dividend of 3.75 cents per share: – Interim divide
Slide 6: Recent Highlights
Recent Highlights For personal use only • Continued exploration success in Cooper Basin, especially Western Flank oil: – Eg: Butlers, Perlubie, Perlubie South and Chiton discoveries • Burnside -1 discovery in Browse Basin announced August 2009: – 65 metre gas column • Remain on track for first oil f
Slide 7: Where is the Oil Price Going?
Where is the Oil Price Going? For personal use only • World oil production expected to fall by 45MMb/d by 2030 • World energy demand expected to rise by 21MMb/d by 2030 • Alternative sources for liquid fuels are either – Not yet fully developed; – Not yet large enough; or – Not yet economic • All in
Slide 8: Global Portfolio
Global Portfolio For personal use only 1 Spain 2 Albania 3 Egypt 1 2 4 Tanzania Carnarvon & 3 5 Browse Basins 6 Arrowie Basin 7 Cooper Eromanga Basin 4 8 Otway & Bass Basins 10 5 9 Gippsland Basin 6 7 10 Papua New Guinea 9 8 11 11 New Zealand 8
Slide 9: Reserves & Resources
Reserves & Resources For personal use only 2P Reserves: 2P Reserves + Contingent 66 MMboe Resources: 359 MMboe Cooper / Eromanga Gippsland Egypt Gas Gas Liquids Oil 2P Reserves A solid and enviable base from which to grow 9
Slide 10: Exploration Snapshot
Exploration Snapshot For personal use only Drill-Ready / Near-Drill-Ready • Approx. 100 MMboe Prospects: October 2009 of drill-ready & near- Mean un-risked volumes MMboe (Beach share) 60 drill-ready prospects available in the next 50 few years 40 • Figure does not 30 include: 20 – Leads and immature
Slide 11: What Could The Future Hold?
What Could The Future Hold? For personal use only • Base business – developing existing reserves • Convert contingent resources to reserves • Ongoing (and material) exploration success • Acquisitions and divestments • New energy business opportunities Production Time Beach’s existing portfolio has t
Slide 12: Strategy & Key Objectives
Strategy & Key Objectives For personal use only • Consistent, targeted growth: – Long-term cash flow, production and reserves – Value driven investments • Thinking ahead of the pack: – Early entry, low risk, high return – Participation in emerging technologies and opportunities • Balanced exploratio
Slide 13: Cooper Basin – Top Shelf Acreage Position
Cooper Basin – Top Shelf Acreage Position For personal use only • Solid oil and natural gas production • Ongoing exploration success • Substantial long-term growth potential • 263 MMboe contingent natural gas resources • A potentially very large new gas play emerging 13
Slide 14: Cooper Basin Gas – "Unconventional" Gas
Cooper Basin Gas – “Unconventional” Gas For personal use only • Conventional natural gas is trapped in sands and carbonates that contain gas in interconnected pore spaces. • Unconventional natural gas is trapped in low permeability formations such as tight sands and carbonates, coal and shale. • The
Slide 15: Cooper Basin Gas – Advantages of Natural Gas
Cooper Basin Gas – Advantages of Natural Gas For personal use only • Low carbon, water and land-use intensity of gas- fired power generation • Australian resource base equivalent to several hundred years of use • Australia has an extensive and growing gas pipeline network • Gas is reliable and prove
Slide 16: Cooper Basin Gas – US Gas Industry Transformation
Cooper Basin Gas – US Gas Industry Transformation For personal use only • Unconventional gas Forecast Daily North American Gas Production consumption in the US has overtaken conventional gas • In 2008 US$35bn was spent on corporate deals aimed at shoring up unconventional gas resources • While the A
Slide 17: Cooper Basin Gas – Well Located For Gas Supply
Cooper Basin Gas – Well Located For Gas Supply For personal use only • It is expected that emissions reduction requirements will increase Australian demand for natural gas • Pipelines are in place to deliver gas from the Cooper Basin to NSW, Victoria and SA • Beach was an early entrant into CSG but
Slide 18: Beach's Exploration Strategy
Beach’s Exploration Strategy For personal use only • Objective is a balanced portfolio: – 60:30:10 risk profile (low / moderate / high) – Timeframe and cost for maturation – Equity participation • Low – moderate risk candidates are generally in the vicinity of proven production: – Eg: Cooper Basin &
Slide 19: Egypt – Overview & Outlook
Egypt – Overview & Outlook For personal use only • Highly prospective region with long established industry & favourable legislative & fiscal regime •Home to giant oil fields (>500 million barrels) (e.g., Morgan, July & Ramadan) •First oil production from North Shadwan concession (BPT 20%) expected
Slide 20: Egypt – ongoing opportunities
Egypt – ongoing opportunities For personal use only • Burtocal appraisal in FY10 • Teen-1 to be drilled FY10 in close proximity to NS 377 & 385 oil discoveries • Beach has established good relationships in Egypt and new opportunities are rapidly emerging 20
Slide 21: Tanzania – Overview & Outlook
Tanzania – Overview & Outlook For personal use only • Beach 100%* • Finalisation of Petroleum Sharing Agreement (PSA) in FY10 • Under-explored, emerging hydrocarbon province with high potential • Significant industry success in nearby analogous area (Uganda) • Potential for large (> 200+ MMbbl) disc
Slide 22: FY10 Outlook
FY10 Outlook For personal use only • Production guidance of approx. 9.0 MMboe • First oil from Egyptian ‘Nearshore fields’ in North Shadwan block • Key well: – Egypt : Teen-1 exploration well and Burtocal appraisal well • A few other things for investors to watch: – Cooper Basin ‘unconventional’ gas
Slide 23: For personal use only
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