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FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp

Bp Energy Partners Lp · Feb 7, 2006 · 86 slides

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Slides

  1. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 1
    Presentation to the financial community 7th February 2006
  2. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 2
    Fergus MacLeod Head of Investor Relations
  3. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 3
    John Browne Group Chief Executive
  4. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 4
    Agenda z Results z Strategy z Discussion
  5. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 5
    2005 z Record level of net income z Record free cash flow of 25bn z Reduced gearing to below 17% z Sold Innovene for 8.3bn cash z Replaced 100% of production z Started 7 new upstream projects z Launched BP Alternative Energy z…
  6. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 6
    The outlook z Increasing production by 4% p.a. at 40/bbl 05-10 z Maintaining capital discipline z High-grading portfolio ca. 3bn divestments p.a. z Shareholder distribution potential 50bn 06-08 at 41/bbl: +25% on 03-05 in similar…
  7. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 7
    Byron Grote Chief Financial Officer
  8. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 8
    Trading environment /bbl Oil realisation /mcf Gas realisation 60 10 50 8 40 6 30 20 4 10 2 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2004 2005 2004 2005 /bbl Refining indicator margin change vs. 2004 14 12 Average…
  9. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 9
    Financial results Change vs. 2004 Results for the fourth quarter bn % % per share z Replacement cost profit 4.4 +26 +31 z Profit including inventory gains/losses 3.7 +22 +28 z Net cash provided by operating 4.2 (18) (14) activities…
  10. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 10
    Non-operating items (NOIs) 2005 m 1Q 2Q 3Q 4Q Year Non-operating items 787 (1,206) (1,255) (1,164) (2,838) bn Tax (245) 384 334 611 1,084 post-tax Total post-tax 542 (822) (921) (553) (1,754) 1.0 0.5 0.0 (0.5) (1.0) (1.5)…
  11. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 11
    2005 vs. 2004 group result bn post-tax 25 20 15 10 5 0 2004 NOI Price / A&D DD&A Texas Restruc- Other 2005 Margin City / turing Storms
  12. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 12
    Exploration & Production 4Q result - bn pre-tax* z Higher oil and gas prices 7 z IFRS embedded 6 derivative charge (NOI) 5 4 z Hurricane impacts 3 z Increased TNK-BP 2 contribution 1 0 z Full year production 4Q 04 4Q 05…
  13. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 13
    Reserves replacement ratio* 2004 2005 UK GAAP / SORP 110% 100% Long term planning prices (2004 20/bbl, 2005 25/bbl) US GAAP / SEC 89% 95% Year end prices (2004 40/bbl, 2005 58/bbl) * Discoveries, extensions, revisions and improved…
  14. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 14
    Refining & Marketing 4Q result - bn pre-tax* 2.0 z Stronger refining and 1.5 retail margins 1.0 z Texas City and 0.5 Hurricanes z Restructuring charges 0.0 z IFRS fair value (0.5) 4Q 04 4Q 05 accounting: negative NOIs…
  15. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 15
    Gas, Power & Renewables 4Q result - bn pre-tax* 0.6 z IFRS embedded derivatives charge 0.4 (NOI) z Lower gas marketing 0.2 and trading contribution z IFRS fair value 0.0 accounting: positive 4Q 04 4Q 05 impact NOIs included 40m…
  16. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 16
    Other Business & Corporate 4Q result - excluding Innovene bn pre-tax* 0.0 z Corporate activities phasing (0.2) (0.4) (0.6) 4Q 04 4Q 05 NOIs included (11)m (64)m above *Under IFRS includes profit after interest and tax of…
  17. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 17
    Olefins & Derivatives z Innovene Sale completed 16th December 8.3bn cash proceeds z Retained operations Reported in OB&C during 2005 Transfer to R&M in 2006
  18. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 18
    Guidance on 2006 group items z Other Business & Corporate (OB&C): (900)m / year 200m z Interest expense: Finance costs: proportionate to debt level and market interest rates Other finance expense: 200 million improvement z Pensions…
  19. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 19
    Guidance on tax rate 2005 2006* Effective tax rate (ETR) Underlying ETR 35% 37% One-time items (3)% 2% Reported ETR 32% 39% Marginal ETR 40% 42% Cash tax rate 31% 40% Cash tax rate expected to fall back to 35% beyond 2006…
  20. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 20
    2006 estimated rules of thumb Full year (pre-tax) m Oil price Brent 1/bbl 500 Gas price Henry Hub 0.1/mmbtu 80 Refining margin GIM 1/bbl 950 z Rules of thumb are approximate z Actual impacts will depend on: Volumes / portfolio mix…
  21. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 21
    Sources and uses of cash bn post-tax 2004 2005 40 35 Disposals 30 25 Disposals Buybacks Buybacks 20 Operations Dividends Operations 23.4 26.7 Dividends 15 Acquisitions 10 Organic Organic capex capex 5 0 Sources Uses Sources…
  22. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 22
    Net debt ratio % 40 35 30 25 20 15 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2004 2005 Net debt ratio = net debt / (net debt + equity)
  23. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 23
    Shareholder distributions bn 20 Buybacks Dividends 18 Share issues 16 14 12 10 8 6 4 2 0 (2) 2002 2003 2004 2005
  24. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 24
    External environment z Oil prices z Gas prices z Refining margins
  25. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 25
    Oil demand % 5 Oil demand GDP 4 3 2 1 0 2001 2002 2003 2004 2005 Source: Oil demand, BP estimate; GDP, Oxford Economic Forecasting
  26. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 26
    Oil supply Non-OPEC output growth OPEC surplus capacity Million Million b/d b/d 6 6 4 4 2 2 0 0 00 01 02 03 04 05 00 01 02 03 04 05 Year-on-year change; source: BP End year; source: 00 03 DOE/EIA; 04 05 BP estimates
  27. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 27
    Crude oil prices Dated Brent per bbl 70 60 54.52 50 +42% 38.27 40 30 20 10 0 2000 2001 2002 2003 2004 2005 Daily prices Source: USGC Platts quotes
  28. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 28
    Gas prices US Henry Hub per mmbtu 20 18 16 14 12 10 8.94 8 5.88 +52% 6 4 2 0 2000 2001 2002 2003 2004 2005 Daily prices Source: USGC Platts quotes
  29. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 29
    Refining margins BP Global Indicator Margin (GIM) per bbl 30 25 20 15 8.60 10 6.34 +36% 5 0 2000 2001 2002 2003 2004 2005
  30. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 30
    Refining: light heavy spreads WTI Maya per bbl 20 15 10 5 0 2000 2001 2002 2003 2004 2005 Weekly averages Source: USGC Platts quotes
  31. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 31
    Exploration & Production z Consistent and enduring strategy z Start-up of 20 new projects over the next 3 years z Improvement in unit margins z Resource base: 18bn boe proved, 41bn boe non-proved z Russia z Disciplined increase in…
  32. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 32
    Tony Hayward Chief Executive, Exploration & Production
  33. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 33
    Strategy z Build production with improving returns z Focus Material positions Biggest fields z First mover create number one or two positions z Manage decline z Portfolio
  34. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 34
    Exploration track record (external view) Mmboe discovered Value per year 95-04 created bn 1,200 30 BP 1,000 800 20 600 Shell 400 10 ExxonMobil Total Eni 200 Chevron 0 0 Eni Chevron Shell Exxon- Total Mobil 1…
  35. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 35
    Exploration focus Sakhalin GoM Deep Egypt Water Algeria Trinidad Angola Deep Water
  36. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 36
    Reserves replacement % 160 BP 5 year moving average 140 120 100 80 60 40 20 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 Reserve replacement for subsidiaries + associates, excludes A&D
  37. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 37
    Finding & development costs /boe 9 5 year moving average Industry F&D cost BP F&D cost 8 7 6 5 4 3 2 1 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 BP F&D is for subsidiaries + associates;…
  38. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 38
    Andy Inglis Deputy Chief Executive, Exploration & Production
  39. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 39
    Project start-ups 2003 - 2005 2006 - 2008 2009 and beyond 9 Trinidad Train 3 9 Clair ACG Phase 3 Magnus Extension Alaska Gas Rospan 9 Jasmim 9 Mad Dog Angel North West Area Atlantis North San Juan North 9 Xikomba 9 Central Azeri…
  40. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 40
    Sources of EBITDA improvement 2005 - 2008 Volume bn New Profit Existing Profit Russia Segment Centres Centres Margin bn New Profit Existing Profit Russia Segment Centres Centres BP projection
  41. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 41
    Existing profit centres Production mmboe/d Divestments 02-05 2.5 Production excluding divestments 2.0 1.5 1.0 0.5 0.0 02 03 04 05 06 07 08 09 10 2006 onwards - BP projection at 40/bbl Brent
  42. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 42
    TNK-BP: production and capex mmboe/d Capex bn 2.5 3 2 2 1.5 1 1 0 2003 2004 2005 2006 2007 2008 TNK-BP gross: 2006 onwards - BP projection
  43. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 43
    TNK-BP z Refining and marketing enhancements z Portfolio high-grading z Organisational capability improving z Dividends
  44. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 44
    E&P investment Organic capex bn BP TNK-BP Pan American Energy 14 12 10 8 6 4 2 0 2003 2004 2005 2006 2007 2008 BP projection for 06-08 2003 TNK-BP capex reflects BP's estimated net share post-merger TNK-BP and PAE are…
  45. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 45
    Costs and taxes z Portfolio z Sector specific cost escalation z Supply chain management z Discipline and focus z Taxes
  46. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 46
    Production mmboe/d 6 5 TNK-BP 4 New 3 profit centres 2 Existing 1 profit centres 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Actual prices and Production at 40 portfolio BP projection for 06-10 with end 05…
  47. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 47
    Resource growth & progression 2001- 2005 New Further discoveries appraisal, revisions 8.0 7.8 Start 01 End 05 Purchased Sold resources resources 25.9 12.5 Non-proved 4.4 40.7 9.1 15.2 2.7 Proved 1.9 18.3 41.1 59.0 6.7…
  48. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 48
    Reserves and resources progression bn boe New Access 70 Exploration Exploration success Yet to Find 60 Technology Enhanced recovery, under 50 development new viscous oil & tight gas technology Commercial 40 alignment & existing…
  49. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 49
    E&P summary z Focussed exploration strategy z 13 years reserve replacement of 100% or more z 4% p.a. production growth 05-10 at 40/bbl Major projects on track Decline in existing centres 3% p.a. Strong operating performance from…
  50. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 50
    Gas z Second largest natural gas producer amongst the International Oil Companies z Largest supplier of gas to North America z Operating a fully integrated gas business z Access to key infrastructure to place natural gas into high…
  51. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 51
    Vivienne Cox Chief Executive, Gas, Power & Renewables
  52. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 52
    Gas: integration Upstream Midstream Downstream Pipeline Power LNG Production Liquefaction Re-gasification Industry / Other 2 producer 2 Gas into LNG plants 1 North 8.4bcf/day 1.7bcf/day America gas
  53. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 53
    Gas: production bcf/d Average 4% p.a. growth 05 -10 10 8 6 4 2 0 2005 2006 2007 2008 2009 2010 06 onwards BP projection
  54. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 54
    Gas: resources Gas resources Includes BP share of TNK-BP
  55. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 55
    Gas: infrastructure Major pipelines Future pipeline Gas liquefaction LNG re-gasification options plants 1.7bcf/day terminals 1bcf/day Includes projects under development and contractual rights to liquefaction / re-gasification
  56. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 56
    Gas: monetisation z 2005: 80% pipeline, 20% LNG z 2010: 70% pipeline, 30% LNG z Growing LNG Tangguh / NW Shelf Shipping / merchant trading Re-gasification: US, UK, Spain, China z Other routes to market Power generation Gas to…
  57. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 57
    Alternative energy 2006 2015 Three-fold increase in solar Grow wind power to 450MW Build commercial hydrogen power plants Construct cogeneration plants totalling over 700MW Cut greenhouse gas emissions by 24 million tonnes/year…
  58. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 58
    Gas summary z 2nd largest gas producer with distinctive production growth z 2nd largest supplier of gas into LNG plants z Strong marketing positions in large and growing markets z Integrated to provide value across the gas chain…
  59. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 59
    Refining & Marketing z Refurbishing Texas City and restarting production 1Q onwards z Increasing investment in advantaged refineries z Developing low-cost supply envelopes around our refineries z Improving margins through superior…
  60. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 60
    John Manzoni Chief Executive, Refining & Marketing
  61. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 61
    R&M: shape 2005 operating capital employed 4% 4% 9% Refining Aromatics & Acetyls 46% Retail Business Marketing 25% Lubricants New Markets 12%
  62. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 62
    Refining: Texas City z 23rd March explosion z 21st September Hurricane Rita shutdown z Inspection and engineering evaluation z Repairs and modification programme z Training and accountabilities z Phased start-up from 1Q
  63. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 63
    Refining: portfolio Average size kbbl/d 220 BP XOM 200 CVX 180 160 TOT RDS 140 COP 120 7 8 9 10 11 Complexity index 2 mmbbl/d Circle area proportional to Source: Oil & Gas Journal 2005, excludes TNK-BP nameplate…
  64. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 64
    Refining: investments Organic capex bn 1.6 Upgrading Base / Integrity 1.2 0.8 0.4 0.0 03 05 Average 06 08 Average BP projection 06-08
  65. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 65
    Refining: optimisation & cost efficiency Commercial Energy optimisation intensity index index 400 101 300 100 200 99 100 98 0 97 2003 2004 2005 BP data, indexed 2003 = 100
  66. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 66
    A&A: growth & cost efficiency Nameplate Cost efficiency capacity mtes index, 2003 = 100 16 110 12 100 8 90 4 0 80 03 04 05 av. 06-08 Americas Europe Asia BP projection 06-08
  67. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 67
    Retail: brands
  68. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 68
    Retail: offer quality Ultimate Shop Gross Ultimate Gross Sales margin mix margin k/m2 index index index 500 250 120 10 400 200 110 300 150 9 200 100 100 100 0 50 90 8 03 04 05 03 04 05 BP data. Gross margin and Ultimate…
  69. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 69
    Retail: portfolio Fixed Net assets bn investment bn 12 0.75 0.5 8 0.25 4 0 03 04 05 Av. 06-08 No of BP owned sites 8.6 8.4 7.6 5.8 (thousands) BP projection 06-08
  70. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 70
    R&M: cost efficiency programmes z Phase 1: in execution Marketing operating / overhead costs Complete by end 07 0.5bn cost reduction in 08 10% improvement in marketing unit costs targeted z Phase 2: in final planning Transaction…
  71. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 71
    R&M: investment patterns Organic capex bn Marketing Infrastructure 4 Aromatics & Acetyls Refining Disposals 3 2 1 0 Disposals (1) 03 05 average 06 08 average BP projection 06-08
  72. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 72
    R&M: summary z Focus on safety and integrity z Invest into advantaged capacity z Deliver efficiency improvements z Improve customer offers
  73. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 73
    Production growth 2000 - 2005 CAGR % Peer Group 5 BP 4 TOT 3 World Average 2 4.4 3.6 1 2.0 0 -0.8 -1.0 (1) -1.7 RDS XOM (2) CVX (3) Source: company reports, broker estimates for Total 4Q05
  74. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 74
    Underlying ROACE vs. competition ROACE % 30 BP Peer Range 25 20 15 10 5 0 2001 2002 2003 2004 2005* BP ROACE Headline 11% 7% 15% 16% 20% Underlying 13% 9% 17% 20% 24% Peer range: ExxonMobil, Shell, Chevron, Total; peer…
  75. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 75
    Reinvestment ratios 120% BP Peer Range 80% 40% 0% 2001 2002 2003 2004 2005* Peer range: ExxonMobil, Shell, Chevron, Total BP data: 01-02 UK GAAP; 03-05 IFRS Peer source: Published reports *2005 rolling 4Qs to 3Q05…
  76. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 76
    Investment bn 2004 2005 2006 Capital expenditure 13.8 13.9 15 Exploration & Production 9.7 10.1 11 Refining & Marketing 2.7 2.7 3.3 Gas, Power & Renewables 0.5 0.2 0.5 Other 0.9 0.9 0.2 Acquisitions 2.8 0.2 - Divestments (5.0)…
  77. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 77
    Free cash flow z Grow sustainable free cash flow z 2005: a record 25bn, helped by environment and Innovene sale z 03-05 average: around 15bn p.a. at 41/bbl average oil price around 13bn p.a. after adjusting for divestments and…
  78. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 78
    Five point business plan Objective: Grow sustainable Free Cash Flow 1. Grow production 4% p.a. 05-10 at 40/bbl 2. Control cost increases below inflation 3. Increase ROACE relative to peer group 4. Maintain capital discipline: around…
  79. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 79
    Financial framework z Dividends z Gearing z Use of excess free cash flow
  80. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 80
    Dividends z Progressive z Sustainable: test under downside conditions: 25/bbl z Dynamic: per-share dividend benefits from reduction in equity base from buyback programme
  81. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 81
    Historical dividend 5 year average 20 year average CAGR % CAGR % 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 0 Dollar Inflation Sterling Inflation Dollar Inflation Sterling Inflation DPS DPS DPS DPS Dividends as paid basis,…
  82. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 82
    Shareholder distribution potential 2003 - 2005 2006 - 2008 cases average A B C 41 Brent /bbl 25 41 60 6.7 HH /mcf 8.3 4.0 6.7 9.5 6.4 refining /bbl 11.3 3.5 6.4 6.4 bn 0 10 20 30 40 50 60 70 03- 19bn 21bn 05 A 30bn 06- 50bn B…
  83. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 83
    2006 guidance z Production in the range of 4.1 - 4.2 mmboe/d at 40/bbl z Capital spending around 15bn z Divestment level to be around 3bn
  84. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 84
    Summary z Strong near term operating environment z Growth momentum underpinned by quality of incumbent positions in resources and assets z Maintaining capital and cost discipline z Commitment to grow and distribute free cash flow
  85. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 85
  86. FEBRUARY 2006 INVESTOR PRESENTATION – Bp Energy Partners Lp – slide 86
    Q&A John Browne Byron Grote Group Chief Executive Chief Financial Officer Tony Hayward Andy Inglis Chief Executive Deputy Chief Executive Exploration & Production Exploration & Production Vivienne Cox John Manzoni Chief…

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