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Credit investor update – BG Group

BG Group · Jul 7, 2009 · 41 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. Credit investor update – BG Group – slide 1
    Credit investor update Ashley Almanza Chief Financial Officer 7 July 2009
  2. Credit investor update – 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. Credit investor update – BG Group – slide 3
    Group Overview and Strategy
  4. Credit investor update – BG Group – slide 4
    Group overview and strategy Integrated Gas Major Top ten company in the FTSE100 Index Market capitalisation c 34bn, c 6,000 employees in 27 countries Four business segments Exploration and Production Liquefied Natural Gas…
  5. Credit investor update – BG Group – slide 5
    Group overview and strategy BG Group structure Group holding BG Group plc Not credit rated company No borrowings Principal credit BG Energy Credit ratings: entity of the Holdings Fitch A+ BG Group Limited Moodys A2 S&P A…
  6. Credit investor update – BG Group – slide 6
    Group overview and 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…
  7. Credit investor update – BG Group – slide 7
    Group overview and 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…
  8. Credit investor update – BG Group – slide 8
    Group overview and strategy Diversified across the gas chain 2008 Business Performance Total Group Revenue Total Operating Profit 12,566m 5,355m E&P 42% 66% LNG 42% 30% T&D 11% 3% Power 5% 2% Analysis excludes…
  9. Credit investor update – BG Group – slide 9
    Group overview and 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…
  10. Credit investor update – BG Group – slide 10
    Business segments Exploration & Production
  11. Credit investor update – BG Group – slide 11
    Business Segments: E&P Overview 2008 Production Total discovered reserves/resources 226.7 mmboe 9,564 mmboe Bolivia Thailand Australia UK Other Tunisia Egypt UK India Kazakhstan Trinidad Trinidad Brazil Egypt…
  12. Credit investor update – BG Group – slide 12
    Business Segments: E&P E&P benchmarking 3 year F&D cost trend (/boe) 35 30 25 20 18.0 14.6 15 13.2 Excluding QGC acquisition 10 5 0 2002-04 2003-05 2004-06 2005-07 2006-08 BG Top quartile Combined Companies Bottom…
  13. Credit investor update – BG Group – slide 13
    Business Segments: E&P E&P benchmarking Annual unit opex cost trend (/boe) 14 12 10 8 8.2 6.4 6 4 2 0 2003 2004 2005 2006 2007 2008 BG Top quartile Combined Companies Bottom quartile Source: Evaluate Energy 2008, BG…
  14. Credit investor update – BG Group – slide 14
    Business Segments: E&P 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…
  15. Credit investor update – BG Group – slide 15
    Business Segments: E&P Australia: QGC Proposed LNG plant Integrated with BG Curtis Island Gladstone Strategically transformational Existing Acquisition metric 0.36/mmbtu pipeline QCLNG proposed pipeline Stable attractive…
  16. Credit investor update – BG Group – slide 16
    Business Segments: E&P Australia: Production BG net production (000s boepd) Pure Energy additional resource 250 Reserves/resources 13 tcf 200 Substantial E&P growth driven by: 150 Two trains of LNG 100 Increased domestic sales…
  17. Credit investor update – BG Group – slide 17
    Business Segments: E&P Brazil: Santos Basin overview 50 km Rio de Janeiro Major discoveries Tupi 2006 BM-S-52 BG 40% BM-S-10 Guar & Iara 2008 Corcovado-1 BG 25% BM-S-11 Corcovado-2 BG 25% BG discovered resources 3 bn boe…
  18. Credit investor update – BG Group – slide 18
    Business Segments: E&P Brazil: Production BG net production (000s boepd) Major planned developments 450 Tupi Production FPSO in 2010 Full production up to 1,000,000 bopd oil plus 1,000 mmscfd gas 300 Iara Production FPSO in 2013…
  19. Credit investor update – BG Group – slide 19
    Business Segments: E&P UK: Production BG net production 000s boepd Exceptional record over last 5 years 200 Further Plateau extended by 6 years potential 150 Net reserves added ca 300 mmboe 50 mmboe 2008 strong performance 100…
  20. Credit investor update – BG Group – slide 20
    Business segments LNG
  21. Credit investor update – BG Group – slide 21
    Business Segments: LNG Global LNG portfolio UK USA Italy Trinidad & Tobago Egypt Singapore* Nigeria EG Australia Chile Current and future equity positions Existing liquefaction Future liquefaction Long-term…
  22. Credit investor update – BG Group – slide 22
    Business segments: LNG Long term supply position 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…
  23. Credit investor update – BG Group – slide 23
    Business segments: LNG Termed out volumes Breakdown of LNG volumes (mtpa) Contracted volumes US, primarily Elba Island 20 Chile Brazil, Europe and Asia 15 Flexibility allows value capture 10 Balanced price exposure 5 Locking…
  24. Credit investor update – BG Group – slide 24
    Business Segments: LNG Cost evolution Liquefaction EPC costs (2009 US/tpa) 1,400 BGs portfolio is low cost 1,200 Sustainable advantage 1,000 Greenfield projects Focus on QCLNG Expansion projects Cost 800 BG liquefaction…
  25. Credit investor update – BG Group – slide 25
    Portfolio for growth
  26. Credit investor update – BG Group – slide 26
    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 26 years 4000 3,383 1,383 1,529 2000…
  27. Credit investor update – BG Group – slide 27
    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…
  28. Credit investor update – BG Group – slide 28
    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…
  29. Credit investor update – BG Group – slide 29
    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…
  30. Credit investor update – BG Group – slide 30
    Financial performance, liquidity and credit rating
  31. Credit investor update – BG Group – slide 31
    Financial performance, liquidity and credit rating Group results Q1 Full Year Full Year 2009 2008 YOY E&P 583m 3,512m +47% LNG 578m 1,585m +204% T&D 80m 160m -35% Power 25m 118m -9% Other 9m (20m) -46% Total Operating Profit 1,275m…
  32. Credit investor update – BG Group – slide 32
    Financial performance, liquidity and credit rating Capital expenditure and investment m Historical capital expenditure/investment 2009-2012 capex1 6000 16 bn over 4 years 5000 Brazil & Australia focus 4000 3000 4.0 bn in…
  33. Credit investor update – BG Group – slide 33
    Financial performance, liquidity and credit rating Debt maturity profile Total debt maturities Capital markets maturities m m 1500 1500 1000 1000 500 500 0 0 2009 2010 2011 2012 2013 2014 on 2009 2010 2011 2012 2013…
  34. Credit investor update – BG Group – slide 34
    Financial performance, liquidity and credit rating Current liquidity position US2.3bn committed lines (undrawn) Strong and supportive bank group Capital markets access Multiple currencies Supported by stable credit rating…
  35. Credit investor update – BG Group – slide 35
    Financial performance, liquidity and credit rating BG Energy Holdings Limited Credit ratings Rating agency Long Term rating Date assigned Outlook Moodys A2 August 2005 Stable Standard & Poors A August 2008 Stable Fitch A+…
  36. Credit investor update – BG Group – slide 36
    Conclusion
  37. Credit investor update – BG Group – slide 37
    Conclusion Key credit messages Global integrated player, diversified across the gas chain Market capitalisation c.34bn, c.6,000 employees in 27 countries Long-life assets, large resources base, above-peer production growth Leading,…
  38. Credit investor update – BG Group – slide 38
  39. Credit investor update – BG Group – slide 39
    BG Group Credit Investor Update Contact details For further information, please contact John ODriscoll, Head of Tax and Treasury john.odriscollbg-group.com +44 118 929 3812 Charles Stewart, Head of Funding and Investment…
  40. Credit investor update – BG Group – slide 40
    Appendix Key assumptions
  41. Credit investor update – BG Group – slide 41
    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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