Beach Energy Limited · ASX:BPT
Beach Energy — Investor Presentation (May 2018)
19 slides from Beach Energy's investor presentation, May 3, 2018
Slide 1: ASX release: Investor presentation
Beach Energy Limited ABN 20 007 617 969 25 Conyngham St, Glenside 5065, South Australia GPO Box 175, Adelaide 5001, South Australia T: +61 8 8338 2833 F: +61 8 8338 2336 beachenergy.com.au info@beachenergy.com.au ASX release 3 May 2018 Ref: #029/18 Investor presentation For information, attached is
Slide 2: Beach Energy Limited, Macquarie Australia Conference
BEACH ENERGY LIMITED MACQUARIE AUSTRALIA CONFERENCE 2 May 2018
Slide 3: Compliance statements
Compliance statements Disclaimer Competent Persons Statement This presentation contains forward looking statements that are subject to risk factors associated with Beach prepares its petroleum reserves and contingent resources estimates in accordance with the oil, gas and related businesses. It is b
Slide 4: An active and historic third quarter
An active and historic third quarter1 Continued focus on value maximisation Beach transformed Strong cash generation; gearing below Seamless transition of ownership. Beach now a diversified, target multi-basin producer with scale. $133 million free cash generated in Q3 FY18. Net gearing Q3 pro
Slide 5: Lattice acquisition is uniquely aligned with Beach's strategy
Lattice acquisition is uniquely aligned with Beach’s strategy Diverse and multiple growth options ~70% of production operated Increased Cooper Basin JV Operatorship of Otway and Bass ownership interests basins OPTIMISE GROW EAST COOPER Increased production and reserves COAST GAS Supply ~15%
Slide 6: Asset portfolio
Asset portfolio Expanded footprint with five production hubs and significant gas processing infrastructure * Working interest in Otway and Bass basins assumes completion of the acquisition of ownership interests from Toyota Tsusho (refer to ASX Release #098/17 dated 21 December 2017). 5
Slide 7: Clear objectives to drive shareholder returns
Clear objectives to drive shareholder returns Enhanced opportunity set across asset portfolio Key Objectives Production outlook Achieve best in class HSE performance Optimised, lowest operating cost production from existing producing basins Optimise production and cash generation Cooper, Otway,
Slide 8: On track to meet synergy target of $50 million per annum
On track to meet synergy target of $50 million per annum Targeting to be on run rate by end of FY19 Synergy estimate of at least Phase 1 operating $50 million per annum (pre-tax) efficiencies – Targeting to be on run rate by end of FY19 15.0 Additional corporate synergies identified Additional c
Slide 9: Gas pricing
Gas pricing Market fundamentals and GSA terms support ongoing price increases Recent commercial negotiations Attractive price and structure for new Lattice east delivering revenue uplifts at legacy coast gas contracts… Beach – Above Beach last 12 month average realised price – Origin oil-linked
Slide 10: Eastern Australia
Eastern Australia GSAs provide ongoing exposure to an attractive long-term pricing outlook Current east Re-contracted / re-priced volumes Majority of existing east coast volumes coast volumes re-priced or re-contracted by end 2021 Annual step-ups and CPI adjustments of Lattice contracts continue
Slide 11: Robust financial position
Robust financial position Capital management to prioritise re-investment, debt repayment and dividends 31-Dec-16 31-Dec-17 31-Mar-18 30-Jun-18 30-Jun-19 30-Jun-20 Net Gearing1 Net Gearing Targets1 Per capital management Net cash Net cash 29% <30% <20% framework Liquidity ($ million) Capital Manageme
Slide 12: Operations & Development
MACQUARIE AUSTRALIA CONFERENCE OPERATIONS & DEVELOPMENT 11
Slide 13: Strong drilling success being achieved in FY18
Strong drilling success being achieved in FY181 Increasing focus on horizontal wells Strong drilling performance continued in Q3 with 27 wells Drilling Results drilled at an 89% success rate Success Basin Category Wells Successes Rate – Brings YTD performance to 75 wells drilled at a success rate
Slide 14: Production and development
Production and development1 Successful field development activity improves full-year production outlook Production March December March (MMboe) 18.1 – 19.1 Total production Change YTD Q3 FY17 Q2 FY17 Q3 FY18 Total oil (kbbl) 1,349 1,331 1,543 16% 4,190 H2 Sales gas and ethane (PJ) 5.5 6.1 23.7 291%
Slide 15: Defined pathway to sustain and optimise production
Defined pathway to sustain and optimise production Multiple development and exploration projects to optimise production and cash flow High impact exploration Step-change • Ironbark, New Zealand, Bonaparte growth • Multi-Tcf opportunities Low risk exploration wells Production • Enterprise, Artisan, B
Slide 16: Cooper Basin capital program
Cooper Basin capital program Multi-year capital program to sustain production over the longer term Key Objectives: Western Flank Oil • Focus on core play fairway exploration and development (Brikhead, Namur, McKinlay) • Full field appraisal and development plans to maximise recoveries and accelerate
Slide 17: Otway Gas Project
Otway Gas Project Low cost development with high graded exploration potential • Acquire 100% of acreage and infrastructure to allow alignment across the project with new strategic joint venture partner Objectives • Nearshore drilling campaign first to access lowest operating cost gas • Follow-on off
Slide 18: Perth Basin: Operatorship capability and portfolio depth
Perth Basin: Operatorship capability and portfolio depth Long standing, experienced operator with majority position in growth exploration acreage Waitsia and Beharra Springs Beharra Springs Long standing operator of Beharra Springs plant with extensive engineering and operational experience Beac
Slide 19: Beach Energy Limited Investor Relations
MACQUARIE AUSTRALIA CONFERENCE Beach Energy Limited Investor Relations 25 Conyngham Street Mark Hollis, Investor Relations Advisor Glenside SA 5065 Australia T: +61 8 8338 2833 T: +61 8 8338 2833 F: +61 8 8338 2336 beachenergy.com.au