17 AUGUST 2020 FY20 FULL YEAR RESULTS AND OUTLOOK PRESENTATION
Our purpose Sustainably deliver energy for communities 3
COVID-19 impact FY20 was a tale of two halves At FY20 half year results COVID-19 impact on COVID-19 risks mitigated via HSER Balance sheet strength at 30 June 2020 On track to deliver growth program prior to Rapid response to…
Beach Response to COVID-19 The Journey Office Staff Emergency Crisis Management Business Continuity COVID-19 Site Partial Return to Transitioned to Response Exercises Team Team Specific Procedures Office Work from Home and…
Summary A high margin and high growth business Solid FY20 result in Entering FY21 with a strong Actively controlled investment challenging conditions foundation program Responded quickly to COVID-19 threat Balance sheet in net cash…
Looking back over FY19/20 Track record of delivery on journey to date Total Total Met ( ) or FY19 + FY20 guidance1 FY19 + 20 results Exceeded ( ) Production (MMboe) 5357 56.1 Capex ( million) 1,2101,390 1,310 Free Cash Flow (…
Reserves and contingent resources Organic 2P reserves replacement above 200% for three straight years Summary of reserves at 30 June 2020 Highlights (developed plus undeveloped, net to Beach) 2P reserves increased by 8% from 326 MMboe…
Sustainability Beach releases new emissions targets Beach remains committed to a lower carbon future Emissions benchmarking undertaken at all sites Board approved emissions reduction target of 25% CO2e by FY25 relative to FY18…
F Y 2 0 F U L L Y E A R R E S U LT S A N D O U T L O O K P R E S E N TAT I O N Financial Results
FY20 financial summary A net cash, high margin, high returning business FY20 results Balance sheet and asset quality FY20 underlying NPAT 461 million 50 million net cash Underlying EBITDA margin 67% 500 million liquidity ROCE 19%…
Financial highlights million (unless otherwise indicated) FY19 FY20 Change Underlying EBITDA ( 19%) FY19 Otway sale impacted production and sales volumes, Production (MMboe) 29.4 26.7 9% with production 2% higher on pro forma basis…
Financial strength maintained Strong operating cash flow supports record investment program FY20 operating cash flow, excluding tax paid, Movement in cash of 1,139 million 1,600 millions FY20 cash tax of 265 million 1,400 60 24…
Movement in Underlying NPAT millions 1,000 461 million Underlying NPAT is 18% lower 900 than FY19 driven by factors including: 22 31 800 33 11 24% reduction in realised USD liquids prices 34 Other2 Cash Net 34 64 production…
Balance sheet and capital management Rock solid balance sheet and gas revenues support growth Balance sheet strength Capital management framework 50 million net cash, 500 million liquidity at 30 June 2020 Beachs capital management…
F Y 2 0 F U L L Y E A R R E S U LT S A N D O U T L O O K P R E S E N TAT I O N Our markets
Beach Energy portfolio diversity Six production hubs supplying 3 distinct gas markets West Coast 2% gas 33% Liquids Oil FY20 45% production Gas 26.7 MMboe 55% 46% East Coast 6% gas Condensate 6% 7% LPG NZ gas…
East coast gas market Market dynamics support Beachs investment strategy Conventional supply Eastern Australia gas demand vs supply (PJ)1 2,000 CSG supply 1,500 LNG exports from 1,000 QCLNG, APLNG and GLNG 500 0…
Beach portfolio not exposed to east coast spot gas prices Forecast FY21/22 East Coast Gas Sales Recent gas market dynamics Spot Market Low LNG spot prices have resulted in increased diversion of LNG gas supplies Pricing into the…
F Y 2 0 F U L L Y E A R R E S U LT S A N D O U T L O O K P R E S E N TAT I O N Asset update
Perth Basin Final Investment Decision planned for Waitsia Stage 2 in December quarter FY20 outcomes Strategic considerations Aligned Perth Basin interests with Mitsui (MEPAU) Large, high quality, low cost gas resource close to…
Waitsia Stage 2 expansion via North West Shelf (NWS) Two years of progress and ready to reach Final Investment Decision Non-binding gas processing term sheet signed with NWS Fully termed agreements being worked through North West…
Victorian Otway Basin Offshore drilling campaign to commence in FY21 FY20 progress and current status Strategic considerations Executed new rig contract at competitive day rate Key gas infrastructure supplying domestic with Diamond…
Victorian Otway Basin Mitigating COVID-19 related supply chain and execution risks Examples of COVID-19 supply chain interruptions and mitigation actions Supply chain location for Offshore Victorian Otway Basin Item Location COVID-19…
Western Flank Oil 159% 2P reserves replacement Wells generating IRRs 100% FY20 progress Strategic considerations High returning asset with significant exploration, Outstanding drilling results in FY20 appraisal and development…
Western Flank Oil Estimated Ultimate Recovery has more than doubled over past 4 years, production has doubled over past 2 years Western Flank net 2P Estimated Ultimate Recovery and Operated Western Flank gross average oil cumulative…
Cooper Basin JV Focus on participating in high quality drilling campaign in FY21 FY20 outcomes Strategic considerations CBJV covers more than 16,000 km2 FY20 production of 8.7 MMboe was 6% higher Despite asset maturity, upside…
F Y 2 0 F U L L Y E A R R E S U LT S A N D O U T L O O K P R E S E N TAT I O N Updated 5 year outlook
5 year investment expenditure outlook Prudent deferral of FY21 investment to manage external challenges More than 30% of planned FY21 expenditure deferred 5 Year Capital Expenditure Outlook1 ( million) 1,200 FY21 was on track to…
5 year production outlook Production on track to deliver 37-43 MMboe in FY25 5 Year production outlook1 Investment deferral shifts production growth outlook (MMboe) 45 Production growth impacted by FY21 investment expenditure…
Low risk delivery of 37 MMboe by FY25, with upside Growth portfolio has optionality To deliver Key assumptions Requirements Stable gas production from Cooper Basin JV 50 development wells/year in CBJV 33% exploration/appraisal…
5 year free cash flow outlook Revised investment profile, commodity price outlook set to deliver 2.1 billion in FCF 5 Year free cash flow outlook1 ( billion) FCF outlook updated for revised timing, price assumptions 3.0 2.7 2.7 2.1…
F Y 2 0 F U L L Y E A R R E S U LT S A N D O U T L O O K P R E S E N TAT I O N FY21 guidance
FY21 guidance FY20 actual FY21 guidance Notes Production 26.7 MMboe 26.0 - 28.5 MMboe Underlying EBITDA guidance excludes any potential impact from Ironbark and Wherry costs (subject to drilling results) Capital expenditure1 863…
FY21 production guidance COVID-19 risks have increased potential range of uncertainty FY21 production guidance split vs FY20 actual 30 Oil production 26.7 26.0 28.5 Forecast increase by maintaining Western Flank output above 20,000…
FY21 capital expenditure guidance splits Investment focus remains on Cooper Basin and Victoria 16% 17% FY21 investment relative to FY20 Exploration/Appraisal Capital expenditure Development expenditure by type Stay in Business…
Field operating costs Targeting a 3-7% reduction in FY21 field operating cost/boe vs FY20 levels Average field operating costs/boe historic and outlook (A/boe) Opportunities for further reduction 10 in field operating costs 9.7…
F Y 2 0 F U L L Y E A R R E S U LT S A N D O U T L O O K P R E S E N TAT I O N Key takeaways
Summary A high margin and high growth business Solid FY20 result in Entering FY21 with a strong Beach growth plans slowed, challenging conditions foundation but unchanged Responded quickly to COVID-19 threat Balance sheet in net cash…
F Y 2 0 F U L L Y E A R R E S U LT S A N D O U T L O O K P R E S E N TAT I O N Q&A
F Y 2 0 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
Kupe Beach 50% interest and operator FY20 outcomes Strategic considerations FID of Kupe compression project Kupe supplies 15% of NZ gas market and produces 50% of NZ LPG supply Compression required to increase production Long…
Bass Basin and SA Otway Basin Evaluating further gas development opportunities Bass Basin proposed FY21 activities SA Otway Basin proposed FY21 activities Complete concept select studies for Trefoil development Progress planning and…
Western Flank Gas Liquids rich gas production with expansion potential FY20 outcomes Strategic considerations Debottleneck condensate handling at Middleton Increased supply for the East Coast gas market Three new term GSAs in…
Frontier exploration Two material exploration prospects to be drilled in the next 18 months Ironbark Carnarvon Basin (Beach 21% interest) Wherry Canterbury Basin (Beach 37.5% interest, operator) Large gas prospect within 50km of…
Beach Energy portfolio FY20 production Taranaki Bass Basin Western Basin Flank Otway Basin 26.7 MMboe Perth Basin Cooper Basin JV FY20 2P reserves Taranaki Bass Basin Western Basin Flank Otway 352 Basin MMboe…
Reconciliation of NPAT to Underlying NPAT1 millions FY19 FY20 Change Net Profit After Tax 577 501 (13%) Gain on reversal of provision for onerous commitment - (38) Gain on asset sales (20) (18) Impairment of assets - 2…
Underlying EBITDAX, EBITDA, EBIT, NPBT and NPAT1 millions FY19 FY20 Change Underlying EBITDAX 1,375 1,129 (18%) Exploration expense - (21) Underlying EBITDA 1,375 1,108 (19%) Depreciation and amortisation (527) (455)…
AASB 16 lease impacts Adopted 1 July 2019 FY20 Financial Statement disclosures Net impact of AASB 16 Accounting change only: Lease assets 59m o No net cash impact Balance Sheet Lease liabilities 62m o NPAT impact of 2m decrease o…
Near term work program1 Flexibility retained Calendar 2020 Calendar 2021 Jul Oct Jan Apr Jul Oct Cooper Basin Joint Venture Western Flank 1 rig operating 2 rigs operating Victorian Onshore Enterprise 1 (exploration) Otway…
Summary of East Coast gas contracts at 30 June 2020 Beach gas sales to progressively be re-priced at prevailing market pricing FY20 Effective Price Market pricing End Asset Volume (PJ) Counterparty Basis Review Date FY21 FY22 FY23…
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 Adam Stokes, Investor Relations Advisor T: +61…
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