Beach Energy Limited · ASX:BPT
Beach Energy — Shareholder Meeting (November 2009)
52 slides from Beach Energy's shareholder meeting presentation, Nov 26, 2009
Slide 1: Chairman and Managing Director presentation
For personal use only Bob Kennedy, Chairman Reg Nelson, Managing Director 1
Slide 2: Forward looking statements and competent persons statement
For personal use only This presentation contains forward looking statements that are subject to risk factors associated with oil, gas, geothermal and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variabl
Slide 3: Mr Bob Kennedy
3 For personal use only Mr Bob Kennedy
Slide 4: 2009 a difficult year for most companies
For personal use only According to the Financial Review, 2009 was a year in which most companies … • Experienced shrinking operations • Delivered lower earnings • Announced lower profits • Cut back on dividend payments • Encountered problems with debt and gearing • Struggled with how to approach a l
Slide 5: Against the trend, Beach
For personal use only Against the trend, Beach … • Had record production of oil and gas • Had improved earnings • Announced a record profit • Increased its dividend payments • Became debt free with substantial cash reserves Growth through prudent management • Continued to move as an energy
Slide 6: Extracts from BRW Fast 100
For personal use only Extracts from BRW Special Edition Fast 100, 29 October 2009: • “The BRW Fast 100 List proves that capable business people are successful in both good and bad times” (editorial). • “Few match the Fast 100 in terms of optimism, zeal, confidence and entrepreneurialism.” • “Total r
Slide 7: Business Review Weekly editorial quote
For personal use only “… the business chiefs throughout the year constantly struggled to remember the big picture. Those who did – who occasionally stepped away from the daily running of the business – are in a stronger position heading into the upturn.” Source: Business Review Weekly editorial 12 N
Slide 8: For personal use only
= ei) ee ‘ (APPEAR 09 - INEW ERO TERS ar ia 1
Slide 9: Analyst comment on balance sheet strength
For personal use only “Beach Petroleum (BPT) has balance sheet strength and a long term production and earnings profile superior to its mid-cap peers.” Oliver Foster, Euroz Securities Limited, September 2009
Slide 10: Our People
10 Our People BEACH PETROLEUM
Slide 11: Record NPAT, revenue and production, FY09 dividend
For personal use only Record NPAT of $260 million ◦ Normalised NPAT of $64 million (21% increase on FY08) Record sales revenue of $581 million Record production of 9.6 MMboe: • Approximately 26,300 boed FY09 dividend of 3.75 cents per share: • Interim dividend of 0.75 cent • Final dividend o
Slide 12: Our first apprentice
For personal use only Ben Dadleh, our first apprentice, a proud representative of the Dieri people 12
Slide 13: Looking after our environment
Looking after our environment C BEACH in | ZOOS SOU USTRALIA & CONSERVATION
Slide 14: What else have we done?
=| BEACH PETROLEUM ssl i 4 Save the Children What Else Have We Done? oN South Australian Museum guideDOGSsa-nt AUSTRALIAN FESTIVAL FOR YOUNG PEOPLE WWW.COMEOUT.ON.NET Independence in every sense 14
Slide 15: New name Beach Energy
For personal use only New name “Beach Energy” ASX Energy Index vs BPT Last 60 Days • Continuing as an oil producer 9.00% • Investment in emerging 6.00% technology 3.00% • Focus on gas % Movement 0.00% Reliable dividends -3.00% Consistent production -6.00% Exposure to energy prices -9.00% E
Slide 16: Mr Reg Nelson
For personal use only Mr Reg Nelson 16
Slide 17: Highlights of the year in review
For personal use only Highlights of the year in review Reserves and resources for future development Strategy Next two to five years Next five to ten years
Slide 18: Record production
For personal use only Record production 10 • Total for year of 9.6 MMboe 9 (approximately 26,300 boepd) 8 • Oil & gas liquids accounted for 43% MMboe per year 7 of production (approximately 6 11,300 boepd) 5 • 85.4% from Cooper 4 Oil component continues to 3 2 increase (Cooper oil production 1 i
Slide 19: Cooper Oil and Gas
For personal use only Cooper Oil and Gas Ongoing western flank oil exploration success: • Three new oil discoveries in PEL 92 (Butlers, Perlubie, Perlubie South) • Nearly 10 MMbbl in total discovered in eight years (4.4 MMbbl produced to date) – Beach owns 75% Callawonga-Tantanna pipeline commis
Slide 20: Tipton West coal seam gas and gas/condensate targets
For personal use only Tipton West coal seam gas Successful sale of assets for up to $400 million (from initial investment of $35 million) Large gas/condensate targets New 3D seismic to define Pandora Field gas resource in Gulf of Papua (PNG) Burnside-1ST-1 gas discovery in Browse Basin (offsho
Slide 21: Egypt, Gippsland and geothermal
For personal use only Egypt Oil Nearshore oil fields in Gulf of Suez being developed, first production 2010 (targeting 10 to 20 MMbbl potential) Gippsland Oil Development program commenced in June 2009 Production vessels returned mid November 2009 from statutory inspection Geothermal Paralan
Slide 22: 2P Reserves and contingent resources
For personal use only 2P Reserves – 66 MMboe Cooper Basin – 61 MMboe 2P Reserves & Contingent Resources: 359 MMboe Gippsland & Egypt – 5 MMboe Total Oil - 19 MMbbl (28%) Contingent Resources – 293 MMboe Cooper Basin 263 MMboe • Conventional 84 MMboe • Unconventional 179 MMboe Gas Gas Liquids
Slide 23: The next ten years
For personal use only The next ten years Accelerated growth Balanced portfolio risk / reward approach 60% low risk 30% moderate risk 10% higher risk Maintain low exposure to debt 23
Slide 24: Growth plan by risk/reward: two to five years
For personal use only Aim: Double (or treble) production and reserves Risk/Reward Exploration Development Low (60*) Continued oil & gas discoveries in Develop large contingent Cooper with aim to add up to 20 conventional gas resource of approx. MMboe new reserves 500 PJ in Cooper Moderate (30*) Co
Slide 25: Egypt highly prospective region
For personal use only Highly prospective region with long established industry and favourable legislative and fiscal regime Home to giant oil fields (500 to 800 million barrels) such as Morgan, July & Ramadan) First oil production from North Shadwan concession (BPT 20%) expected within months
Slide 26: Growth plan by risk/reward: five to ten years
For personal use only Aim: Continue to build reserves & production by multiples Risk/Reward Exploration Development Low (60*) Continued oil explorationin Cooper Develop large contingent shale gas and unconventional gas in Cooper resource in Cooper and other Australasian basins Moderate (30*) Expan
Slide 27: Tanzania production sharing agreement
For personal use only Finalisation of Production Sharing Agreement in FY10 (Beach 100%) Under-explored, emerging hydrocarbon province with high potential & known natural oil seeps Large oil discoveries in recent years in to the north in Uganda Potential for large (> 200+ MMbbl) discoveries
Slide 28: What is shale gas?
For personal use only What is Shale Gas? Main unconventional gas sources in the Cooper are shale gas, tight gas and deep coal gas Shales are typically high porosity, low permeability rocks that are often the source of oil and gas generated in a petroleum basin – and retain large volumes of gas
Slide 29: Expectations for shale gas
For personal use only Expectations for shale gas: Following the US example: ◦ Shale gas in the US has US Unconventional Gas Outlook followed coal seam gas ◦ Unconventional gas is a growing part of US domestic gas production Gas demand to grow strongly as carbon emission market controls take effe
Slide 30: Cooper Basin shale gas
Cooper Basin Shale Gas For personal use only Another example of Beach thinking ahead of the pack Beach has recorded Cooper contingent gas resource of 263 MMboe (~1.5 TCF), shale gas resource could be much larger Pipelines are in place to deliver gas from the Cooper Basin to NSW, Victoria and SA
Slide 31: Preparing for commercialisation
For personal use only Preparing for Commercialisation Nappamerri Trough farmins to build a dominant position Sundance Energy Limited alliance for unconventional oil and gas Rentech agreement to evaluate feasibility of applying the Rentech Process to Cooper basin shale gas ◦ Fertiliser producti
Slide 32: Consistent, targeted growth
For personal use only Consistent, targeted growth ◦ Long-term cash flow, production and reserves ◦ Value driven investments ◦ At least double (or treble) production over next 2-5 years Thinking ahead of the pack: ◦ Early entry, low risk, high return (e.g., CSG and now Shale Gas) ◦ Participation
Slide 33: Beach Energy Limited
For personal use only “Beach Energy Limited” Highlights our fundamental strategy of investing in affordable low pollutant energy A more modern label Continued sound decision making in a new world of energy opportunities 33
Slide 34: Resolutions for voting
For personal use only Resolutions for voting 34
Slide 35: Proxy votes received
For personal use only Beach has received 2,497 valid proxy votes This represents 41.33% of the Votes 35
Slide 36: Resolution: adopt remuneration report
For personal use only To consider and put to a non-binding vote the following resolution: That the remuneration report for the financial year ended 30 June 2009 be adopted 36
Slide 37: Proxy results: remuneration report
For personal use only For Against Open Total Abstain Total (Usable) Valid number of At Available valid Discretion Votes proxy of Proxy votes Adopt Remuneration Report 362,897,185 66,648,790 11,308,027 440,854,002 2,855,363 443,709,365 82.31% 15.12% 2.57% 100%
Slide 38: Resolution: re-election of Mr Kennedy
For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: That Mr Robert Michael Kennedy, who retires by rotation pursuant to the constitution of Beach and who, being eligible, offers himself for re-election is re- elected as a director of Beac
Slide 39: Proxy results: re-election of Mr Kennedy
For personal use only For Against Open Total Abstain Total (Usable) Valid number of At Available valid Discretion Votes proxy of Proxy votes Re-election of Mr 365,524,643 62,013,528 11,160,510 438,698,681 5,010,684 443,709,365 Kennedy 83.32% 14.14% 2.54% 100%
Slide 40: Re-election of Mr Kennedy as a director
Resolution 2 — Re-election of Mr Kennedy as a director BEACH PETROLEUM oN 40
Slide 41: Resolution: re-election of Mr Davis
For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: That Mr Glenn Stuart Davis, who retires by rotation pursuant to the constitution of Beach and who, being eligible, offers himself for re-election is re-elected as a director of Beach. 41
Slide 42: Proxy results: re-election of Mr Davis
For personal use only For Against Open Total Abstain Total (Usable) Valid number of At Available valid Discretion Votes proxy of Proxy votes received Re-election of Mr Davis 367,507,778 59,751,035 11,194,942 438,453,755 5,255,610 443,709,365 83.82% 13.63% 2.55% 100%
Slide 43: Re-election of Mr Davis as a director
Resolution 3 — Re-election of ~~ Mr Davis as a director Gy! PETROLEUM
Slide 44: Resolution: change of company name
For personal use only To consider and, if thought fit, pass the following as a special resolution: That, the name of the Company be changed to Beach Energy Limited 44
Slide 45: Proxy results: change of name
For personal use only For Against Open Total Abstain Total (Usable) Valid number of At Available valid Discretion Votes proxy of Proxy votes received Change of Name 425,644,066 4,557,696 10,972,513 441,174,275 2,535,180 443,709,455 96.48% 1.03% 2.49% 100%
Slide 46: Resolution: Employee Incentive Plan securities
For personal use only To consider and if thought fit pass the following resolution as an ordinary resolution: That the issue of securities in Beach to participants under Beach's Employee Incentive Plan the principal terms of which are set out in the explanatory statement accompanying this notice o
Slide 47: Proxy results: Employee Incentive Plan
For personal use only For Against Open Total Abstain Total (Usable) Valid number of At Available valid Discretion Votes proxy of Proxy votes received Approval of 410,067,487 15,622,677 11,209,433 436,899,597 3,743,521 440,643,118 securities under the EIP 93.85% 3.58% 2.57% 100%
Slide 48: Resolution: Long Term Incentive Plan securities
For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: That the issue of securities in Beach to participants under Beach's Long Term Incentive Plan, the principal terms of which are set out in the explanatory statement accompanying this noti
Slide 49: Proxy results: Long Term Incentive Plan
For personal use only For Against Open Total Abstain Total (Usable) Valid number of At Available valid Discretion Votes proxy of Proxy votes received Approval of 408,745,500 16,806,956 11,190,482 436,742,938 3,900,180 440,643,118 securities under the LTI Plan 93.59% 3.85% 2.56% 100%
Slide 50: Resolution: reinstate constitution clause 6.4
For personal use only To consider and if thought fit, pass the following resolution as a special resolution: That Clause 6.4 of Beach's constitution is reinstated in the constitution for a further three years after the date of this annual general meeting. 50
Slide 51: Proxy results: partial takeover provisions
For personal use only For Against Open Total Abstain Total (Usable) Valid number of At Available valid Discretion Votes proxy of Proxy votes received Re- instatement 415,858,490 13,038,408 11,476,161 440,373,059 3,225,291 443,598,350 of partial takeover provisions 94.43% 2.96% 2.61% 100%
Slide 52: Questions and meeting close
Questions and meeting close C ee ‘|