Beach Energy Limited · ASX:BPT
Beach Energy — Macquarie Australia Conference 2020
14 slides from Beach Energy's conference presentation, May 7, 2020
Slide 1: Macquarie Australia Conference
7 M AY 2 0 2 0 Macquarie Australia Conference
Slide 2: Compliance statements
Compliance statements Disclaimer Assumptions This presentation contains forward looking statements that are subject to risk factors associated with oil, FY20 guidance is uncertain and subject to change. FY20 guidance has been estimated on the basis of: 1. gas and related businesses. It is believed t
Slide 3: Beach Response to COVID-19
Beach Response to COVID-19 The Journey Initiated Activated Activated 20th March 28th February Commenced 20th February 19th March o COVID-19 Plans in o Early engagement place at all o Crisis Management with key contractors o Infrared forehead operational sites Team activated in and suppliers temperat
Slide 4: Financial strength a priority
Financial strength a priority Well positioned for the downturn Balance Sheet ✓ Conservative approach to balance sheet management NET CASH AT 31 MARCH 2020 ▪ Rapidly paid down drawn debt post $1.6 billion Lattice acquisition to be net $80 MILLION cash within 18 months ▪ $450 million revolving credit
Slide 5: Diverse production mix
Diverse production mix Stable contracted gas revenues, oil production economic above US$10/bbl Brent Gas FY20 Estimated Product Mix ▪ Diversified gas sales into three distinct markets (East Coast, West Coast and NZ) ▪ Over 97% of forecast FY21 East Coast gas production sold into term contracts ▪ Gas
Slide 6: Beach portfolio not exposed to spot gas prices
Beach portfolio not exposed to spot gas prices Historic and forecast east coast gas sales Recent gas market dynamics • Low LNG spot prices impacting East Coast Gas Market spot prices (% of volume) • Beach has minimal spot gas price exposure: More than 97% of East Coast 100% gas sales expected to be
Slide 7: Investment focused on keeping infrastructure hubs full
Investment focused on keeping infrastructure hubs full Infrastructure advantage ✓ Investment targeted close to existing infrastructure, enhances returns and reduces time from investment to cash flow ✓ Spare capacity in gas infrastructure minimises cost of new surface investment requirements Gas inve
Slide 8: Western Flank horizontal drilling success
Western Flank horizontal drilling success Gross operated oil production averaging over 22,000 BOPD ✓ Application of horizontal drilling has significantly 25 Operated Western Flank Gross Average Oil Production Rate enhanced development economics at ~1.5x cost of a vertical well and deliver ~8x produc
Slide 9: Cooper Basin JV high quality drilling results in South West Queensland
Cooper Basin JV high quality drilling results in South West Queensland Flow rates from recent wells indication of basin potential SWQ Toolachee wells deliver outstanding results ✓ Four recent drilling campaigns in SWQ have targeted Toolachee formation ✓ High rate potential of the formation demonstra
Slide 10: Victorian Otway Basin
Victorian Otway Basin Update on events Black Watch-1 success ▪ Well successfully drilled 7,200 metres from onshore location (longest in Australia), to be tied into OGP in the June 2020 quarter. ▪ Well designed to support an initial production rate of 50 - 60 MMscfd Offshore Wells ▪ 20 April - Beach
Slide 11: Beach response to the oil price downturn
Beach response to the oil price downturn Immediate response to enhance robust business ✓ Targeting a deferral of up to 30% of FY21 capital expenditure from prior expectations ✓ Anticipate capital reductions across all basins ✓ FY21 work program and budget process is currently underway ✓ FY21 investm
Slide 12: Key takeaways
Key takeaways ▪ Beach is well positioned, with a strong balance sheet and robust revenue stream ▪ Excellent Cooper Basin drilling results support delivery of FY20 production in-line with original guidance ▪ Portfolio of growth opportunities available close to all 7 production hubs ▪ Forward investme
Slide 13: Q&A
MACQUARIE AUSTRALIA CONFERENCE Q&A
Slide 14: 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 Nik Burns, Investor Relations Manager Mark Hollis, Investor Relations Advisor T: +61 8 8338 2833