Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — Merger or Acquisition (August 2021)
32 slides from Woodside Energy's merger presentation, Aug 17, 2021
Slide 1: Woodside Merger Teleconference and Investor Presentation
ASX Announcement Woodside Petroleum Ltd. ACN 004 898 962 Mia Yellagonga Tuesday, 17 August 2021 11 Mount Street Perth WA 6000 ASX: WPL Australia OTC: WOPEY T +61 8 9348 4000 www.woodside.com.au WOODSIDE MERGER TELECONFERENCE AND INVESTOR PRESENTATION A teleconference providing an overview of the pro
Slide 2: Woodside and BHP Petroleum Merger Investor Presentation
WOODSIDE AND BHP PETROLEUM MERGER INVESTOR PRESENTATION 17 August 2021 www.woodside.com.au investor@woodside.com.au
Slide 3: Disclaimer, important notes and assumptions
INTRODUCTION Disclaimer, important notes and assumptions Transaction and presentation of information on a pro forma, post-merger basis • Shareholders and investors should also note that there is no assurance that the due diligence conducted was conclusive, and that all material issues and risks in r
Slide 4: Disclaimer, important notes and assumptions
INTRODUCTION Disclaimer, important notes and assumptions Forward looking statements Key assumptions • This presentation contains forward-looking statements. The words ‘anticipate’, ‘believe’, ‘aim’, The following assumptions apply to information in this presentation unless stated otherwise. ‘estimat
Slide 5: Transaction summary
OVERVIEW Transaction summary + Petroleum All-stock merger of Woodside and BHP Petroleum TRANSACTION OVERVIEW GOVERNANCE CONDITIONS AND TIMING All-stock, issuing new Woodside Meg O’Neill appointed Chief Executive Merger commitment deed signed shares to BHP shareholders Officer and Managing Director t
Slide 6: Compelling rationale
OVERVIEW Compelling rationale PORTFOLIO QUALITY Complementary, long-life, high margin, tier 1 assets CASH GENERATION AND BALANCE SHEET Strengthens cash generation and balance sheet SHAREHOLDER RETURNS AND CAPITAL DISCIPLINE Supports superior returns through continued capital discipline DEVELOPMENT O
Slide 7: International portfolio of tier 1 assets
PORTFOLIO QUALITY International portfolio of tier 1 assets ~ 200 MMboe Senegal Sangomar ~ $8 per boe 2021 production 1 378 41 Portfolio unit production cost1 Top 10 independent2 Oil Gas East coast Australia Bass Strait Houston Gulf of Mexico 10.6 Mt 29 148 240 Shenzi | Wildling | Atlantis | $4.7 bil
Slide 8: Increased emissions reduction commitments
PORTFOLIO QUALITY Increased emissions reduction commitments COMMITMENTS EXTENDED TO ENLARGED PORTFOLIO A CLEAR PLAN TO DELIVER ON COMMITMENTS Reaffirmed targets extended to the combined portfolio 8 Scope 1 and 2 emissions (Mtpa CO2-e) Clear emissions targets aligned with 6 BHP Paris Agreement 30% re
Slide 9: Gulf of Mexico
PORTFOLIO QUALITY Gulf of Mexico Low-cost production assets with growth optionality 2021 production – by product2 Asset map Among the largest fields in the Gulf Gas of Mexico 5% Shenzi (BHP: 72%)* Multiple high margin tie-back 26 opportunities to existing MMboe Atlantis infrastructure Liquids (BHP:
Slide 10: Diversified, large scale, low risk portfolio
PORTFOLIO QUALITY Diversified, large scale, low risk portfolio Attractive conventional portfolio in low risk jurisdictions 2 Balanced product mix (2021 production)1 100% Greater conventional production (%) LNG (46%) 94% OECD Majority of global 100% conventional Oil and condensate (29%) majors Wester
Slide 11: Complementary and sustained production profile
PORTFOLIO QUALITY Complementary and sustained production profile Production profile by December 20212 Optionality for other Strong and sustained oil production growth projects including Trion and Calypso 250 Unsanctioned GOM and Long-life LNG with oil price exposure Western Australia subsea tiebacks
Slide 12: High growth, high margin, long life portfolio
PORTFOLIO QUALITY High growth, high margin, long life portfolio Strong combination of high growth, margins and reserves life 1,2 Strong production growth Production CAGR (CY21-27) Attractive portfolio relative to global oil and gas companies Asia Pacific ~20 year reserves life1 Bubble size indicates
Slide 13: Strong and sustained cash flow generation
CASH GENERATION AND BALANCE SHEET Strong and sustained cash flow generation Operating cash flow profile1 8 Net operating cash flow 6 BHP petroleum $ billion 4 2 Woodside Operating cash flow supports funding of Scarborough, GOM 0 2022 2023 2024 2025 2026 2027 tiebacks and other growth projects Free c
Slide 14: Strong balance sheet
CASH GENERATION AND BALANCE SHEET Strong balance sheet Pro forma liquidity and debt maturity profile1 6,000 Undrawn facilities 4,000 $ million Cash 2,000 Liquidity of ~$6 billion 0 Liquidity 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Low gearing supported by unlevered Drawn Undrawn BHP a
Slide 15: Continued capital discipline
SHAREHOLDER RETURNS AND CAPITAL DISCIPLINE Continued capital discipline PRUDENT CAPITAL MANAGEMENT LOW COST, HIGH MARGIN OPERATIONS Operating cash flow funds development optionality ENDURING CASH FLOW Substantial balance sheet capacity supports Scarborough and other DISCIPLINED INVESTMENT future inv
Slide 16: Capital allocation aligned with energy transition
SHAREHOLDER RETURNS AND CAPITAL DISCIPLINE Capital allocation aligned with energy transition OIL GAS NEW ENERGY Hydrogen, Type of project Offshore Pipeline LNG ammonia, CCS • High cash • Stable long-term • Long-term cash flow • Developing market generation cash flow profile • Upside potential • Lowe
Slide 17: Opportunity hopper
DEVELOPMENT OPTIONALITY Opportunity hopper OPPORTUNITY DEVELOPMENT UNSANCTIONED PROJECTS PRODUCING ASSETS, SANCTIONED Substantial growth optionality PROJECTS AND TIEBACKS beyond Scarborough CCS Ammonia Browse Sangomar Attractive Gulf of Mexico tiebacks to Hydrogen Pluto Macedon existing infrastructu
Slide 18: Scarborough and Pluto Train 2
DEVELOPMENT OPTIONALITY Scarborough and Pluto Train 2 • Offshore facilities connected by ~430km DEVELOPMENT pipeline to Pluto Train 2 at Pluto LNG Scarborough CONCEPT • The lowest carbon intensity LNG development floating in Australia production unit Pluto platform 11.1 Tcf 8 Mtpa ~ 0.1 % Pluto LNG
Slide 19: Scarborough de-risked
DEVELOPMENT OPTIONALITY Scarborough de-risked COMPETITIVE AND VALUE ACCRETIVE > 12 % ~$ 6.8 per MMBtu internal rate of return1 globally competitive cost of supply2 De-risks Scarborough funding through increased operating cash flow • BHP option to sell entire Scarborough interest if Strong alignment
Slide 20: Mad Dog Phase 2
DEVELOPMENT OPTIONALITY Mad Dog Phase 2 • Extension of Mad Dog field following successful DEVELOPMENT Mad Dog South appraisal well CONCEPT • New semi-submersible floating production facility near the existing Mad Dog platform 365 MMboe1 140 kbpd 2022 total 2P reserves production capacity targeted fi
Slide 21: A credible decarbonisation strategy
ENERGY TRANSITION LEADERSHIP A credible decarbonisation strategy Emissions management embedded across our business All emissions and offsets reported under reputable standards <$ 20 per tonne targeted portfolio CORE CAPABILITY carbon cost Mature and scalable carbon business with a diverse portfolio
Slide 22: Identified opportunities to deliver synergies
SYNERGIES AND VALUE CREATION Identified opportunities to deliver synergies $400+ million estimated annual savings EXPLORATION ASSETS CORPORATE High-graded exploration focused on Re-phase development opportunities Enhance functional workflows existing acreage and high-quality prospects prioritising h
Slide 23: Timetable
TIMETABLE Completion targeted for Q2 2022 17 August 2021 October 2021 Second quarter 2022 Merger commitment deed Target execution of full form sale Target for Woodside shareholder meeting to executed and announced agreement and integration and approve transaction transition agreement Target completi
Slide 24: Compelling rationale
SUMMARY Compelling rationale PORTFOLIO QUALITY Complementary, long-life, high margin, tier 1 assets CASH GENERATION AND BALANCE SHEET Strengthens cash generation and balance sheet SHAREHOLDER RETURNS AND CAPITAL DISCIPLINE Supports superior returns through continued capital discipline DEVELOPMENT OP
Slide 25: Additional Information
ADDITIONAL INFORMATION
Slide 26: BHP petroleum portfolio
APPENDIX BHP petroleum portfolio Producing assets1 FY21 End of Asset Description Operator BHP ownership Production 1P3 2P3 2P+2C3 field life (MMboe) Shenzi2 Oil asset located in the US Gulf of Mexico with TLP (tension leg platform) development. BHP 72% 8.1 2030s 74 105 294 One of the largest fields
Slide 27: BHP petroleum portfolio
APPENDIX BHP petroleum portfolio Sanctioned projects (in execution) FY22 – FY30 Capex Estimated peak Asset Description Operator BHP ownership Potential first production (BHP share, nominal production capacity US$bn) Shenzi Subsea Multi-Phase Pumping (SSMPP); subsea pumping to increase production rat
Slide 28: Woodside portfolio
APPENDIX Woodside portfolio Producing assets CY20 Production 2P1 2C1 2P+2C1 Asset Description Operator Woodside ownership (MMboe) (MMboe) (MMboe) (MMboe) LNG facility processing gas from the offshore Pluto, Xena and Pyxis gas fields in Western Australia. Gas is piped from the Pluto LNG Woodside 90%
Slide 29: Notes to petroleum resource estimates
APPENDIX Notes to petroleum resource estimates 1. Unless otherwise stated, all petroleum resource estimates in this presentation are expressed on a 4. Woodside reports its reserves net of the fuel and flare required for production, processing and pro forma, post-merger basis as a combination of (by
Slide 30: Additional information for US investors
APPENDIX Additional information for US investors Disclosure of reserve information and cautionary note to US investors No offer or solicitation • Unless expressly stated otherwise, all estimates of oil and gas reserves and contingent resources disclosed in • This communication relates to the propose
Slide 31: Glossary
APPENDIX Glossary $, $m, $B US dollar unless otherwise stated, millions of dollars, billions of dollars IRR Internal rate of return APAC Asia-Pacific JV Joint venture A$, AUD Australian dollar kbpd Thousand barrels per day ASX Australian Securities Exchange KGP Karratha Gas Plant 2P Proved plus Prob
Slide 32: Head Office: Woodside Petroleum Ltd
Head Office: Woodside Petroleum Ltd Mia Yellagonga 11 Mount Street Perth WA 6000 Postal Address: GPO Box D188 Perth WA 6840 Australia T: +61 8 9348 4000 F: +61 8 9214 2777 E: companyinfo@woodside.com.au Woodside Petroleum Ltd ABN 55 004 898 962 woodside.com.au
Woodside Energy Group — Merger or Acquisition (August 2021) on 6ix