Beach Energy Limited · ASX:BPT
Beach Energy — FY2011 Earnings Presentation
19 slides from Beach Energy's earnings presentation, Aug 30, 2011
Slide 1: FY11 Full Year Results
Beach Energy Limited For personal use only FY11 Full Year Results 30 August 2011 Reg Nelson – Managing Director Kathryn Presser – Chief Financial Officer Neil Gibbins – Chief Operating Officer FY11 Full Year Results Slide 1
Slide 2: FY11 Highlights
For personal use only FY11 Highlights Reg Nelson – Managing Director FY11 Full Year Results Slide 2
Slide 3: Compliance statements / Disclaimer
Compliance statements For personal use only Disclaimer • 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
Slide 4: FY11 Highlights
FY11 Highlights Corporate For personal use only • Acquisition of Impress Energy Ltd • Negotiations with Santos regarding gas supply to its GLNG project Operations • Successful shale exploration program with booking of 2TCF 2C contingent resource • Western Flank exploration and appraisal success in P
Slide 5: Financial results
For personal use only Financial results Kathryn Presser – Chief Financial Officer FY11 Full Year Results Slide 5
Slide 6: FY11 Full Year results overview
FY11 Full Year results overview For personal use only FY11 FY10 Sales volume (MMboe) 8.8 9.3 Sales revenue ($ million) 496.4 487.5 Cash flow from operations ($ million) 184.5 128.5 Net (loss)/profit after tax ($ million) (97.5) 33.1 Underlying net profit after tax ($ million) 41.4 38.7 Total dividen
Slide 7: Sales revenue up 2%
Sales revenue up 2% For personal use only 600 $65.7 $5.8 $3.4 $31.1 Gas/ethane Third Party $34.9 $487.5 Volume / Mix $496.4 500 Prices Purchases Liquids Prices A$/GJ FX Rates US$/boe 2010 $5.04 AUD/USD 400 2011 $5.35 2010 $77 2010 $0.88 2011 $95 2011 $0.99 $m 300 200 $8.9 million total increase 100
Slide 8: Cash production costs down 3%
Cash production costs down 3% 250 $11.6 $8.6 For personal use only $221.8 $9.3 $215.5 Royalties Tariffs / tolls Field operating costs 200 150 $m 100 $6.3 million total decrease 50 0 June 10 June 11 Lower cash production costs mainly due to: • Tariffs and toll reduction due to lower SWQ crude tolls a
Slide 9: Gross profit up 6%
Gross profit up 6% 120 For personal use only $6.3 $7.1 100 $8.9 $16.1 $12.5 3rd party Cash 80 Sales revenue production purchases $77.3 $72.8 costs Inventory Depreciation $m 60 40 $4.5 million 20 total increase 0 June 10 June 11 Gross profit increase mainly due to: • Increase in oil and gas prices; p
Slide 10: Cash flow from operations up 44%
Cash flow from operations up 44% 250 For personal use only $25.6 $3.7 $2.1 $9.4 $12.8 200 Other Interest Operating $184.5 $46.8 received costs Legal Sales settlement receipts 150 $128.5 $m Tax 100 50 $56.0 million total increase 0 June 10 June 11 Cash flow from operations increase mainly due to: • T
Slide 11: Comparison of Underlying Profit
Comparison of Underlying Profit For personal use only FY11 FY10 $ million $ million Net (loss)/profit after tax (97) 33 Remove unrealised hedging (gains)/losses (2) 5 Remove revaluation of assets (14) 1 Remove asset sales (11) (55) Remove impairment of assets 158 64 Remove legal settlement 13 – Remo
Slide 12: Underlying net profit after tax up 7%
Underlying net profit after tax up 7% 50 For personal use only $2.7 $0.8 $5.3 45 $4.5 Other expenses Net financing and revenue $41.4 40 $38.7 Tax costs 35 Gross profit 30 $m 25 20 15 10 $2.7 million 5 total increase 0 June 10 June 11 Strong operational performance delivering a profit increase during
Slide 13: Operational overview
For personal use only Operational overview Neil Gibbins – Chief Operating Officer FY11 Full Year Results Slide 13
Slide 14: Large Resource base to build Reserves
Large Resource base to build Reserves 2P Reserves and For personal use only 2P Reserves 2C Contingent Resources 77 MMboe* 660 MMboe* 73% gas & gas liquids 2P Reserves are a fraction 27% oil of the total resource base 97% gas & gas liquids 3% oil Cooper / Eromanga Other Cooper / Eromanga 2P Other 2P
Slide 15: Production volumes down 10%
Production volumes down 10% 8 For personal use only 7.3 0.03 0.2 0.2 0.3 7 US Production 6.6 BMG Trucking 6 Flooding / and field Access decline 5 issues mmboe 4 3 2 0.7 mmboe 1 total decrease 0 June 10 June 11 Production volumes decrease mainly due to: • BMG moving to a non-productive phase; • Truck
Slide 16: FY12 production guidance of 7.5 MMboe
FY12 production guidance of 7.5 MMboe Beach actual and forecast production For personal use only (MMbboe) • Production guidance for FY12 of 8 7.5MMboe, expected to be primarily driven by: 7 – Better land access for activities 6 Oil following Cooper Basin floods Oil 5 – Enhanced exploration and devel
Slide 17: FY12 Capital requirements, wells and seismic
FY12 Capital requirements, wells and seismic FY12 FY11 FY12 FY12 For personal use only Fcst Capex Act Capex Fcst Wells Fcst Seismic $ million $ million to drill 2D - Km 3D - Km2 Development Cooper Basin 186.9 92.2 61 – – BMG – 1.2 – – – International 5.3 4.1 1 – – Total Development 192.2 97.5 62 – –
Slide 18: Key catalysts for FY12
Key catalysts for FY12 For personal use only Multiple near-term catalysts with material re-rating potential FY11 Full Year Results Slide 18
Slide 19: Contact information
Contact information Beach Energy Limited – Head office For personal use only 25 Conyngham Street Glenside SA 5065 Tel: +61 8 8338 2833 Fax: +61 8 8338 2336 Website: www.beachenergy.com.au Chris Jamieson Investor Relations Manager Tel: +61 8 8338 2833 Mob: +61 8 (0)487 173 244 Email: chris.jamieson@b