Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Barclays CEO Energy & Power Conference 2012
35 slides from Bhp's conference presentation, Sep 5, 2012
Slide 1: Barclays CEO Energy & Power Conference
For personal use only Barclays CEO Energy & Power Conference J. Michael Yeager Chief Executive, BHP Billiton Petroleum 4 September 2012
Slide 2: Disclaimer
Disclaimer For personal use only Reliance on Third Party Information The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of
Slide 3: Agenda
Agenda For personal use only Corporate overview Petroleum overview Conventional business Onshore US shale Exploration FY13 outlook J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012 Slide 3
Slide 4: A diversified global portfolio
A diversified global portfolio For personal use only Petroleum Base Metals Metallurgical Coal Iron Ore A significant oil and gas exploration One of the world’s largest producers of silver, Produce and market high quality hard coking One of the world’s premier suppliers of iron ore and production bus
Slide 5: Four large businesses, including Petroleum
Four large businesses, including Petroleum For personal use only FY12 Corporate Results Petroleum Underlying EBIT US$27.2 billion Iron Ore Net Operating Cash Flow US$24.4 billion Dividend per share US 112 cents Petroleum Underlying EBIT US$6.3 billion Base Metals Metallurgical Coal J. Michael Yeager
Slide 6: Agenda
Agenda For personal use only Corporate overview Petroleum overview Conventional business Onshore US shale Exploration FY13 outlook J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012 Slide 6
Slide 7: A continuously growing business
A continuously growing business For personal use only Volumes (BHP Billiton net share, Mboe/d) • In the past five years: 700 Conventional – Volumes grown to more Shale than 600 Mboe/d 600 – Underlying EBIT grown to 500 over US$6 billion 400 – Workforce population doubled to 4,000 300 • Proved reserv
Slide 8: World class portfolio and good fiscal terms
World class portfolio and good fiscal terms For personal use only Onshore US Shale ~270 Mboe/d International ~75 Mboe/d Eagle Ford Permian UK Fayetteville Haynesville Gulf of Mexico Algeria Pakistan ~90 Mboe/d Trinidad and Tobago Australia ~215 Mboe/d Shenzi Neptune North West Shelf Bass Strait Atla
Slide 9: Outstanding safety performance
Outstanding safety performance For personal use only Conventional business safety performance • Best ever TRIF in the (Total Recordable Incident Frequency) conventional business 10 during FY12 at 1.34 9 • New US onshore business 8 significantly lagging in 7 performance 6 5 • Now embedding our HSE 4
Slide 10: Continuous 100% proved reserve replacement
Continuous 100% proved reserve replacement For personal use only Proved reserve replacement ratio • +100% proved reserve (%) 376% 429% replacement delivered for the 170% Including Onshore US acquisitions past five years, excluding additions from acquisitions 150% • Significant resource additions fro
Slide 11: Focused on the fundamentals that drive results
Focused on the fundamentals that drive results For personal use only Unit cash operating costs • Highly competitive unit costs, (BHP Billiton net share, US$/boe) both cash and non-cash 20 Peer group1 BHP Billiton while maintaining high HSE standards 10 • Outstanding uptime at 0 operated facilities F
Slide 12: Continuing to lead drilling performance in the deepwater Gulf of Mexico
Continuing to lead drilling performance in the deepwater Gulf of Mexico For personal use only Average drill time per 1,000 ft (Deepwater Gulf of Mexico, subsalt, days) 8 Others BHP Billiton 6 4 2 0 Pre-moratorium Post-moratorium Source: Rushmore Associates’ The Rushmore Reviews, Scout Tickets and BH
Slide 13: Agenda
Agenda For personal use only Corporate overview Petroleum overview Conventional business Onshore US shale Exploration FY13 outlook J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012 Slide 13
Slide 14: Shenzi – premier BHP Billiton operated facility in the Gulf of Mexico
Shenzi – premier BHP Billiton operated facility in the Gulf of Mexico For personal use only • Still producing over 100 Mboe/d (100% basis) after three years • Outstanding operational performance with 94% average uptime over the past three years • Achieved first water injection in May 2012 aimed at i
Slide 15: Atlantis and Mad Dog ramping-up with major volume growth ahead
Atlantis and Mad Dog ramping-up with major volume growth ahead For personal use only • Atlantis offline through Q4 FY12 to Atlantis Mad Dog complete subsea manifold replacement project • Mad Dog offline throughout entire FY12 for rig replacement and substantial maintenance scope • Both facilities no
Slide 16: Expanding our strong position in Australia
Expanding our strong position in Australia For personal use only • Strong base of legacy assets at Pyrenees Bass Strait and North West Shelf, both with major field developments underway • Continued development of large Pyrenees oil field in Western Australia • New volumes from Macedon, with start up
Slide 17: International operations are material and continue to deliver strong performance
International operations are material and continue to deliver strong performance For personal use only • Material contribution to Petroleum Production at international operations (Mboe/d) volumes and earnings 200 BHP Billiton net Non-operator share • Significant recent growth in Trinidad with on-tim
Slide 18: Agenda
Agenda For personal use only Corporate overview Petroleum overview Conventional business Onshore US shale Exploration FY13 outlook J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012 Slide 18
Slide 19: Large, high quality and flexible Onshore US shale position
Large, high quality and flexible Onshore US shale position For personal use only Total resources by field at 30 June, 2012 (billions of barrels of oil equivalent) 4 Proved Probable, possible and contingent 3 Eagle 2 Permian Ford 1 0 Haynesville Eagle Ford Fayetteville Permian • Approximately 1.6 mil
Slide 20: Near-term activity has shifted to liquids
Near-term activity has shifted to liquids For personal use only Gross operated rigs • Aggressively pursuing (average rig count) Eagle Ford development 30 January 2012 • Fully appraising the Permian June 2012 • Dry gas activity at reduced 20 level to preserve opportunities and maintain capability • P
Slide 21: Eagle Ford acreage is among the best in industry
Eagle Ford acreage is among the best in industry For personal use only NPV and acreage of Eagle Ford operators • Strong rates of return with (relative terms, BHP Billiton indexed to 1.0) many individual wells 2.0 exceeding 100% • Average single well payback 1.5 is under one year Relative acreage BHP
Slide 22: Size and scale of Eagle Ford opportunity is unprecedented
Size and scale of Eagle Ford opportunity is unprecedented for BHP Billiton Petroleum For personal use only Actual and estimated production Single well liquids production (Black Hawk) (BHP Billiton net share, Mboe/d) (gross barrels of oil per day) 350 2,000 BHP Billiton Petroleum Forecast Eagle Ford
Slide 23: Significant near-term infrastructure expansion underway in the Eagle Ford
Significant near-term infrastructure expansion underway in the Eagle Ford For personal use only • Six new processing plants planned LEGEND Black Hawk Central CDP Black Hawk NE CDP Existing • Significant added capacity: facility Planned – 100 Mb/d liquids Karnes CDP facility Black Hawk SW CDP – 1 Bcf
Slide 24: Now appraising the liquids rich Permian
Now appraising the liquids rich Permian For personal use only 18 day single well flow back test • Significant appraisal program (oil, bo/d) (wet gas, Mcf/d) ongoing and encouraging 600 7,200 results to date Oil Wet gas • Acreage up from 378,000 at 500 6,000 the time of the acquisition to over 440,00
Slide 25: BHP Billiton's dry gas shale properties are among the lowest cost in the US
For personal use only Lance Pinedale Fruitland Granite Wash Niobrara Codell Eagle Ford - Wet Olmos Lance Jonah Montney Duvernay Shale Mesaverde Coals Source: Wood Mackenzie, 2012. Marcellus Southwest Fayetteville Arkoma Woodford Horn River Fayetteville Selma Chalk Marcellus Northeast Anadarko Woodfo
Slide 26: Industry best Haynesville acreage delivers strong forward returns
Industry best Haynesville acreage delivers strong forward returns at current prices For personal use only Haynesville acreage position • Core acreage delivers very (Estimated Ultimate Recovery bands) strong per well recoveries, with some in excess of 20 bcf • +20% forward rates of returns, even at c
Slide 27: Fayetteville opportunity remains strong as US natural gas prices recover
Fayetteville opportunity remains strong as US natural gas prices recover For personal use only • Large and proven resource • Near-term activity focused on opportunity preservation and operational momentum • Already realising significant Proved areas operational improvements which will reduce costs a
Slide 28: Onshore US shale will be an essential element of Petroleum's long term strategy
Onshore US shale will be an essential element of Petroleum’s long term strategy For personal use only • Material and highly expandable • Strong returns and fast payback • Significant flexibility to respond to market conditions • Multiple upside opportunities • Leverages existing strengths in safety,
Slide 29: Agenda
Agenda For personal use only Corporate overview Petroleum overview Conventional business Onshore US shale Exploration FY13 outlook J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012 Slide 29
Slide 30: Material and focused exploration program
Material and focused exploration program – multiple high impact wells planned for FY13 For personal use only India Southeast Asia Gulf of Mexico • Leveraging industry • World class basin • Production heartland leading technology to • Leading industry into • World class basin with evaluate new plays
Slide 31: Agenda
Agenda For personal use only Corporate overview Petroleum overview Conventional business Onshore US shale Exploration FY13 outlook J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012 Slide 31
Slide 32: US$6.5 billion capital program planned for FY13
US$6.5 billion capital program planned for FY13, with shale liquids representing the largest component For personal use only Development capital • Conventional spend driven by: (BHP Billiton net share, US$ millions) 7,000 – Projects in execution Conventional Shale – Development drilling in GoM 6,000
Slide 33: FY13 volume target driven by growth in liquids
FY13 volume target of 240 MMboe driven by growth in liquids For personal use only Volumes • 8% volume growth expected (BHP Billiton net share, MMboe) into FY13, driven by 15% 250 expected liquids growth Gas Liquids • Gas roughly flat as Macedon 200 and North West Shelf offset 15% liquids lower shale
Slide 34: Key themes
Key themes For personal use only • Large growing business in one of the world’s largest corporations • Outstanding track record of operated performance • Onshore US activity shifted to liquids • Additional oil volumes from return to work at Atlantis and Mad Dog • Shale dry gas resources remain stron
Slide 35: For personal use only
édl bhpbilliton resourcing the future
BHP Billiton — Barclays CEO Energy & Power Conference 2012 on 6ix