Beach Energy Limited · ASX:BPT
Beach Energy — Macquarie Conference 2021
35 slides from Beach Energy's conference presentation, May 4, 2021
Slide 1: Macquarie Conference Update
4 M AY 2 0 2 1 Macquarie Conference Update picture in 2021 the slide Enterprise 1 – Otway Basin
Slide 2: Compliance statements
Compliance statements Disclaimer Assumptions Remaining FY21 guidance is uncertain and subject to change. Q4 FY21 guidance has been estimated on the basis of the This presentation contains forward looking statements that are subject to risk factors associated with oil, gas and following assumptions:
Slide 3: Key takeaways
Macquarie Conference 2021 Key takeaways Recent Western Flank performance led to review and 18.4 MMboe net downgrade to 2P oil and gas reserves1,2,3 Update picture in Lattice acquisition provided strategically diversified gas portfolio the slide with exposure to four structurally short gas markets by
Slide 4: Health, safety and environmental performance
Health, safety and environmental performance Safest year on record to date Safety performance (TRIFR1) Environmental performance 15.6 Crude/hydrocarbon spill volume (kl) 51.9 9.7 7.9 5.9 5.7 3.8 3.5 3.4 4.1 3.7 2.0 9.6 1.8 2.9 0.2 0.1 0.1 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 F
Slide 5: Progressing delivery of 25% emission reduction
Committed to reducing our emissions Progressing delivery of 25% emission reduction Initiatives include: Flare and vent management Bauer Hybrid Renewable Project Leak Detection and Repair • Beach is implementing initiatives to reduce • Beach is undertaking concept select Program the need for flaring
Slide 6: Refreshed Executive Team
Refreshed Executive Team Changes to technical team provides renewed oversight to Beach’s portfolio and drive the next phase of growth across development and sustainability Thomas Nador – Group Executive Development Ian Grant – Chief Operating Officer ▪ Joined Beach in July 2019 as General Manager ▪
Slide 7: Western Flank 2P reserve downgrade
MACQUARIE CONFERENCE 2021 Western Flank 2P reserve downgrade
Slide 8: Western Flank oil background
Western Flank oil background Reversal of FY16 Western Flank oil decline accelerated deleveraging of Beach’s balance sheet Western Flank oil production was in decline by FY16, with high future uncertainty ($ million) 31 Jan 2018 31 Mar 2021 Monthly production (kbopd) Cash 135 190 30.0 Initial product
Slide 9: Bauer oil field update
Bauer oil field update New production information now indicates 2P reserves downgrade BAUER – DISCLOSED TO MARKET AT FEBRUARY 2021 RESULT BAUER UPDATE ▪ New Bauer reservoir model developed incorporating FY21 drilling ▪ 18 Bauer McKinlay horizontal development wells drilled in 2020 results, supported
Slide 10: Non-Bauer Western Flank oil field issues
Non-Bauer Western Flank oil field issues Recent production data shows Bauer model likely not applicable across all Western Flank oil fields 28 fields outside Bauer made FY21 drilling program highlighted the Wells typically require 9–12 months to establish decline behaviour2 difficulty in prognosing
Slide 11: Current status
Current status Net downgrade to Western Flank 2P oil and gas reserves1, equates to ~5% of Company 2P reserves at 30 June 2020 WESTERN FLANK 2P OIL AND GAS RESERVE DOWNGRADE Annual reserve audit underway7, to be completed in August 2021 MMboe WESTERN FLANK 2P OIL RESERVES SINCE END-FY16 (MMbbls) Baue
Slide 12: Outlook
Outlook Impacts on FY21 guidance FY21 GUIDANCE UPDATE Five-year outlook is withdrawn and Beach will no longer Pre-acquisition guidance Pro-forma guidance1 Updated pro-forma guidance provide a five-year outlook in its current form5 Production (MMboe) 25.5 – 26.5 26.5 – 27.5 25.2 – 25.7 Capital expend
Slide 13: Our Strategy
MACQUARIE CONFERENCE 2021 Our Strategy
Slide 14: Beach Energy portfolio diversity
Beach Energy portfolio diversity Six production hubs supplying three distinct gas markets Bass, Cooper, Perth, Taranaki, SA Otway and Victorian Otway Basins West Coast 2% gas 32% Liquids Oil FY21 YTD Gas 44% 45% Production 55% 18.9 East Coast MMboe gas 6% Condensate 8% 8% LPG NZ gas 14 Geographical
Slide 15: A strategically diversified portfolio
A strategically diversified portfolio 2017 Lattice acquisition positioned Beach beyond Western Flank oil and gas assets SINGLE ASSET RISK AND UNCERTAINTY OF WESTERN FLANK ASSETS WAS A KEY DRIVER OF DIVERSIFICATION End FY16 End FY20 ▪ Single basin (Cooper) ▪ Six production hubs across five basins ▪ R
Slide 16: Maintaining financial strength
Maintaining financial strength Net gearing <1%, supported by stable gas cash flows, which are expected to grow in FY22 Available liquidity ($ million) at 31 March 2021 Capital management framework Beach’s capital management priorities: 510 500 ▪ Beach remains a growth orientated company 404 430 ▪ Su
Slide 17: Delivering our growth strategy
Delivering our growth strategy Continuing to re-invest in our high-returning, diversified gas business Production growth expected from FY23 with committed Waitsia LNG Production growth committed: and offshore Otway developments ▪ Production uplift expected to fill Otway Gas Plant by mid-FY23 ▪ Early
Slide 18: Beach has delivered on key milestones
Beach has delivered on key milestones Focus on execution and delivery of our growth strategy DELIVERED UPCOMING ACTIVITIES ▪ Delivered Final Investment Decision at Waitsia Gas Project Stage 2 on schedule, ▪ Targeting completion of Kupe compression, expected online in H1 FY22 which followed execution
Slide 19: Our Markets
MACQUARIE CONFERENCE 2021 Our Markets
Slide 20: East Coast domestic gas market
East Coast domestic gas market Emerging supply shortfall supports Beach’s east coast gas strategy East Coast gas supply/demand forecast (PJ) Beach’s forecast East Coast gas sales (% of volume) 2,500 100% 2,000 75% 1,500 1,000 50% 500 25% - 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 0% FY21 FY
Slide 21: LNG markets
LNG markets Beach to become an LNG producer at an opportune time in the LNG cycle Global LNG supply/demand (Mt) Waitsia LNG volumes LNG supply is forecast to tighten from 2022 Supply tightness forecast between 2022 New greenfield LNG supply not and 2025 anticipated until post-2025 Global FID and fir
Slide 22: Western Australia domestic gas market
Western Australia domestic gas market Well supplied in the near-term, uncertainty increasing from mid-2020s AEMO WA GSOO base scenario gas market balance (TJ per day)1 Domestic market expected to be well supplied until mid-2020s 1,600 ▪ Existing supply expected to peak in 2022, in line with reserves
Slide 23: Our Assets
MACQUARIE CONFERENCE 2021 Our Assets
Slide 24: Waitsia LNG and domestic gas
Waitsia LNG and domestic gas Material production growth committed from H2 2023 Detailed design engineering to support procurement activities progressing to plan during Q4 FY21 NWS access Pipeline access Approvals EPC contract ▪ Executed agreements to process ▪ Executed transportation ▪ Remaining Wai
Slide 25: Otway Basin
Otway Basin Targeting tripling utilisation by mid-FY23 100% exploration success for Forward activity Otway campaign ▪ Targeting re-filling of the 205 TJ per day Otway ▪ Discovery of 21 MMboe net 2P reserves1 (34 Gas Plant by mid-FY23: MMboe gross) at the Enterprise gas field, o First gas from Geogra
Slide 26: Western Flank oil and gas
Western Flank oil and gas Future focus on measured exploration and appraisal drilling of prospective acreage <$6 per bbl field operating costs across Western Flank oil assets during FYTD Region supported by well-developed existing infrastructure Future drilling based on new Western Flank interpretat
Slide 27: Bass Basin
Bass Basin Trefoil has potential to be a material development, progress towards FEED Extending life of existing Forward activity infrastructure ▪ Commencing Trefoil FEED in Q4 FY21 ▪ Yolla field production continuing ▪ Targeting FID in H1 FY23 ▪ Potential for first gas from H2 FY25, ▪ Trefoil discov
Slide 28: New Zealand – Kupe Gas Project
New Zealand – Kupe Gas Project Kupe gas compression on-track Progressing towards Forward activity compression start up ▪ Kupe compression project expected to commence operations in H1 FY22 ▪ ~98% average facility reliability in FY21 ▪ Compression expected to maintain plateau ▪ All equipment for comp
Slide 29: Cooper Basin JV
Cooper Basin JV Focus on high value, low-risk opportunities Production steady despite Forward activity downtime and weather ▪ Beach plans to participate in 15 wells during ▪ Completed 26 wells at ~90% success rate Q4 FY21 o 88% exploration and appraisal success ▪ Planned maintenance at Port Bonython
Slide 30: Key takeaways
Macquarie Conference 2021 Key takeaways Recent Western Flank performance led to review and 18.4 MMboe net downgrade to 2P oil and gas reserves1,2,3 Update picture in Lattice acquisition provided strategically diversified gas portfolio the slide with exposure to four structurally short gas markets by
Slide 31: Q&A
MACQUARIE CONFERENCE 2021 Q&A
Slide 32: Appendices
MACQUARIE CONFERENCE 2021 Appendices
Slide 33: Perth Basin
Perth Basin Ramp-up of Xyris and Beharra Springs production Completion of plant works and Forward activity modifications ▪ Waitsia Stage 2 development detailed design engineering to support procurement ▪ Safely completed Waitsia Stage 1A expansion, activities in Q4 FY21 increasing Xyris facility to
Slide 34: Thank You
MACQUARIE CONFERENCE 2021 Thank You
Slide 35: 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