Beach Energy Limited · ASX:BPT
Beach Energy — H1 FY2016 Earnings Presentation
23 slides from Beach Energy's earnings presentation, Feb 26, 2016
Slide 1: FY16 Half Year Results
FY16 Half Year Results 26 February 2016
Slide 2: Compliance statements
Compliance statements Disclaimer This presentation contains forward looking statements that are subject to risk factors associated with oil, gas and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variable
Slide 3: Overview
Overview Neil Gibbins – Acting Chief Executive Officer
Slide 4: H1 FY16 highlights
H1 FY16 highlights Strengthened Cooper Basin platform through merger with Drillsearch ─ All approvals obtained; integration to commence 1 March 2016 Ex PEL 91 oil production up 10% due to well connections and investment in infrastructure Exploration success, including five gas field discoverie
Slide 5: H1 FY16 operations overview
H1 FY16 operations overview • Production of 4.5 MMboe (-5%) Production – Higher ex PEL 91 oil production (+10%) kboe H1 FY15 H1 FY16 % – Gas well stock sustaining production Oil 2,420 2,277 (6%) Gas 1,975 1,904 (4%) • Successful Windorah Trough exploration Gas liquids 390 350 (10%) and well connecti
Slide 6: FY16 outlook
FY16 outlook • Completion of Drillsearch integration Activities underpinned by • High-grading of enlarged exploration four-pillar growth strategy portfolio; FY17 drilling program confirmed • Western Flank field development activities Optimise our core in the Cooper Basin and tie-in of well stock • D
Slide 7: Financial
Financial Kathryn Presser – Chief Financial Officer
Slide 8: H1 FY16 financial overview
H1 FY16 financial overview • Sales volumes of 5.1 MMboe (-11%) Half Year Comparison $ million – Lower production and third party sales; 600 higher gas volumes to storage 500 • Results impacted by 49% price decline1 – Sales revenue: $272 million (-36%) 400 – Underlying NPAT: $9 million (-88%) 300 • S
Slide 9: Sales revenue
Sales revenue Lower revenue mainly driven by 49% decline in average US$ oil and liquids price 9
Slide 10: Underlying NPAT
Underlying NPAT • Underlying NPAT of $9.4 million, down $ million Underlying NPAT 88%, mainly due to: 158.1 160 – 49% reduction in average realised US$ oil and liquids price; and 120 – Sale of higher-cost inventory, – Partly offset by lower depreciation and operating cash costs 80 77.3 60.9 • Ongoin
Slide 11: Impairments
Impairments • Area of interest approach for impairment Non-cash Impairments (Before Tax) testing Category $ million • Impairments reflect lower oil prices and Producing interests 525 deferral of certain development plans Exploration interests 83 • Impairments primarily relate to: Financial assets 26
Slide 12: Operations
Operations Mike Dodd – Acting Chief Operating Officer
Slide 13: Production by area
Production by area Area H1 FY15 H1 FY16 Change Cooper / Eromanga basins 2,370.2 2,189.2 (8%) Oil (kbbl) Egypt 49.5 87.8 77% Total oil 2,419.7 2,277.0 (6%) Cooper Basin 11.5 10.9 (5%) Sales gas and ethane (PJ) Egypt - 0.2 - LPG (kt) Cooper Basin 24.2 21.8 (10%) Condensate (kbbl) Cooper Basin 198.9 17
Slide 14: Operating results
Operating results • Production of 4.5 MMboe (-5%) Actual and Forecast Production MMboe – Higher ex PEL 91 production and strong 10.0 9.6 gas performance broadly offset natural 9.1 8.0 – 8.6 field decline 8.0 8.0 Gas* • Production mix: 50% oil / 50% gas and gas Gas* 1.8-2.0 4.4 Gas* (10-12 PJe) liqui
Slide 15: H1 FY16 capital expenditure and guidance
H1 FY16 capital expenditure and guidance Capital Expenditure Actual FY16 Guidance ($ million) H1FY15 H1 FY16 Original Revised DEVELOPMENT Cooper Basin (non-SACB and SWQ JVs) 20 10 45 – 50 20 – 30 Cooper Basin (SACB and SWQ JVs) 150 83 145 – 160 115 – 130 Other Development 5 – – – Total Development 1
Slide 16: Windorah Trough program
Windorah Trough program • Five-well exploration program completed – Five new field discoveries – Results encouraging for further drilling in Greater Whanto Structure • Fracture stimulation and flow testing of two exploration wells in H2 FY16 • Pipeline installations completed – Previously stranded f
Slide 17: Ex PEL 106 gas liquids
Ex PEL 106 gas liquids • Subsequent to period end, Middleton East-1 Ex PEL 106 (PRL 129 and 130) exploration well cased and suspended – c.9 metres of gas pay over multiple zones • Second well of campaign, Depps-1, plugged and abandoned • Ralgnal-1 and Udacha-1 expected online in Q4 FY16 • Middleton
Slide 18: Drillsearch Merger Update
Drillsearch Merger Update Neil Gibbins – Acting Chief Executive Officer
Slide 19: Merger status and next steps
Merger status and next steps A well supported transaction Integration to focus on cost reductions and portfolio optimisation Scheme of Arrangement Process Steps Post Implementation Confirm optimal organisation structure Agree merger terms Confirm executive and management teams First Court appr
Slide 20: Indicative integration timeline
Indicative integration timeline Large portion of expected $20 million in synergies to be realised in FY17 Key Work Streams March April May June FY17 Executive / management teams in place Rationalise duplicated headcount Detailed technical review of acreage Preparation of FY17 drilling program Closur
Slide 21: Drillsearch acreage
Drillsearch acreage Complementary acreage to increase production and exploration opportunities Full ownership of Western Flank oil and gas permits − Ex PEL 91, 106 Expanded gas and gas liquids footprint High-grading of enlarged exploration footprint Unconventional acreage adjacent to NTNG
Slide 22: Combined Cooper Basin acreage
Combined Cooper Basin acreage Dominant position in the Cooper Basin with gross acreage of c.69,000 km2 22
Slide 23: Contact information
Contact information Beach Energy Limited 25 Conyngham Street Glenside SA 5065 Tel: +61 8 8338 2833 Fax: +61 8 8338 2336 Website: www.beachenergy.com.au Investor Relations Derek Piper Investor Relations Manager Email: derek.piper@beachenergy.com.au 23