Beach Energy Limited · ASX:BPT
Beach Energy — H1 FY24 Earnings Presentation
29 slides from Beach Energy's earnings presentation, Feb 12, 2024
Slide 1: FY24 Half Year Results
FY24 Half Year Results 12 February 2024
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: Progressing growth objectives
Progressing growth objectives Clear near-term objectives with strategy review to frame longer-term growth outlook Growing Organic Gas-supported Strategy review production opportunities transition underway ▪ Kupe development well ▪ Perth and Otway Basin ▪ Emissions intensity target ▪ Leverage unique
Slide 4: Health, safety and environment
Health, safety and environment Increasing focus on personal safety performance Personal safety performance H1 FY24 highlights 16 6.0 4.4 ▪ Personal safety performance declined 12 3.7 Total Recordable Injuries 4.5 2.1 2.4 o Targeted safety campaigns implemented to address causes, 8 12 with a focus on
Slide 5: Targeting a 35% equity emissions intensity reduction by 2030
Targeting a 35% equity emissions intensity reduction by 2030 CCS to support sustainable growth and emissions reduction Moomba CCS first CO2 injection in mid-CY2024 targeted Progressing several early-stage sustainability initiatives ▪ Targeting up to 1.7 Mtpa CO2 storage (>0.5 Mtpa net to Beach) ▪ Pr
Slide 6: First half financial results
First half financial results Solid financial results as major projects near completion 8.8 MMboe 11% $941 million 16% $488 million In line Production Sales revenue Underlying EBITDA $8.9 /GJ 6% 2.0 cps No change $446m 12% Average realised Interim dividend Liquidity Net gearing1 gas and ethane price
Slide 7: Key project milestones
Key project milestones Pleasing commercial outcomes complement progress in the field Otway Basin GSA price review settled Waitsia Gas Plant construction progressed New Enterprise GSA signed Kupe South 9 drilled and connected Debt facility upsized Key Two Perth Basin gas discoveries milestones Waitsi
Slide 8: Otway Basin
Otway Basin New arrangements deliver higher volumes and prices >50% increase in take-or-pay volume for Base GSA1, plus new Enterprise GSA take-or-pay Beach able to sell surplus daily Enterprise volumes Higher take-or-pay protects revenue from extended downside nomination periods Targeting Enterprise
Slide 9: Perth Basin
Perth Basin First Waitsia LNG cargo lifted in H1 FY24 First Waitsia LNG cargo lifted at North West Shelf1 ($49 million net cash proceeds; US$16.5/MMBtu realised price) One-off Waitsia condensate cargo lifted at North West Shelf ($66 million net cash proceeds) Waitsia Gas Plant construction progressi
Slide 10: Supplying key energy markets
Supplying key energy markets Strong fundamentals support demand outlook East Coast gas market Global LNG West Coast gas market New Zealand gas market Global oil and liquids ▪ Beach currently ~12% domestic ▪ Beach currently ~2% domestic ▪ Beach ~7% gas market share and ▪ Geopolitical / energy securit
Slide 11: Second half priorities
Second half priorities Production step-change imminent as major projects near completion Waitsia Gas Plant mechanical completion and commissioning Perth Basin exploration drilling and production testing Final Enterprise approval, well connection and first gas Thylacine West flowline manufacture and
Slide 12: Financial results
F Y 2 4 H A L F Y E A R R E S U LT S Financial results
Slide 13: Headline financial metrics
Headline financial metrics First half activity and investment to support near-term growth $ million (unless otherwise indicated) H1 FY23 H1 FY24 Change H1 FY24 sales revenue: $941 million Production (MMboe) 10.0 8.8 (11%) Sales volumes (MMboe) 10.5 11.0 5% Sales revenue 813 941 16% NZ gas West Coast
Slide 14: Underlying Net Profit After Tax
Underlying Net Profit After Tax1 Higher revenues from first Waitsia LNG and condensate cargoes offset by increased cash costs $ million ▪ Higher revenue from Waitsia LNG and condensate cargoes, partially offset by lower sales volumes from other assets (86) ▪ Higher cash costs from third-party purcha
Slide 15: Cash reserves movements
Cash reserves movements Elevated capital expenditure in first half $ million ▪ Operating cash flow down 13% to $350 million Growth capital 315 (298) o Net operating receipts down 10% to expenditure $472 million o Income tax payments down 17% to $81 million Sustaining capital: - Cooper Basin drilling
Slide 16: Financial position
Financial position Prudent liquidity management through delivery of major projects Available Liquidity ($ million) 609 ▪ Balance Sheet flexibility and a disciplined approach to capital 434 446 management enable investment in growth through the cycle 420 215 220 ▪ Debt facility upsized to $920 millio
Slide 17: Outlook
F Y 2 4 H A L F Y E A R R E S U LT S Outlook
Slide 18: FY24 guidance
FY24 guidance As announced 25 January 2024 FY24 guidance FY24 production guidance: 18.0 – 20.0 MMboe Original Revised H1 FY24 ~13% ~17% ~15% Production (MMboe) 18.0 – 21.0 18.0 – 20.0 8.8 Cooper Basin JV Oil ~36% ~11% Western Flank Capital expenditure ($ million) 850 – 1,000 900 – 1,000 530 Gas Otwa
Slide 19: Beach Energy value proposition
Beach Energy value proposition ✓ Material growth from FY25 ✓ Supplying key markets ✓ Strong financial position ✓ Cash flows for growth and dividends ✓ Multiple organic growth opportunities ✓ CCS to support emissions reduction 19
Slide 20: F Y 2 4 H A L F Y E A R R E
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Slide 21: Appendix
F Y 2 4 H A L F Y E A R R E S U LT S Appendix
Slide 22: Other financial statement impacts
Other financial statement impacts Reconciliation of EBITDA and NPAT $ million H1 FY23 H1 FY24 Change Underlying EBITDA 491 488 (1%) Non-cash impairment charge Impairment of non-current assets - (721) ▪ $721 million ($505 million after tax), comprising: Tariffs and tolls for unutilised NWS capacity -
Slide 23: Perth Basin
Perth Basin Exploring and developing prime acreage Asset overview ▪ 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 (30 TJ/day capacity); Beharra Springs
Slide 24: Otway Basin
Otway Basin Increasing gas supply for the East Coast market Asset overview ▪ 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 development; Artisan and La Bella deve
Slide 25: Bass Basin
Bass Basin Assessment of development options underway Asset overview ▪ 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 9.75%) ▪ Assets: Lang Lang Gas Plant (67 TJ/day ca
Slide 26: Taranaki Basin
Taranaki Basin Kupe South 9 increases well deliverability for the Kupe Gas Plant Asset overview ▪ Interest: 50% interest and operator (Genesis Energy 46%, NZOG 4%) ▪ Assets: Kupe Gas Plant (77 TJ/day capacity); Kupe gas field ▪ H1 FY24 production: 0.7 MMboe H1 FY24 milestones ▪ Five years Lost Time
Slide 27: Western Flank oil and gas
Western Flank oil and gas Two oil discoveries from the FY24 drilling campaign Asset overview ▪ 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 producing oil fields
Slide 28: Cooper Basin JV
Cooper Basin JV Ongoing appraisal and development drilling and production optimisation Asset overview ▪ 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 ▪ H1 FY24 production: 3.4
Slide 29: Beach Energy Limited contact details
Beach Energy Limited Level 8, 80 Flinders Street Adelaide SA 5000 Australia T: +61 8 8338 2833 F: +61 8 8338 2336 beachenergy.com.au Investor Relations Derek Piper, General Manager Investor Relations T: +61 8 8338 2833