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Strategy and H1 2010 Results Presentation – BG Group

BG Group · Jul 28, 2010 · 52 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 2010 Results Presentation – BG Group – slide 1
    Strategy and H1 2010 results
  2. Strategy and H1 2010 Results Presentation – BG Group – slide 2
    Legal Notice Certain statements included in this presentation contain forward-looking information concerning BG Groups strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the…
  3. Strategy and H1 2010 Results Presentation – BG Group – slide 3
    The Integrated Gas Major Key messages Entering a new decade of high growth Underpinned by strengthened & rebalanced portfolio Key projects significantly & rapidly de-risked Already own reserves & resources to meet growth…
  4. Strategy and H1 2010 Results Presentation – BG Group – slide 4
    The Integrated Gas Major Key messages E&P: upper end 6-8% range to 2020, LNG: 20 mtpa for 2015 Brazil: in production, 400,000 boepd net by 2020 Queensland Curtis LNG: 2010 sanction EXCO alliance: 100,000 boepd net by 2015 LNG…
  5. Strategy and H1 2010 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 2010 Results Presentation – BG Group – slide 6
    Strategy BG Group performance Total operating profit ( million) 6000 CAGR 31% 1997-2009 5000 4,211 4000 3,103 3000 2000 1,287 1000 688 160 0 1997 2000 2003 2006 2009 Continuing operations excluding disposals, certain…
  7. Strategy and H1 2010 Results Presentation – BG Group – slide 7
    Strategy Portfolio development UK Kazakhstan USA Tunisia Trinidad & Tobago Egypt India Brazil Australia Core countries Portfolio further strengthened 7
  8. Strategy and H1 2010 Results Presentation – BG Group – slide 8
    Strategy BG Group performance BG Group net production (000s boepd) 1600 CAGR 10% 1997-2020 1.6 million boepd CAGR 12% 1997-2009 1.2 million 1200 boepd 8% 6% 800 400 0 1997 2003 2009 2015 2020 Future production…
  9. Strategy and H1 2010 Results Presentation – BG Group – slide 9
    E&P benchmarking 3 year unit F&D cost trend (/boe) 50 40 30 20 10 0 2003-05 2004-06 2005-07 2006-08 2007-09 BG Group Top quartile Combined companies Bottom quartile Source: Evaluate Energy 2010, BG Group Peer Group…
  10. Strategy and H1 2010 Results Presentation – BG Group – slide 10
    E&P benchmarking Annual unit opex cost trend (/boe) 16 12 8 4 0 2005 2006 2007 2008 2009 BG Group Top quartile Combined companies Bottom quartile Source: Evaluate Energy 2010, BG Group Peer Group includes Super…
  11. Strategy and H1 2010 Results Presentation – BG Group – slide 11
    Strategy LNG: Portfolio UK Italy USA Trinidad & Tobago Egypt Singapore* Nigeria EG Brazil Australia Chile Current and future equity positions Existing liquefaction Future liquefaction Long term purchases (contracted)…
  12. Strategy and H1 2010 Results Presentation – BG Group – slide 12
    Strategy BG Group performance Contracted LNG supply (mtpa) 20 CAGR 37% 2003-2009 15 10 5 0 2003 2006 2009 2015 Goal of 20 mtpa by 2015 12
  13. Strategy and H1 2010 Results Presentation – BG Group – slide 13
    Strategy LNG segment profitability: Value secured LNG Segment Profit Positioned to secure value 100% Locked-in LNG sales 80% Stable liquefaction profile 60% Some flexibility retained 40% 20% 0% 2010 2011 2012…
  14. Strategy and H1 2010 Results Presentation – BG Group – slide 14
    Strategy LNG LNG total operating profit ( million) 3000 1.8bn - 2.0bn per annum 2000 1000 0 2007 2008 2009 2010 2011 2012 Continuing operations excluding disposals, certain re-measurements and impairments Total…
  15. Strategy and H1 2010 Results Presentation – BG Group – slide 15
    Global portfolio
  16. Strategy and H1 2010 Results Presentation – BG Group – slide 16
    Portfolio for growth Brazil: Santos Basin activity overview Rio de Janeiro Seismic, wells, cores & DSTs BG Group Operated EWT produced 3.5 mmboe BG Group Non Operated Exploration Wells gross in 2009 Appraisal/Development Wells…
  17. Strategy and H1 2010 Results Presentation – BG Group – slide 17
    Portfolio for growth Brazil: Tupi-Iracema EWT Gross reserves & resources 5-8 bn boe Iracema up to 50,000 bopd per well Tupi Sul EWT 20,000 bopd Constrained by facilities Potential for higher recovery factors Lower well count and…
  18. Strategy and H1 2010 Results Presentation – BG Group – slide 18
    Portfolio for growth Brazil: Tupi-Iracema full field development Rio de Janeiro Up to 10 FPSO modules Processing & 200-300 producer and gathering terminal injection wells Optimising drilling investment Existing gas pipeline…
  19. Strategy and H1 2010 Results Presentation – BG Group – slide 19
    Portfolio for growth Brazil: Guar Outstanding potential Up to 50,000 bopd per well Gross reserves/resources 1.1-2.0 bn boe EWT later in 2010 Guar-Norte 120,000 bopd FPSO: LOI signed Guar-Sela First production early 2013…
  20. Strategy and H1 2010 Results Presentation – BG Group – slide 20
    Portfolio for growth Brazil: Iara and Carioca Iara Gross reserves & resources 3-4 bn boe New well in 2010, DST in 2011 3D seismic 2010 & 2011 EWT in 2013 Carioca Carioca NE appraisal Q3 2010 EWT 1st production Q4 2010…
  21. Strategy and H1 2010 Results Presentation – BG Group – slide 21
    Portfolio for growth Brazil: Production BG Group net production (000s boepd) Play rapidly de-risked Reserves base confidence 450 Excellent productive reservoirs Production today 300 Rising to 400,000 boepd net by 2020…
  22. Strategy and H1 2010 Results Presentation – BG Group – slide 22
    Portfolio for growth Australia: Overview Curtis Island, Queensland Attractive investment setting Environmental Management QCLNG two-train plant Precinct Capacity increased to 8.5 mtpa Graham First LNG 2014 Creek Space for…
  23. Strategy and H1 2010 Results Presentation – BG Group – slide 23
    Portfolio for growth Australia: QGC upstream Proposed QCLNG fed by low cost CSG LNG plant resources Curtis Island Over 35,000 sq kms of Gladstone licences Existing BG discovered pipeline QCLNG proposed reserve/resource 17.3…
  24. Strategy and H1 2010 Results Presentation – BG Group – slide 24
    Portfolio for growth Australia: QGC progress Upstream 1800 wells by end 2014 300 wells drilled already 6000 wells over life of two-trains 340 km trunk-line Land access agreements Tenders for supply & construction Plant EPC…
  25. Strategy and H1 2010 Results Presentation – BG Group – slide 25
    Portfolio for growth Australia: Production BG Group net production (000s boepd) Net plateau production of 225 kboepd* 250 Partner/Other gas supplying Domestic production QCLNG ca 28 kboepd 200 Material upside: Net BG Group…
  26. Strategy and H1 2010 Results Presentation – BG Group – slide 26
    Portfolio for growth Australia: QGC economics information Drilling 2009 Seismic 2009 P/I Capital Efficiency/Profitability Index* (P/I) for QGC P/I 3 2 1 30 50 70 90 110 Brent Oil Price (/bbl) *Profitability Index is…
  27. Strategy and H1 2010 Results Presentation – BG Group – slide 27
    Portfolio for growth US E&P: BG Group-EXCO alliance Top 20 wells initial production rate (mmcfd) Shale gas set to transform US 30 supply High quality assets 20 Competitive cost 10 Skilled & aligned partner Midstream interests…
  28. Strategy and H1 2010 Results Presentation – BG Group – slide 28
    Portfolio for growth US E&P: BG Group-EXCO alliance growth BG Group net production (000s boepd) Net BG Group reserves & resources over 1.3 bn boe 125 Acquisition cost below 0.4/mcf 100 Existing Existing further potential further…
  29. Strategy and H1 2010 Results Presentation – BG Group – slide 29
    Portfolio for growth US E&P: BG Group-EXCO alliance economics Drilling 2009 Seismic 2009 P/I Capital Efficiency/Profitability Index* (P/I) for BG-EXCO alliance P/I 3 2 1 3 5 7 9 Henry Hub Price (/mmbtu) *Profitability…
  30. Strategy and H1 2010 Results Presentation – BG Group – slide 30
    Portfolio for growth Kazakhstan: Karachaganak Total investment almost 10 bn Fourth train due on stream 2011 Total of 10.3 mtpa export specification oil Only 7% of HIIP produced to date Phase III multi-stage approach: Partners…
  31. Strategy and H1 2010 Results Presentation – BG Group – slide 31
    Portfolio for growth UK BG Group net production (000s boepd) Everest & Lomond operatorship 200 Further Consolidated UK upstream in potential Aberdeen 150 50 mmboe Net production 56 mmboe in 2009 100 Jasmine on stream 2012…
  32. Strategy and H1 2010 Results Presentation – BG Group – slide 32
    Portfolio for growth Norway Progressing discoveries Exploration drilling Discoveries Gaupe Trondheim PDO approved Two-well subsea tieback Jordbr to Armada Blabr Jordbr Bergen Oslo New play concept Blabr discovery Bream…
  33. Strategy and H1 2010 Results Presentation – BG Group – slide 33
    Portfolio for growth E&P: E&A progress Drilling 2009 Seismic 2009 Completed 28 conventional wells, 17 successes Norway Key successes Tupi-Iracema (Brazil) Algeria Guar test (Brazil) Abu Butabul (Oman) Brazil Australia CSG…
  34. Strategy and H1 2010 Results Presentation – BG Group – slide 34
    Portfolio for growth E&P: 2010 E&A preview UK Norway Summary of well completions 1 well 1 well New plays 3 1 well USA Play extenders 4 140 wells Appraisal/near term 11 - 15 production Unconventional wells* ca 440 India…
  35. Strategy and H1 2010 Results Presentation – BG Group – slide 35
    Portfolio for growth E&P: Reserves and resources CAGR 20% mmboe Reserves & resources/ 14,494 production* 15000 13,126 3,433 62 years 12000 10,046 3,562 9000 8,017 47 years 4,931 7,071 3,356 3,722 2,713 6000 2,440 3,122…
  36. Strategy and H1 2010 Results Presentation – BG Group – slide 36
    Portfolio for growth E&P: Production BG Group net production (000s boepd) 1.6 million 1600 boepd Exploration 1.2 million 1200 Australia boepd Brazil 800 400 All other countries 0 2010 2015 2020 At 2010 reference…
  37. Strategy and H1 2010 Results Presentation – BG Group – slide 37
    Portfolio for growth Key messages Entering a new decade of high growth Underpinned by strengthened & rebalanced portfolio Key projects significantly & rapidly de-risked Already own reserves & resources to meet growth…
  38. Strategy and H1 2010 Results Presentation – BG Group – slide 38
    Portfolio for growth Key messages E&P: upper end 6-8% range to 2020, LNG: 20 mtpa for 2015 Brazil: in production, 400,000 boepd net by 2020 Queensland Curtis LNG: 2010 sanction EXCO alliance: 100,000 boepd net by 2015 LNG…
  39. Strategy and H1 2010 Results Presentation – BG Group – slide 39
    H1 2010 results
  40. Strategy and H1 2010 Results Presentation – BG Group – slide 40
    Financial performance H1 2010 results Delivered good results Earnings per share of 59.8 cents, up 15% Cash generated from operations of 4 831 million, up 39% Continued progress in delivering growth plans Australia and Brazil…
  41. Strategy and H1 2010 Results Presentation – BG Group – slide 41
    Financial performance H1 2010 results H12010 H1 2009 % yoy million million Total operating profit 3 527 3 272 +8% Earnings 2 019 1 742 +16% EPS 59.8c 51.9c +15% Cash generated by operations 4 831 3 470 +39% Good set of…
  42. Strategy and H1 2010 Results Presentation – BG Group – slide 42
    Financial performance H1 2010 total operating profit H1 2010 H1 2009 % yoy million million E&P 1 938 1 562 +24% LNG 1 173 1 292 -9% T&D 299 304 -2% Power 97 109 -11% Other activities 20 5 +300% Group total 3 527 3 272 +8%…
  43. Strategy and H1 2010 Results Presentation – BG Group – slide 43
    Financial performance H1 2010 total operating profit E&P H1 2010 H1 2009 % yoy Volume (mmboe) 118.6 116.4 +2% Total operating profit 2 408 2 014 +20% (pre-exploration charge) (m) Exploration charge (m) (470) (452) +4% Total…
  44. Strategy and H1 2010 Results Presentation – BG Group – slide 44
    Financial performance H1 2010 total operating profit - LNG H1 2010 H1 2009 % yoy million million Shipping & marketing 1 063 1 187 -10% Liquefaction 164 168 -2% Business development & other (54) (63) -14% Total operating profit…
  45. Strategy and H1 2010 Results Presentation – BG Group – slide 45
    Financial performance H1 2010 total operating profit T&D / Power H1 2010 H1 2009 % yoy million million Comgs 244 271 -10% Other 55 33 +67% T&D total operating profit 299 304 -2% Power total operating profit 97 109 -11%…
  46. Strategy and H1 2010 Results Presentation – BG Group – slide 46
    Financial performance H1 2010 results H1 2010 Cash generated by operations 4 831m Capex 4 671m Net debt 5 047m Gearing 17% Strong cashflow generation 46
  47. Strategy and H1 2010 Results Presentation – BG Group – slide 47
    Financial performance Capital investment / capital structure and dividend 2010-2012 8 bn per year average organic 9.1 bn in 2010 (including 1.2 bn Marcellus and Common Resources/South Western) Brazil and Australia focus Disposals…
  48. Strategy and H1 2010 Results Presentation – BG Group – slide 48
    Financial performance Conclusions Delivered good results Earnings per share of 59.8 cents, up 15% Cash generated from operations of 4 831 million, up 39% Continued progress in delivering growth plans Australia and Brazil…
  49. Strategy and H1 2010 Results Presentation – BG Group – slide 49
    Appendix
  50. Strategy and H1 2010 Results Presentation – BG Group – slide 50
    Appendix Key assumptions reference conditions Brent Oil price US 70/bbl US Henry Hub 7/mmbtu US/UK exchange rates of 1.7:1 US/AUD exchange rates of 1: A1.35 Prepared under International Financial Reporting Standards All…
  51. Strategy and H1 2010 Results Presentation – BG Group – slide 51
    Appendix Key assumptions principal risks Major recession or significant political upheaval in the major markets in which we operate Failure to ensure the safe operation of our assets worldwide Implementation risk, being the…
  52. Strategy and H1 2010 Results Presentation – BG Group – slide 52
    Appendix Definitions Increase or (decrease) IP Initial Production United States dollar kboepd Thousand barrels of oil equivalent per day UK pounds sterling km Kilometres 000s Thousands LNG Liquefied Natural Gas 2D Two dimensional…

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