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FY 2019 Earnings Presentation – Beach Energy Limited

Beach Energy Limited · Aug 19, 2019 · 45 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. FY 2019 Earnings Presentation – Beach Energy Limited – slide 1
    19 AUGUST 2019 FY19 FULL YEAR RESULTS PRESENTATION
  2. FY 2019 Earnings Presentation – Beach Energy Limited – slide 2
    Strong FY19 sets the platform for FY20 Production 29.4 MMboe, +55% vs FY18 Strong FY19 performance 85% drilling success rate in Beach-operated wells 204% organic 2P reserves replacement1, 2P reserves life increased to 12 years2…
  3. FY 2019 Earnings Presentation – Beach Energy Limited – slide 3
    Delivering on our promises Beach said. In FY19 Beach delivered FY19 production1 26 28 MMboe 29.4 MMboe FY19 capital expenditure1 460 540 million 447 million FY19 free cash flow2 290 million 559 million FY19 underlying EBITDA2…
  4. FY 2019 Earnings Presentation – Beach Energy Limited – slide 4
    HSE Performance Lattice acquisition safely integrated Safety performance Environmental performance2 TRIFR1 16 Crude Spill Volumes (kl) 15.6 12 51.9 7.9 99.9% 8 9.6 4 3.5 3.4 3.8 0.2 0.1 0.07 0 FY15 FY16 FY17 FY18 FY19…
  5. FY 2019 Earnings Presentation – Beach Energy Limited – slide 5
    Investing to accelerate production and free cash flow growth Beach is now targeting and cumulative free cash flow3 by accelerating investment in 3440MMboe annual production of more than 2.7 billion over our expanded growth portfolio…
  6. FY 2019 Earnings Presentation – Beach Energy Limited – slide 6
    Bridging to our updated 5 year outlook 1.5 billion of new investment opportunities identified since 2018 investor day 5-Year Capital expenditure outlook ( million) Outcomes Production outlook increased from 30 36 MMboe to More Western…
  7. FY 2019 Earnings Presentation – Beach Energy Limited – slide 7
    Reserves and contingent resources 204% organic 2P reserves replacement, well ahead of 100% five year average target Summary of reserves at 30 June 2019 Highlights (developed plus undeveloped, net to Beach) 2P reserves increased by 4%…
  8. FY 2019 Earnings Presentation – Beach Energy Limited – slide 8
    FY20 guidance FY19 Reported1 FY19 Pro Forma1 FY20 Guidance Production 29.4 MMboe 26.2 MMboe 27 29 MMboe Capital Expenditure2 447 million 435 million 750 850 million Underlying EBITDA 1.375 billion 1.22 billion 1.25 1.40 billion…
  9. FY 2019 Earnings Presentation – Beach Energy Limited – slide 9
    FY20 production guidance Higher Western Flank oil output to offset statutory shutdowns in Otway, Kupe FY20 production movement vs FY19 29.4 Oil production 27 29 26.2 Forecast increase driven by contribution from up to 97 new oil…
  10. FY 2019 Earnings Presentation – Beach Energy Limited – slide 10
    FY20 capital expenditure guidance splits Investment focus remains on Cooper Basin and Victoria Increase in FY20 vs FY19 driven by Capital expenditure by type by asset group 5% Participation in up to 194 wells (FY18: 134 wells) 4% 14%…
  11. FY 2019 Earnings Presentation – Beach Energy Limited – slide 11
    FY20 capital increase driving high return growth Doubling well count in Western Flank and growing the Otway Capital expenditure bridge ( million) 800 Project phasing - deferral of FY19 capital items to FY20 New onshore investment…
  12. FY 2019 Earnings Presentation – Beach Energy Limited – slide 12
    East coast gas market Market dynamics support Beachs investment strategy Southeastern Australia gas demand vs production1 600 AEMO forecasts project Southeastern Australia gas production to be insufficient to meet demand 500…
  13. FY 2019 Earnings Presentation – Beach Energy Limited – slide 13
    Attractive medium-long term pricing outlook Higher gas sales and repricing of legacy volumes to deliver higher gas revenues East coast Re-contracted / re-priced volumes gas supply Lattice gas contracts have annual 100% step-ups and…
  14. FY 2019 Earnings Presentation – Beach Energy Limited – slide 14
    Delivering as a low cost operator Beach operating costs/boe1 /boe Operational Excellence program launched to generate 10 9.9 value through safe, reliable and efficient operations 9.7 o Reliability focus has seen average facility…
  15. FY 2019 Earnings Presentation – Beach Energy Limited – slide 15
    F Y 1 9 F U L L Y E A R R E S U LT S P R E S E N TAT I O N Financial Results
  16. FY 2019 Earnings Presentation – Beach Energy Limited – slide 16
    Financial highlights An outstanding FY19 OPERATING CASH FLOW UNDERLYING EBITDA1 1.04 BILLION 1.375 BILLION UNDERLYING NPAT1 ROCE 560 MILLION 27% 17 1. Underlying results in this presentation are categorised as non-IFRS…
  17. FY 2019 Earnings Presentation – Beach Energy Limited – slide 17
    Financial highlights million (unless otherwise indicated) FY18 FY19 Change Underlying NPAT recognises Production (MMboe) 19.0 29.4 55% 55% increase in sales volumes Sales volumes (MMboe) 20.1 31.2 55% 9% increase in realised oil…
  18. FY 2019 Earnings Presentation – Beach Energy Limited – slide 18
    Underlying NPAT drivers Movement in Underlying NPAT1 560 million Underlying NPAT is 86% higher millions than FY18 driven by factors including: 25 12 A 55% increase in sales volumes Gas and 19 91 Other2 23 ethane FX A/GJ Oil…
  19. FY 2019 Earnings Presentation – Beach Energy Limited – slide 19
    Outstanding debt fully repaid during FY19 Beach in a net cash position two years ahead of initial expectations Movement in Net Debt millions 950 million in debt repaid from: 36 o Operating cash flow 262 o Proceeds from Otway…
  20. FY 2019 Earnings Presentation – Beach Energy Limited – slide 20
    Summary Strong financial position Strong balance sheet position, 172 million net cash at 30 June 2019 Balance sheet flexibility 622 million available liquidity Gas portfolio provides revenue certainty, covers all of FY20…
  21. FY 2019 Earnings Presentation – Beach Energy Limited – slide 21
    F Y 1 9 F U L L Y E A R R E S U LT S P R E S E N TAT I O N Asset updates
  22. FY 2019 Earnings Presentation – Beach Energy Limited – slide 22
    A successful year on the Western Flank Record Western Flank oil and gas production of 7.1 MMboe, +16% vs FY18 Western Flank oil and gas had total 2P reserves revision of 22 MMboe (309% Production and reserves reserves replacement…
  23. FY 2019 Earnings Presentation – Beach Energy Limited – slide 23
    Western Flank Oil Successful year of appraisal and development FY19 Highlights: FY19 production 10% increase in production on FY18, 2P Western Flank Oil reserves now 42MMbbl, +7 MMbbl over FY18 5.2 MMboe Increased drilling…
  24. FY 2019 Earnings Presentation – Beach Energy Limited – slide 24
    Western Flank Oil Bauer (Beach 100% interest) keeps on getting bigger Top reservoir map - 2018 Top reservoir map - 2019 Success of the Bauer appraisal strategy Flat structural relief means seismic is of limited value in defining…
  25. FY 2019 Earnings Presentation – Beach Energy Limited – slide 25
    Western Flank Oil Accelerated investment strategy in place to unlock remaining potential FY20 activity record investment year for Western Flank oil 200 million to be invested in Western Flank oil, a record for Beach Up to 77 oil…
  26. FY 2019 Earnings Presentation – Beach Energy Limited – slide 26
    Western Flank Gas ex PEL 106, ex PEL 107 and ex PEL 91, Beach 100% and operator FY19 Highlights: FY19 production 35% increase in production on FY18, 2P Western reserves now 16MMboe, +8 MMboe over FY18 Flank Gas 1.9 MMboe…
  27. FY 2019 Earnings Presentation – Beach Energy Limited – slide 27
    Cooper Basin JV Beach various interests (20.76 - 52.2% range), Santos operator Cooper Basin JV wells drilled in FY19 Santos and Beach aligned and targeting production growth FY19 CBJV drilling success rate of 87% 28…
  28. FY 2019 Earnings Presentation – Beach Energy Limited – slide 28
    Cooper Basin JV Beach various interests (20.76 - 52.2% range), Santos operator FY19 Highlights: FY20 Focus: FY19 production 37% increase in production 100 wells currently planned for FY20 Cooper Basin JV 8.1 MMboe 2P reserves 84…
  29. FY 2019 Earnings Presentation – Beach Energy Limited – slide 29
    Victorian Otway Basin Beach 60% and operator FY19 Highlights FY19 production Excellent production outcome at 8.4 MMboe, Vic Otway driven by 97% facility reliability and strong Basin 8.4 MMboe customer nominations 29.4 Completed…
  30. FY 2019 Earnings Presentation – Beach Energy Limited – slide 30
    Victorian Otway Basin FY20 activities Ten drilling opportunities (eight development) planned in the OGP gas production outlook (100% interest)1 next 3 years to keep the Otway Gas Plant (OGP) full. 60 Development wells plus one…
  31. FY 2019 Earnings Presentation – Beach Energy Limited – slide 31
    Bass Basin Beach 53.75% producing assets, 50.25% non-producing, Beach operated FY19 Highlights: FY19 production Progressed the evaluation of a potential tieback of Bass Basin 1.7 MMboe the Trefoil Field moving to Concept select…
  32. FY 2019 Earnings Presentation – Beach Energy Limited – slide 32
    New Zealand Kupe Gas Project Beach 50% and operator FY19 Highlights: FY19 production High facility reliability and customer nominations New Zealand supported 115% increase in reported production 3.2 MMboe Reliability of 99%…
  33. FY 2019 Earnings Presentation – Beach Energy Limited – slide 33
    Perth Basin Waitsia (Beach 50%), Beharra Springs (Beach 50%1 and operator) FY19 Highlights: FY19 production GSA executed with Alinta Energy for delivery of 20 Perth Basin TJ/d from July 2020 for 4.5 years. FID reached on 0.7 MMboe…
  34. FY 2019 Earnings Presentation – Beach Energy Limited – slide 34
    South Australian Otway Basin Beach interests 70 100% and operator FY19 Highlights: Initial 2P reserves booking: 1 MMBoe Haselgrove-4 encountered thicker sands than Haselgrove-3 in both primary and secondary targets. Well completed…
  35. FY 2019 Earnings Presentation – Beach Energy Limited – slide 35
    Frontier Exploration High Impact Exploration Targets in Portfolio Ironbark Carnarvon Basin (Beach 21% interest) Wherry Canterbury Basin (Beach 37.5% interest) Large liquids prospect with follow-up potential Drilling planned FY21,…
  36. FY 2019 Earnings Presentation – Beach Energy Limited – slide 36
    Beach illustrative rig schedule1 Beach to employ 10 rigs in FY20, up from 5 in at the start FY19 H1 FY20 H2 FY20 H1 FY21 Non-operated rig (Santos operator) Non-operated rig (Santos operator) Cooper Basin JV Non-operated rig…
  37. FY 2019 Earnings Presentation – Beach Energy Limited – slide 37
    Indicative FY20 drilling program Record drilling activity in the Western Flank, offshore Otway drilling to commence FY20 expected number of wells Highlights Gas Oil Total Record drilling activity for Beach in FY20 - up to 194 wells…
  38. FY 2019 Earnings Presentation – Beach Energy Limited – slide 38
    Key takeaways Beach is ahead of schedule and delivering on its promises Expanded value-accretive portfolio (90% of growth projects deliver IRRs 50%) Ready to accelerate growth Strong balance sheet position (172 million cash at 30 June…
  39. FY 2019 Earnings Presentation – Beach Energy Limited – slide 39
    F Y 1 9 F U L L Y E A R R E S U LT S P R E S E N TAT I O N Q&A
  40. FY 2019 Earnings Presentation – Beach Energy Limited – slide 40
    F Y 1 9 F U L L Y E A R R E S U LT S P R E S E N TAT I O N Appendices
  41. FY 2019 Earnings Presentation – Beach Energy Limited – slide 41
    Reconciliation of NPAT to Underlying NPAT1 millions FY18 FY19 Change Net profit after tax 199 577 379 +190% Acquisition costs and writeoff of debt establishment fees 51 - (51) Gain on asset disposals (20) (20) (0)…
  42. FY 2019 Earnings Presentation – Beach Energy Limited – slide 42
    Underlying EBITDAX, EBITDA, EBIT, NPBT and NPAT1 millions FY18 FY19 Change Underlying EBITDAX 766 1,375 609 80% Exploration expense 0 0 Underlying EBITDA 766 1,375 609 80% Depreciation and amortisation (315) (527) Underlying…
  43. FY 2019 Earnings Presentation – Beach Energy Limited – slide 43
    Summary of east coast gas contracts at 30 June 2019 Beach gas sales to progressively be re-priced at prevailing market pricing FY19 Market pricing Asset Volume (PJ) Counterparty Basis End date Repricing FY20 FY21 FY22 FY23 FY24 Cooper…
  44. FY 2019 Earnings Presentation – Beach Energy Limited – slide 44
    Beach Energy portfolio FY19 production Taranaki Basin Western Bass Flank Basin 29.4 MMboe Otway Cooper Basin Basin Perth Basin FY19 2P reserves Taranaki Basin Western Bass Flank Basin Otway 326 Basin MMboe Cooper…
  45. FY 2019 Earnings Presentation – Beach Energy Limited – slide 45
    Beach Energy Limited Level 8, 80 Flinders Street Adelaide SA 5000 Australia T: +61 8 8338 2833 F: +61 8 8338 2336 beachenergy.com.au Investor Relations Nik Burns, Investor Relations Manager Mark Hollis, Investor Relations Advisor T: +61…

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