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Strategy and H1 Results Presentation – BG Group

BG Group · Sep 10, 2009 · 48 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Strategy and H1 Results Presentation – BG Group – slide 1
    Strategy and H1 2009 results September 2009
  2. Strategy and H1 Results Presentation – BG Group – slide 2
    Legal notice There are matters discussed in this presentation that are forward looking statements. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all…
  3. Strategy and H1 Results Presentation – BG Group – slide 3
    The Integrated Gas Major Key messages Resilient profit and operating cash flow Strength of Integrated Gas Strategy Major advances in Brazil Exploration/appraisal success Developments being optimised and accelerated Material…
  4. Strategy and H1 Results Presentation – BG Group – slide 4
    The Integrated Gas Major Overview Strategy Business segments Portfolio for growth H1 2009 results 4
  5. Strategy and H1 Results Presentation – BG Group – slide 5
    Strategy Integrated Gas Major Integrated Gas Major Connect gas to Secure competitively high value markets priced resources Build & access markets Equity reserves Serve customers Contracted resources Skills to succeed across…
  6. Strategy and H1 Results Presentation – BG Group – slide 6
    Strategy Countries of current operation Norway Canada UK Kazakhstan Italy USA Areas of PA Tunisia Oman India China Algeria Thailand Libya Philippines Trinidad & Tobago Malaysia Egypt Nigeria Brazil Singapore Australia…
  7. Strategy and H1 Results Presentation – BG Group – slide 7
    Strategy BG Group operating profit Total operating profit ( million) 6000 CAGR 38% 1997-2008 2008 ROACE: 29% 5,355 5000 4000 3,248 3,103 3000 2,389 2000 1,520 1,287 1000 833 888 688 229 330 160 0 1997 2000 2003 2006…
  8. Strategy and H1 Results Presentation – BG Group – slide 8
    Business segments E&P
  9. Strategy and H1 Results Presentation – BG Group – slide 9
    Business segments E&P benchmarking Annual unit opex cost trend (/boe) 18 16 14 12 10 8 6 4 2 0 2003 2004 2005 2006 2007 2008 BG Top quartile Combined Companies Bottom quartile Source: Evaluate Energy 2009, BG Group Peer…
  10. Strategy and H1 Results Presentation – BG Group – slide 10
    Business segments E&P benchmarking 3 year F&D cost trend (/boe) 60 50 40 30 20 10 0 2002-04 2003-05 2004-06 2005-07 2006-08 BG Top quartile Combined Companies Bottom quartile Source: Evaluate Energy 2009, BG Group…
  11. Strategy and H1 Results Presentation – BG Group – slide 11
    Business segments E&P asset base BG net production (000s boepd) of assets on stream at end 2006 only 700 600 500 400 Assets in production in 2006 only 300 200 100 0 2006A 2009 2012 2015 At 2009 reference conditions…
  12. Strategy and H1 Results Presentation – BG Group – slide 12
    Business segments Production BG net production (000s boepd) 2005-12 1000 CAGR 6-8% 2009 800 680,000 boepd* 600 Key projects 2008-12 400 Karachaganak Dolphin Miskar Panna/Mukta/Tapti QGC upstream Tupi 200 Jasmine…
  13. Strategy and H1 Results Presentation – BG Group – slide 13
    Business segments Australia: QGC Proposed LNG plant Integrated with BG Curtis Island Gladstone Strategically transformational Acquisition cost 0.36/mmbtu Stable attractive investment setting Walloon Fairway (Walloon) Growing…
  14. Strategy and H1 Results Presentation – BG Group – slide 14
    Business segments Australia: QCLNG progress Curtis Island, Queensland Environmental Management LNG plant Precinct Curtis Island Two 3.7 mtpa trains in Phase 1 Industry Precinct Graham Site acquired Creek Module fabrication…
  15. Strategy and H1 Results Presentation – BG Group – slide 15
    Business segments Australia: Production BG net production (000s boepd) Pure Energy additional resource 250 Reserves/resources 13 tcf 200 Ca 220 wells in 2009 150 Substantial E&P growth driven by: 100 Two trains of LNG Increased…
  16. Strategy and H1 Results Presentation – BG Group – slide 16
    Business segments Brazil: Santos Basin update 50 km Rio de Janeiro BG discovered resources 3 bn boe BM-S-52 No change to existing licenses BG 40% BM-S-10 Corcovado-1 Corcovado-2 BG 25% BM-S-11 BG 25% Greater…
  17. Strategy and H1 Results Presentation – BG Group – slide 17
    Business segments Brazil: Tupi 50 km Rio de Janeiro Processing & Extended well test Gathering Terminal Excellent reservoir & well productivity Existing gas ca 14 000 bopd (constrained) pipeline 145 km Initial development…
  18. Strategy and H1 Results Presentation – BG Group – slide 18
    Business segments Brazil: Production BG net production (000s boepd) Additional major new developments 450 Guara Reserves 1.1-2 bn boe Production FPSO in 2012 300 Full production up to 150,000 bopd Iara Gross resources 3-4 bn boe…
  19. Strategy and H1 Results Presentation – BG Group – slide 19
    Business segments US shale gas: BG-EXCO Haynesville alliance Shale gas required to meet US demand 2.6 tcf resource at 0.43 per mcf Competitive price in key Haynesville location Alliance with EXCO: skilled, low cost operator…
  20. Strategy and H1 Results Presentation – BG Group – slide 20
    Business segments EXCO transaction Upstream 50% of EXCOs properties: Haynesville, Cotton Valley and Bossier 50% in 120,000 net acres; of which 84,000 are in the Haynesville Net 50% interest in about 900 existing wells Midstream 249…
  21. Strategy and H1 Results Presentation – BG Group – slide 21
    Business segments Industry best initial production rates Initial production rate (mcf/d) 31,000 IP rates reported across industry on 165 wells in Haynesville shale play 28,000 EXCOs track record 4 of the top 6 25,000 11 of the top…
  22. Strategy and H1 Results Presentation – BG Group – slide 22
    Business segments UK: Production BG net production 000s boepd 200 Exceptional record over last 5 years Further Plateau extended by 6 years potential 150 Net reserves added ca 300 mmboe 50 mmboe 2008 strong performance 100 Buzzard &…
  23. Strategy and H1 Results Presentation – BG Group – slide 23
    Business segments Kazakhstan: Karachaganak outlook BG net production 000s boepd 200 Phase III, stage 1 Drilling, compression & gas sales 150 Fully utilise existing facilities Optimise cost 100 Phase III, further stages Scope…
  24. Strategy and H1 Results Presentation – BG Group – slide 24
    Business segments Norway North Tampen area 2008 Exploration success Jordbaer Jordbaer & Pi North, BG operated Jordbaer Central PL373S BG 45% (Op) Jordbaer Central discovery Bringebaer PL423S High quality reservoir BG 25%…
  25. Strategy and H1 Results Presentation – BG Group – slide 25
    Business segments E&P: 2009 E&A preview Summary of well completions* Alaska Canada UK Norway New plays 3 1 well 7 wells 1 well 1 well Play extenders 7 - 10 10-16 wells 1 well Appraisal/near term 23 - 24 production CSG wells ca…
  26. Strategy and H1 Results Presentation – BG Group – slide 26
    Business segments LNG
  27. Strategy and H1 Results Presentation – BG Group – slide 27
    Business segments LNG: Business environment 70 mtpa of new LNG by 2011 Short-term demand impact LNG remains attractive Additional ca 150 mtpa of LNG supply needed by 2020 New supply required by 2013-14 LNG market outlook 27
  28. Strategy and H1 Results Presentation – BG Group – slide 28
    Business segments LNG: Termed out volumes Breakdown of LNG volumes (mtpa) Contracted volumes 20 US, primarily Elba Island Chile 15 Brazil, Europe and Asia 10 Flexibility allows value capture Balanced price exposure 5 0…
  29. Strategy and H1 Results Presentation – BG Group – slide 29
    Business segments LNG outlook Capital invested Liquefaction 2009 1.1bn 2010 1.1bn Segment PBIT * 2009 1.4bn - 1.5bn Shipping Volumes 2010 1.2bn - 1.3bn and 2009 13 mtpa Marketing 2010 13 mtpa * PBIT based on 2009 reference…
  30. Strategy and H1 Results Presentation – BG Group – slide 30
    Business segments LNG: Cost evolution Liquefaction EPC costs (2009 US/tpa) 1,400 BGs portfolio is low cost 1,200 Sustainable advantage Greenfield projects 1,000 Expansion projects Cost Focus on QCLNG BG liquefaction projects*…
  31. Strategy and H1 Results Presentation – BG Group – slide 31
    Business segments LNG: Volume outlook mtpa 30 T&T & OKLNG Other & Brass 25 NLNG Train 7 Australia 20 15 Other term supply 10 Nigerian LNG T4/5 Equatorial Guinea Contracted Egyptian LNG T2 5 Atlantic LNG T4 Atlantic…
  32. Strategy and H1 Results Presentation – BG Group – slide 32
    Portfolio for growth
  33. Strategy and H1 Results Presentation – BG Group – slide 33
    Portfolio for growth E&P: Reserves and resources CAGR 28% Reserves/ mmboe Production* 14000 13,126 12000 10,046 3,562 58 years 10000 8,017 8000 3,356 3,722 42 years 2,713 6000 3,122 1,772 3,383 26 years 4000 1,383 1,529…
  34. Strategy and H1 Results Presentation – BG Group – slide 34
    Portfolio for growth E&P: Production outlook 2000 13,126 2000 1.6 million boepd 3,562 3,562 CAGR 8% 1500 1500 1.2 million boepd CAGR 6% 3,722 3,722 1000 1000 3,383 3,384 500 500 2,459 2,459 00 2005 2005A 2020 2020…
  35. Strategy and H1 Results Presentation – BG Group – slide 35
    Portfolio for growth E&P: Production scenario BG net production (000s boepd) 1600 1.6 million boepd Exploration 1.2 million 1200 boepd Australia 800 Brazil 400 All other countries 0 2008 2008 2012 2012 2016 2016…
  36. Strategy and H1 Results Presentation – BG Group – slide 36
    Portfolio for growth E&P: Key projects and opportunities BG net production (000s boepd) 2020 1,200-1,600,000 2008-20 boepd 1600 CAGR 6-8% 1200 800 Medium term 2008-12 Long term 2013-20 Key projects: Key…
  37. Strategy and H1 Results Presentation – BG Group – slide 37
    Portfolio for growth Capital structure and dividend Strongly financed Low cost base Strong cash conversion 2009-2012 capex 16 bn organic over 4 years Brazil & Australia focus 5.4 bn including acquisitions in 2009 Dividend…
  38. Strategy and H1 Results Presentation – BG Group – slide 38
    H1 2009 results
  39. Strategy and H1 Results Presentation – BG Group – slide 39
    Financial performance H1 2009 Profit & cash flow resilience from integrated gas model Total operating profit 2.25 billion (2.83 billion H108) Earnings per share 35.6 pence (47.7p H108) Resilient profit and cash flow performance…
  40. Strategy and H1 Results Presentation – BG Group – slide 40
    Financial performance H1 2009 H1 2009 H1 2008 million million % yoy Total operating profit 2 247 2 833 -21% Earnings 1 197 1 596 -25% EPS 35.6p 47.7p -25% Operating cash flow 2 380 3 154 -25% Results excluding disposals, certain…
  41. Strategy and H1 Results Presentation – BG Group – slide 41
    Financial performance H1 2009 total operating profit H1 2009 H1 2008 million million % yoy E&P 1 073 1 918 -44% LNG 889 762 +17% T&D 207 86 +141% Power 74 78 -5% Other activities 4 (11) - Group total 2 247 2 833 -21% Results…
  42. Strategy and H1 Results Presentation – BG Group – slide 42
    Financial performance H1 2009 total operating profit: E&P H1 2009 H1 2008 Volume (mmboe) 116.4 115.4 Operating profit (before expl) (m) 1 380 2 109 Exploration charge (m) (307) (191) Operating profit (m) 1 073 1 918 Results…
  43. Strategy and H1 Results Presentation – BG Group – slide 43
    Financial performance H1 2009 total operating profit: LNG H1 2009 H1 2008 million million Shipping and marketing 818 728 Liquefaction 115 63 Business devt and other (44) (29) Operating profit 889 762 Results excluding disposals,…
  44. Strategy and H1 Results Presentation – BG Group – slide 44
    Financial performance H1 2009 total operating profit: T&D / Power H1 2009 H1 2008 million million Comgs 184 61 Other 23 25 T&D operating profit 207 86 Power operating profit 74 78 Results excluding disposals, certain…
  45. Strategy and H1 Results Presentation – BG Group – slide 45
    Financial performance H1 2009 Operating cashflow 2 380 m Capex (incl acquisitions) 2 493 m Net debt 2 055 m Gearing 14% Bond issues 500 m - 2017 750 m - 2013 Strong financial position 45
  46. Strategy and H1 Results Presentation – BG Group – slide 46
    The Integrated Gas Major Key messages Resilient profit and operating cash flow Strength of Integrated Gas Strategy Major advances in Brazil Exploration/appraisal success Developments being optimised and accelerated Material…
  47. Strategy and H1 Results Presentation – BG Group – slide 47
    Appendix
  48. Strategy and H1 Results Presentation – BG Group – slide 48
    Appendix Key assumptions REFERENCE CONDITIONS Brent Oil price US 55/bbl US Henry Hub 7.25/mmbtu US/UK exchange rates of 1.5:1 Prepared under International Financial Reporting Standards All production includes fuel gas PRINCIPAL…

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