ASIA ROADSHOW PRESENTATION FEBRUARY/MARCH 2019 Kupe (New Zealand) offshore platform Beach Energy Limited ABN 20 007 617 969
COMPLIANCE STATEMENTS Disclaimer Five year targets This presentation contains forward looking statements that are subject to risk factors associated References to five year targets refers to those targets listed in the 2018 Asia Roadshow…
BEACH ENERGY PORTFOLIO FY18 Pro forma production1 Bass Basin Cooper Taranaki Basin Basin 26.8 MMboe Otway Basin Perth Basin FY18 2P reserves2 Perth Basin Cooper Basin 313 MMboe Otway Basin Beach prepares its…
AHEAD OF TARGET IN FIRST HALF FY19 Beach output has exceeded expectations Production High levels of facility reliability (97%) FY19 EBITDA guidance raised Guidance update FY19 production guidance increased, capex guidance…
H1 FY19 HIGHLIGHTS DELIVERING ON OUR PROMISES TO MEET OUR 5 YEAR TARGETS Operating and Financial performance Key H1 FY19 activities H1 FY19 production of 15.2 MMboe Bauer appraisal campaign successful Sales revenue 955 million, up…
FY19 GUIDANCE Capital expenditure FY19 Guidance Guidance narrowed on 31 January 2019 from 440-520 million to 450-500 million Production 28 29 MMboe Higher expenditure is forecast in H2 FY19 due to increased planned drilling…
FINANCIAL HIGHLIGHTS Sales volumes +181% over H1 FY18 due to: SALES VOLUME UNDERLYING EBITDA1 Lattice acquisition 16.0 724 Strong customer demand MMBOE MILLION Improved facility reliability Improvement in Underlying EBITDA,…
DISCIPLINED BALANCE SHEET MANAGEMENT Targeting to be debt-free on completion of Otway Sale, Net gearing since Lattice acquisition more than 2 years ahead of original debt-free target date completion (end January 2018) Balance sheet…
ROBUST AND STABLE REVENUE BASE FIXED PRICE CONTRACTS PROVIDE REVENUE CERTAINTY FY19 estimated sales revenue and expenditure 2,500 Beach expects to generate revenue of more than 700 million in FY19 from its stable gas business…
EAST COAST GAS MARKET SUPPLYING THE MARKET IS A STRATEGIC IMPERATIVE Beach is a material owner of critical gas infrastructure Three basins and infrastructure hubs supplying East Moomba Coast gas Gas Hub 33.4% Currently 15%…
EXPOSURE TO EAST COAST GAS PRICES AN ATTRACTIVE LONG-TERM PRICING OUTLOOK Annual step-ups and CPI Current east Re-contracted / re-priced volumes2 adjustments of Lattice contracts coast volumes 100% Majority of existing East Coast…
DELIVERING AS A LOW COST OPERATOR Beach has extracted 56 million of synergies to date, Beach operating costs/boe1 primarily relating to exiting the TSA with Origin Energy, insurance savings and other integration benefits. /boe 12…
ASSET UPDATES Artificial lift in the Cooper Basin Beach Energy Limited ABN 20 007 617 969 14
WESTERN FLANK OIL BEACH 40 - 100% INTEREST H1 FY19 production 2.4 MMboe, +4% Western Flank Oil on H1 FY18 largely a result of the successful Bauer Field appraisal and Production (MMboe) development program 2.4 2.4 2.3 2.2 Bauer…
BAUER FIELD DEVELOPMENT Horizontal vs vertical wells Improvement in drilling/connection times Beach has increased the application of horizontal well In FY18 Beachs first ever operated horizontal well, technology, targeting the lower…
WESTERN FLANK OIL ROLLOUT THE BAUER STRATEGY ACROSS THE WESTERN FLANK Following success of Bauer appraisal program, the technical workflow to be applied across the Western Flank Kangaroo App planning underway Hanson appraisal has…
WESTERN FLANK GAS EX PEL 106 AND EX PEL 91, BEACH 100% AND OPERATOR H1 FY19 production 1.0 MMboe, +55% on H1 FY18 largely a result of the commissioning of the latest Middleton facility capacity expansion Seven-well gas appraisal…
COOPER BASIN JV BEACH VARIOUS INTERESTS (20.76 - 52.2% RANGE), SANTOS OPERATOR H1 FY19 production of 4.1 MMboe1 48 wells drilled in H1 FY19 (10 oil and 38 gas; 20 development, 28 exploration/appraisal) Overall success rate 85%,…
COOPER BASIN JV MOOMBA SOUTH APPRAISAL Phase one of Moomba South Appraisal saw seven successful wells from the eight well program The eight wells constitute the first phase of a program designed to test up to 120 Bcf of 2C…
VICTORIAN OTWAY BASIN BEACH 100%* AND OPERATOR Ocean Onyx secured for offshore Otway drilling program, late CY19 target start date First well expected to be drilled is the Artisan gas exploration well Nearshore drilling to commence…
VICTORIAN OTWAY BASIN PRODUCTION Ten drilling opportunities planned in the next four years to OGP production outlook (100% interest)1 keep the Otway Gas Plant (OGP) as full as possible. Black Watch and Enterprise Extended Reach…
PERTH BASIN WAITSIA (BEACH 50%), BEHARRA SPRINGS (BEACH 67% AND OPERATOR) H1 FY19 production 0.4 MMboe1 Progress made towards decision regarding development of Waitsia Perth Basin contains 420 PJ 2P reserves (Beach share) 830 PJ…
SOUTH AUSTRALIAN OTWAY BASIN BEACH INTERESTS 70 100% AND OPERATOR Drilling scheduled to commence with Haselgrove-4 in Q3 FY19 Dombey-1 exploration well currently expected to spud in July 2019 Drilling sequence re-phased to provide…
CARNARVON BASIN IRONBARK PROSPECT Ironbark Prospect1 (WA-359-P Beach 21%, subject to farm-in; WA-409-P Beach 7.5% subject to farm-in) Ironbark BP has secured the Ocean Apex rig to drill the Ironbark prospect Drilling is expected…
BONAPARTE BASIN EXPLORATION BLOCK ALIGNMENT AGREED WITH SANTOS Santos and Beach have reached agreement on alignment in the Bonaparte Basin Agreement spans four exploration blocks in the offshore Bonaparte Basin Ownership will become…
KEY TAKEAWAYS Beach is ahead of schedule and delivering on its promises to: Grow production (30 36 MMboe by FY23) Achieve 100% reserves replacement ratio Maintain high ROCE (17 20%) Generate significant free cash flows (2.6…
APPENDICES Lang Lang gas facility, Bass Basin Beach Energy Limited ABN 20 007 617 969 29
FY19 DRILLING PROGRAM INCREASING FOCUS ON HORIZONTAL WELLS FY19 well participation increases to 160 wells (from 133 prior) FY19 expected participation Cooper Basin JV (number of wells) Expect to participate in 98 wells (up from 87)…
NEW ZEALAND KUPE GAS PROJECT BEACH 50% AND OPERATOR H1 FY19 production 1.5 MMboe1 Front End Engineering and Design (FEED) commenced on the Kupe compression project, FID targeted for H1 FY20 1. PCP not included for this asset due…
BASS BASIN BEACH 53.75% PRODUCING ASSETS, 50.25% NON-PRODUCING, BEACH OPERATED H1 FY19 production 0.9 MMboe1 Progressed the evaluation of a potential tieback of the Trefoil Field 1. PCP not included for this asset due to ownership…
OIL HEDGING POSITION OIL HEDGES AS AT 31 DECEMBER 2018 3-way Collar 3-way Collar 3-way Collar Total Hedged 40 90 100 40 103 113 55 100 110 Volumes (bbl) per bbl per bbl per bbl FY19 97,500 270,000 825,000 1,192,500 Total…
RECONCILIATION OF NPAT TO UNDERLYING NPAT1 Comparison of Underlying Profit ( million) H1 FY18 H1 FY19 Change Net profit / (loss) after tax 96 283 187 196% Acquisition costs and writeoff of debt establishment fees 10 8 (2) Gain on…
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