Skip to main content New York Investor Day – Shell Midstream Partners Lp Investor Presentation | Shale Experts
Loading...
Pm

New York Investor Day – Shell Midstream Partners Lp

Shell Midstream Partners Lp · Aug 5, 2014 · 64 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. New York Investor Day – Shell Midstream Partners Lp – slide 1
    BALANCING GROWTH & RETURNS NEW YORK INVESTOR DAY 5 SEPTEMBER 2014 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 5 September, 2014 1
  2. New York Investor Day – Shell Midstream Partners Lp – slide 2
    BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 5 September, 2014 3
  3. New York Investor Day – Shell Midstream Partners Lp – slide 3
    AGENDA Ben van Beurden Chief Executive Officer Marvin Odum Upstream Americas Director John Abbott Downstream Director Simon Henry Chief Financial Officer Question & answer session Panel break-outs Downstream Upstream…
  4. New York Investor Day – Shell Midstream Partners Lp – slide 4
    EXECUTING A CONSISTENT, LONG-TERM STRATEGY Energy demand outlook Unrelenting focus on HSSE million boe per day 400 Technology, integration and scale 300 Disciplined capital investment by strategic theme Growth in cash flow…
  5. New York Investor Day – Shell Midstream Partners Lp – slide 5
    FOCUS ON SAFETY UPDATE Goal Zero on safety Spills - operational Volume in thousand tonnes million working hours Number of incidents 10 4 800 5 2 600 0 400 0 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 Q214 '04 '05 '06 '07 '08 '09 '10…
  6. New York Investor Day – Shell Midstream Partners Lp – slide 6
    2014 PRIORITIES Returns and cash flow Improve our financial Competitive returns for shareholders performance Enhance our Take hard choices on new options capital efficiency Increase asset sales Reduce pace of growth…
  7. New York Investor Day – Shell Midstream Partners Lp – slide 7
    IMPROVE FINANCIAL PERFORMANCE H1 2014 OUTCOME Earnings + ROACE Cash flow billion billion billion 30 15 50 25 40 20 20 10 30 15 20 10 10 5 10 5 0 0 0 0 2010 2011 2012 2013 Q214 2010 2011 2012 2013 Q214 4Q rolling 4Q rolling -10…
  8. New York Investor Day – Shell Midstream Partners Lp – slide 8
    DRIVING PERFORMANCE IN SHELL Performance units New shareholding requirements Drive bottom line focus Credible, competitive and affordable plans CEO 7 x base pay Drives decisions on spending + divestment Individual performance…
  9. New York Investor Day – Shell Midstream Partners Lp – slide 9
    INVESTMENT PRIORITIES + STRATEGIC INTENT Engines Free cash flow businesses Maintain competitiveness UPSTREAM DOWNSTREAM Asset integrity + selective growth Growth Priority Global leadership established High-grading our rich…
  10. New York Investor Day – Shell Midstream Partners Lp – slide 10
    IMPROVE FINANCIAL PERFORMANCE PORTFOLIO RESTRUCTURING North America resources plays Oil Products Gas supply for LNG Canada Downstream 10-12% ROACE + 10 billion p.a. LRS exploration: Permian + W.Canada CFFO potential Appalachia…
  11. New York Investor Day – Shell Midstream Partners Lp – slide 11
    ENHANCE CAPITAL EFFICIENCY Take hard choices on new options 2014+ Asset sales / license expiry More selectivity: FIDs 500 million Wheatstone LNG require CEO approval at FEED BC-10 dilution Maturing new projects: LNG, deep-water…
  12. New York Investor Day – Shell Midstream Partners Lp – slide 12
    DELIVER NEW PROJECTS UPSTREAM TRACK RECORD 2010-14 Consistent delivery of Growth from key start-ups new projects kboe per day billion 800 12 Last 12 months CFFO from Repsol LNG 2010+ start-ups 11 billion 600 9 400 6 Mars-B 200…
  13. New York Investor Day – Shell Midstream Partners Lp – slide 13
    CONVENTIONAL EXPLORATION PORTFOLIO + THEMES Conventional exploration spend 2014 Time to Prospect 4 billion development size (years) (million boe) 15+ 500 Arctic Frontier 10+ 250 Under explored basins Heartlands 3+…
  14. New York Investor Day – Shell Midstream Partners Lp – slide 14
    EXPLORATION SUCCESS ADDING RESOURCES IN HEARTLANDS Gulf of Mexico Malaysia cumulative resources added in million boe cumulative resources added in million boe 1200 400 Rydberg Vicksburg Kaikias 900 300 Stones Vito Appraisal West…
  15. New York Investor Day – Shell Midstream Partners Lp – slide 15
    SHELL IN NORTH AMERICA Western LNG Canada Canada gas Carmon Creek AOSP LRS Production Refining capacity Scotford Proposed Energy East Pipeline Puget Sound Sarnia Appalachia North America Gas to Rest of the world…
  16. New York Investor Day – Shell Midstream Partners Lp – slide 16
    MARVIN ODUM UPSTREAM AMERICAS DIRECTOR ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 5 September, 2014 17
  17. New York Investor Day – Shell Midstream Partners Lp – slide 17
    UPSTREAM AMERICAS Deep-water Heavy oil Resources plays Integrated Gas Arctic Industry leadership Mining and in-situ Portfolio repositioning Monetizing gas Long-term potential Mars B start-up Carmon Creek under On-going…
  18. New York Investor Day – Shell Midstream Partners Lp – slide 18
    UPSTREAM AMERICAS PORTFOLIO Resources Resources plays Western Canada Deep-water 10.9 billion boe dry gas + LRS Heavy oil AOSP + in-situ Gas monetization options LNG Integration potential Canada Major undeveloped resources…
  19. New York Investor Day – Shell Midstream Partners Lp – slide 19
    IMPROVE FINANCIAL PERFORMANCE: UPSTREAM AMERICAS - FINANCIAL DRIVERS Earnings 2013 H1 2014 H1 Balance sheet Q214 billion billion 1.5 Long term growth 0.1 1.3 60 0.1 0.5 - 0.3 0.2 1.0 0.2 - 0.1 40 0.5 0.5 20 3.2 billion GAS…
  20. New York Investor Day – Shell Midstream Partners Lp – slide 20
    NORTH AMERICA RESOURCES PLAYS RESTRUCTURING SHELL PORTFOLIO Portfolio 10 billion boe resources + potential Dry gas: Maintain/Grow: Western Canada gas Canada LNG supply + integration plays Appalachia Appalachia appraisal Western…
  21. New York Investor Day – Shell Midstream Partners Lp – slide 21
    NORTH AMERICA RESOURCES PLAYS PROGRESS ON COSTS Drilling time reduction Staff reduction Unit operating expense % improvement /mcfe Pinedale 120% Groundbirch -40% -10% Appalachia 100% 3 Eagle Ford 80% Permian Kaybob 2 60%…
  22. New York Investor Day – Shell Midstream Partners Lp – slide 22
    NORTH AMERICA RESOURCES PLAYS APPRAISING NEW POTENTIAL Appalachia Utica Permian Western Canada Loving Co Fox Creek Winkler Co Kaybob area Ward Co Tioga Pecos Tioga County Pembina area 0 25km 18km 18km 54km Rocky…
  23. New York Investor Day – Shell Midstream Partners Lp – slide 23
    NORTH AMERICA LNG PROGRESSING TO FID LNG Canada Elba LNG 2 x 6 mtpa first phase Two phased liquefaction project with up to 2.5 25-year export license for 24 mtpa in place mtpa capacity Joint venture agreement signed Joint venture…
  24. New York Investor Day – Shell Midstream Partners Lp – slide 24
    DEEP-WATER GULF OF MEXICO PROJECT FLOW Appomattox 150 kboe/d potential 600 million boe resources Kaikias Shell 80% (operator) Oil discovery; further appraisal required Ram Powell Vito Shell 100% (operator) 100 kboe/d potential…
  25. New York Investor Day – Shell Midstream Partners Lp – slide 25
    DEEP-WATER GULF OF MEXICO DRIVING PROFITABLE GROWTH Production Cardamom Cumulative resources added thousand boe/d start-up million boe Perdido Mars B 300 start-up start-up 1200 Rydberg 900 Stones Vicksburg Kaikias 200 West Boreas…
  26. New York Investor Day – Shell Midstream Partners Lp – slide 26
    DEEP-WATER GULF OF MEXICO MARS B DEVELOPMENT Olympus in Kiewit shipyard Ingleside, Texas Summer 2013 Olympus on-site February 2014 Olympus platform competitors FID September 2010 FID 2010 First Oil February 2014 Mars B…
  27. New York Investor Day – Shell Midstream Partners Lp – slide 27
    DEEP-WATER BRAZIL PROJECT DELIVERY AND NEW POTENTIAL BC-10 Bijupira Salema Libra Update picture Phase 2 water injection complete Redevelopment complete First well spudded in August 2014 Injection above target plan First oil…
  28. New York Investor Day – Shell Midstream Partners Lp – slide 28
    UPSTREAM AMERICAS Deep-water Heavy oil Resources plays Integrated Gas Arctic Industry leadership Mining and in-situ Portfolio repositioning Monetizing gas Long-term potential Mars B start-up Carmon Creek under On-going…
  29. New York Investor Day – Shell Midstream Partners Lp – slide 29
    JOHN ABBOTT DOWNSTREAM DIRECTOR ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 5 September, 2014 30
  30. New York Investor Day – Shell Midstream Partners Lp – slide 30
    DOWNSTREAM STRATEGY Developing and sustaining competitive advantage through Advantaged Improving our Differentiated Leveraging the feedstock + footprint Products + Brand supply Customer Offer Priority to improve our financial…
  31. New York Investor Day – Shell Midstream Partners Lp – slide 31
    DOWNSTREAM OPERATIONAL EXCELLENCE CONTINUOUS IMPROVEMENT Focus on HSSE continues Injuries TRCF/million working hours million working hours 2 400 1 200 0 0 2010 2011 2012 2013 2014 Q2 4Q rolling Working hours TRCF Pernis…
  32. New York Investor Day – Shell Midstream Partners Lp – slide 32
    DOWNSTREAM COMPETITIVE LANDSCAPE Downstream ROACE Cash flow performance billion billion billion 15% 15 6 10% 10 4 5% 2 5 0% 0 0 2010 2011 2012 2013 2014 2014 Q1 Q2 -5 -2 Shell Downstream Peer group range 2010 2011 2012 2013…
  33. New York Investor Day – Shell Midstream Partners Lp – slide 33
    UPGRADING OUR PORTFOLIO Portfolio change Downstream asset sales billion Announced divestments 2014 ytd: 180,000 b/d refining Selective Growth: Chemicals 4 300,000 b/d marketing China LNG for transport Premium fuels + lubes…
  34. New York Investor Day – Shell Midstream Partners Lp – slide 34
    IMPROVE FINANCIAL PERFORMANCE: NORTH AMERICA DOWNSTREAM Share of Shell portfolio 1.2 million b/d refinery capacity Global refining capacity Global branded retail stations 3.2 million boed total 43,000 stations total 15,400 retail…
  35. New York Investor Day – Shell Midstream Partners Lp – slide 35
    MLP PROPOSAL SHELL MIDSTREAM ASSETS Colonial system SEC S-1 filing 18th June, 2014 Targeting 750 million initial fund raising Drop-down potential Initial MLP drop-down %: Zydeco (Ho-Ho) 43% Mars 28.6% Bengal 49% Colonial…
  36. New York Investor Day – Shell Midstream Partners Lp – slide 36
    ACCESSING ADVANTAGED FEEDSTOCK NORTH AMERICA LIGHT TIGHT OIL + CANADIAN HEAVY North America - Advantaged crude processing Scotford, Edmonton Canada Crude runs kbbl/day % of equity capacity High margin refinery 600 50% 500 40% Processes…
  37. New York Investor Day – Shell Midstream Partners Lp – slide 37
    MOTIVA JOINT VENTURE Supply and distribution Port Arthur refinery ADVANTAGED CRUDE LOGISTICS CANADIAN HEAVY + BAKKEN SHALE EXPORTS 50-50 JV Shell-Saudi Aramco Largest refinery in US Manufacturing: 1.1 million b/d refining…
  38. New York Investor Day – Shell Midstream Partners Lp – slide 38
    MOTIVA JV IMPROVEMENT PLAN Aligned with partner Saudi Aramco on improvement plan, covering: Refocused delivery strategy Reliability, crude advantage, unit yields, E2E optimization Management structure + leadership team changes…
  39. New York Investor Day – Shell Midstream Partners Lp – slide 39
    NORTH AMERICA FUELS MARKETING + LUBRICANTS North American sales leader in fuels & lubricants Synthetic Lubricants volume growth North America Indexed Premium volume mix (2011 = 100) Strategy focused on premium brands & services, 160…
  40. New York Investor Day – Shell Midstream Partners Lp – slide 40
    DOWNSTREAM STRATEGY Developing and sustaining competitive advantage through Advantaged Improving our Differentiated Leveraging the feedstock + footprint Products + Brand supply Customer Offer Priority to improve our financial…
  41. New York Investor Day – Shell Midstream Partners Lp – slide 41
    SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 5 September, 2014 42
  42. New York Investor Day – Shell Midstream Partners Lp – slide 42
    FINANCIAL FRAMEWORK AND PRIORITIES CASH PERFORMANCE Priorities for cash billion 1. Debt service 50 40 30 2. Dividends: growth policy 20 10 0 3. Capital investment: disciplined 2010 2011 2012 2013 Q214 4Q rolling through cycle…
  43. New York Investor Day – Shell Midstream Partners Lp – slide 43
    CASH FLOW AND PAY-OUT Cash generation Dividend track record billion billion billion Q214 Last 3 years 60 4Q rolling 150 10 DOWN STREAM 40 DOWN 100 STREAM 5 UP 20 UP 50 STREAM STREAM 0 0 0 2006 2007 2008 2009 2010 2011 2012…
  44. New York Investor Day – Shell Midstream Partners Lp – slide 44
    INVESTMENT PRIORITIES Organic capital investment 2014 billion 40 40 Longer term Exploration 25% 30 30 + pre-FID Preparing new options Key growth 30% 20 20 projects Driving new Upstream growth Growth priorities Smaller growth 10…
  45. New York Investor Day – Shell Midstream Partners Lp – slide 45
    FINANCIAL FRAMEWORK KEY DRIVERS Organic free cash flow drives dividend A+D supports portfolio growth billion (cash basis) billion 20 20 10 10 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 2005 2006 2007 2008 2009 2010…
  46. New York Investor Day – Shell Midstream Partners Lp – slide 46
    FINANCIAL FRAMEWORK TRACK RECORD Balancing financial framework over time billion 30 15 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 2014 -15 Free cash flow Cumulative surplus (deficit) of free cash flow over dividend…
  47. New York Investor Day – Shell Midstream Partners Lp – slide 47
    BALANCING GROWTH + RETURNS CFFO in billion Strong + diverse portfolio Priority to restructure NA resources plays + Oil Products Bubble size represents Q214 capital employed 2015/16 potential* Downstream engine Integrated…
  48. New York Investor Day – Shell Midstream Partners Lp – slide 48
    COMPETITIVE PERFORMANCE: BALANCING GROWTH AND RETURNS 4Q ROLLING Cash flow from operations Free cash flow billion billion 60 40 30 40 20 20 10 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 -10 Shell Peer group ROACE…
  49. New York Investor Day – Shell Midstream Partners Lp – slide 49
    BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 5 September, 2014 50
  50. New York Investor Day – Shell Midstream Partners Lp – slide 50
    2014 PRIORITIES Returns and cash flow Improve our financial Competitive returns for shareholders performance Enhance our Take hard choices on new options capital efficiency Increase asset sales Reduce pace of growth…
  51. New York Investor Day – Shell Midstream Partners Lp – slide 51
    QUESTIONS & ANSWERS NEW YORK INVESTOR DAY Copyright of Royal Dutch Shell plc 5 September, 2014 52
  52. New York Investor Day – Shell Midstream Partners Lp – slide 52
    NORTH AMERICA LIQUIDS RICH SHALES EXPLORATION FOCUSSING ON WESTERN CANADA + PERMIAN BASIN Frontier exploration program since 2010 Acreage Exit from non-material acreage following early well Groundbirch results (1 billion 2013-14)…
  53. New York Investor Day – Shell Midstream Partners Lp – slide 53
    NORTH AMERICA ONSHORE DRY GAS FOCUSSING ON WESTERN CANADA + APPALACHIA Addressing underperforming assets Acreage Announced divestments Partial divestment Acquisition cost overhang LNG Gas Canada Groundbirch Scale & cost reduction…
  54. New York Investor Day – Shell Midstream Partners Lp – slide 54
    APPALACHIA UTICA LARGE DRY GAS OPPORTUNITY Production update: Gee peak rate: 11 mmscf/d Discovery well in the Utica play in N.E. Pennsylvania 3,100 lateral with 13 frac stages Neal peak rate: 26 mmscf/d Follow up to Gee well…
  55. New York Investor Day – Shell Midstream Partners Lp – slide 55
    PERMIAN LIQUIDS GROWTH BASIN Low cost, early Wolfcamp entry Production growth and profitability Thousand boe per day Gas Condensate Volatile Oil 40 NEW MEXICO Loving Co TEXAS Avalon appraisal and 30 development 20 Winkler Co…
  56. New York Investor Day – Shell Midstream Partners Lp – slide 56
    WESTERN CANADA KAYBOB + PEMBINA INDUSTRY LEADING POSITION IN DUVERNAY PLAY Duvernay play thermal maturity map Drilling focus in sweet spots Cumulative of exploration wells 1000 boe/d potential 20 10 0 Q113 Q213 Q313 Q413…
  57. New York Investor Day – Shell Midstream Partners Lp – slide 57
    ARGENTINA VACA MUERTA LIQUIDS RICH POTENTIAL Vaca Muerta thermal maturity map Comparative shale thickness section La Escalonada Non-operated Shell operated Vaca Muerta Aguila Mora guila Mora Vaca Rincon de la Ceniza Muerta…
  58. New York Investor Day – Shell Midstream Partners Lp – slide 58
    DEEP-WATER GULF OF MEXICO APPOMATTOX HUB Norphlet play Development concept Appomattox Vicksburg 80% Shell 75% Shell 20% Nexen 25% Nexen Planned Gettysburg Appomattox 80% Shell Host 20% Nexen Shell Leasehold Discovery…
  59. New York Investor Day – Shell Midstream Partners Lp – slide 59
    LNG PRICING CONSIDERATIONS LNG price dynamics US exports Regional gas prices /mmbtu /mmbtu 25 25 Tokyo Bay UK 20 20 15 15 10 10 5 5 0 0 Cost structure Japan landed Cost structure UK NBP 2005 2006 2007 2008 2009 2010…
  60. New York Investor Day – Shell Midstream Partners Lp – slide 60
    LNG SUPPLY AND DEMAND DYNAMICS LNG demand LNG supply* N.A. LNG export development million tonnes per annum million boe/d million tonnes per annum million boe/d million tonnes per annum bcf per day 500 500 300 40 400 10 400 10 250…
  61. New York Investor Day – Shell Midstream Partners Lp – slide 61
    SHELL ARCTIC & NEAR ARCTIC SAKHALIN CHUKCHI UNITED STATES Alaska, Chukchi Russia, Sakhalin NIGLINTGAK BEAUFORT CANADA NORTH POLE RUSSIA SALYM BAFFIN BAY KANUMAS Greenland, Baffin Bay GREENLAND KAZAKHSTAN Russia,…
  62. New York Investor Day – Shell Midstream Partners Lp – slide 62
    DOWNSTREAM PORTFOLIO SEGMENTATION + PERFORMANCE Downstream businesses 2013 CFFO ( billion) 4.0 Integrated -20% refining Chemicals 40% + marketing 2.0 value chain Fuels marketing Lubricants -5% 10% Merchant refining…
  63. New York Investor Day – Shell Midstream Partners Lp – slide 63
    IMPROVING PERFORMANCE OF KEY ASSETS Bukom performance turnaround Scotford building on sustained performance Refinery unplanned downtime in % 8 6 4 2 0 2009 2010 2011 2012 2013 2014 H1 Unplanned downtime Over-supplied…
  64. New York Investor Day – Shell Midstream Partners Lp – slide 64
    BALANCING GROWTH & RETURNS NEW YORK INVESTOR DAY 5 SEPTEMBER 2014 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 5 September, 2014 65

From the store

Browse maps, data & reports in the Shale Experts store