BEACH ENERGY LIMITED MACQUARIE AUSTRALIA CONFERENCE 3 May 2017
Contents Company Overview 4 Year-to-date Performance 11 Exploration and Development 15 Outlook 21 Appendix 26 3
MACQUARIE AUSTRALIA CONFERENCE COMPANY OVERVIEW BEACH ENERGY LIMITED
A compelling value proposition Highly profitable base business Increasing drill bit activity Turnaround in HY NPAT to 103m; underlying NPAT +1,023%1 40 wells drilled year-to-date at a success rate of 85% US10 oil price increase…
Beach Energy Australias largest onshore oil producer, with a major gas business Core operations in the Cooper and Eromanga basins Owner of strategic infrastructure linking key energy Western Flank Gas and Gas Liquids markets…
Western Flank core production Primary source of Beach oil production Q3 FY17 net production of 1.1 MMbbl Material contributor to Beach gas and gas liquids production Q3 FY17 net production of 220 kboe Middleton compression…
Strategic Cooper Basin infrastructure Infrastructure ideally located to service southern, eastern and LNG markets Beach ownership interest in Cooper Basin JV infrastructure: 20% 6,000 kilometres of flowlines into Moomba Moomba…
Cooper Basin joint ventures1 Diverse Cooper Basin acreage position of 6.6 million acres Long-life, reliable gas and gas liquids production3 Substantial gas processing infrastructure, connected to key energy markets 50 years of…
Delivering against four-pillar growth strategy Optimise core in the Cooper Basin Maintain financial strength Record half year production of 5.5 MMboe US20/bbl cash flow breakeven Six play-extending oil and gas discoveries H1 FY17…
MACQUARIE AUSTRALIA CONFERENCE YEAR-TO-DATE PERFORMANCE BEACH ENERGY LIMITED
Operational highlights Production growth and play-extending discoveries Highlights Production: Year-to-date1 Exploration Success Production growth year-on-year; Three gas discoveries from four-well mitigating natural field decline +16%…
Financial highlights Robust business model delivering turnaround in profitability Highlights Key Financial Metrics: H1 FY17 Turnaround in HY Underlying NPAT1 A/bbl Financial results benefiting from million Brent oil robust business…
Operating and cost efficiencies Delivering savings across operated and non-operated ventures Reduced fixed expenditure US26/bbl US20/bbl 23% Cash flow breakeven1 Operating and cost efficiencies (FY16) (H1 FY17) New rig contract…
MACQUARIE AUSTRALIA CONFERENCE EXPLORATION AND DEVELOPMENT BEACH ENERGY LIMITED
Gas exploration Cooper Basin Significant untapped exploration potential Extensive Southwest Patchawarra FY17 Gas Discoveries1 (SWP) and Permian Edge (PE) play fairways Canunda-3 Crockery-1 Mokami-1 Three SWP discoveries from…
Gas appraisal and development Cooper Basin Middleton capacity expansion under review Middleton compression project commissioned in Q3 FY17 Optimising production infrastructure1 Enables 25 MMscfd raw gas capacity to be reached and…
Oil exploration Cooper Basin Long-term running room from extensive play fairways Extensive, under-developed play Namur Play Fairway Birkhead Play Fairway fairways (13,500 km2) Five exploration wells in H2 FY17 PEL 630 farm-in…
Oil appraisal and development Cooper Basin Targeting new reserves from existing fields Untapped reserve potential in existing fields Kangaroo-1 on EPT at 220 bopd McKinlay reservoir to be appraised and developed flow Five-well…
Gas exploration Otway Basin Conventional gas exploration well targeting 34 Bcf prospect1 South Australian Government to support gas exploration drill costs via 6 million PACE grant Plan for Accelerating Exploration gas grant scheme…
MACQUARIE AUSTRALIA CONFERENCE OUTLOOK BEACH ENERGY LIMITED
East coast gas opportunity Additional drilling required to address market imbalances East coast gas supply and demand1 Beach delivering on gas strategy Growing operated gas business Improved commercial arrangements Compression to…
Capital expenditure guidance Expanded drilling program to be delivered at a lower overall cost 184 million 160 170 million Discretionary expenditure High-graded projects; NPV positive; near- term line of sight to financial return;…
Inorganic growth Opportunities progressing in a disciplined manner Clearly defined growth strategy underpinned by robust core base business Strategy Demonstrated progress via Drillsearch merger and farm-in activity Focused on…
A compelling value proposition Highly profitable base business Increasing drill bit activity Turnaround in HY NPAT to 103m; underlying NPAT +1,023%1 40 wells drilled year-to-date at a success rate of 85% US10 oil price increase…
MACQUARIE AUSTRALIA CONFERENCE APPENDIX BEACH ENERGY LIMITED
H1 FY17 significant items Reconciliation of Net Profit After Tax to Underlying Net Profit After Tax Comparison of underlying profit Movement H1 FY16 H1 FY17 (m) from PCP Net profit / (loss) after tax (600.1) 103.4 703.5 Remove…
FY17 capital expenditure program Capital Expenditure million Wells Activities Exp. App/Dev Western Flank Operated Oil Bauer facility expansion Kangaroo production facility Ex PEL 91 30 4 4 Birkhead and Patchawarra exploration wells…
FY17 operated drilling program increased to 21 wells (+8) Permit Well Timing Target Rationale Result1 Hanson-4 Q1 Namur Development well to support facility expansion Success: C&S Stunsail-3 Q1 Namur Development well; part of low…
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