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FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited

Beach Energy Limited · Aug 29, 2016 · 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. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 1
    FY16 Preliminary Full Year Results FY17 Outlook 29 August 2016
  2. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 2
    FY16 Overview Matt Kay Chief Executive Officer
  3. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 3
    A compelling value proposition Profitable and net debt free: Cash flow breakeven of US26/bbl; dividend payable Leveraged to oil price recovery: +US10/bbl = +50m NPAT and +A65m cash flow Cost savings progressing: Material savings…
  4. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 4
    Strong progress across all strategic pillars Optimise our core in the Cooper Basin Maintain financial strength Drillsearch merger and integration Net debt free 26% operated field cost reduction 40% corporate cost savings 90%…
  5. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 5
    Record production and reduced costs Continued safety standard improvements Record Production Western Flank Opex +6% Record production of 9.7 MMboe, up 6% -26% 90% drilling success rate from 51 wells 9.1 9.7 4.90 Field operating…
  6. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 6
    Merger synergies of 40 million p.a. Drillsearch merger complete Enlarged gas and gas liquids footprint 100% ownership of core Western Flank assets (ex PEL 91 and 106) Elimination of duplicated costs 40 million of pre-tax annual…
  7. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 7
    Strong financial performance Sales Revenue Underlying NPAT Operating Cash Flow 1,200 140 270 140 600 140 800 180 400 70 70 70 400 90 200 558 233 36 0 0 0 0 0 0 FY122012 2011 FY132013 FY142014 FY152015 FY16 FY122012…
  8. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 8
    Financial Peter Sandery Acting Chief Financial Officer
  9. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 9
    Robust financial results year-on-year million FY15 FY16 Change Sales volumes (MMboe) 10.5 10.8 3% Sales revenue 727.7 558.0 (23%) Operating cash flow 228.5 233.4 2% Net profit / (loss) after tax (514.1) (588.8) (15%)…
  10. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 10
    Sales revenue movement million 1,000 45.7 10.8 64.2 800 50.3 212.3 727.7 Gas / ethane FX rates prices Third party Volume / sales 600 mix A/US /GJ 558.0 FY15 0.837 FY15 5.68 FY16 0.728 FY16 6.01 Oil and 400 liquids prices 23%…
  11. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 11
    Comparison of NPAT with underlying NPAT FY15 FY16 million million NPAT (514.1) (588.8) Adjusted for: Mark-to-market of convertible notes derivative (13.3) Merger costs 7.7 Unrealised hedging losses 15.4 Provision for non…
  12. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 12
    Underlying NPAT despite oil price Underlying NPAT down 61% to 36 million Underlying NPAT A/bbl million Brent oil Decline mainly due to impact on revenue 270 140 from lower realised oil prices 33% reduction in average realised oil…
  13. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 13
    Robust financial position Further strengthening of financial position Operating Cash Flows A/bbl million Brent oil due to: 600 140 Capital expenditure reduction to 184 million (FY15: 416 million) Cost savings achieved across the…
  14. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 14
    Operational Mike Dodd Group Executive Exploration and Development
  15. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 15
    Record production delivered Record production of 9.7 MMboe Production (MMboe) 53% oil; 47% gas and gas liquids 9.6 9.7 9.1 Record operated oil production of 3.6 MMbbl 8.0 7.5 Gas* Gas* 4.4 4.5 Higher portion of operated…
  16. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 16
    Increased operated oil exposure Area FY15 FY16 Change Cooper / Eromanga basins 4,490 5,028 12% Oil (kbbl) Egypt 132 141 7% Total oil 4,622 5,169 12% Cooper Basin 22.1 21.8 (1%) Sales gas and ethane (PJ) Egypt 0.1 0.3 365% LPG…
  17. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 17
    90% drilling success rate 90% drilling success rate from 51 wells High drilling success rates in FY16 Five new field discoveries in Windorah Wells Successful Wells Trough (SWQ JV) Area Category Drilled / Rate Field extensions in…
  18. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 18
    Reserves and contingent resources1 2P: 70 MMboe 2P and 2C: 275 MMboe Unconventional Gas and gas liquids 2C gas and gas liquids 47 MMboe 92 MMboe Conventional 2C gas/gas liquids 2P reserves 89 MMboe Oil 70 MMboe 23 MMbbl 2C…
  19. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 19
    FY17 Outlook Matt Kay Chief Executive Officer Mike Dodd Group Executive Exploration and Development
  20. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 20
    Significant east coast gas opportunity Structural change underway in the east East coast gas supply and demand 2015 2025 (PJ/a)1 coast gas market Supply Demand 2,000 Increasing signs of gas supply / demand imbalances 1,500 New…
  21. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 21
    Greater influence over SACB JV outcomes Recent Joint Venture Changes Benefits to Beach Not tied to joint venture partner Separate lifting and marketing of commitments Gas lifting / marketing own equity molecules Ability to seek best…
  22. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 22
    Leveraged to oil price recovery A leading Australian oil producer, with a Australian Oil Production Last 12 Months major gas business 5.2 MMbbl Oil-linked gas sales with other beneficial pricing parameters Active Western Flank…
  23. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 23
    Cash flow breakeven reduced 60% A / bbl US / bbl FY16 90 60% 65% Cash flow 89 Reduced cash flow breakeven from lower costs and breakeven1 74 35 26 greater control over SACB JV capital expenditure 0 FY15 FY16 FY15 FY16 Broad…
  24. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 24
    40 million p.a. Drillsearch merger synergies Combined Beach and Drillsearch million Corporate Overheads 57% reduction in combined Beach / 60 Drillsearch corporate overheads 57% reduction since FY15 Duplicated corporate overheads…
  25. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 25
    Record production again from FY17 outlook Expecting increased production of 9.7 10.3 MMboe Another record year targeted in FY17 Active Western Flank exploration program to drive organic growth New focus on play types with…
  26. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 26
    Mitigation of natural field decline Peak oil field decline in FY17 to be offset by merger benefits 100% ownership of core and field development activities producing permits (ex PEL 91 and 106) Field Natural Drillsearch Egypt and…
  27. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 27
    Developments will optimise production Bauer Oil Facility Expansion Bauer facility expansion to 120,000 barrels of fluid Daily capacity per day (+60%) (kbfpd) 120 Completion expected in Q3 FY17 120 60% increase in oil production…
  28. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 28
    Capital directed for greatest returns Rigorous capital allocation framework underpins all discretionary expenditure decisions 180 200 million 184 million Discretionary Expenditure: High-graded projects; NPV positive; near-term line…
  29. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 29
    Diverse play types will drive organic growth High graded prospects to expand existing footprints Up to 13 operated wells planned Low risk development wells Near-field exploration / extensions New focus on Birkhead / Patchawarra…
  30. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 30
    Growth via drilling of 13 operated wells Permit Well Timing Target Rationale Hanson-4 Q1 Namur Development well to support facility expansion Stunsail-3 Q1 Namur Development well; part of low cost, full field development plan…
  31. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 31
    Redefining Western Flank prospectivity Kangaroo-1 (Beach 100%) targeting stratigraphically trapped Birkhead oil Drilling in Q1 FY17 Analogous to nearby Birkhead discoveries at Spitfire and Growler fields Birkhead oil successfully…
  32. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 32
    Non-core asset divestments to continue Cooper Basin activity Sale agreement for Kenmore-Bodalla operated oil interests Mature fields and remote operations; operating costs were double those of Western Flank Mitigated end of life…
  33. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 33
    Disciplined approach to inorganic growth Clearly defined growth strategy underpinned by robust core base business Strategy Demonstrated progress in FY16 via Drillsearch merger Focussed on opportunities with similar risk profile to…
  34. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 34
    A compelling value proposition Profitable and net debt free: Cash flow breakeven of US26/bbl; dividend payable Leveraged to oil price recovery: +US10/bbl = +50m NPAT and +A65m cash flow Cost savings progressing: Material savings…
  35. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 35
    Appendix
  36. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 36
    FY17 capital expenditure program Capital Expenditure million Wells Key Projects Exp. App/Dev Western Flank Operated Oil Solidus 3D inversion Ex PEL 91 25 30 5 2 Bauer and Hanson facility expansions Callawonga facility expansion Ex…
  37. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 37
    Cooper Basin acreage Western Flank Gas and Gas Liquids Ex PEL 106 (100%*) - Middleton facility Ex PEL 513 (40%) Ex PEL 101 (80%*) Greater Kenmore- Bodalla area oil assets2 Western Flank Oil Unconventional acreage1 Ex…
  38. FY16 Preliminary Results and FY17 Outlook – Beach Energy Limited – slide 38
    Contact information Beach Energy Beach Energy Limited Limited 25 Conyngham 25 Conyngham Street Street Glenside SA Glenside SA 5065 5065 Tel: +61 Tel: +61 8 8 8338 8338 2833 2833 Fax: +61 Fax: +61 8 8 8338 8338 2336 2336 Website:…

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