Beach Energy Limited · ASX:BPT
Beach Energy — H1 FY22 Earnings Presentation
29 slides from Beach Energy's earnings presentation, Feb 15, 2022
Slide 1: FY22 Half Year Results
14 FEBRUARY 2022 FY22 Update picture in Half Year Results the slide Enterprise 1 – Otway Basin
Slide 2: Compliance statements
Compliance statements Disclaimer Reserves disclosure This report contains forward-looking statements, including statements of current intention, opinion and predictions Beach prepares its reserves and resources estimates in accordance with the 2018 update to the Petroleum Resources regarding the Com
Slide 3: First Half Highlights
First Half Highlights Continued delivery against our strategy Optimise Maintain Strengthen Pursue Sustain core producing financial strength complimentary other compatible by reducing Scope assets gas business growth opportunities 1 and 2 emissions ▪ H1 FY22 production ▪ NPAT up 66% to $213m ▪ First
Slide 4: First Half financial results
First Half financial results Strong cashflows and balance sheet $513 million 1 26% $786 million 11% 1 $213 million 1 66% EBITDA Sales revenue Reported NPAT 65% EBITDA 1 13% $605million 1 105% 62% revenue revenue margin From fixed price gas and Cash inflow from operations associated liquids productio
Slide 5: HS&E performance
HS&E performance Safety performance (TRIFR1) Environmental performance 15.6 Crude/hydrocarbon spill volume (kl) 9.7 51.9 7.9 5.9 5.7 3.8 3.5 3.5 4.1 3.7 3.9 2 1.9 2.1 18.9 9.6 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 0.2 0.1 0.1 1.8 0.2 Safety FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 ▪ 5+ million hour
Slide 6: Delivering on 28MMboe Growth Target
Delivering on 28MMboe Growth Target Key milestones achieved in First Half Key Deliverables Key progress 1 Bring Kupe Compression Project online Achieved in September 2021 – Kupe at full plant capacity at 77 TJ/d Achieved in December 2021 - G4/G5 in line with pre-drill 2 Drill and connect Geographe 4
Slide 7: Base set for second half delivery
Base set for second half delivery Focused on completing offshore drilling campaign Still to come in FY22: Drilling of the three remaining Thylacine offshore wells FID for Enterprise onshore pipeline project Commence Waitsia development well drilling Signing SPA with bp for Waitsia LNG volumes Commen
Slide 8: Moomba Carbon Capture and Storage
Moomba Carbon Capture and Storage Beach reaches FID on the Moomba CCS project1 ▪ Beach sanctions transformational ▪ Federal Government has approved emissions reduction project, CCS Methodology, project following independent review successfully registered with the ▪ Material abatement project for Bea
Slide 9: Guidance update
Guidance update FY22 guidance maintained Prior FY22 guidance Unchanged FY22 guidance FY22 production outlook (by product) Production (MMboe) 21.0 - 23.0 21.0 – 23.0 Capital expenditure ($ million) $900 - 1,100 $900 - 1,100 ~15% ~20% Oil Unit operating cost ($ per boe) $11.50 - 12.50 $11.50 - 12.50 U
Slide 10: Financial Results
F Y 2 2 H A L F Y E A R R E S U LT S Financial Results Anne-Marie Barbaro ACTING CHIEF FINANCIAL OFFICER
Slide 11: Financial Highlights
Financial Highlights H1 FY22 v H1 FY21 comparison $million (unless otherwise indicated) H1 FY21 H1 FY22 Δ (%) Production (MMboe) 13.71 11.0 (20%) Sales volumes (MMboe) 13.4 11.2 (16%) Average realised oil price ($ per bbl) 64.9 113.6 75% Average realised gas/ethane price ($ per GJ) 7.17 7.54 5% Sale
Slide 12: Reported NPAT
Reported NPAT H1 FY22 v H1 FY21 comparison (3) Reported NPAT up 66% due to: ▪ 75% increase in realised oil price 39 (36) 21 ▪ 11% increase in sales revenues (23) 16 ▪ Reduced tariff and tolls and depreciation, due to lower 71 production volumes ▪ Nil exploration expensed ▪ “Other” increase primarily
Slide 13: Cash flow movements
Cash flow movements Strong operating cash flows supports growth investment H1 FY22 Net Cash position $73 million ▪ Cash of $213 million as at 31 December 2021 ▪ Operating cash flow of $605 million, including $29 million of income tax paid and $42 million receipt for settlement of Kupe carbon tax arb
Slide 14: Available liquidity
Available liquidity Fully funded to deliver on growth strategy 673 FY22 Successful refinancing of Financial strength maintained facility to $600 million FY21 $87.5 million ▪ Net cash position of $73 million1 as at 31 December 2021 acquisition of Senex’s Cooper Basin assets ▪ Net gearing (2.3)%2 404
Slide 15: Our Assets
F Y 2 2 H A L F Y E A R R E S U LT S Our Assets
Slide 16: Beach Energy portfolio diversity
Beach Energy portfolio diversity Six production hubs supplying three distinct gas markets Bass, Cooper, Perth, Taranaki and Otway (Victoria and South Australia) Basins Liquids Oil 22% Gas 37% H1 FY22 East 63% Production Coast Condensate 7% 11.0 gas MMboe 49% 8% LPG 9% 5% Kupe gas West Coast gas Geog
Slide 17: Victorian Otway Basin
Victorian Otway Basin Delivering strategy to re-fill Otway Gas Plant Asset Details ▪ Interest: 60% and operator (JV participant O.G. Energy) ▪ Asset Life: >15 years ▪ Facility: Otway Gas Plant (~205TJ per day capacity) First Half Highlights ▪ H1 FY22 production of 1.7 MMboe, +20% on H1 FY21 ▪ First
Slide 18: Victorian Otway Basin
Victorian Otway Basin Focus on maximising utilisation of the Otway Gas Plant Otway Gas Plant Status ▪ New Geographe wells have now increased combined well potential to 160-180TJ/d ▪ New development wells capable of filling Otway Gas Plant processing capacity (205TJ/d) by 2H2023, however offtake is d
Slide 19: Perth Basin
Perth Basin Moving towards global LNG sales from H2 2023 Asset Details ▪ Interest: 50% and operator of Beharra Springs (JV participant Mitsui); 50% of Waitsia (JV participant and operator Mitsui) ▪ Asset Life: >15 years ▪ Current Facilities: Xyris (Waitsia Stage 1A) ~20 TJ per day capacity; Beharra
Slide 20: Western Flank oil and gas
Western Flank oil and gas Returning to exploration drilling on the Western Flank Asset Details ▪ Interest: 100% interest and operator of ex PEL 91, 104/1111 and 106; 75% interest and operator of ex PEL 92 (JV participant Cooper Energy)2 ▪ Asset Life: >15 years ▪ Facility: Oil infrastructure with cap
Slide 21: Cooper Basin Joint Venture
Cooper Basin Joint Venture Drive production levels from Cooper Basin JV assets Asset Details ▪ Interest: Various interests1 (JV participant Santos and operator) ▪ Asset Life: >20 years ▪ Facility: Moomba Gas Processing Facility ~400 TJ per day (~130 TJ per day net) First Half Highlights ▪ H1 FY22 pr
Slide 22: Bass Basin
Bass Basin Focus on life extension through Yolla and Trefoil Asset Details ▪ Interest: 88.75% and operator BassGas (JV participant Prize Petroleum); 90.25% and operator Trefoil (JV participant Prize Petroleum)1 ▪ Asset Life: >12 years ▪ Facility: Lang Lang (~70 TJ per day capacity) First Half Highli
Slide 23: Taranaki Basin
Taranaki Basin Compression project complete – evaluating plateau extension opportunities Asset Details ▪ Interest: 50% and operator (JV participants Genesis Energy, New Zealand Oil & Gas) ▪ Asset Life: ~15 years ▪ Facility: Kupe gas plant (~77 TJ per day capacity) First Half Highlights ▪ H1 FY22 pro
Slide 24: Conclusion
F Y 2 2 H A L F Y E A R R E S U LT S Conclusion
Slide 25: Key Takeaways
Key Takeaways DELIVERING SECOND EXPLORE PORTFOLIO STRONG ON GROWTH HALF FOCUS OPTIONALITY BALANCE SHEET Western Flank Oil 3 remaining offshore All first-half growth exploration $73m Net cash position Otway wells to be drilled milestones delivered Perth Basin exploration $673 in available FID Enterpr
Slide 26: Q&A
F Y 2 2 H A L F Y E A R R E S U LT S Q&A
Slide 27: Beach Energy Limited Investor Relations
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 Adam Stokes, T: +61 8 8338 2833
Slide 28: Appendices
F Y 2 2 H A L F Y E A R R E S U LT S Appendices
Slide 29: EBITDA, EBIT, NPBT and NPAT
EBITDA, EBIT, NPBT and NPAT $million H1 FY21 H1 FY22 Δ (%) EBITDA 4061 513 26% Depreciation and amortisation (219) (203) (7%) EBIT 187 310 65% Finance expenses (5) (8) 55% Interest Income 0 0 100% Net profit before tax (NPBT) 183 303 66% Tax (54) (90) 66% Net profit after tax (NPAT) 128 213 66% 1Inc