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Strategy Q1 2009 Results – BG Group

BG Group · Apr 30, 2009 · 44 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 Q1 2009 Results – BG Group – slide 1
    Strategy and Q1 2009 results April 2009
  2. Strategy Q1 2009 Results – 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 Q1 2009 Results – BG Group – slide 3
    The Integrated Gas Major Key messages Resilient profit and operating cash flow Strength of Integrated Gas Business First commercial production from Tupi Continued exploration success in Santos Basin Acquisition of Pure Energy…
  4. Strategy Q1 2009 Results – BG Group – slide 4
    The Integrated Gas Major Overview Strategy Business segments Portfolio for growth Q1 2009 results 4
  5. Strategy Q1 2009 Results – 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 Q1 2009 Results – 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 Q1 2009 Results – 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 Q1 2009 Results – BG Group – slide 8
    Business segments E&P
  9. Strategy Q1 2009 Results – BG Group – slide 9
    Business segments 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…
  10. Strategy Q1 2009 Results – BG Group – slide 10
    Business segments 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…
  11. Strategy Q1 2009 Results – 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 Q1 2009 Results – 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 Margarita…
  13. Strategy Q1 2009 Results – BG Group – slide 13
    Business segments 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 investment…
  14. Strategy Q1 2009 Results – BG Group – slide 14
    Business segments Australia: QCLNG plant/marketing progress Curtis Island, Queensland Environmental LNG plant Management Precinct Curtis Island Two 3.7 mtpa trains in Phase 1 Industry Precinct Graham Site acquisition agreed…
  15. Strategy Q1 2009 Results – BG Group – slide 15
    Business segments 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…
  16. Strategy Q1 2009 Results – BG Group – slide 16
    Business segments Brazil: Santos Basin overview 50 km Rio de Janeiro Major new discoveries: Guar & Iara Initial developments proposed BM-S-52 BG 40% BM-S-10 Corcovado-1 BG 25% BM-S-11 BG discovered resources 3 bn boe Corcovado-2…
  17. Strategy Q1 2009 Results – BG Group – slide 17
    Business segments Brazil: Tupi 50 km Rio de Janeiro Extended well test Processing & Gathering Up to 15 months, ca 14 000 bopd Terminal Initial development sanctioned Existing gas pipeline Gross capex 3.7 bn* 145 km Mexilho…
  18. Strategy Q1 2009 Results – BG Group – slide 18
    Business segments Brazil: Production BG net production (000s boepd) Additional major new developments 450 Iara Gross resources 3-4 bn boe Production FPSO in 2013 300 Full production up to 500,000 bopd Guar Production FPSO in…
  19. Strategy Q1 2009 Results – BG Group – slide 19
    Business segments 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. Strategy Q1 2009 Results – BG Group – slide 20
    Business segments Kazakhstan: Karachaganak outlook BG net production 000s boepd Phase III, stage 1 200 Drilling, compression & gas sales 150 Fully utilise existing facilities Optimise cost 100 Phase III, further stages 50 Scope…
  21. Strategy Q1 2009 Results – BG Group – slide 21
    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…
  22. Strategy Q1 2009 Results – BG Group – slide 22
    Business segments LNG
  23. Strategy Q1 2009 Results – BG Group – slide 23
    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 23
  24. Strategy Q1 2009 Results – BG Group – slide 24
    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 0…
  25. Strategy Q1 2009 Results – BG Group – slide 25
    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…
  26. Strategy Q1 2009 Results – BG Group – slide 26
    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…
  27. Strategy Q1 2009 Results – BG Group – slide 27
    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…
  28. Strategy Q1 2009 Results – BG Group – slide 28
    Portfolio for growth
  29. Strategy Q1 2009 Results – BG Group – slide 29
    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…
  30. Strategy Q1 2009 Results – BG Group – slide 30
    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…
  31. Strategy Q1 2009 Results – BG Group – slide 31
    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…
  32. Strategy Q1 2009 Results – BG Group – slide 32
    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…
  33. Strategy Q1 2009 Results – BG Group – slide 33
    Portfolio for growth Capital structure and dividend Strongly financed Low cost base Strong cash conversion 2009-2012 capex 16 bn over 4 years Brazil & Australia focus 4.0 bn in 2009 Dividend growth in line with long-term…
  34. Strategy Q1 2009 Results – BG Group – slide 34
    Q1 2009 results
  35. Strategy Q1 2009 Results – BG Group – slide 35
    Financial performance Q1 2009 Profit & cash flow resilience from integrated gas model Total operating profit 1.275 billion (1.402 billion Q108) Earnings per share 20.5 pence (23.6p Q108) Resilient profit and cash flow…
  36. Strategy Q1 2009 Results – BG Group – slide 36
    Financial performance Q1 2009 Q1 2009 Q1 2008 million million % yoy Total operating profit 1 275 1 402 -9% Earnings 690 789 -13% EPS 20.5p 23.6p -13% Operating cash flow 1 392 1 566 -11% Results excluding disposals, certain…
  37. Strategy Q1 2009 Results – BG Group – slide 37
    Financial performance Q1 2009 total operating profit Q1 2009 Q1 2008 million million % yoy E&P 583 942 -38% LNG 578 395 +46% T&D 80 31 +158% Power 25 38 -34% Other activities 9 (4) - Group total 1 275 1 402 -9% Results excluding…
  38. Strategy Q1 2009 Results – BG Group – slide 38
    Financial performance Q1 2009 total operating profit E&P Q1 2009 Q1 2008 Volume (mmboe) 57.9 60.7 Operating profit (before expl) (m) 760 1 039 Exploration charge (m) 177 97 Operating profit (m) 583 942 Results excluding…
  39. Strategy Q1 2009 Results – BG Group – slide 39
    Financial performance Q1 2009 total operating profit LNG Q1 2009 Q1 2008 million million Shipping and marketing 543 383 Liquefaction 61 26 Business devt and other (26) (14) Operating profit 578 395 Results excluding disposals,…
  40. Strategy Q1 2009 Results – BG Group – slide 40
    Financial performance Q1 2009 total operating profit T&D / Power Q1 2009 Q1 2008 million million Comgs 70 20 Other 10 11 T&D operating profit 80 31 Power operating profit 25 38 Results excluding disposals, certain re-measurements…
  41. Strategy Q1 2009 Results – BG Group – slide 41
    Financial performance Q1 2009 Operating cashflow 1 392 m Pure Energy acquisition 464 m Capex (excl acquisitions) 847 m Net debt 1 378 m Gearing 9.2% Strong financial position 41
  42. Strategy Q1 2009 Results – BG Group – slide 42
    Financial performance Conclusions Resilient profit and operating cash flow Strength of Integrated Gas Business First commercial production from Tupi Continued exploration success in Santos Basin Acquisition of Pure Energy in…
  43. Strategy Q1 2009 Results – BG Group – slide 43
    Appendix
  44. Strategy Q1 2009 Results – BG Group – slide 44
    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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