Beach Energy Limited · ASX:BPT

Beach Energy — Beach Petroleum — H1 FY2009 Earnings Presentation

26 slides from Beach Energy's earnings presentation, Feb 24, 2009

  1. Slide 1: Half Year Financial Results Presentation

    + For personal use only BEACH PETROLEUM LIMITED Half Year Financial Results Presentation February 2009

  2. Slide 2: Disclaimer & Important Notice

    + 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 For personal use only reasonable but they may be affected by a variety of varia

  3. Slide 3: Solid Cash Flow Generating Assets

    + Solid Cash Flow Generating Assets For personal use only 1. Cooper/Eromanga 2. Surat Coal Seam Gas 3. Gippsland Oil (BMG)  Record production  Producing 29+ million  Producing gross~10,000  Increasingly more oil cubic feet per day barrels of oil per day  Large contingent gas  Net reserves of 4

  4. Slide 4: A robust production base of 1238 wells

    + For personal use only A robust production base consisting of 1238 wells producing from 241 oil & gas fields provides good cash flow with good profit margins

  5. Slide 5: Product Split – oil and gas revenue

    + Oil made up 62% of oil and gas revenue For personal use only Gas / gas-liquids a natural hedge against the oil price Product Split – oil and gas revenue

  6. Slide 6: Key Financial Achievements

    +  Record sales revenue up 41% to For personal use only $480 million FY2009 H1  NPAT up 117% to $127.5 million  Normalised net profit up 142% to $52 million Key Financial  Operating cash flow up 31% to Achievements $68 million  “Net Debt” gearing of 4.6%  Debt/Debt +Equity down 21% to 14%  Co

  7. Slide 7: Comparison of Normalised Profit

    + Comparison of „Normalised‟ Profit For personal use only Net profit after tax (NPAT) H1 FY09 H1 FY08 A$M A$M NPAT 127.5 58.8 SIGNIFICANT ITEMS Remove unrealised commodity hedge loss / (gain) (76.4) 16.8 Remove commodity hedge close out 16.9 - Remove asset sales - (64.2) Remove exploration and asset

  8. Slide 8: Key Drivers behind increase in Normalised Net Profit after tax

    + Key Drivers behind increase in Normalised Net Profit after tax For personal use only $33.6 100 80 $12.3 A$ million $34.1 $52.0 60 $24.9 40 $21.5 20 0

  9. Slide 9: Sales Increase

    + Sales Increase For personal use only 350 300 $5.3 $333.9 250 A$ million $249.2 $63.1 $22.6 $4.3 200 150 100 50 0

  10. Slide 10: Summary of Hedging Gain

    + Summary of Hedging Gain For personal use only Hedging position for 6 months ended 31 December 2008 (A$'000) Realised Unrealised Total Interest rate swap 1,303 (26,916) (25,613) Currency (1,650) (3,657) (5,307) Oil (625) 106,994 106,369 Oil (positions closed out early) (16,870) - (16,870) Total (17

  11. Slide 11: Hedging

    +  Effect on Income Statement  H2 FY08 – commodity hedge For personal use only portfolio underpins average oil price of AUD$75 (at US$0.65 cent exchange rate) or better for second half of 2009 financial year. Hedging

  12. Slide 12: Debt and dividend management

    +  Cash position of $139 million For personal use only gives “Net Debt” gearing of 4.6%  31 December 2008 - debt down Debt and 16% to $197 million dividend  30 June 2009 - debt expected to management be reduced to $166.5 million  Ability to review debt annually  Dividends – partially franked in

  13. Slide 13: Key Achievements H1 FY09

    + For personal use only Key Achievements H1 FY09  Record Production - 5.0 MMboe  Sales revenue $334 million  NPAT of $127.5 million  Continued exploration success in Cooper Basin  Egyptian fields approved for development in 2009

  14. Slide 14: Well Balanced Exploration Portfolio

    + Well Balanced Exploration Portfolio For personal use only

  15. Slide 15: Operations Review

    + For personal use only Operations Review • Review of H1 FY09 • Cooper Basin • Gippsland Basin • Surat Basin • Egypt • Outlook for H2 FY09

  16. Slide 16: H1 FY09 Production

    +  FY08 Production  H1 FY09 Production 2.8 million barrels of oil (MMbbl) For personal use only 7%  30 Peta-Joules 23% of Gas (PJ)  9.3 million barrels of oil Cooper Oil 9% Production Gippsland Oil 61% equivalent (MMboe) Cooper Gas Surat Gas H1 FY09 Production  1.6 MMbbl of oil (up 29%)  Equiv

  17. Slide 17: Drilling H1 FY09

    + For personal use only Drilling H1 FY09 Drilling Activity  Cooper Basin – 44 wells 150 No. of Wells  2 Expn wells – 100% 100 Gas  2 Callawonga Wells  23 ‘COP’ wells Oil 50  17 Gas Devl’t Wells 0  Tipton – 33 CSG wells  Bass/Otway – 2 wells  Egypt – 1 Well

  18. Slide 18: Reserves Growth

    + Reserves Growth For personal use only 150 MMboe Surat Gas 100 Reserves Cooper Gas 50 Oil Cooper Program added ~ 3 MMboe  Tipton up by 21/281 PJ (2P/3P) 0 FY 06 FY 08 FY 09 FY 07 H1  Cooper Gas & MG depleted by production  Cooper Contingent Resource of 1,535 PJ (262 MMboe) quantified. Reserves

  19. Slide 19: Exploration

    + Exploration For personal use only  Lower Risk Cooper Basin Program High Impact Program  Offshore Australia / NZ  Egypt – Gulf of Suez  Tanzania, Spain, Albania  Rigorous Evaluation  Strong Joint Venture Partners  Effective Management  Significant Upside  Aiming for 60:30:10 Risk balance

  20. Slide 20: Cooper Basin

    + For personal use only Cooper Basin  Reserves* 228 PJ & 15 MMbbl  1H FY09 Production - 7 PJ & 1.2 MMbbl  1H FY09 Revenue - $243 million  COP – 86% success rate  greater focus on Namur/Hutton  ~ 1mmb (net) added in 1H  Gidgealpa-60 biggest COP success to date  Brownlow & Canunda gas discover

  21. Slide 21: Cooper Basin – Western Flank

    + Cooper Basin – Western Flank For personal use only

  22. Slide 22: A Cooper Basin Sweet Spot

    + PEL 92 For personal use only A Cooper Basin Sweet Spot High Profit Oil Callawonga-Parsons Area A$ A$/barrel Oil discovered to date 6.4 MMbbl Exploration $27 million $4 / bbl Development $42 million $7 / bbl Total Finding & Dev’t $69 million $11 / bbl Production Costs $173 million $27 / bbl Total C

  23. Slide 23: Surat Basin

    + For personal use only Surat Basin Tipton West – Coal Seam Gas  2P Reserves 467 PJ  3P Reserves 1,115 PJ  Substantial Upside  Significant International Focus on Queensland CSG  Santos – Petronas  Arrow – Shell  Origin – ConocoPhillips  Queensland Gas – BG  Beach ranks 6th in Qld CSG reserv

  24. Slide 24: Gippsland Oil – BMG Project

    + Gippsland Oil – BMG Project For personal use only  At 31 December 2008:  Beach 30%  Producing ~10,000 bbls/day  Remaining Oil Reserve ~18 MMbbl (5 MMbbl net)  Gas Resource - 249 PJ  Beach has recovered all its costs on BMG + $70 million  Further development planned for 2009 +

  25. Slide 25: Egypt

    For personal use only Egypt North Shadwan Concession Beach 20% Operator – BP 3 undeveloped oil + discoveries  First production end 2009 Southeast July Concession Beach 20% Operator – Dana South July -1 drilled early „09 Potential 100 MMbbl (20 MMbbl net)

  26. Slide 26: Drilling Outlook - 2009

    + For personal use only Drilling Outlook - 2009  66 Wells  60 in Cooper Basin (40:60 oil/gas)  6 Offshore / International Key Exploration Wells  South July-1 (Gulf of Suez) March  Burtocal North-1 (Gulf of Suez) Sept  Tipton West Appraisal Ongoing  North Shadwan Oil Development 3RD Qtr 2009

Beach Petroleum — H1 FY2009 Earnings Presentation on 6ix