Slide 1: FY15 Preliminary Full Year Results
FY15 Preliminary Full Year Results 24 August 2015
Slide 2: Compliance statements
Compliance statements Disclaimer This presentation contains forward looking statements that are subject to risk factors associated with oil, gas and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variable
Slide 3: General
General Neil Gibbins – Acting Chief Executive Officer
Slide 4: FY15 overview
FY15 overview • Ongoing focus on safety with reduction in Hours Worked and LTIs lost time injuries of 60% Hours worked (million) LTIs • Macro issues, primarily oil price, driving 1.5 8 lower revenue, NPAT and cash flows • Strong balance sheet at 30 June, with 6 $170 million of cash and available fun
Slide 5: Financial overview
Financial overview Sales Revenue Underlying NPAT Operating Cash Flow $ million $ million $ million 1,200 270 600 240 1,000 500 210 800 180 400 150 600 300 120 400 90 200 60 200 100 30 0 0 0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 • Sales revenue of $728 million • C
Slide 6: Recent announcements
Recent announcements • Commencement of Origin oil linked gas contract, with other parameters – Delivering price increase on legacy contracts • Sale of Beach Egypt to Rockhopper for up to US$22 million • Acquisition of 40% interest in ATP 1056 on south-eastern flank of the Cooper Basin • Second half
Slide 7: Our strategy
Our strategy Optimise our core Build a Pursue other Maintain in the Cooper complementary compatible growth financial strength Basin gas business in opportunities in east coast basins Australia and nearby Growth in core Establish gas business Disciplined approach Supporting exploration, business thro
Slide 8: Financial
Financial Kathryn Presser – Chief Financial Officer
Slide 9: Financial results year-on-year
Financial results year-on-year FY14 FY15 Change Sales volumes (MMboe) 10.8 10.5 (2%) Sales revenue ($ million) 1,052.1 727.7 (31%) Operating cash flow ($ million) 582.6 228.5 (61%) NPAT ($ million) 101.8 (514.1) (605%) Underlying NPAT ($ million) 259.2 90.7 (65%) Cash balance ($ million) 411.3 170.2
Slide 10: Sales revenue
Sales revenue $ million 1,200 43.1 8.1 (59.5) 1,052.1 (75.0) 1,000 Gas / ethane (241.1) FX rates prices Volume / mix A$/US$ Third party A$/GJ 800 FY14 $0.919 FY14 $5.49 sales FY15 $0.837 FY15 $5.68 727.7 Oil and 600 liquids prices US$/boe 400 31% FY14 $115 FY15 $74 200 $324.4 million total decrease
Slide 11: Underlying NPAT
Underlying NPAT • Underlying NPAT down 65% to $91 million Underlying NPAT $ million • Decline mainly due to impact on revenue 270 from lower realised oil price 240 – 35% reduction in average US$ oil price 210 • Underlying NPAT supported by: 180 – Depreciation of the Australian dollar; 150 259 120 –
Slide 12: Comparison of NPAT with underlying NPAT
Comparison of NPAT with underlying NPAT FY14 FY15 $ million $ million NPAT 101.8 (514.1) Adjusted for: Mark-to-market of convertible notes derivative 14.3 (13.3) Asset sales (15.7) – Impairment of assets 162.22 789.11 Tax impact of above changes (3.5) (171.0) Underlying NPAT 259.2 90.7 1. FY15 impai
Slide 13: Impairments
Impairments • Area of interest approach for impairment Non-Cash Impairments testing Before Tax After Tax ($ million) • Impairments reflect current environment Cooper Basin interests 345 241 of lower oil prices and announced NTNG 238 167 transactions Egyptian interests 174 174 • Cooper Basin impairme
Slide 14: Robust financial position
Robust financial position • Continuing strong operating cash flow Operating Cash Flows $ million • Closing cash position of $170 million 600 • Undrawn corporate debt facility of 500 $150 million • Ongoing dividend stream (since 2002) 400 – Interim dividend: 1 cent per share fully 300 583 franked – F
Slide 15: Operational
Operational Neil Gibbins – Acting Chief Executive Officer
Slide 16: Actual and forecast production
Actual and forecast production FY15 Actual and Forecast Production MMboe • Production of 9.15 MMboe 10.0 9.6 – 51% oil; 49% gas and gas liquids 9.1 7.8 – 8.6 • Operated oil production driven by: 8.0 8.0 7.5 – Bauer facility upgrade; Gas* 4.4 Gas* (25 PJe) 4.5 – Six of 10 Bauer Field development (26
Slide 17: Production by area
Production by area Area FY14 FY15 Change Cooper / Eromanga basins 5,148 4,490 (13%) Oil (kbbl) Egypt 61 132 117% Total oil 5,209 4,622 (11%) Cooper Basin 21.0 22.1 5% Sales gas and ethane (PJ) Egypt – 0.1 – LPG (kt) Cooper Basin 48.6 44.3 (9%) Condensate (kbbl) Cooper Basin 405 361 (11%) Total gas /
Slide 18: Reserves and contingent resources
Reserves and contingent resources1 2P: 74 MMboe 2P and 2C: 751 MMboe Gas and gas liquids 55 MMboe Unconventional 2P reserves 74 MMboe gas and gas liquids 589 MMboe Oil 19 MMbbl Conventional gas/gas liquids 75 MMboe Oil 13 MMbbl 1. As per announcement to the Australian Securities Exchange on 24 Augus
Slide 19: FY16 capital expenditure guidance
FY16 capital expenditure guidance Capital Expected Expenditure Other Major Activities Wells ($ million) DEVELOPMENT Bauer facility upgrade; Middleton Cooper Basin 45 – 50 7–8 gas compression Connection of Windorah-Marama Cooper Basin (SACB and SWQ JVs) 145 – 160 28 – 30 area development Total Develo
Slide 20: Contact information
Contact information Beach Energy Limited 25 Conyngham Street Glenside SA 5065 Tel: +61 8 8338 2833 Fax: +61 8 8338 2336 Website: www.beachenergy.com.au Investor Relations Derek Piper Investor Relations Manager +61 8 8338 2833