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NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited

Beach Energy Limited · Nov 28, 2008 · 75 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. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 1
    + BEACH PETROLEUM LIMITED ANNUAL GENERAL MEETING 28 November 2008
  2. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 2
    + Mr Bob Kennedy Chairman
  3. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 3
    + Comparative share prices to Nov 08 Stock price as a % of 52 week high 100% 90% 90% 82% 80% 69% 70% 67% 60% 56% 52% % of high 50% 49% 50% 48% 47% 40% 30% 25% 22% 20% 20% 16% 15% 10% 0% QGC ORG…
  4. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 4
    + 1238 wells producing from 241 oil & gas fields
  5. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 5
    + Oil price in USD & AUD The bulk of Beachs oil production is sold at a premium to Tapis, the Asian benchmark. The decline of the Australian dollar against the US dollar has ensured that oil prices in Australian dollars per barrel…
  6. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 6
    + Renewed growth in Asia is inevitable, particularly for China and India
  7. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 7
    + Long Term Hedging Portfolio
  8. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 8
    + Bad or poor practice (firm view) Good practice (initial thoughts) Calculated on the basis of Calculated on profits, and by reference revenues, without any to other business goals if appropriate counterbalancing risk…
  9. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 9
    + Environmental Responsibilities
  10. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 10
    + Shareholder eCommunication
  11. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 11
    + Save the Children Future Pathways Re-engaging young people in remote areas
  12. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 12
    + Reg Sprigg Rock Star
  13. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 13
    + Reg Nelson Managing Director
  14. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 14
    + A Portfolio Based Approach
  15. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 15
    + Fundamentals Invest in people Steady growth through : Developing the existing asset base Lower risk exploration Improving margins Creating step change potential through high impact exploration Portfolio optimisation for…
  16. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 16
    + Portfolio of Producing Assets 1. Cooper/Eromanga 2. Surat Coal Seam Gas 3. Gippsland Oil (BMG) Record production Producing 20+ million Producing gross10,000 Increasingly more oil cubic feet per day barrels of oil per day Large…
  17. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 17
    + Well Balanced Exploration Portfolio
  18. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 18
    + Limited number of high impact opportunities in Australia/NZ that are material to Beach Areas of interest determined by risk/reward considerations and ability to manage investment initial focus: Australasia Europe mainly…
  19. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 19
    + 1. A very oily region with new emerging plays & exploration upside; 2. Deal flow (3 License Rounds per year, farmins, asset sales); 3. Supportive Government & reasonable fiscal regime via Production Sharing Concessions; 4.…
  20. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 20
    + Natural gas gives greenhouse benefits: Gas-fired power stations produce 50- 70% less greenhouse gas emissions than equivalent coal-fired power stations & as little as 1% of water usage* Reporting emissions via APPEA and the…
  21. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 21
    + Paralana Geothermal Energy Beach farming in to earn 21% with option to increase to 36% Highest recorded heat flow on Australian mainland (128 mW/m2) Close to entry points in main transmission grids TRUenergy Geothermal farming in for…
  22. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 22
    + Key Achievements FY08 Record sales revenue of 564 million Cooper Basin oil reserves addition of 5 MMbbl Acquired highly prospective acreage in Egypt, Albania, and Tanzania Successfully raised 191 million of new capital to fund…
  23. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 23
    + Strong Reserves Backing Reserves (MMboe) 15 5.85 Cooper oil BMG oil 76.17 48.23 Cooper gas Surat CSG Reserves & Resource 100 Potential (MMboe) 145 2P Reserves Resource base 170 Exploration risked potential
  24. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 24
    + 2P Reserves (MMboe) 150 Consistent History of Reserves Growth 100 50 0 FY05 FY06 FY07 FY08
  25. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 25
    + 10 8 Consistent 6 Range Production Profile Gas 4 Oil 2 0 FY07 FY08 FY09 (est)
  26. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 26
    + 700 600 Revenue ( millions) Revenue Continues 500 to Grow 400 685 300 574 200 163 100 64 0 FY05 FY06 FY07 FY08
  27. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 27
    + Kathryn Presser Chief Financial Officer
  28. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 28
    + Record sales revenue up 20% to 564 million Normalised net profit up 69% to FY 2008 Key 53 million Financial Operating cash flow up 73% to Achievements 200 million Cash on hand up 400% to 376 million Continued dividend stream…
  29. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 29
    + Comparison of Normalised Profit Net profit after tax (NPAT) 2008 Am 2007 Am NPAT 63.7 103.8 SIGNIFICANT ITEMS Remove BMG Sale (64.2) (73.5) Remove unrealised commodity hedge loss / (gain) 12.3 (30.3) Remove commodity hedge close…
  30. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 30
    + Key Drivers behind our increase in Normalised Net Profit after tax 140 27.5 13.3 120 14.4 100 Depreciation 58.6 36.9 Net Interest Tax and Other 80 Am 60 52.7 Hedging 40 31.2 Gross Profit 20 0 Normalised Normalised FY…
  31. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 31
    + Sales increase 700 147.1 17.8 53.9 600 564.4 Volume / Mix 500 472.2 FX Rates Prices 400 Am 300 200 100 0 FY 07 FY 08
  32. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 32
    + Effect on Income Statement FY08 - net loss of 119 million FY09 - net gain to date 103 million Cash flow effect by closing out Oil Price Hedges Hedging Minimal impact given average oil price to date
  33. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 33
    + Relative loss on close out of hedge book to market average Less than 1 per bbl AUD Tapis Oil Price vs Net Hedge Closeout (Jul-Dec 08) 160.00 150.00 140.00 130.00 116.99 A/bbl 120.00 Actual/Forecast 116.10 Act/Fct…
  34. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 34
    + Forward curve as at 30 June 2008
  35. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 35
    + Forward curve as at 21 November 2008
  36. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 36
    + Oil made up 57% of oil and gas revenue Gas / gas-liquids a natural hedge against the oil price Product Split Gas oil and gas Liquids 18% revenue Oil Sales 57% Gas and Ethane 25%
  37. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 37
    + 30 June 2008 -debt down 29% to 235million (18% gearing down from 26%) Debt and 30 September 2008 - debt now dividend reduced to 218million management (gearing down to 16%) Ability to annually review debt Dividends partially…
  38. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 38
    + Record quarter oil sales for September 2008 quarter of 183 million Strong first half supported by oil Outlook for 2009 hedge floors at US60 and US80 (representing 60% of oil financial year sales to June 2009)
  39. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 39
    + Hector Gordon Chief Operating Officer
  40. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 40
    + Operations Review Review of FY2008 Cooper Basin Gippsland Basin Surat Basin Egypt Outlook for FY2009
  41. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 41
    + FY08 Production FY08 Production 2.8 million barrels of oil (MMbbl) 5% 30 Peta-Joules 21% of Gas (PJ)C ooper Oil 9.3 million barrels 9 % of oil Gippsland Oil Production 65% equivalent (MMboe) C ooper Gas Surat Gas FY08…
  42. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 42
    + Drilling Activity Drilling 150 FY08 110 Wells No. of Wells 108 - Cooper Basin 100 Gas 1 - Gippsland Basin 1 - Taranaki Basin (NZ) 50 Oil Success Rate 71% 0 28 Exploration Wells nine discoveries 32% Success Rate 43…
  43. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 43
    + Reserves Growth 150 100 Surat Gas MMboe Reserves Cooper Gas Reserves Growth of 62% 50 Oil Tipton West up by 62 MMboe 8.4 MMboe added in Cooper 0 F Y0 6 F Y0 7 F Y0 8 Growth in Cooper oil: High profit margin…
  44. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 44
    + Exploration Lower Risk Cooper Basin Program High Impact Program Offshore Australia / NZ Spain Albania Egypt Gulf of Suez Tanzania Rigorous Evaluation Strong Joint Venture Partners Effective Management Significant…
  45. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 45
    + Cooper Basin Reserves 235 PJ & 15 MMbbl Production - 30 PJ & 2MMbbl Revenue - 435 million Current oil focus Longer Term Gas focus 7,000 PJ potential in unconventional reservoirs CO2 Sequestration
  46. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 46
    + Cooper Basin Western Flank
  47. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 47
    + PEL 92 A Cooper Basin Sweet Spot High Profit Oil Callawonga-Parsons Area A A/barrel Oil discovered to date 6.4 MMbbl Exploration 27 million 4 / bbl Development 42 million 7 / bbl Total Finding & Devt 69 million 11 / bbl…
  48. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 48
    + Surat Basin Tipton West Coal Seam Gas 2P Reserves 1,107 PJ (443 PJ net) Substantial Upside Significant International Focus on Queensland CSG Santos Petronas Arrow Shell Origin ConocoPhillips Queensland Gas BG Beach ranks 6th…
  49. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 49
    + Gippsland Oil BMG Project At 30 June 2008: Beach 30% Producing 10,000 bbls/day Oil Reserve - 25 MMbbl (7.5 MMbbl net) Gas Resource - 249 PJ Beach has recovered all its costs on BMG + 50 million Further development planned…
  50. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 50
    Egypt North Shadwan Concession Beach 20% Operator BP 3 undeveloped oil + discoveries Reserves 40 MMbbl (8 MMbbl net) First production end 2009 Southeast July Concession Beach 20% Operator Dana South July -1 drilled early…
  51. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 51
    + Drilling Outlook 90 Wells 80 in Cooper Basin (50:50 oil/gas) 10 Offshore / International Key Exploration Wells Spikey Beach-1 (Bass) December Burtocal-2 (Gulf of Suez) December Fermat-1 (Otway) January Manta-3 appraisal…
  52. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 52
    + Reg Nelson Managing Director
  53. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 53
    + Outlook where are oil prices heading The International Energy Agency in its recent World Energy Outlook (November 2008) says that, despite the short term effects of global slow down, energy demand is expected to grow at 1.6% on…
  54. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 54
    + Carbon Pollution Reduction Scheme Outlook where are will add further momentum to the natural gas prices heading gas sector * * Second Annual Report by the Australian Energy Regulator
  55. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 55
    + Cooper Gas Flare
  56. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 56
    + BEACH PETROLEUM LIMITED ANNUAL GENERAL MEETING 28 November 2008
  57. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 57
    + PROXY Beach has received 1,935 Proxy votes SUMMARY This represents 336,371,151 Votes
  58. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 58
    + To consider and put to a non- binding vote the following RESOLUTION 1 resolution: ADOPTION OF That the remuneration report REMUNERATION for the financial year ended REPORT 30 June 2008 be adopted
  59. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 59
    + RESOLUTION 1 ADOPTION OF REMUNERATION REPORT For Against Open Total Abstain / No Total (Usable) Valid instructions Proxies At Available / open Received Discretion Votes unusable / of Proxy excluded Adopt Remuneration Report…
  60. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 60
    + To consider and, if thought fit, pass the following resolution as an ordinary RESOLUTION 2 resolution: RE-ELECTION OF MR J. C. BUTLER AS A That Mr John Charles Butler, who retires by rotation pursuant to the constitution of DIRECTOR…
  61. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 61
    + RESOLUTION 2 RE-ELECTION OF MR J. C. BUTLER AS A DIRECTOR For Against Open Total Abstain / No Total (Usable) Valid instructions Proxies At Available / open Received Discretion Votes unusable / of Proxy excluded Re-election of…
  62. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 62
    + PRESENTATION BY MR J C BUTLER
  63. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 63
    + SHAREHOLDER TRIP
  64. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 64
    + To consider and, if thought fit, pass the following resolution as an ordinary RESOLUTION 3 resolution: RE-ELECTION OF That Mr Hector Mackenzie Gordon, who MR H M GORDON AS A retires by rotation pursuant to the DIRECTOR constitution of…
  65. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 65
    + RESOLUTION 3 RE-ELECTION OF MR H M GORDON AS A DIRECTOR For Against Open Total Abstain / No Total (Usable) Valid instructions Proxies At Available / open Received Discretion Votes unusable / of Proxy excluded Re- election…
  66. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 66
    + PRESENTATION BY MR H M GORDON
  67. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 67
    + To consider and, if thought fit, pass the following resolution as an ordinary RESOLUTION 4 resolution: APPROVAL OF SHARE ISSUE UNDER A SHARE That, for the purpose of listing rule 7.4 and for all other purposes, the issue of PLACEMENT…
  68. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 68
    + RESOLUTION 4 APPROVAL OF SHARE ISSUE UNDER A SHARE PLACEMENT For Against Open Total Abstain / No Total (Usable) Valid instructions Proxies At Available / open Received Discretion Votes unusable / of Proxy excluded Approval of…
  69. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 69
    + To consider and if thought fit pass the following resolution as a special resolution: That the constitution tabled at the meeting, and signed by the Chairman of RESOLUTION 5 the meeting for the purpose of NEW COMPANY…
  70. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 70
    + RESOLUTION 5 NEW COMPANY CONSTITUTION For Against Open Total Abstain / No Total (Usable) Valid instructions Proxies At Available / open Received Discretion Votes unusable / of Proxy excluded New Company 326,363,097 3,120,535…
  71. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 71
    + To consider and, if thought fit, pass the following resolution as an ordinary resolution: RESOLUTION 6 That the grant of rights to acquire ordinary shares in Beach Petroleum, and ISSUE OF RIGHTS TO the issue or transfer of ordinary…
  72. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 72
    + RESOLUTION 6 ISSUE OF RIGHTS TO MANAGING DIRECTOR MR R G NELSON For Against Open Total Abstain / No Total (Usable) Valid instructions Proxies At Available / open Received Discretion Votes unusable / of Proxy excluded Issue of…
  73. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 73
    + To consider and, if thought fit, pass the following resolution as an ordinary resolution: RESOLUTION 7 That the grant of rights to acquire ordinary shares in Beach Petroleum, and ISSUE OF RIGHTS TO the issue or transfer of ordinary…
  74. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 74
    + RESOLUTION 7 ISSUE OF RIGHTS TO EXECUTIVE DIRECTOR MR H M GORDON For Against Open Total Abstain / No Total (Usable) Valid instructions Proxies At Available / open Received Discretion Votes unusable / of Proxy excluded Issue…
  75. NOVEMBER 2008 ANNUAL GENERAL MEETING – Beach Energy Limited – slide 75
    + QUESTION TIME

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