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FY20 Half Year Results Presentation – Beach Energy Limited

Beach Energy Limited · Feb 11, 2020 · 38 slides

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Slides

  1. FY20 Half Year Results Presentation – Beach Energy Limited – slide 1
    11 FEBRUARY 2020 FY20 HALF YEAR RESULTS PRESENTATION
  2. FY20 Half Year Results Presentation – Beach Energy Limited – slide 2
    Growth program is on track in FY20 Growth program execution progressing well 105 wells drilled in H1 FY20 at 83% success rate Growth execution on track Western Flank operated oil production above 22,000 bopd Victorian Otway drilling…
  3. FY20 Half Year Results Presentation – Beach Energy Limited – slide 3
    Health, Safety and Environmental Performance Safety Performance Environmental Performance TRIFR 16 Crude Spill Volumes (kl) 15.6 12 51.9 7.9 99.9% 8 9.6 3.5 5.1 4 3.4 3.8 0.2 0.1 0.07 0.04 0 FY15 FY16 FY17 FY18 FY19 H1FY20…
  4. FY20 Half Year Results Presentation – Beach Energy Limited – slide 4
    Continued success in reducing operating costs Field operating costs/boe1 Operational Excellence /boe Generating value through safe, reliable and efficient operations. 10 9.9 9.4 o Kupe full plant statutory shutdown completed on time…
  5. FY20 Half Year Results Presentation – Beach Energy Limited – slide 5
    Beach portfolio not exposed to spot gas prices Historic and forecast east coast gas sales Recent gas market dynamics (% of volume) Low LNG spot prices impacting East Coast Gas Market spot prices 100% Beach has minimal spot gas price…
  6. FY20 Half Year Results Presentation – Beach Energy Limited – slide 6
    F Y 2 0 H A L F Y E A R R E S U LT S P R E S E N TAT I O N Financial Results
  7. FY20 Half Year Results Presentation – Beach Energy Limited – slide 7
    Financial highlights Strong financial performance maintained after partial sale of Victorian Otway interests in prior period First full half since completion of sale of 40% of Victorian Otway Basin interests in Sales revenue…
  8. FY20 Half Year Results Presentation – Beach Energy Limited – slide 8
    Financial highlights million (unless otherwise indicated) H1 FY19 H1 FY20 Change Underlying NPAT recognises Production (MMboe) 15.2 13.0 15% 4% increase in realised oil price, 6% increase in Pro Forma Production (MMboe) 13.2 13.0 2%…
  9. FY20 Half Year Results Presentation – Beach Energy Limited – slide 9
    Underlying NPAT Underlying Net Profit After Tax Comparison 274 million Underlying NPAT is 2% lower than H1 FY19 driven by factors including: millions Partial sale of Victorian Otway Basin interests in FY19 7 16 Lower gross profit2…
  10. FY20 Half Year Results Presentation – Beach Energy Limited – slide 10
    Financial strength maintained Strong operating cash flow supports investment program Movement in cash millions First half operating cash flow, excluding tax paid, of 589 million 35 26 o H1 FY20 cash tax of 238 million relates to…
  11. FY20 Half Year Results Presentation – Beach Energy Limited – slide 11
    Summary Strong financial performance maintained Strong balance sheet position provides flexibility to continue growth investment Balance sheet flexibility On track to end year in net cash position while also increasing FY20…
  12. FY20 Half Year Results Presentation – Beach Energy Limited – slide 12
    F Y 2 0 H A L F Y E A R R E S U LT S P R E S E N TAT I O N FY20 guidance and asset update
  13. FY20 Half Year Results Presentation – Beach Energy Limited – slide 13
    Updated FY20 guidance Prior FY20 Guidance Current FY20 Guidance Production 27 29 MMboe 27 28 MMboe Capital Expenditure1 750 850 million 875 950 million Underlying EBITDA 1.25 1.4 billion 1.275 1.35 billion DD&A3 17-18 / boe 17…
  14. FY20 Half Year Results Presentation – Beach Energy Limited – slide 14
    FY20 production guidance update Production momentum building into H2 FY20 FY20 production guidance narrowed to 27 28 MMboe Production growth drivers in H2 FY20 include: 27 28 Oil production growth on track versus initial guidance…
  15. FY20 Half Year Results Presentation – Beach Energy Limited – slide 15
    FY20 capital expenditure update Updated FY20 capital investment guidance 875 950 million 1. Western Flank infrastructure investment (30 million) By asset group and by type Follows successful drilling efforts in H1 FY20 7% 4% Higher…
  16. FY20 Half Year Results Presentation – Beach Energy Limited – slide 16
    Western Flank Oil Beach operated interests 75 - 100%; non-operated 40%, Senex operator H1 FY20 areas of activity Successful drilling campaign leads to 44% increase in oil output H1 FY20 production of 3.4 MMbbl, +44% vs H1 FY19 46…
  17. FY20 Half Year Results Presentation – Beach Energy Limited – slide 17
    Western Flank Oil Bauer appraisal drilling identifies further field extension Bauer top McKinlay reservoir map showing Appraisal strategy proving effective movement in field limit H1 FY20 Bauer appraisal drilling activity added new oil…
  18. FY20 Half Year Results Presentation – Beach Energy Limited – slide 18
    Western Flank Oil High levels of activity to continue H2 FY20 planned areas of activity H2 FY20 focus areas 1. Continued use of dedicated exploration and appraisal rig to: Further appraise Kalladeina / Congony fields Appraise…
  19. FY20 Half Year Results Presentation – Beach Energy Limited – slide 19
    Western Flank Gas ex PEL 106, ex PEL 107 and ex PEL 91, Beach 100% and operator Western Flank Gas areas of activity H1 FY20 progress H1 FY20 production of 1.1 MMboe, +8% vs H1 FY19 Gas drilling campaign was completed in early FY20…
  20. FY20 Half Year Results Presentation – Beach Energy Limited – slide 20
    Cooper Basin JV Beach various interests (20.76 - 52.2% range), Santos operator H1 FY20 Cooper Basin JV drilling activity H1 FY20 progress H1 FY20 production of 4.2 MMboe, stable on prior year Beach participated in 53 wells at 92%…
  21. FY20 Half Year Results Presentation – Beach Energy Limited – slide 21
    Perth Basin Waitsia (50% interest, Mitsui operated) Waitsia Stage 1 expansion and Waitsia stage 2 locations Waitsia stage 1 expansion underway and progressing towards Stage 2 FID Waitsia Stage 1 expansion FID reached in July 2019,…
  22. FY20 Half Year Results Presentation – Beach Energy Limited – slide 22
    Perth Basin substantial exploration and appraisal potential Beharra Springs (Beach 50% operated) Recent results supporting ramp up in activity Beach and MEPAU aligned interests 50:50 across Perth Basin Beharra Springs Deep-1 Kingia…
  23. FY20 Half Year Results Presentation – Beach Energy Limited – slide 23
    Victorian Otway Basin Beach 60% and operator H1 FY20 progress H1 FY20 production of 2.1 MMboe, -55% on prior year (impacted by sale of 40% interest, natural field decline, customer demand) 100% facility reliability achieved in the…
  24. FY20 Half Year Results Presentation – Beach Energy Limited – slide 24
    South Australian Otway Basin Beach interests 70 100% and operator H1 FY20 progress Dombey-1 gas discovery: o Flow testing completed. Gas analysis: CO2 < 0.1%, CGR 58 bbl/MMscf o Geological model to be updated with data from ongoing…
  25. FY20 Half Year Results Presentation – Beach Energy Limited – slide 25
    Bass Basin Beach 53.75% producing assets, 50.25% non-producing, Beach operated H1 FY20 progress H1 FY20 production of 0.6 MMboe, -36% on prior year due to lower customer demand and natural field decline Wireline work on Yolla wells…
  26. FY20 Half Year Results Presentation – Beach Energy Limited – slide 26
    New Zealand Kupe Gas Project Beach 50% and operator H1 FY20 progress H1 FY20 production of 1.3 MMboe, -16% on prior year Kupe compression FID reached in July 2019 (70 million gross budget); first gas on track for late FY21…
  27. FY20 Half Year Results Presentation – Beach Energy Limited – slide 27
    Frontier Exploration New Zealand Three high impact exploration targets; drilling underway at first Tawhaki Great South Basin (Beach 30% interest) Acquired a 30% interest in exploration permit PEP50119, offshore NZ OMV is operator…
  28. FY20 Half Year Results Presentation – Beach Energy Limited – slide 28
    Frontier Exploration Australia Ironbark prospect to be drilled in mid FY21 Ironbark Carnarvon Basin (Beach 21% interest) Preparations for drilling continuing with operator, BP Ironbark Ocean Apex rig contracted and long lead items…
  29. FY20 Half Year Results Presentation – Beach Energy Limited – slide 29
    Near term work program1 Calendar 2020 Calendar 2021 Jan Apr Jul Oct Jan Apr Cooper Basin 4 rigs operating Joint Venture 2 rigs operating Western Flank Haselgrove appraisal SA and Vic Onshore Otway Basin Black Watch-1…
  30. FY20 Half Year Results Presentation – Beach Energy Limited – slide 30
    Indicative FY20 drilling program Record drilling activity in the Western Flank, offshore Otway drilling to commence FY20 expected number of wells Highlights Record drilling activity in FY20 - up to 191 wells (FY19: 134) Gas Oil Total…
  31. FY20 Half Year Results Presentation – Beach Energy Limited – slide 31
    Key takeaways Beach is executing well and delivering on its promises Operations 98% facility reliability Kupe shutdown completed on time/budget and safely A successful H1 FY20 Development 105 wells drilled, including 14 horizontal…
  32. FY20 Half Year Results Presentation – Beach Energy Limited – slide 32
    F Y 2 0 H A L F Y E A R R E S U LT S P R E S E N TAT I O N Q&A
  33. FY20 Half Year Results Presentation – Beach Energy Limited – slide 33
    F Y 2 0 H A L F Y E A R R E S U LT S P R E S E N TAT I O N Appendices
  34. FY20 Half Year Results Presentation – Beach Energy Limited – slide 34
    Reconciliation of NPAT to Underlying NPAT1 millions H1 FY19 H1 FY20 Change Net profit after tax 283 279 (4) (2%) Acquisition costs and writeoff of debt establishment fees 8 - (8) Gain on asset sales - (9) (9) Unrealised…
  35. FY20 Half Year Results Presentation – Beach Energy Limited – slide 35
    Underlying EBITDAX, EBITDA, EBIT, NPBT and NPAT1 millions H1 FY19 H1 FY20 Change Underlying EBITDAX 724 622 (102) Exploration expense - - - Underlying EBITDA 724 622 (102) Depreciation and amortisation 284 224 60 Underlying…
  36. FY20 Half Year Results Presentation – Beach Energy Limited – slide 36
    AASB 16 Lease Impacts Adopted 1 July 2019 Dec-19 Financial Statement Disclosures Net Impact of AASB 16 Accounting change only Lease Assets 100m No net cash impact Balance Sheet Lease Liabilities 101m NPAT impact of 1m decrease…
  37. FY20 Half Year Results Presentation – Beach Energy Limited – slide 37
    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…
  38. FY20 Half Year Results Presentation – Beach Energy Limited – slide 38
    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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