Growing shareholder Capital markets value update A reset bp February 2025 2025 capital markets update 1
Craig Marshall SVP investor relations 2025 capital markets update 2 Good afternoon and good morning everyone. I am delighted to welcome our guests in the room, and those on the webcast. Further to our announcement earlier…
Growing shareholder value Cautionary statement In order to utilize the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 (the PSLRA) and the general doctrine of cautionary statements, bp…
Growing shareholder value Agenda 13:00 Strategy update Group strategy Financial frame and targets Murray Auchincloss Kate Thomson Chief executive officer Chief financial officer 13:40 Break 15mins 13:55 Business deep…
Introduction Thanks Craig. And thank you everyone for joining us online and here in the room its great to be here on an exciting day for bp. 6
Growing shareholder value Growing shareholder value Resetting Reallocating Driving strategy capital performance Compelling FCF* growth Strong returns growth Resilient Stronger Lower distributions balance sheet…
Growing shareholder value Learnings informing our strategy Capital Preserve core Safety allocation strengths Importance of Focus on Invest in our core process safety fewer and higher business as we remains core returning…
From this, and my 25 years with bp, I carry forward three core learnings: First - make sure you are very strong on process safety this is crucial to securing a successful future for bp. We have demonstrated strong progress is…
Growing shareholder value A distinctive and advantaged integrated energy company Top tier oil and gas operator Leading positions in GoA, Middle East, Expertise in finding, developing A leading unconventional operator 1 US biogas…
Growing shareholder value Growing energy demand conviction in our key markets Global energy consumption 600 5tn 500 400 Exajoules (EJ) 300 200 100 0 1 1970 1990 2010 2023 1 2035 Oil & gas2 Electricity…
Electricity demand increases by around one third to 2035. Wind and solar both continue to grow quickly, and markets for carbon capture and low carbon hydrogen are beginning to develop. Its clear that bp operates in a growing and…
Growing shareholder value Materially reshaping our portfolio Laying a strong foundation in 2024... ...with more to come Gelsenkirchen refinery1 Offshore wind JERA Nex bp Retail markets (NL, TR) 20bn divestments Trans…
optimise the platform in a capital light way. Proceeds from both of these potential transactions are included in the 20 billion divestment programme. And the proceeds from these transactions will be dedicated to strengthening our balance…
Growing shareholder value Our strategy 12
Growing shareholder value A reset bp Resetting strategy Growing Focusing upstream* downstream Disciplined investment in transition 2025 capital markets update 13 Today, we are fundamentally resetting our strategy,…
We will invest with discipline to deliver the returns our shareholders expect, through: selective investment in biogas, biofuels and EV charging where we see strong demand growth, adopting innovative capital-light partnerships in…
Growing shareholder value Growing cash flow and returns Adjusted free cash flow* Return on average capital employed* 20% CAGR1 16% 2024 2027 14% 10.3bn 12% 8bn 2024 at 81 2024 at 70 2 2027 at 74.42 2024 at 81 2024…
Growing shareholder value Reallocating capex Reducing capex* by and reallocating to the highest return opportunities 1 3bn p.a. to 20271 10bn Growing production Increasing More major projects* 8.5bn investment with higher…
Growing shareholder value Growing upstream Maintaining safe and Increasing investment Strengthening efficient operations in oil & gas the portfolio 96% plant reliability*1 10bn average capex* Discovered resource access p.a.…
Growing shareholder value Focusing downstream Reshaping our portfolio Improving performance Announced strategic review of Castrol Lower realised refining breakeven by 3/bbl: 96% refining availability*, structural cost…
realising value and growth from our prior acquisitions, TravelCenters of America (or TA) and bp bioenergy The growth opportunity is significant, and we are confident in delivering. 17
Growing shareholder value Disciplined investment in transition Focused on biogas, biofuels and EV charging Capital-light in low carbon energy Biogas Biofuels EV charging Renewables H2/CCS High-grading Integrating Focusing on Two…
Growing shareholder value Focusing on 5 sustainability aims Net zero* by 2050 or sooner Net zero Net zero People Biodiversity Water operations* sales* Scope 1 and 2 emissions1 MtCO2e Carbon intensity gCO2e/MJ 60 6%2 80…
Growing shareholder value Summary Resetting Reallocating Driving strategy capital performance Growing shareholder value 2025 capital markets update 20 In summary, we are fundamentally resetting our strategy, we are…
Kate Thomson Chief financial officer 2025 capital markets update 21 No script 21
Growing shareholder value Reallocating capital and driving performance Reducing and Reducing Stronger Growing Resilient reallocating cost balance cash flow distributions capex* sheet and returns Simplifying targets 2025…
Growing shareholder value Reducing and reallocating capex Reducing capex* Reallocating capex1 Group cash capex, including inorganic* bn 0% 20% 40% 60% 80% 100% 2026 2027 14 18bn 15bn 13 15bn guidance 10.5bn2…
CCS projects already through FID. As Murray mentioned, in total our transition capex will be in the range of 1.5 to 2 billion per year over 2026 to 2027, with 2025 being higher due to the deferred consideration for the bp bioenergy…
Growing shareholder value Disciplined investments driving higher returns Investments Expected returns1 Capex allocation2 Group ROACE* % Upstream* 16% ROACE in 20274 (includes biogas) 15% 75% 15% 2024 actual Downstream…
Growing shareholder value Cost reduction momentum 4 5bn structural cost reductions* by end 20271 22.6bn Reducing contractors, 2,600 already left bp Cross industry sharing Scaling up BTC across (logistics) all major…
opportunities of over 170 million already identified. Secondly, were simplifying our organisational structure by reducing interfaces and duplication, and scaling up our business and technology centres enabling activity to be transferred…
Growing shareholder value Upstream growing cash flow with improved margins Upstream operating cash flow* + 2bn Biogas Oil & gas Higher margin major Increased production project* start-ups from modular plants brought…
Growing shareholder value Downstream improved performance driving cash flow growth Downstream operating cash flow* Customers (50%) + 3.5 4.0bn Products (50%) TAR and other Refining improvement 1/3 Prior inorganics* 2/3…
Growing shareholder value Resilient and stronger balance sheet Net debt* 12bn hybrids issued June 2020 Target to reduce to 14 18bn by bn1 end 2027, including potential Net debt* proceeds from any transactions related to Castrol…
Turning to leases in broad terms, we have continued to use leases in a consistent way, both before and after the 2019 accounting change. These leases are primarily on operating assets, such as our vessels used by trading and drilling rigs…
Growing shareholder value Capital allocation our financial frame Balance sheet Shareholder distributions Capital expenditure* 14 18bn Resilient dividend Share buybacks Disciplined investment Net debt* target by allocation end…
Growing shareholder value Our primary targets Adjusted 20% 1 2 free cash Net debt* 14 18bn flow* CAGR from 2024 2027 target by end 2027 growth Structural 4 5bn 16% 1 Group cost ROACE* reduction* by end 2027 in…
Summary No script 32
Murray Auchincloss Chief executive officer 2025 capital markets update 33 No script 33
Growing shareholder value A fundamental reset whats changed Upstream* Capex* Adjusted FCF* Growing production Reduced and reallocated to Compelling growth and reserves higher returning businesses Downstream Costs Net debt*…
Growing shareholder value Growing shareholder value Resetting strategy Reallocating capital Driving performance Growing upstream* Reallocating and reducing capex * Improving downstream Disciplined transition investment…
Growing shareholder value Adjusted free cash flow reconciliation bn 2024 Adjusted free cash flow Non-IFRS measure. It is defined Net cash provided by operating activities 27.3 as adjusted operating cash flow* less capital…
Glossary
Growing shareholder value Glossary abbreviations Barrel (bbl) 159 litres, 42 US gallons. LSbp Lightsource bp. BTC Business technology centres. mmbtu Million British thermal units. C&P Customers & products. mmboed Million barrels of…
Growing shareholder value Glossary Adjusted free Adjusted free cash flow is a non-IFRS measure. It is defined as adjusted Adjusted Non-IFRS measure. It is defined as net cash provided by (used in) operating cash flow operating cash…
Growing shareholder value Glossary Fair value Non-IFRS adjustments to our IFRS profit (loss). They reflect the difference Inventory holding Inventory holding gains and losses are non-IFRS adjustments to our IFRS accounting between…
Growing shareholder value Glossary Joint venture (JV) A joint arrangement whereby the parties that have joint control of the Net zero sales bps aim to reach net zero for the carbon intensity of sold energy products*. arrangement…
Growing shareholder value Glossary Reserves The extent to which the years production has been replaced by proved Structural cost Non-IFRS measure. Calculated as decreases in underlying operating replacement ratio reserves added to…
Growing shareholder value Glossary Upstream Non-IFRS measure and a subset of businesses' estimated share of adjusted Working capital Movements in inventories and other current and non-current assets and operating cash operating cash…
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