Beach Energy Limited · ASX:BPT
Beach Energy — Shareholder Meeting (November 2019)
45 slides from Beach Energy's shareholder meeting presentation, Nov 26, 2019
Slide 1: Annual General Meeting
26 NOVEMBER 2019 ANNUAL GENERAL MEETING
Slide 2: Compliance statements
Compliance statements Disclaimer Assumptions This presentation contains forward looking statements that are subject to risk factors associated with oil, gas and The five year outlook set out in this presentation is not guidance. The outlook is uncertain and subject to change. The related businesses.
Slide 3: Chairman's Address
G L E N N D AV I S Chairman’s Address
Slide 4: Delivering sustainable growth in shareholder value
Delivering sustainable growth in shareholder value FY19 results: • Record safety performance • Record process safety performance • Record production • Statutory NPAT of $577 million • Payback of $950 million in debt 4
Slide 5: Delivering on our strategy: With the community
Delivering on our strategy: With the community • We are growing our contribution to the good of our broader stakeholders • Supporting 38 community organisations, including: • RFDS • Port Campbell SLSC • SAHMRI • Zoos SA 5
Slide 6: Delivering on our strategy: Safely and environmentally consciously
Delivering on our strategy: Safely and environmentally consciously • We are committed to playing our role in a lower emissions future • Adopted recommendations from TCFD • Commenced emission reduction projects Gas supplied by Beach is playing a critical role in lowering emissions 6
Slide 7: Our people
Our people • Continuing to execute against our goal of delivering strong shareholder returns requires the best people 7
Slide 8: Managing Director's Address
M AT T K AY Managing Director’s Address
Slide 9: FY19: A year of accelerated growth
FY19: A year of accelerated growth FY19 highlights ▪ $447 million investment ▪ 134 wells drilled ▪ 84% overall drilling success rate ▪ 29.4 MMboe production ▪ Largest Australian oil producer ▪ Supplied more than 15% of Australian East Coast and New Zealand domestic gas markets 9Beharra Springs owner
Slide 10: Delivering on our promises
Delivering on our promises Beach said…. In FY19 Beach delivered… FY19 production1 26 – 28 MMboe ✓ 29.4 MMboe FY19 capital expenditure1 $460 – 540 million ✓ $447 million FY19 free cash flow2 ~$290 million ✓ $559 million FY19 underlying EBITDA2 $1.1 – 1.2 billion ✓ $1.375 billion Return on capital emp
Slide 11: HSE Performance
HSE Performance Lattice acquisition safely integrated Safety performance Environmental performance2 TRIFR1 16 Crude Spill Volumes (kl) 15.6 12 51.9 7.9 99.9% 8 9.6 4 3.5 3.4 3.8 0.2 0.1 0.07 0 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Focus on HSE delivering best performance to date Process
Slide 12: Investing to accelerate production and free cash flow growth
Investing to accelerate production and free cash flow growth Beach is now targeting …and cumulative free cash flow3 …by accelerating investment in 34–40MMboe annual production of more than $2.7 billion over our expanded growth portfolio in the medium term… the next 5 years… Production outlook1 Free
Slide 13: FY20 guidance
FY20 guidance FY19 Reported1 FY19 Pro Forma1 FY20 Guidance Production 29.4 MMboe 26.2 MMboe 27 – 29 MMboe Capital Expenditure2 $447 million $435 million $750 – 850 million Underlying EBITDA $1.375 billion $1.22 billion $1.25 – 1.40 billion DD&A3 $523 million ($17.8/boe) $443 million ($16.9/boe) $17-
Slide 14: FY20 capital expenditure guidance splits
FY20 capital expenditure guidance splits Investment focus remains on Cooper Basin and Victoria Increase in FY20 vs FY19 driven by Capital expenditure by type …by asset group 5% • Participation in up to 194 wells (FY18: 134 wells) 4% 14% 4% 29% o Western Flank (~84 wells doubling FY19) 26% o Cooper B
Slide 15: Western Flank Oil
Western Flank Oil Record year of investment and drilling activity planned in FY20 FY19 production FY20 proposed activities Western • ~$200 million to be invested in Western Flank Flank Oil oil, a record for Beach 5.2 MMboe 29.4 • Up to 77 oil wells to be drilled in FY20, including: MMboe • 36 explor
Slide 16: East coast gas supply
East coast gas supply Beach investing almost two thirds of growth capex into new East Coast gas supplies Southeastern Australia gas demand vs production1 600 SA Otway 500 • Constructing 10 TJ/day Katnook gas facility 400 Supply gap expected to be met by • Haselgrove-4 and Dombey-1 LNG diversions and
Slide 17: Perth Basin
Perth Basin Waitsia (Beach 50%), Beharra Springs (Beach 50%1 and operator) FY19 production FY20 Focus: Perth Basin • Commence construction of Waitsia Stage 1 0.7 MMboe expansion 29.4 • FID on Waitsia Gas Project Stage 2 targeting MMboe 100 – 250 TJ/day output Rest of • Trieste 3D seismic survey Beac
Slide 18: Frontier Exploration
Frontier Exploration High Impact Exploration Targets in Portfolio Ironbark – Carnarvon Basin (Beach 21% interest) Wherry – Canterbury Basin (Beach 37.5% interest) • Large liquids-rich gas prospect with follow-up potential • Drilling planned FY21, subject to rig availability • Beach share of drilling
Slide 19: Beach illustrative rig schedule
Beach illustrative rig schedule1 Beach to employ 10 rigs in FY20, up from 5 in at the start FY19 H1 FY20 H2 FY20 H1 FY21 Non-operated rig (Santos operator) Non-operated rig (Santos operator) Cooper Basin JV Non-operated rig (Santos operator) Non-operated rig (Santos operator) Operated rig (oil devel
Slide 20: Beach as a growth company
Beach as a growth company • Beach’s portfolio has substantial highly accretive investment opportunities • More than 90% of investment commencing in FY20 is expected to generate > 50% rates of return • Increased investment is expected to drive medium term production and free cash flow • Beach is a gr
Slide 21: Key takeaways
Key takeaways Beach is ahead of schedule and delivering on its promises ✓ Expanded value-accretive portfolio (90% of growth projects deliver IRRs > 50%) Ready to accelerate growth ✓ Strong balance sheet position ($172 million cash at 30 June 2019) ✓ Target development of 169 MMboe undeveloped 2P res
Slide 22: Annual General Meeting Q&A
ANNUAL GENERAL MEETING Q&A
Slide 23: Resolutions for Voting
ANNUAL GENERAL MEETING Resolutions for Voting
Slide 24: Proxy Votes
Proxy Votes • Beach has received 1,184,389,328 valid proxy votes • Represents 51.97% of total votes 24
Slide 25: Financial Statements
Financial Statements • The first item of business is to receive and consider the financial statements and the reports of the directors and auditor for the financial year ended 30 June 2019 25
Slide 26: Adoption of the Remuneration Report
Resolution 1 Adoption of the 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 2019 be adopted.” 26
Slide 27: Adoption of the Remuneration Report
Resolution 1 Adoption of the Remuneration Report Total Valid For Against Open-Usable Available Abstain Votes 1,159,076,867 20,017,189 5,295,272 1,184,389,328 2,453,748 Adoption of remuneration report 97.86% 1.69% 0.45% 100.00% 27
Slide 28: Re-election of Philip Bainbridge as a director
Resolution 2 Re-election of Philip Bainbridge as a director • To consider and, if thought fit, pass the following resolution as an ordinary resolution: "That Philip Bainbridge, who retires by rotation pursuant to clause 13.3 of the Beach constitution and ASX Listing Rule 14.4 and, being eligible, of
Slide 29: Re-election of Philip Bainbridge as a director
Resolution 2 Re-election of Philip Bainbridge as a director Total Valid For Against Open-Usable Available Abstain Votes 1,156,571,431 24,628,906 5,309,552 1,186,509,889 719,503 Re-election of Philip Bainbridge 97.47% 2.08% 0.45% 100.00% 29
Slide 30: Re-election of Colin Beckett as a director
Resolution 3 Re-election of Colin Beckett as a director • To consider and, if thought fit, pass the following resolution as an ordinary resolution: "That Colin Beckett, who retires by rotation pursuant to clause 13.3 of the Beach constitution and ASX Listing Rule 14.4 and, being eligible, offers him
Slide 31: Re-election of Colin Beckett as a director
Resolution 3 Re-election of Colin Beckett as a director Total Valid For Against Open-Usable Available Abstain Votes 1,115,066,925 65,730,838 5,314,539 1,186,112,302 1,117,090 Re-election of Colin Beckett 94.01% 5.54% 0.45% 100.00% 31
Slide 32: Re-election of Peter Moore as a director
Resolution 4 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 13.3 of the Beach constitution and ASX Listing Rule 14.4 and, being eligible, offers himself
Slide 33: Re-election of Peter Moore as a director
Resolution 4 Re-election of Peter Moore as a director Total Valid For Against Open-Usable Available Abstain Votes 1,153,926,151 25,572,912 7,017,997 1,186,517,060 722,332 Re-election of Peter Moore 97.25% 2.15% 0.60% 100.00% 33
Slide 34: Election of Matthew Kay as a director
Resolution 5 Election of Matthew Kay as a director • To consider and, if thought fit, pass the following resolution as an ordinary resolution: "That Matthew Kay, who was appointed as a director subsequent to the last annual general meeting of Beach and being eligible, offers himself for election, is
Slide 35: Election of Matthew Kay as a director
Resolution 5 Election of Matthew Kay as a director Total Valid For Against Open-Usable Available Abstain Votes 1,168,298,148 12,482,608 5,383,669 1,186,164,425 1,064,967 Election of Matthew Kay 98.49% 1.05% 0.46% 100.00% 35
Slide 36: Election of Sally-Anne Layman as a director
Resolution 6 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 was appointed as a director subsequent to the last annual general meeting of Beach and being eligible, offers herself for
Slide 37: Election of Sally-Anne Layman as a director
Resolution 6 Election of Sally-Anne Layman as a director Total Valid For Against Open-Usable Available Abstain Votes 1,133,945,683 46,394,221 5,337,942 1,185,677,846 1,551,546 Election of Sally-Anne Layman 95.64% 3.91% 0.45% 100.00% 37
Slide 38: Approval of securities issue to Matthew Kay: 2018 STI Offer
Resolution 7 Approval of the issue of securities to Matthew Kay under the Beach 2018 STI Offer • 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 performance righ
Slide 39: Approval of securities issue to Matthew Kay: 2018 STI Offer
Resolution 7 Approval of the issue of securities to Matthew Kay under the Beach 2018 STI Offer Total Valid For Against Open-Usable Available Abstain Votes Approval of the 1,172,909,217 7,478,954 5,202,876 1,185,591,047 1,638,345 issue of securities to Matthew Kay under the Beach 98.93% 0.63% 0.44% 1
Slide 40: Approval of securities issue to Matthew Kay: 2019 LTI Offer
Resolution 8 Approval of the issue of securities to Matthew Kay under the Beach 2019 LTI Offer • 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 performance righ
Slide 41: Approval of securities issue to Matthew Kay: 2019 LTI Offer
Resolution 8 Approval of the issue of securities to Matthew Kay under the Beach 2019 LTI Offer Total Valid For Against Open-Usable Available Abstain Votes Approval of the 1,170,570,495 9,625,551 5,333,143 1,185,529,189 1,700,203 issue of securities to Matthew Kay under the Beach 98.74% 0.81% 0.45% 1
Slide 42: Adopt a new constitution
Resolution 9 Adopt a new constitution • To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That for the purposes of sections 136(2) and 648G(4) of the Corporations Act 2001 (Cth) and for all other purposes, the constitution submitted to this meeting and signed
Slide 43: Adopt a new constitution
Resolution 9 Adopt a new constitution Total Valid For Against Open-Usable Available Abstain Votes 1,176,837,886 2,320,581 5,628,066 1,184,786,533 2,442,859 Adopt a new constitution 99.32% 0.20% 0.48% 100.00% 43
Slide 44: Questions and meeting close
ANNUAL GENERAL MEETING Questions and meeting close
Slide 45: Beach Energy Limited Investor Relations
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 Nik Burns, Investor Relations Manager Mark Hollis, Investor Relations Advisor T: +61 8 8338 2833