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Q1 2011 Results and Strategy Presentation – BG Group

BG Group · May 10, 2011 · 38 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. Q1 2011 Results and Strategy Presentation – BG Group – slide 1
    BG Group: Q1 2011 Results & Strategy May 2011
  2. Q1 2011 Results and Strategy 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. Q1 2011 Results and Strategy Presentation – BG Group – slide 3
    Q1 results Q1 2011 key points Challenging quarter for E&P operations Higher UK North Sea tax reduces earnings by 265m 2011 LNG operating profit expected towards upper end of 1.9-2.2 billion Significant progress on long-term growth…
  4. Q1 2011 Results and Strategy Presentation – BG Group – slide 4
    Q1 results Q1 2011 results Q1 2011 Q1 2010 % yoy Total operating profit (m) 1 965 1 955 +1% Earnings (m) 819 1 097 -25% EPS (cents) 24.2 32.5 -26% Continuing operations excluding disposals, certain re-measurements and…
  5. Q1 2011 Results and Strategy Presentation – BG Group – slide 5
    Q1 results Q1 2011 total operating profit Q1 2011 Q1 2010 % yoy million million E&P 1 258 1 192 +6% LNG 570 633 -10% T&D 145 140 +4% Other activities -8 -10 -20% Group total 1 965 1 955 +1% Continuing operations excluding…
  6. Q1 2011 Results and Strategy Presentation – BG Group – slide 6
    Q1 results LNG BG Group total LNG operating profit ( million) Actual Plan 3000 1.9 to 2.2 bn 2000 1000 0 2008 2009 2010 2011 2012 Continuing operations excluding disposals, certain re-measurements and impairments…
  7. Q1 2011 Results and Strategy Presentation – BG Group – slide 7
    Q1 results Q1 2011 results Q1 2011 Cash generated by operations (m) 1 799 Capex (m) 2 296 Net debt (m) 8 510 Gearing (%) 23% Investment in growth, soundly financed 7
  8. Q1 2011 Results and Strategy Presentation – BG Group – slide 8
    Q1 results Capital investment & balance sheet 2011-2012 10.0 bn in 2011 11.0 bn in 2012 Brazil, Australia, US and UK focus Soundly financed Full access to relevant capital markets 9 year average net debt maturity 3.5 bn…
  9. Q1 2011 Results and Strategy Presentation – BG Group – slide 9
    Market background
  10. Q1 2011 Results and Strategy Presentation – BG Group – slide 10
    Market background World GDP outlook Real GDP growth (annual % change) 12% 2000-08 2010-20 10% 8% 6% 4% 2% 0% US Japan EU China India World Source: Oxford Economics High growth in Emerging Markets drives…
  11. Q1 2011 Results and Strategy Presentation – BG Group – slide 11
    Market background Contribution to world energy demand Country contribution to net global demand increase (% of total) USA 2000-08 2010-20 Japan EU India China -10% 0% 10% 20% 30% 40% 50% 60% Source: Wood…
  12. Q1 2011 Results and Strategy Presentation – BG Group – slide 12
    Market background Significant upside for emerging market gas demand Gas consumption vs GDP/head 45% Gas share of energy consumption 40% UK 35% 30% US 25% 20% Japan 15% 2020 India 2010 10% 2000 China 5% 0% 1000…
  13. Q1 2011 Results and Strategy Presentation – BG Group – slide 13
    Market background Gas penetration China is a key market Gas < 4% of energy mix in 2009 Thermal Coal 1% gas increase in China energy mix Around 25 bcma increase in demand Equivalent to 4 QCLNG trains China gas penetration to…
  14. Q1 2011 Results and Strategy Presentation – BG Group – slide 14
    Market background Drivers of gas growth Incremental gas demand (bcma) 1000 Past demand growth Driven by coal substitution in power Mainly in developed economies Mostly oil substitution Future demand growth 500 Driven by oil…
  15. Q1 2011 Results and Strategy Presentation – BG Group – slide 15
    Market background Gas demand outlook World gas demand (bcma) 5000 CAGR 2010-2020 4000 China 10.3% Asia (excluding China) 3.4% 3000 Middle East & Africa 5.4% South America 3.8% 2000 Russia and Central Asia 2.0% 1000…
  16. Q1 2011 Results and Strategy Presentation – BG Group – slide 16
    Market background Global supply Global gas supply 2010-2020 (bcma) 5000 CAGR 9.0% CAGR 2.9% 4,108 4000 Other LNG 3,087 M East 75% of 3000 C Asia current Russia supply Decline N America 2000 1000 0 2010 2020 Source:…
  17. Q1 2011 Results and Strategy Presentation – BG Group – slide 17
    Market background LNG supply & demand (2020) LNG supply & demand in 2020 (mtpa) 500 Unmet 400 demand Supply Forecast 2020 trade* tightness 70 mtpa 300 supply challenge Planned** 200 100 2010 trade 0 Supply Demand…
  18. Q1 2011 Results and Strategy Presentation – BG Group – slide 18
    Market background Key messages Strong growth in global demand for energy through decade Low gas share of total energy consumption in emerging economies Both economic development and fuel substitution drive growth Global LNG to…
  19. Q1 2011 Results and Strategy Presentation – BG Group – slide 19
    Portfolio for growth
  20. Q1 2011 Results and Strategy Presentation – BG Group – slide 20
    Portfolio for growth Clear, effective and resilient strategy Global Gas Major Connect gas to Secure competitively high-value markets priced resources Build & access markets Equity reserves Serve customers Contracted resources…
  21. Q1 2011 Results and Strategy Presentation – BG Group – slide 21
    Portfolio for growth Prospect inventory of resources Other Australia Brazil Net risked resources of 3.7 bn boe UK Thailand CAGR 12% 2000-2010 Tanzania Egypt 200 prospects & leads Norway 85% gas related China USA 60% in…
  22. Q1 2011 Results and Strategy Presentation – BG Group – slide 22
    Portfolio for growth Proved reserves replacement 2010 BG Groups reserves replacement 3 year reserves replacement 3 year total 223% proved RRR 1 year total 224% proved RRR BG 2008-2010 (1) BG 2008-2010 (2) Peer 2007-2009 3…
  23. Q1 2011 Results and Strategy Presentation – BG Group – slide 23
    Portfolio for growth Reserves & resources Total reserves & resources (mmboe) CAGR 19% Total reserves & 18000 resources/ 16,180 production* 14,494 13,126 3,707 69 years 3,433 12000 10,046 3,562 53 years 8,017 4,931 5,757 3,356…
  24. Q1 2011 Results and Strategy Presentation – BG Group – slide 24
    Portfolio for growth Key projects 1800 1200 Projects 2011-2013 Projects 2014-2016 Projects 2017-2020 Bolivian projects KGK train 4 Brazil FPSOs Jordbr Block 5c KGK further trains Bongkot South Lula FPSO 2 Bream KGK…
  25. Q1 2011 Results and Strategy Presentation – BG Group – slide 25
    Portfolio for growth Australia: 2010 progress QCLNG Curtis Island plant QCLNG sanctioned October 2010 Gladstone Two trains: 8.5 mtpa Existing pipeline Construction underway BGs 7th & 8th LNG trains in 12 years QCLNG proposed…
  26. Q1 2011 Results and Strategy Presentation – BG Group – slide 26
    Portfolio for growth Australia: Production and options for expansion BG Group net production* (000s boepd) Net plateau production ca 210 kboepd* 250 Partner/Other gas supplying Expansion potential beyond two trains QCLNG 200…
  27. Q1 2011 Results and Strategy Presentation – BG Group – slide 27
    Portfolio for growth US E&P: Shale gas cost of supply Cost of supply (/mmbtu) Barnett other Other CBM Woodford Tight gas Barnett non core Marcellus other Haynesville other CBM core Marcellus core Barnett core Haynesville…
  28. Q1 2011 Results and Strategy Presentation – BG Group – slide 28
    Portfolio for growth US E&P: Haynesville core economics Typical well (bcf/year) Average well recovery: 9 bcf 3 BG net wells: 275 (2011-15) Average well cost 9m (1.0/mmbtu) 2 Operating cost: 1.4/mmbtu Unit technical cost:…
  29. Q1 2011 Results and Strategy Presentation – BG Group – slide 29
    Portfolio for growth US E&P: Production Rapidly expanding & capital efficient BG total resources 8.5 tcf Leveraging marketing capabilities Benefit from supply restructuring Highest quality areas in Haynesville Core c.80% of…
  30. Q1 2011 Results and Strategy Presentation – BG Group – slide 30
    Portfolio for growth Brazil: Key developments in 2010 Lula, Cernambi, Guar resources upgrade Low unit technical costs for first 3 FPSOs Start-up of first permanent Lula FPSO Thirteen FPSOs 1 on stream 10 committed & 2 being…
  31. Q1 2011 Results and Strategy Presentation – BG Group – slide 31
    Portfolio for growth Brazil: First three contracted FPSOs Average recovery: 750 mmboe/module Processing & Rio de Janeiro gathering terminal Doubling original estimates Existing gas Capex*: 5/boe pipeline 145 km Mexilho Opex*:…
  32. Q1 2011 Results and Strategy Presentation – BG Group – slide 32
    Portfolio for growth Brazil: Gross FPSO capacity Programme for 2.3 mmboepd capacity by 2017 32
  33. Q1 2011 Results and Strategy Presentation – BG Group – slide 33
    Portfolio for growth Brazil: Production BG Group net production (000s boepd) Net production 550 kboepd by 2020* 600 Lula and Cernambi potential upside Enhanced recovery techniques 450 Infill drilling Guar Norte production…
  34. Q1 2011 Results and Strategy Presentation – BG Group – slide 34
    Portfolio for growth LNG supply growth options BG Group total LNG contracted volumes (mtpa) 30 ca +50% 20 ca +50% 10 0 2010 2015 2020 QCLNG T3 New supply potential Future volumes at 2011 ref erence conditions (see…
  35. Q1 2011 Results and Strategy Presentation – BG Group – slide 35
    Portfolio for growth Long-term production volumes BG Group net production (000s boepd) 1800 1.6 million Risked Exploration boepd 1500 Other 1.2 million 1200 8% boepd 6% 900 US 600 Australia 300 Brazil 0 2010 2010…
  36. Q1 2011 Results and Strategy Presentation – BG Group – slide 36
    Key messages E&P: upper end 6-8% to 2020, 7% from existing discoveries; LNG: 20 mtpa by 2015; potential 30 mtpa by 2020 Brazil: 550 kboepd by 2020 QCLNG: construction underway EXCO JV: 190 kboepd by 2015 LNG 2011: upper limit of…
  37. Q1 2011 Results and Strategy Presentation – BG Group – slide 37
    BG Group: Q1 2011 Results & Strategy May 2011
  38. Q1 2011 Results and Strategy Presentation – BG Group – slide 38
    Appendix Key assumptions REFERENCE CONDITIONS Brent Oil price US 70/bbl US Henry Hub 5.5/mmbtu US/UK exchange rates of 1.5:1 US/AUD exchange rates of 1:A1.2 Prepared under International Financial Reporting Standards All production…

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