Beach Energy Limited · ASX:BPT
Beach Energy — H1 FY2013 Earnings Presentation
23 slides from Beach Energy's earnings presentation, Feb 26, 2013
Slide 1: Half Year Results Presentation
For personal use only Half Year Results Presentation Reg Nelson – Managing Director Kathryn Presser – Chief Financial Officer Neil Gibbins – Chief Operating Officer 26 February 2013 Investor roadshow - March 2012 February 2013 Beach Energy Limited Slide 1
Slide 2: Compliance statements and Disclaimer
Compliance statements Disclaimer 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
Slide 3: Highlights
For personal use only Highlights Reg Nelson Managing Director February 2013 Slide 3
Slide 4: 1H FY13 Highlights
1H FY13 Highlights Corporate • Two new directors admitted to the Board For personal use only • Bob Kennedy does not stand for re-election, Glenn Davis appointed Chairman Operations • Record Cooper Basin oil production • 60% success rate with exploration wells • Expansion of Bauer (PEL 91), Butlers (
Slide 5: PEL and ATP farm-out to Chevron
PEL 218 and ATP 855 farm-out to Chevron For personal use only World class JV partner reinforces SA and Qld Cooper Basin gas potential February 2013 Slide 5
Slide 6: Background and rationale
Background and rationale • Beach has led the way in Nappamerri Trough unconventional exploration For personal use only – Early identification of the potential of PEL 218 and ATP 855 – Initial success with off-structure exploration wells and flow tests • Significant advancement in the program – PEL 2
Slide 7: Transaction highlights and overview
Transaction highlights and overview • The introduction of a world class joint venture partner with: For personal use only – Global experience and leading technical capability – A long and successful history in Australian exploration and gas development • Beach to transfer up to 60% of its interests
Slide 8: Transaction consideration summary
Transaction consideration summary • Subject to joint venture approvals, the key work program elements envisaged across the two permits For personal use only involve an initial exploration program to be followed by pilot production programs PEL 218 – potential payments ATP 855 – potential payments St
Slide 9: Why Chevron?
Why Chevron? • Unconventional resource experience For personal use only – USA and Canada (Duvernay, Marcellus, Utica, Wolfcamp) – Poland, Romania, China, Lithuania and Argentina – Exposure to >7 million net acres • Technical capability and gas development expertise • Outstanding exploration track re
Slide 10: Financial results
For personal use only Financial results Kathryn Presser Chief Financial Officer February 2013 Slide 10
Slide 11: 1H FY13 overview
1H FY13 overview For personal use only 1H FY13 1H FY12 Change Sales volume (MMboe) 4.6 4.6 0% Sales revenue ($ million) 342.9 294.3 17% Cash flow from operating activities ($ million) 172.2 76.8 124% Net profit after tax ($ million) 43.7 56.1 (22%) Underlying net profit after tax ($ million) 60.9 51
Slide 12: Sales revenue
Sales revenue For personal use only 400 $60.2 $1.8 $1.5 $0.5 $7.8 350 $342.9 Gas/ethane Oil and Liquids FX Rates Prices Third Party Purchases 300 $294.3 Prices A$/U$ US$/boe 2011 $1.03 A$/GJ Volume / Mix 2011 $113 2012 $1.04 2011 $5.72 250 2012 $113 2012 $5.53 $ million 200 150 $48.6 million 100 tot
Slide 13: Cash production costs
Cash production costs 140 For personal use only $2.5 $0.1 $123.7 $7.0 120 $16.5 Field operating Tariffs / tolls Carbon Price costs $97.6 100 Royalties 80 $ million 60 40 $26.1 million total increase 20 0 1H FY12 1H FY13 Cash production costs were up 27%, mainly due to: • Higher royalties due to incr
Slide 14: Gross profit
Gross profit 160 $2.0 $9.0 For personal use only $12.8 $48.6 140 $26.1 3rd party Inventory purchases Depreciation 120 $107.4 100 $90.7 Cash $ million production 80 Sales costs revenue 60 40 $16.7 million 20 total increase 0 1H FY12 1H FY13 Gross profit was up 18%, mainly due to: • Increased sales re
Slide 15: Cash flow from operating activities
Cash flow from operating activities 200 For personal use only 180 $5.8 $0.9 $172.2 $26.6 Other 160 Interest received $63.9 140 Operating costs 120 $ million 100 $76.8 80 Sales 60 receipts 40 $95.4 million total increase 20 0 1H FY12 1H FY13 Cash flow from operating activities increased 124%, mainly
Slide 16: Comparison of NPAT to underlying NPAT
Comparison of NPAT to underlying NPAT For personal use only 1H FY13 1H FY12 Change $ million $ million $ million Net profit after tax 43.7 56.1 (12.4) Adjusted for: Unrealised hedging (gains)/losses 0.3 (0.4) 0.7 Mark to market of convertible note derivative 19.6 – 19.6 Asset sales 0.0 (7.0) 7.0 Imp
Slide 17: Underlying NPAT
Underlying NPAT use only 80 70 $16.7 $0.2 $4.0 Net $3.4 $60.9 60 financing Tax $51.8 costs Other 50 expenses Gross profit and revenue For personal $ million 40 30 $9.1 million 20 total increase 10 0 1H FY12 1H FY13 Underlying NPAT up 17% February 2013 Slide 17
Slide 18: Operations
For personal use only Operations Neil Gibbins Chief Operating Officer February 2013 Slide 18
Slide 19: Actual and forecast production
Actual and forecast production For personal use only 8.5 MMboe 8.1 MMboe 7.5 MMboe 6.6 MMboe Gas* 4.3-4.5 MMboe Gas* (25-26 PJe) 4.8 MMboe Gas* (28 PJe) 4.5 MMboe (26 PJe) Oil Oil 3.8-4.0 MMbbl Oil 2.7 MMbbl 2.1 MMbbl * Gas and gas liquids FY13 production guidance underpinned by Western Flank oil fl
Slide 20: 2P reserves and 2C contingent resources
2P reserves and 2C contingent resources 2P: 93 MMboe 2P and 2C: 559 MMboe For personal use only 448 MMboe 73 MMboe 93 MMboe 20 MMboe 18 MMboe Oil Gas and Gas Liquids 2P Reserves Gas and Gas Liquids Oil Large reserve and resource base driving production growth profile February 2013 Slide 20
Slide 21: FY13 Capital expenditure guidance
FY13 Capital expenditure guidance Forecast FY13 For personal use only 1H FY13 FY13 FY13 reserves Actuals Forecast Forecast Forecast Seismic additions ($M) ($M) Wells 2D – km 3D – km2 MMboe DEVELOPMENT Cooper Basin – non-SACB JV 37 50 – 55 12 – 15 – – – Cooper Basin – SACB/SWQ JV 79 140 – 145 45 – 55
Slide 22: Key FY13 operational activities
Key FY13 operational activities For personal use only February 2013 Slide 22
Slide 23: Contact Information
Contact Information 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 General Manager Investor Relations Tel: +61 8 8338 2833 Mob: +61 8 (0)487 173 244 Email: chris.jamieson@beachenergy.com.