Beach Energy Limited · ASX:BPT
Beach Energy — Shareholder Meeting (November 2021)
52 slides from Beach Energy's shareholder meeting presentation, Nov 10, 2021
Slide 1: ASX Announcement: 2021 Annual General Meeting - Addresses and Presentation
ASX Announcement 2021 Annual General Meeting - Addresses and Presentation Reference #055/21 Date 10 November 2021 Attached is a copy of the Chairman’s Address and Acting Chief Executive Officer’s Address to be made at the Beach Energy Annual General Meeting (AGM) commencing at 10.30am (ACDT) today,
Slide 2: Chairman and Acting CEO Addresses
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 Beach Energy 2021 AGM Chairman and Acting Chief Executive Officer Addresses Date 10 November 2021 Chairman’s Address Slide 1 – Annual General Meeting Good morning ladies and gentlemen and welcome. My name is Glenn Davis, the
Slide 3: Chairman's Address: housekeeping and questions
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 Ms Margaret Hall, who is standing for election as a director today has also joined us virtually. Mr Anthony Jones from our auditors Ernst & Young will also be available to answer questions in relation to the 2021 financial a
Slide 4: Lumi Instructions - how to vote
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 GD: Slide 7 – Lumi Instructions – how to vote Consistent with best practice, I have determined that all items of business will be decided on a poll. I will open the polls now, and keep them open, so you can vote at any time
Slide 5: Chairman's Address: CEO succession
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 1. Through the Lattice acquisition he has grown the business substantially; 2. Through that growth he has diversified the company across multiple basins and production hubs delivering gas into tightening Australian east coas
Slide 6: FY21 results and sustainability
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 But despite those challenges, the diversity and resilience of Beach saw the company record an underlying net profit after tax of $363 million in FY21. As we continue our growth campaign, the company’s strong balance sheet al
Slide 7: Acting CEO Address: opening
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 And finally, a thank you to our shareholders for your continued support. With that I will hand over to our Acting Chief Executive Officer Morné Engelbrecht. Acting CEO Address Slide 14 – Opening Thank you Glenn. Hello and we
Slide 8: Executing our Corporate strategy
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 Slide 15 – Executing our Corporate strategy Speaking of our strategy, it has been clear and consistent over the past 5 years and that remains the case today. The key pillars of that strategy are as follows: • We aim to optim
Slide 9: FY21 Summary
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 We’ve done this in the face of the higher risk profile that our busiest period has represented work-hour wise. Slide 17 – FY21 Summary As the Chairman stated, FY21 was a highly active year for Beach but not one without its c
Slide 10: Western Flank history and reinvestment
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 This decline and risk exposure of being active in just one basin was what drove Beach towards a diversification strategy, which culminated in the Lattice acquisition. However, the introduction of horizontal drilling and the
Slide 11: Western Flank reserves and FY22 drilling
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 • Western Flank 2P oil reserves of 13.4 million barrels; and • Western Flank 2P gas reserves of 5 million barrels of oil equivalent. Monitoring of production continued following the April announcement and our financial year
Slide 12: Growth projects and production outlook
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 The Kupe Compression project represents the first new gas to support this growth target, but the main growth is spread almost equally between the development projects already underway in the Perth and Otway Basins. In the se
Slide 13: Capital expenditure guidance
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 Slide 21 – Capital expenditure Guidance To help us reach our growth target our capital expenditure guidance for FY22 is between $900 million and $1.1 billion. Our capital investment revolves around: • The Offshore Otway and
Slide 14: Drilling activities and Net Zero by 2050
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 The Ocean Onyx will also continue its offshore activities with the drilling of the four Thylacine wells – which are the final wells to be drilled as part of the Otway offshore program. As previously mentioned, we will recomm
Slide 15: Summary and key takeaways
2021 Annual General Meeting - Addresses and Presentation | 10 November 2021 • Just taking account of our committed growth projects we expect to deliver an FY24 production target of 28 MMboe. This target excludes exploration success and pre- FID projects - with Enterprise being the only exception. We
Slide 16: 2021 Annual General Meeting
10 NOVEMBER 2021 2021 Annual Update picture in General Meeting the slide Enterprise 1 – Otway Basin
Slide 17: Acknowledgement of country
Acknowledgement of country Respect is one of our core values at Beach and we respect the traditional custodians of Australia and New Zealand. We acknowledge that we are meeting today on the traditional country of the Kaurna People of the Adelaide Plain, and we pay our respect to their Elders past an
Slide 18: 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 19: Welcome and Introduction
2021 ANNUAL GENERAL MEETING Welcome and Introduction
Slide 20: Online attendees – text question process
Online attendees – text question process 123-456-789 When the question function is available, the messaging tab will appear at the top of the screen To submit a question, type your question in the “Ask a question” box and press the send arrow Your question will be sent immediately for review Receive
Slide 21: Online attendees – audio question process
Online attendees – audio question process 123-456-789 When the audio questions line is available, a link will appear on the home tab titled Asking Audio Questions If you would like to ask an audio question, pause the meeting broadcast and click on the link You will be prompted to enter your name and
Slide 22: Online attendees – voting
Online attendees – voting 123-456-789 When open, the vote will be accessible by selecting the voting tab at the top of the screen To vote simply select the direction in which you would like to cast your vote. The selected option will change colour For Against Abstain There is no submit or send butto
Slide 23: Chairman's Address
2021 ANNUAL GENERAL MEETING Chairman’s Address Glenn Davis INDEPENDENT NON-EXECUTIVE CHAIRMAN
Slide 24: Executive team
Executive team Long history of industry experience and project execution Morné Engelbrecht Acting Chief Executive Officer ▪ Experience > 20 years ▪ InterOil, Lihir Gold (acquired by Newcrest), PwC Ian Grant Lesley Adams Sam Algar Brett Doherty Susan Jones Lee Marshall Thomas Nador Chief Operations O
Slide 25: Overview
Overview Executing our strategy to grow production to 28 MMboe in FY24 FY21 – WF decline highlights importance of diversified portfolio ✓ Safest year on record ✓ Production of 25.6 MMboe ✓ Otway offshore exploration success at Enterprise and Artisan ✓ Commenced Offshore Otway program ✓ Completed Coo
Slide 26: Sustainability at Beach
Sustainability at Beach Environment, Social and Governance (ESG) Environment Social Governance Reporting ▪ Aspiration to reach net zero ▪ Contributed $1.22 million to ▪ Board committees provide ▪ Released 2021 Sustainability Scope 1 and 2 emissions by 2050 communities, supporting 71 oversight on all
Slide 27: 25% Beach net operated emissions reduction by 2025
Targets 25% Beach net operated emissions reduction by 2025 Already achieved ▪ ~50% of 25 by 25 emissions reduction target1 Key projects to date 1 ▪ Installation of mercury removal facilities at Otway Gas Plant ▪ Flaring elimination at BassGas on start-up ▪ LDAR program expanded to include all gas fa
Slide 28: Chairman's Address
2021 ANNUAL GENERAL MEETING Chairman’s Address Glenn Davis INDEPENDENT NON-EXECUTIVE CHAIRMAN
Slide 29: Acting CEO's Address
2021 ANNUAL GENERAL MEETING Acting CEO’s Address Morné Engelbrecht ACTING CHIEF EXECUTIVE OFFICER
Slide 30: Executing our corporate strategy
Executing our corporate strategy Material long term gas revenues being pursued with quality counterparties Optimise Maintain Strengthen Pursue Sustain core producing assets financial strength complimentary gas other compatible growth Scope 1 and Scope 2 business opportunities emissions ▪ Backfilling
Slide 31: FY21 HS&E performance
FY21 HS&E performance Safest year on record Safety performance (TRIFR1) Environmental performance 15.6 Crude/hydrocarbon spill volume (kl) 51.9 7.9 3.8 3.5 3.5 3.7 2.1 18.9 2 9.6 0.2 0.1 0.1 1.8 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Safety ▪ Safest year on record - th
Slide 32: FY21 summary
FY21 summary Committed to delivering Otway and Perth Basin growth activities Company performance Reinvestment into gas Robust financial position ▪ Safest year on record ▪ Commenced drilling activities in the offshore ▪ Well-funded to deliver growth Otway Basin ▪ Reached Final Investment Decision at
Slide 33: Western Flank oil downgrade
Western Flank oil downgrade Extension of Western Flank oil supported accelerated balance sheet deleveraging Western Flank oil production was in decline by FY16, with high future Evolution of horizontal drilling and development of McKinlay reservoir uncertainty rejuvenated Western Flank oil and deliv
Slide 34: Base scenario to FY24 – committed projects only
Execution of strategy: Base scenario to FY24 – committed projects only Targeting 27% production increase to 28 MMboe in FY241 – base scenario excludes exploration success2 Base scenario ▪ Targeting 28 MMboe production by FY24 at a CAGR of 13%1 from already committed developments2 ▪ Scenario includes
Slide 35: Gas & LNG growth at opportune time
Gas & LNG growth at opportune time Delivering into four markets from eight plants in FY24 19% LNG market Material production to meet East Coast shortfall & tightening international LNG market in FY24 Targeting ~125 PJ net gas East production in FY24 Coast Gas market (~75% total production) 68% 5% Pr
Slide 36: Capital expenditure
Capital expenditure FY22 capex guidance unchanged at $900 – $1,100 million FY22 capital expenditure includes committed capital expenditure for major gas projects - offshore Otway and Waitsia Stage 2 (LNG) ~5% 15% ~10% Up to 90 well drilling campaign within Cooper Basin JV ~30% ~15% 15% Cooper Basin
Slide 37: Positive start to FY22
Positive start to FY22 Key project execution moving toward 28 MMboe production target in FY24 FY22 - Growth program execution ✓ HOA with bp means Beach sees global LNG market ✓ Geographe 4 and 5 wells drilled, intersecting reservoir in line with pre-drill expectation ✓ Kupe Compression Project onlin
Slide 38: Delivering on Net Zero by 2050 emissions reduction aspiration
Delivering on Net Zero by 2050 emissions reduction aspiration Operated and non-operated emissions reduction focus On track Commitment to offsetting Waitsia reservoir emissions ▪ Estimated FY21 emissions are ~12% lower than FY18 levels and on track to reach ▪ Committed to offset 100% reservoir GHG em
Slide 39: Moomba Carbon Capture and Storage
Moomba Carbon Capture and Storage Announced Final Investment Decision on Moomba CCS with potential to significantly reduce Beach’s emissions footprint ▪ Material abatement project for ▪ Federal Government has approved ▪ Beach conducted internal and Beach to reach net zero aspiration CCS Methodology,
Slide 40: Key takeaways
Key takeaways Execution of growth strategy across multiple basins Committed Stable gas Sustainable Low gearing Free cash flow growth revenues delivery Targeting Base Business material steady Material Aspiration 28 MMboe Balance cash flow from production target sheet 8 gas plants free cash to be net
Slide 41: Formal Business
2021 ANNUAL GENERAL MEETING Formal Business
Slide 42: Q&A
2021 ANNUAL GENERAL MEETING Q&A
Slide 43: Resolutions for voting
2021 ANNUAL GENERAL MEETING Resolutions for voting
Slide 44: Proxy voting
Proxy voting Vote totals based on the first resolution Valid proxy votes received 914,561,573 % of total votes 40.09% 29 2021 I Annual General Meeting
Slide 45: 2021 Financial Report
2021 Financial Report Receipt and consideration of the Financial Report, the Directors’ Report and the Auditor’s Report of the Company, and the Group, for the financial year ended 30 June 2021. There is no requirement for shareholders to approve the financial statements and reports 30 2021 I Annual
Slide 46: Resolution 1: Adoption of Remuneration Report
Resolution 1 Adoption of Remuneration Report Total Valid Available For Against Open-Usable Abstain Votes QTY 871,404,115 38,714,989 4,442,469 914,561,573 4,118,887 % 95.28% 4.23% 0.49% 100% 31 2021 I Annual General Meeting
Slide 47: Resolution 2: Election of Margaret Hall
Resolution 2 Election of Margaret Hall as a director To consider and, if thought fit, pass the following resolution as an ordinary resolution: That Margaret Hall, pursuant to clause 6.1 of the Constitution and, being eligible and having consented to act, be elected as a director of Beach. 32 2021 I
Slide 48: Resolution 2: Election of Margaret Hall results
Resolution 2 Election of Margaret Hall as a director Total Valid Available For Against Open-Usable Abstain Votes QTY 1,528,378,891 31,948,190 4,611,501 1,564,938,582 4,295,930 % 97.67% 2.04% 0.29% 100% 33 2021 I Annual General Meeting
Slide 49: Finalisation of Polls
2021 ANNUAL GENERAL MEETING Finalisation of Polls
Slide 50: Shareholder Raffle
see. ~ beach Shareholder Raffle Prize 2x bottles Majella Wine (Cabernet Sauvignon/Shiraz blend & Sparkling Shiraz) MAJELLA NAWA 0° RR
Slide 51: Thank You
2021 ANNUAL GENERAL MEETING Thank You
Slide 52: 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 Chris Morbey, Head of Investor Relations T: +61 8 8338 2833