Beach Energy Limited · ASX:BPT
Beach Energy — FY2023 Earnings Presentation
37 slides from Beach Energy's earnings presentation, Aug 14, 2023
Slide 1: FY23 Full Year Results: Delivering growth
FY23 Full Year Results rsonal use only Delivering growth 14 August 2023
Slide 2: Compliance statements
Compliance statements Disclaimer Assumptions This presentation contains forward-looking statements, including statements of current intention, opinion and predictions regarding FY24 guidance is uncertain and subject to change. FY24 guidance has been estimated on the basis of the following assumption
Slide 3: Beach Energy value proposition
Beach Energy value proposition ✓ Targeting delivery of a material uplift in production rates beyond FY24 rsonal use only ✓ Supplying key markets and supporting the energy transition with gas for firming renewables ✓ Strong financial position supported by Capital Management Framework ✓ Strengthening
Slide 4: Clear priorities
Clear priorities Delivering critical new gas supply rsonal use only Production Pipeline of Building unique Gas-supported growth targets organic growth market position transition ▪ Thylacine North wells ▪ Perth Basin gas ▪ Diversified in core regions ▪ 35% emissions intensity connected to OGP1 explor
Slide 5: Health, safety and environment
Health, safety and environment Strong safety outcomes during a year of elevated work activity Safety performance FY23 highlights rsonal use only 16 ✓ 45% reduction in TRIFR1 to 2.4 12 4.4 3.7 Total Recordable Injuries 4.5 2.1 2.4 8 12 ✓ Record six months recordable injury free across the organisatio
Slide 6: FY23 headline results
FY23 headline results Robust results during a year of major project delivery rsonal use only 19.5 MMboe 11% $1.6 billion 8% $1.0 billion 12% Production Sales revenue Underlying EBITDA $8.8 /GJ 9% 2.0 cps 100% $434m 4% Average realised Final dividend Year-end Net gearing gas and ethane price liquidit
Slide 7: FY23 key milestones
FY23 key milestones Growth projects being delivered rsonal use only Thylacine North 1 and 2 online Successful Cooper Basin drilling campaigns Moomba CCS 70% complete1 Waitsia drilling campaign completed Key milestones ✓ Enterprise pipeline installed Perth Basin exploration commenced Waitsia Gas Plan
Slide 8: Otway Basin offshore development
Otway Basin offshore development Successful offshore campaign has delivered new gas supply for the tight East Coast market rsonal use only Four development wells Largest offshore connected to OGP1 drilling campaign in the Otway Basin Well deliverability now ~170 TJ/day Longest horizontal 2023 APPEA
Slide 9: Waitsia Gas Plant
Waitsia Gas Plant Integral support from the Waitsia JV to mitigate contractor challenges rsonal use only Targeting Waitsia Gas Plant first gas mid-CY2024 $450 - 500 million capital expenditure forecast (net to Beach) bp LNG SPA for all Beach Waitsia LNG volumes to end 2028 (up to 3.75 Mt / ~200 mill
Slide 10: FY24 guidance
FY24 guidance Production guidance range reflects Otway demand variability and timing of major projects Production: 18.0 – 21.0 MMboe Capital expenditure: $850 – 1,000 million rsonal use only 12.5% 17.5% 12% Cooper Basin JV 20% Oil 8% 34% Western Flank Development Growth expenditure1 5% Otway Basin E
Slide 11: Progressing pipeline of opportunities
Progressing pipeline of opportunities Consortium rig secured for next phase of offshore Victoria activity1 Kupe South 9 rsonal use only online (H2 FY24) Production / capacity catalysts Kupe Exploration, appraisal and development Kupe South 9 drill Ongoing well connections Western Flank Western Flank
Slide 12: Reserves and resources
Reserves and resources Significant reserves and resources base MMboe 30-Jun-22 30-Jun-23 Change 2P Reserves at 30 June 2023 rsonal use only 1P reserves 2% 146 118 (19%) 7% Perth Basin 2P reserves 283 255 (10%) 7% 34% Cooper Basin JV 3P reserves 466 405 (13%) 255 Otway Basin 25% MMboe Western Flank 2
Slide 13: Financial results
F Y 2 3 F U L L Y E A R R E S U LT S Financial results rsonal use only
Slide 14: Production diversity from multi-basin strategy
Production diversity from multi-basin strategy Otway and Perth basins delivering higher gas and gas liquids exposure rsonal use only FY23 production: 19.5 MMboe Liquids Oil 33% 19% East Coast Condensate 6% gas 19.5 MMboe 51% 7% LPG 8% Gas 8% 67% NZ gas West Coast gas 14
Slide 15: Financial highlights
Financial highlights Robust results during a year of major project execution $ million (unless otherwise indicated) FY22 FY23 Change rsonal use only FY23 sales revenue: $1.6 billion Production (MMboe) 21.8 19.5 (11%) Sales volumes (MMboe) 22.4 20.7 (7%) Sales revenue 1,749 1,617 (8%) NZ West Coast g
Slide 16: Underlying NPAT movements
Underlying NPAT movements1 Reduced earnings on lower production, accelerated Cooper Basin JV activity and depreciation mix $ million rsonal use only Underlying NPAT down 24% due to: (125) ▪ Lower production and sales volumes 22 ▪ Higher cash costs mainly due to higher third (56) 30 party purchases a
Slide 17: Cash reserves movements
Cash reserves movements $221 million of pre-growth free cash flow for dividend determination1 $ million rsonal use only 295 Growth ▪ Operating cash flow down 24% to (484) expenditure $929 million o Net operating receipts down 16% to $1,102 million o Income tax payments up 13% to 929 $124 million (68
Slide 18: Financial position
Financial position Maintaining financial strength to complete major projects and fund increased returns Available Liquidity ($ million) rsonal use only 765 Successful debt facility refinance to $600 million ▪ Net debt of $166 million after a year of elevated growth capital expenditure 510 434 ▪ Net
Slide 19: Capital Management Framework
Capital Management Framework Final dividend declared of 2.0 cents per share (+100%) rsonal use only Diverse asset Balance capital Prudent financial portfolio and returns and future management revenue streams growth Capital Management Framework Deliver franked Continued Balance Continued investment r
Slide 20: Sustainability
F Y 2 3 F U L L Y E A R R E S U LT S Sustainability rsonal use only
Slide 21: Sustainability at Beach
Sustainability at Beach All actions have impact rsonal use only Environment Social Governance Reporting ▪ Emissions intensity reduction ▪ $1.7m contributions (monetary ▪ Board committee for oversight ▪ Work underway to develop and target of 35% by 2030 and volunteering hours) across 55 on all ESG ma
Slide 22: CCS to support sustainable growth and emissions reduction
CCS to support sustainable growth and emissions reduction Targeting 35% emissions intensity reduction by 2030 Moomba CCS on schedule for first CO2 injection in 2024 Progressing several early-stage sustainability initiatives rsonal use only ▪ Targeting up to 1.7 Mtpa CO2 storage (>0.5 Mtpa net to Bea
Slide 23: Markets
F Y 2 3 F U L L Y E A R R E S U LT S Markets rsonal use only
Slide 24: Supplying energy to key markets with strong fundamentals
Supplying energy to key markets with strong fundamentals Increasing energy supply to key markets East Coast gas market Global LNG West Coast gas market New Zealand gas market Global oil and liquids rsonal use only ▪ Beach currently ~12% market ▪ Beach currently ~2% market share ▪ Beach ~7% gas marke
Slide 25: East Coast Australia
East Coast Australia Structural gas supply shortfall expected to continue East Coast gas supply and demand, excluding LNG flows1 rsonal use only Gas remains fundamental for Australia’s energy transition 400 PJ/year 300 Reducing coal-fired power, intermittent renewable supply LNG imports and/or and g
Slide 26: Wrap-up and Q&A
F Y 2 3 F U L L Y E A R R E S U LT S Wrap-up and Q&A rsonal use only
Slide 27: Beach Energy value proposition
Beach Energy value proposition ✓ Targeting delivery of a material uplift in production rates beyond FY24 rsonal use only ✓ Supplying key markets and supporting the energy transition with gas for firming renewables ✓ Strong financial position supported by Capital Management Framework ✓ Strengthening
Slide 28: Appendix
F Y 2 3 F U L L Y E A R R E S U LT S Appendix rsonal use only
Slide 29: Other financial statement impacts
Other financial statement impacts Reconciliation of EBITDA and NPAT rsonal use only $ million FY22 FY23 Change Underlying EBITDA 1,111 982 (12%) Reversal of accrued acquisition costs – 17 Legal cost provision for shareholder class actions (5) – EBITDA 1,106 999 (10)% Depreciation and amortisation (3
Slide 30: Perth Basin
Perth Basin Exploring and developing prime acreage Asset overview rsonal use only ▪ Interests: 50% interest and operator of Beharra Springs (Mitsui 50%); 50% interest in Waitsia (Mitsui 50% and operator) ▪ Assets: Beharra Springs Gas Plant (24 TJ/day capacity); Xyris Gas Plant (28 TJ/day capacity);
Slide 31: Perth Basin gas exploration
Perth Basin gas exploration Outcomes may deliver commercialisation optionality Depth Planned Follow-on success activity Prospect (km MD) spud date rsonal use only Elegans1 3.2 Plugged and abandoned Gynatrix1 3.6 Production testing late 2023/early 2024 Trigg 1 4.8 Plugged and abandoned Confirmed Trig
Slide 32: Otway Basin
Otway Basin Investing in new gas supply to support the East Coast market Asset overview rsonal use only ▪ Interest: 60% interest and operator (O.G. Energy 40%) ▪ Assets: Otway Gas Plant (205 TJ/day capacity); Thylacine, Geographe, Speculant, Halladale and Black Watch gas fields; Enterprise, Artisan
Slide 33: Bass Basin
Bass Basin Development planning underway to increase production and extend asset life Asset overview rsonal use only ▪ Interests: 88.75% interest and operator of the Yolla field (Prize Petroleum 11.25%); 90.25% interest and operator of the Trefoil, White Ibis and Bass discoveries (Prize Petroleum 9.
Slide 34: Taranaki Basin
Taranaki Basin Approvals and rig secured for the Kupe South 9 development well Asset overview rsonal use only ▪ Interest: 50% interest and operator (Genesis Energy 46%, NZOG 4%) ▪ Assets: Kupe Gas Plant (77 TJ/day capacity); Kupe gas field ▪ FY23 production: 2.1 MMboe FY23 milestones ▪ No recordable
Slide 35: Western Flank oil and gas
Western Flank oil and gas Return to oil exploration and appraisal drilling in FY24 Asset overview rsonal use only ▪ Interests: 100% interest and operator of PEL 91, PEL 104/111 and PEL 106; 75% interest and operator of PEL 92 (Cooper Energy 25%) ▪ Assets: Middleton Gas Plant (30 TJ/day capacity); 29
Slide 36: Cooper Basin JV
Cooper Basin JV Ongoing development drilling and production optimisation Asset overview rsonal use only ▪ Interest: Various non-operated interests (Santos operator)1 ▪ Assets: Moomba Gas Plant 400 TJ/day capacity; ~200 producing oil and gas fields; depleted reservoirs for CCS ▪ FY23 production: 6.6
Slide 37: Beach Energy Limited
Beach Energy Limited Level 8, 80 Flinders Street Adelaide SA 5000 Australia T: +61 8 8338 2833 rsonal use only F: +61 8 8338 2336 beachenergy.com.au Investor Relations Derek Piper, General Manager Investor Relations T: +61 8 8338 2833