Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Barclays CEO Energy-Power Conference 2014
22 slides from Bhp's conference presentation, Sep 3, 2014
Slide 1: Onshore US: Primed to deliver significant growth in free cash flow
Onshore US Primed to deliver significant growth in free cash flow Tim Cutt President, Petroleum and Potash 2 September 2014 bhpbilliton resourcing the future
Slide 2: Disclaimer: Forward-looking statements
Disclaimer bhpbilliton resourcing the future Forward-looking statements This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestm
Slide 3: Disclaimer: Petroleum resources
Disclaimer bhpbilliton resourcing the future Petroleum resources The estimates of petroleum reserves and contingent resources contained in this presentation are based on, and fairly represent, information and supporting documentation prepared under the supervision of Mr. A. G. Gadgil, who is employe
Slide 4: Key themes
Key themes bhpbilliton resourcing the future Our Petroleum portfolio is underpinned by large, high-quality, upstream assets We have a clear strategy focused on value over volume Our high-return brownfield investments will maintain stable Conventional volumes Liquids opportunities with Tier-1 potenti
Slide 5: Delivering on our commitments
Delivering on our commitments bhpbilliton resourcing the future BHP Billiton delivered strong operating and financial performance in FY14 No fatalities and a record low TRIF1 of 4.2 per million hours worked Over US$6.6 billion of productivity-led gains now embedded since FY122 Strong financial resul
Slide 6: A simpler and more productive organisation
A simpler and more productive organisation bhpbilliton resourcing the future BHP Billiton core portfolio1 Under review Operated Non-operated Minerals Western Australia Iron Ore Olympic Dam Escondida Pampa Norte Samarco Antamina Nickel West Queensland Coal2 NSW Energy Coal Jansen project Cerrejón New
Slide 7: Delivering stronger growth and margins
Delivering stronger growth and margins bhpbilliton resourcing the future ‰ The core portfolio generated stronger performance compared with the broader portfolio over the last 10 years - production CAGR1 of 7% (versus 4%) - Underlying EBIT CAGR1 of 21% (versus 15%) - an average Underlying EBIT margin
Slide 8: Focusing on value over volume in our Petroleum business
Focusing on value over volume in our Petroleum business bhpbilliton resourcing the future ‰ Prioritising the highest return investment opportunities in our Petroleum business - investment in our shale liquids acreage (tight oil) generates strong returns - we are preserving the value of our dry gas s
Slide 9: A large, high-quality, upstream petroleum portfolio
A large, high-quality, upstream petroleum portfolio bhpbilliton resourcing the future Onshore US Gulf of Mexico Trinidad & Tobago Underlying EBIT & Underlying EBITDA (US$ billion) (margin, %) 35 100 28 80 21 60 14 40 7 20 0 0 FY11 FY12 FY13 FY14 Petroleum EBIT BHP Billiton EBIT Petroleum EBITDA marg
Slide 10: High-return brownfield investments will maintain stable Conventional volumes
High-return brownfield investments will maintain stable Conventional volumes bhpbilliton resourcing the future ‰ Australia and the Gulf of Mexico are our core producing regions with valuable infrastructure in place ‰ Capital expenditure of ~US$1.5 billion per annum is expected to maintain stable Con
Slide 11: Tier-1 oil potential in Trinidad and Tobago
Tier-1 oil potential in Trinidad and Tobago bhpbilliton resourcing the future ‰ We have an established operational presence in Trinidad and Tobago with our shallow water Angostura asset ‰ The deepwater is largely untested and has Tier-1 oil potential - world-class source rock - giant Orinoco River s
Slide 12: Onshore US is primed to generate strong growth in free cash flow
Onshore US is primed to generate strong growth in free cash flow bhpbilliton resourcing the future ‰ We have a premier acreage position over multiple shale plays ‰ A capital expenditure program of approximately US$4 billion per annum will support strong growth in liquids production - expected to be
Slide 13: Building momentum in the Black Hawk
Building momentum in the Black Hawk bhpbilliton resourcing the future ‰ We are a top producer in the Eagle Ford with investment prioritised on liquids-rich acreage - ~75% of our Onshore US drilling and development expenditure in FY14 was focused on the Eagle Ford ‰ Our Black Hawk acreage is in the h
Slide 14: Extending our liquids runway in the Permian
Extending our liquids runway in the Permian bhpbilliton resourcing the future ‰ We are leading the appraisal of the Wolfcamp with more than 70 wells drilled to date - extensive vertical and lateral appraisal of the resource ‰ We increased our acreage position within our core focus area by 25% to ~74
Slide 15: Driving improved performance through productivity
bhpbilliton resourcing the future Driving improved performance through productivity Repetitive, manufacturing nature of shale is ideally suited to our productivity agenda Application of technology will ensure we achieve the best recoveries while being cost competitive We use internal and external be
Slide 16: We are the top performer in Black Hawk recovered reserves
bhpbilliton resourcing the future We are the top performer in Black Hawk recovered reserves Using low-cost initiatives to maximise recoveries and unlock substantial value restricted flows optimal stage spacing efficient proppant placement We are best among peers in recovered reserves initial product
Slide 17: Strong growth in high-margin liquids production
bhpbilliton resourcing the future Strong growth in high-margin liquids production Total petroleum production increased by 4% in FY14 to 246 MMboe strong performance from Onshore US with 73% increase in liquids volumes near doubling of production at Atlantis to a rate of over 46 kboe/d net to BHP Bil
Slide 18: Key themes
bhpbilliton resourcing the future Key themes Our Petroleum portfolio is underpinned by large, high-quality, upstream assets We have a clear strategy focused on value over volume Our high-return brownfield investments will maintain stable Conventional volumes Liquids opportunities with Tier-1 potenti
Slide 19: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 20: Appendix
Appendix bhpbilliton resourcing the future
Slide 21: Glossary of selected terms
bhpbilliton resourcing the future Glossary of selected terms Reserves Those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria
Slide 22: Signatures
bhpbilliton resourcing the future SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BHP Billiton Limited and BHP Billiton Plc Date: 3 September, 2014 By:
BHP Billiton — Barclays CEO Energy-Power Conference 2014 on 6ix