Barclays CEO Energy Power Conference – Shell

Shell · Sep 7, 2016 · 18 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

Barclays CEO Energy-Power conference Royal Dutch Shell plc Ben van Beurden Chief Executive Officer September 7, 2016
Ben van Beurden Chief Executive Officer Royal Dutch Shell plc
Strategy Lets make the future STRATEGIC Focus portfolio on resilient positions Invest in advantaged projects World-class investment case Value chain integration FCF/share + ROCE growth Leader: value + Conservative financial…
Industry context Substantial + long lasting shifts in energy landscape Global population Growth in oil & gas demand Energy system in transition World needs more energy; less CO2 2000 2050 From 7 to 9 billion by 2050 Global energy…
Re-shape Shell Driving strategy in multiple time horizons Cash engines: today Growth priorities: 2016+ Future opportunities: 2020+ Funds dividends + balance sheet Cash engines 2020+ Material value + upside Affordable growth in…
Cash engines Example: Oil Products Stronger results from smaller portfolio Million barrels/day billion per barrel Advantaged feedstock + supply -20% +25% -30% Asset sales Products + brand 2007 2015 Oil products earnings…
Cash engines Example: Integrated Gas Sakhalin Sabine Pass QG-4 Nigeria Oman Equatorial Brunei Atlantic LNG Guinea Malaysia LNG Peru Equity capacity Gorgon NWS Long-term offtake agreement Pluto QCLNG Spot offtake in 2015…
Growth priorities Example: deep water Reducing drilling costs Lowering capital intensity Shell + BG deep water growth Example Gulf of Mexico per boe break-even cost (examples) Thousand boe per day drilling days thousand Variable spread…
Future opportunities Example: shales Average drill and complete costs LRS wells Resources million per well 12 billion boe -50% Western Canada Gas 12 Western Canada LRS 8 Appalachia 4 Permian Argentina Reserves 0 Contingent…
Manage down-cycle Financial performance Earnings + ROACE Cash flow billion % billion % 30 15 45 45 20 10 30 30 10 5 15 15 0 0 0 0 2012 2013 2014 2015 16Q2 2012 2013 2014 2015 16Q2 -10 4Q rolling -5 -15 4Q rolling -15 Upstream…
Manage down-cycle Pulling levers to manage financial framework 2016-18 levers Reduce Reduce Deliver new Divestments capital operating projects investment costs 2015 baseline: 2017-2018 2016 billion Shell + BG potential…
Reduce capital Reduce Deliver new Divestments investment operating costs projects Manage down-cycle Divestments 2016-2018 completed + announced billion Divestment program Completed MLP 0.8 Denmark marketing 0.3 billion N.Z.: Maui…
Reduce capital Reduce Deliver new Divestments investment operating costs projects Manage down-cycle Lower & more predictable capital investment Capital investment billion 60 60 58 53 47 43 41 -25% 40 40 37 36 33 31 29 29 25-30…
Reduce capital Reduce Deliver new Divestments investment operating costs projects Manage down-cycle Reduce operating cost Operating cost billion 50 49 Substantial reductions delivered -4 billion 46 44 42 40 40 Lower for ever…
Reduce capital Reduce Deliver new Divestments investment operating costs projects Manage down-cycle Deliver new projects Significant oil & gas + Downstream production under Thousand boe per day* Million tonnes per annum…
Financial dashboard Gearing Free cash flow per share % /share 30 10 20 5 10 0 0 -5 -10 Q211 Q212 Q213 Q214 Q215 Q216 -10 Q211 Q212 Q213 Q214 Q215 Q216 ROACE Total shareholder return % % 3 years to Q2 2016 12 months to Q2 2016 30 0…
Transformation 2013-2015 2019-2021 average average ROACE 8% 10% CREATE A WORLD CLASS Organic free cash flow 5 billion p.a. 20-25 billion p.a. INVESTMENT CASE Brent 90 60 Improved capital Capital efficiency: Less cost + fewer…
Questions & Answers

From the store

Presentation Manager Subscription - Discounted $1,092

Browse maps, data & reports in the Shale Experts store