2016 half-year results briefing Peter Coleman Chief Executive Officer and Managing Director 19 August 2016
Achievements Strong performance across the business Operational excellence Increased production guidance to 9095 MMboe Production up 9% on 1H 2015 Unit production costs down 38% on 1H 2015 Managing risk and volatility Targeting to…
Financial headlines Strong operations and cash flow Profit: USm1 Net profit after tax (NPAT) 340 Interim dividend 34 cps2 Cashflow: Operating cash flow 1,124 Break-even cash cost of sales 9/boe Unit production costs 5.2/boe…
Peer comparison Peer-leading margins across the business cycle EBITDA margin1 Return on capital employed2 100 80 20 60 Percent 10 Percent 40 0 20 -10 0 -20 3 2012 2013 2014 2015 1H16 2012 2013 2014 2015 1H16 4…
Oil market dynamics Market conditions creating opportunities 100 Oil supply and demand 5 98 4 Re-balancing underway 96 3 Continued price volatility in the short-term MMbbl/d 94 2 Competitors retreating from international 92…
LNG market dynamics New supply sanction required from 2018 to meet market demand LNG supply and demand Demand 600 Traditional markets well supplied 500 Growth from emerging buyers enabled by: 400 Lower prices New technologies and…
Near-term value growth Committed to earliest commercialisation of growth opportunities Developing 400 MMboe1 commencing production 2016 to 2020 Wheatstone LNG: First LNG from Train 1 expected mid-2017; Train 2 expected 6-8 months…
Production Improving capacity and reliability Production reconciliation 2016 production guidance increased to 9095 MMboe 50 Pluto annualised loaded LNG production 2.5 0.6 0.3 45.9 rate of 4.9 mtpa, 14% above original 3.0 1.3 design…
Pluto production costs Delivering on productivity and efficiency improvements at Pluto Total and unit production costs Pluto Turnaround 112 99 Sustained structural cost reductions US/boe USm 82 55% improvement in unit…
Peer-leading margins Low costs, high realisations Cost and price 16 14 Strong realised pricing achieved through Production costs (US/boe) 12 LNG contract portfolio Quality assets and operational excellence 10 delivering…
Sources and uses of cash Generating surplus free cash while continuing to invest in growth 1H 2016 1200 Net cash build 1000 Other 1 162 million of Free Cash Flow generated2 800 First half capital expenditure mainly Wheatstone and…
Financial advantages Well positioned to fund growth Gearing1 80 Financial flexibility to invest through cycle 60 Strong financial position reflects quality 40 of assets and performance of base business Percent 20 Maintained…
Liquidity Managing our debt obligations 2000 Maturity profile: 1 Jan 2016 1500 Secured over 600 million in funding at USm 1000 competitive rates 500 Liquidity of 2 billion at HY16 0 2016 2017 2018 2019 2020 2021 2022 2023…
LNG contracts Mid-term SPAs being put in place to reduce spot exposure Woodside Equity LNG1 Target 85-90% of expected production in term 100 take-or-pay contracts HoA in place for long-term supply to Pertamina % of Expected…
Review of Business Activities Mike Utsler Chief Operations Officer Source: Chevron Australia
Wheatstone On track for mid-2017 first LNG cargo Reservoir development and Julimar Project Julimar Project1 98% complete - on track and under estimate at acquisition Drilling campaign complete Offshore facilities Wheatstone…
Greater Enfield Strong cash margins, leveraging existing infrastructure Developing 41 MMbbls of 2P oil reserves1 Subsea tie-back to Ngujima-Yin FPSO (Vincent field) Low incremental cash costs through utilisation of existing…
Myanmar Rapid resource delineation Material position in emerging basin 2.4 Tcf, 2C gross (100%)1 gas discoveries at Shwe Yee Htun-1 and Thalin-1A Subsea tieback option via Shwe platform2 Significant drilling campaign in 2017…
Senegal World-class asset with significant future exploration upside Agreed to acquire a 35% interest in the 560 MMbbl SNE oil field with exploration upside1 Development planning underway with line of sight to near term oil…
Global exploration strategy Set to deliver future growth options Portfolio balance 1H 2016 Increased exposure to emerging basins and oil End 2012 Significant increase in net unrisked mean success volume since 2012 Growth a result…
Key messages Strong performance across the business Operations excellence Managing risk and volatility Building near-term value growth 2016 half-year results briefing 24
Annexure
Investment spend Investing in growth Investment spend1 6000 5000 Asset Maintain 2016 investment spend guidance acquisition of 2 billion1 4000 Base business spend trending down Continuing to invest in growth USm 3000…
Operating revenue Operating revenue impacted by oil price trend Operating revenue and Brent price 114 108 109 1H 2016 operating revenue 24% lower than 1H 2015 3,551 Decrease primarily due to lower realised prices, partially…
Unit production costs Lower production costs reflecting simplification and efficiency 250 Gas production costs 20.00 Oil production costs 210 204 210 18.00 153 200 16.00 143 139 14.00 147 150 12.00 91 US/boe US/boe…
Segment performance NWS and Pluto margins remain substantial even in a low price environment Business Unit performance NWS1 Pluto Aus Oil2 Production volume (MMboe) 20.5 21.2 3.2 Operating revenue (million) 651 1,116 135 EBITDA…
Trading operations Trading operations have generated significant value Trading Reconciliation USm Trading revenue 31 Trading costs (50) Gross loss from third party trading (19) Add: Optimisation opportunities 15 Add:…
Exploration pipeline Shifting from portfolio growth to execution as we enter phase of high impact drilling 20162017 DRILLING AND SEISMIC ACTIVITIES 2016 2017 SIZE Drilling1 Q3 Q4 Q1 Q2 Q3 Q4 Volume2 Myanmar Block AD-7 Thalin appraisal…
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