Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Barclays Energy-Power Conference 2014
25 slides from Bhp's conference presentation, Sep 3, 2014
Slide 1: ASX cover note: Barclays Energy-Power Conference
For personal use only BHP Billiton Limited BHP Billiton Plc 171 Collins Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1LH UK GPO BOX 86 Tel +44 20 7802 4000 Melbourne Victoria 3001 Australia Fax + 44 20 7802 4111 Tel +61 1300 55 47 57 Fax +61 3 9609 3015 bhpbilliton.com bhpbil
Slide 2: News release: Petroleum primed to deliver growth in free cash flow
NEWS RELEASE For personal use only Release Time IMMEDIATE Date 2 September 2014 Number 16/14 BHP BILLITON PETROLEUM PRIMED TO DELIVER SIGNIFICANT GROWTH IN FREE CASH FLOW BHP Billiton President Petroleum and Potash, Tim Cutt, will present today at the Barclays CEO Energy-Power Conference in New York
Slide 3: Media and investor relations contacts
Further information on BHP Billiton can be found at: www.bhpbilliton.com. Media Relations Investor Relations Australia Australia For personal use only Emily Perry Tara Dines Tel: +61 3 9609 2800 Mobile: +61 477 325 803 Tel: +61 3 9609 2222 Mobile: +61 499 249 005 email: Emily.Perry@bhpbilliton.com e
Slide 4: Onshore US: Primed to deliver significant growth in free cash flow
Onshore US For personal use only Primed to deliver significant growth in free cash flow Tim Cutt President, Petroleum and Potash 2 September 2014
Slide 5: Disclaimer: Forward-looking statements
Disclaimer For personal use only Forward-looking statements This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certa
Slide 6: Disclaimer: Petroleum resources
Disclaimer For personal use only Petroleum resources The estimates of petroleum reserves and contingent resources contained in this presentation are based on, and fairly represent, information and supporting documentation prepared under the supervision of Mr. A. G. Gadgil, who is employed by BHP Bil
Slide 7: Key themes
Key themes For personal use only • Our Petroleum portfolio is underpinned by large, high-quality, upstream assets • We have a clear strategy focused on value over volume • Our high-return brownfield investments will maintain stable Conventional volumes • Liquids opportunities with Tier-1 potential a
Slide 8: Delivering on our commitments
Delivering on our commitments For personal use only • BHP Billiton delivered strong operating and Productivity-led volume and cost efficiencies financial performance in FY14 (US$ billion) 4.0 • No fatalities and a record low TRIF1 of 4.2 per Target exceeded by US$1.1 billion million hours worked • O
Slide 9: A simpler and more productive organisation
A simpler and more productive organisation For personal use only BHP Billiton core portfolio1 Under review Operated Non-operated Minerals Western Australia Olympic Dam Escondida Pampa Norte Samarco Antamina Nickel West Iron Ore Queensland Coal2 NSW Energy Coal Jansen project Cerrejón New Mexico Coal
Slide 10: Delivering stronger growth and margins
Delivering stronger growth and margins For personal use only • The core portfolio generated stronger A higher margin business performance compared with the broader (Underlying EBIT margin, %) portfolio over the last 10 years 75 Core portfolio – production CAGR1 of 7% (versus 4%) BHP Billiton – Under
Slide 11: Focusing on value over volume in our Petroleum business
Focusing on value over volume in our Petroleum business For personal use only • Prioritising the highest return investment Greenfield project IRR opportunities in our Petroleum business (IRR, %) 30 – investment in our shale liquids acreage BHP Billiton (tight oil) generates strong returns near-term
Slide 12: A large, high-quality, upstream petroleum portfolio
A large, high-quality, upstream petroleum portfolio For personal use only Underlying EBIT & Underlying EBITDA (US$ billion) (margin, %) 35 100 28 80 21 60 14 40 7 20 0 0 FY11 FY12 FY13 FY14 Onshore US Petroleum EBIT BHP Billiton EBIT Petroleum EBITDA margin Gulf of Mexico Trinidad & Tobago Australia
Slide 13: High-return brownfield investments will maintain stable Conventional volumes
High-return brownfield investments will maintain stable Conventional volumes For personal use only • Australia and the Gulf of Mexico are our core Stable Conventional volumes producing regions with valuable infrastructure (MMboe) in place 200 150 • Capital expenditure of ~US$1.5 billion per annum is
Slide 14: Tier-1 oil potential in Trinidad and Tobago
Tier-1 oil potential in Trinidad and Tobago For personal use only • We have an established operational presence in BHP Billiton blocks Trinidad and Tobago with our shallow water Leads Angostura asset 28 29 • The deepwater is largely untested and has Tier-1 23a 14 oil potential Tobago 23b ~17,700 sq
Slide 15: Onshore US is primed to generate strong growth in free cash flow
Onshore US is primed to generate strong growth in free cash flow For personal use only • We have a premier acreage position over multiple shale plays • A capital expenditure program of approximately US$4 billion per annum will support strong growth in liquids production – expected to be strongly EBI
Slide 16: Building momentum in the Black Hawk
Building momentum in the Black Hawk For personal use only • We are a top producer in the Eagle Ford with Black Hawk production rates1 investment prioritised on liquids-rich acreage (gross, kboe/d) 200 – ~75% of our Onshore US drilling and development expenditure in FY14 was 150 focused on the Eagle
Slide 17: Extending our liquids runway in the Permian
Extending our liquids runway in the Permian For personal use only • We are leading the appraisal of the Wolfcamp with more than 70 wells drilled to date – extensive vertical and lateral appraisal of the resource • We increased our acreage position within our core focus area by 25% to ~74,000 acres •
Slide 18: Driving improved performance through productivity
Driving improved performance through productivity For personal use only • Repetitive, manufacturing nature of shale is Black Hawk drilling time per well1 ideally suited to our productivity agenda (days) 21% • Application of technology will ensure we achieve the best recoveries while being cost compe
Slide 19: We are the top performer in Black Hawk recovered reserves
We are the top performer in Black Hawk recovered reserves Black Hawk benchmarking data1 For personal use only • Using low-cost initiatives to maximise recoveries and unlock substantial value – restricted flows – optimal stage spacing – efficient proppant placement • We are best among peers in recove
Slide 20: Strong growth in high-margin liquids production
Strong growth in high-margin liquids production For personal use only • Total petroleum production increased by 4% FY15 production outlook in FY14 to 246 MMboe (MMboe) 260 – strong performance from Onshore US with 73% increase in liquids volumes 240 – near doubling of production at Atlantis to a rat
Slide 21: Key themes
Key themes For personal use only • Our Petroleum portfolio is underpinned by large, high-quality, upstream assets • We have a clear strategy focused on value over volume • Our high-return brownfield investments will maintain stable Conventional volumes • Liquids opportunities with Tier-1 potential a
Slide 22: For personal use only
édl bhpbilliton resourcing the future
Slide 23: Appendix
For personal use only Appendix
Slide 24: Glossary of selected terms
Glossary of selected terms For personal use only Reserves Those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria: They must
Slide 25: For personal use only
édl bhpbilliton resourcing the future