Beach Energy Limited · ASX:BPT
Beach Energy — H1 FY2010 Earnings Presentation
28 slides from Beach Energy's earnings presentation, Feb 24, 2010
Slide 1: Announcement to ASX: December 2009 Half Year Results Webcast Presentation
For personal use only 24 February 2010 Ref: #015/10 The Manager, Companies ASX Ltd Companies Announcement Office Electronic Lodgement System Dear Sir, ANNOUNCEMENT TO ASX BEACH ENERGY LIMITED DECEMBER 2009 HALF YEAR RESULTS WEBCAST PRESENTATION Beach Energy Limited (ASX Code: BPT) wishes to inform s
Slide 2: December 2009 Half Year Results
For personal use only December 2009 Half Year Results 24 February 2010 December 2009 Half Year Results
Slide 3: Compliance statements
Compliance statements For personal use only Disclaimer • 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
Slide 4: Corporate framework
Corporate framework For personal use only • Accelerated growth: – Aim to double production and reserves – 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 opportunit
Slide 5: Near-term action plan
Near-term action plan For personal use only Cooper Basin • Undertake six well, Beach operated oil exploration drilling program • Evaluate large contingent gas resource Egypt - Gulf of Suez • Develop North Shadwan reserves - first production expected September quarter 2010 • Grow Egyptian portfolio w
Slide 6: FY 2010 achievements to date
FY 2010 achievements to date For personal use only • Successful drilling results: – Cooper Basin – Gulf of Suez – Browse Basin • Memorandums of Understanding signed in aid of commercialising shale gas resources • Rig secured for Holdfast-1 shale gas exploration well • Completed Paralana-2 geothermal
Slide 7: HY 2009 production
HY 2009 production For personal use only Area HY09 HY08 Oil (MMbbl) Cooper and Eromanga Basins 1.3 1.2 Gippsland Basin 0.1 0.4 Total Oil 1.4 1.6 Sales Gas (PJ) Surat Basin* 0.0 2.1 Sales Gas & Ethane (PJ) Cooper Basin 12.8 15.1 LPG (kt) Cooper Basin 23.2 26.7 Condensate (MMbbl) Cooper Basin 0.2 0.2
Slide 8: June 2009 reserves & resources
30 June 2009 reserves & resources For personal use only A solid and enviable base from which to grow 2P Reserves: 2P Reserves & Contingent 66 MMboe Resources: 359 MMboe Cooper / Eromanga Cooper Gippsland 2P Gippsland Egypt Other 7 December 2009 Half Year Results
Slide 9: Financial Overview
For personal use only Financial Overview Kathryn Presser, CFO 8 December 2009 Half Year Results
Slide 10: Overview of results
Overview of results For personal use only A steady result with our eye on the future HY09 Change Sales volume 5.0 MMboe (9%) Sales revenue $259.3 million (22%) Cash flow from operations $21.6 million (68%) Net profit after tax $33.9 million (73%) Underlying net profit $25.5 million (50%) Interim div
Slide 11: Debt & dividends
Debt & dividends For personal use only • Zero debt • $118 million cash on hand at 31 December 2009 • $25 million in undrawn financing facilities • Declared 0.75 cents per share partially franked interim dividend • Substantial franking credits available for future dividends • Total dividends of 3 cen
Slide 12: Net profit
Net profit For personal use only HY09 HY08 $million $million Net profit after tax 33.9 127.5 Remove unrealised commodity hedge loss / (gain) 0.7 (76.4) Remove hedge book close out - 16.9 Remove share sales (11.6) - Remove investment mark to market (1.1) 3.0 Remove FX on Egypt acquisition - (43.9) Ta
Slide 13: Net profit
Net profit For personal use only Underlying net profit after tax comparison 90 80 $8.3 $13.7 $19.3 70 $39.2 Borrowing 60 expense Other expenses $50.8 and revenue 50 $m Tax 40 30 $25.5 20 Gross profit $25.3 million 10 total decrease 0 HY08 HY09 12 December 2009 Half Year Results
Slide 14: Gross profit
Gross profit For personal use only Gross profit comparison 140 $7.8 $11.8 $15.6 $74.5 120 $23.7 Inventory 3rd party 100 purchases Cash $84.1 production 80 costs Depreciation $m 60 $44.9 40 Sales revenue 20 $39.2 million total decrease 0 HY08 HY09 13 December 2009 Half Year Results
Slide 15: Sales revenue
Sales revenue For personal use only Sales Revenue Comparison 400 $12.1 $1.5 $13.6 350 $333.9 $17.4 Gas/ethane $54.1 Third party prices Liquids prices 300 purchases A$/GJ US$/boe FX rates 2008 $4.71 2008 $82 AUD/USD $259.4 2009 $4.63 2009 $75 2008 $0.78 250 2009 $0.87 Volume / mix $m 200 150 $74.5 mi
Slide 16: Sales revenue
Sales revenue For personal use only • Sales revenue $259 million – down 22%: Oil Price 120 – Lower oil price 100 – Lower BMG production 80 – Sale of Tipton West A$/bbl 60 – Softer demand from gas 40 customers 20 • HY09 average gas price - $4.63/GJ – down 2% 2005/06 2006/07 2007/08 2008/09 2009/10 (H
Slide 17: Cash flow
Cash flow For personal use only Continuing strong cash position HY09 HY08 $million $million Opening cash balance 136.2 376.5 Cash from operations 21.6 67.8 Exploration and development (96.2) (141.6) Egyptian acquisition - (120.8) Proceeds from asset sales 68.7 - Repayment of borrowings - (39.1) Net
Slide 18: Current financial risk management
Current financial risk management For personal use only Currency Collars & Collars & Period Ceilings Ceilings • US$108 million (A$120.0 $A million $US million million) in foreign exchange FY 2010 $40.0 $36.0 hedged FY 2011 $80.0 $72.0 Total Hedged $120.0 $108.0 • Aim to hedge 50% of net USD exposure
Slide 19: Operations Outlook
For personal use only Operations Outlook Hector Gordon, CEO 18 December 2009 Half Year Results
Slide 20: Egypt: Gulf of Suez – Development wells completed
Egypt: Gulf of Suez – Development wells completed For personal use only • Two development wells successfully drilled: – 377-3: 144 metre oil column – 377-5: 107 metre oil column • First production September quarter 2010 • Initial production in excess of 3,000 bopd expected • Plan to drill NS385-2 la
Slide 21: Tanzania: East African Rift – Emerging 'big oil' province
Tanzania: East African Rift – Emerging ‘big oil’ province For personal use only • Under - explored, high potential region • Significant success in nearby analogous areas - Lake Albert area potential resource base > 2 billion barrels oil* • Recent multi billion dollar M&A deals in Uganda highlights r
Slide 22: Cooper Basin – Shale gas potential
Cooper Basin – Shale gas potential For personal use only • Early identification of Cooper Basin shale gas potential • Captured prospective acreage with high equity participation • Huge resource potential: – Comparable to combined NSW and Queensland coal seam gas volume • Access to multiple market op
Slide 23: Nappamerri Trough – Potential gas in place greater than Tcf
Nappamerri Trough – Potential gas in place greater than 200 Tcf For personal use only • Extensive and thick shale packages • Similar properties to the best US shale plays • Nappamerri Trough total area ~ 10,000 km2 • Potential gas in place 20 – 100 Bcf/km2 (50 – 250 Bcf/sq mile) • Beach has high equ
Slide 24: Why the Nappamerri Trough?
Why the Nappamerri Trough? For personal use only Geological properties Thick shale sequence 150m thick over 10,000 km2 Organically rich 5% Total Organic Carbon (TOC) Gas prone Proven Thermally Mature Proven Overpressure Proven Tight gas sands Potential upside Mechanical properties Suitability for fr
Slide 25: Indicative shale gas development timeline
Indicative shale gas development timeline For personal use only Vertical Exploration Well Holdfast-1 (Q3 2010) Design Pilot Production Well Q3 2010 / Q1 2011 Book Gas Resource Q2 2011 Pilot Production Well Drill Q2 2011 Frac Q4 2011 Test Q1 2012 Pilot Development Commence FY13 Book Gas Reserve Targe
Slide 26: FY 2010 capital requirements
FY 2010 capital requirements For personal use only FY10 Forecast $million Development capital Cooper Basin 87 BMG 25 Egypt 8 Total development capital 120 Exploration capital Australasia 75 International and new ventures 8 Total exploration capital 83 Total capital 203 25 December 2009 Half Year Res
Slide 27: Outlook
Outlook For personal use only • FY 2010 production guidance approximately 8.0 MMboe • Key wells: • 2010 - six well Beach operated Cooper Basin oil program • Q3 2010 - PEL 218, Holdfast-1 shale gas exploration well • 2H 2010 – Egypt, North Shadwan NS385-2 development well • A couple of other things f
Slide 28: December 2009 Half Year Results
For personal use only December 2009 Half Year Results December 2009 Half Year Results