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2011 Results and Strategy Presentation – Bp Energy Partners Lp

Bp Energy Partners Lp · Feb 7, 2012 · 70 slides

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Slides

  1. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 1
    BP 4Q11 Results and 2012 Strategy Script and slides BP 4Q11 & 2012 Strategy presentation Bob Dudley: Group Chief Executive SECRET 2011 Results and Strategy Presentation 2011 Results and 7 February 2012 Strategy…
  2. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 2
    BP 4Q11 Results and 2012 Strategy Script and slides Bob Dudley Group Chief Executive Playing to our strengths 3 Today we are going to return to the plans we laid out to you in October. Our 10-point plan to grow value.…
  3. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 3
    BP 4Q11 Results and 2012 Strategy Script and slides Moving BP forward Playing to our strengths Bob Dudley 4Q 2011 results Brian Gilvary Progress in the US Bob Dudley Upstream TNK-BP Alternative Energy Refining and Marketing…
  4. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 4
    BP 4Q11 Results and 2012 Strategy Script and slides 2011: A year of consolidation Safety Trust Value Growth Safety Safety and Operational Risk organisation in action Upstream re-organized to strengthen consistency and capability…
  5. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 5
    BP 4Q11 Results and 2012 Strategy Script and slides Key global energy trends to 2030 Continued strong growth in demand Energy contributions to global growth - Concentrated in non-OECD 2.5 Oil, gas and coal expected to deliver 80%…
  6. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 6
    BP 4Q11 Results and 2012 Strategy Script and slides Environment Brent oil /bbl(1) Natural gas /mmbtu(1) Refining Marker Margin /bbl(2) 160 28 30 Henry Hub 140 24 Japan/Korea marker 25 120 20 20 100 16 80 15 12 60 10 8…
  7. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 7
    BP 4Q11 Results and 2012 Strategy Script and slides Moving BP Forward 10 - point plan What you can expect What you can measure 1. Relentless focus on safety and managing 6. Active portfolio management to continue risk 7. New…
  8. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 8
    BP 4Q11 Results and 2012 Strategy Script and slides Playing to our strengths Leading explorer Distinctive upstream portfolio focussed in three growth engines - Deepwater - Gas value chains - Giant fields World class…
  9. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 9
    BP 4Q11 Results and 2012 Strategy Script and slides Growing value Building momentum 2012: Year of milestones 2013 / 2014: Financial momentum 12 exploration wells 15-25 exploration wells per annum Start-up of 6 upstream major…
  10. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 10
    BP 4Q11 Results and 2012 Strategy Script and slides Growing value 2013-14: financial momentum Around 50% growth in operating cash flow by 2014 at 100/bbl (1) Key enablers: - Restoration of high value production - Growth from new…
  11. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 11
    BP 4Q11 Results and 2012 Strategy Script and slides Safety performance record 700 Loss of Primary Containment Incidents 600 500 400 14% reduction in number of Losses of 300 Primary Containment Incidents from 2010 200 to 2011…
  12. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 12
    BP 4Q11 Results and 2012 Strategy Script and slides Safety and operational risk strategic priorities Leadership & culture Operating culture supports safe, compliant and reliable operations Organization, competence & contractors…
  13. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 13
    BP 4Q11 Results and 2012 Strategy Script and slides Technology Ensuring safe, reliable operations is our top priority Focused at the point of competition Leveraged investment through partnerships 16 major technology programmes…
  14. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 14
    BP 4Q11 Results and 2012 Strategy Script and slides People and organization New organizational structures Building technical and leadership capability - Over 3,000 new technical staff recruited Strengthened common BP values -…
  15. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 15
    BP 4Q11 Results and 2012 Strategy Script and slides Brian Gilvary: Chief Financial Officer Brian Gilvary Chief Financial Officer 16 Thank you Bob. Im delighted to join you today to present my first set of quarterly…
  16. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 16
    BP 4Q11 Results and 2012 Strategy Script and slides 4Q 2011 Summary Earnings figures are adjusted for the costs associated with the Gulf of Mexico oil spill, other non-operating items and fair value accounting effects bn 4Q10 3Q11…
  17. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 17
    BP 4Q11 Results and 2012 Strategy Script and slides Exploration & Production Underlying replacement cost Realizations (1) Volume profit before interest and tax(2) 120 20 1,600 10 1,400 100 7.8 16 8 7.4 7.2 1,200 6.7 6.9 80…
  18. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 18
    BP 4Q11 Results and 2012 Strategy Script and slides TNK-BP Average oil marker prices BP share of net income BP share of dividend 120 1.4 1.8 1.6 100 1.2 1.4 1.0 80 1.2 0.8 1.0 /bbl bn bn 60 0.6 0.8 40 0.6 0.4…
  19. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 19
    BP 4Q11 Results and 2012 Strategy Script and slides Refining & Marketing BP average Underlying replacement cost Refining Marker Margin Refining availability profit before interest and tax(1) 20 97 2.5 2.2 18 96 2.0 16 1.7 95…
  20. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 20
    BP 4Q11 Results and 2012 Strategy Script and slides Other items OB&C underlying RCPBIT(1) Effective tax rate (2) 4Q10 1Q11 2Q11 3Q11 4Q11 0.0 45 (0.1) 40 (0.2) 35 (0.3) (0.3) % bn (0.3) (0.4) 30 (0.4) (0.5)…
  21. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 21
    BP 4Q11 Results and 2012 Strategy Script and slides Gulf of Mexico oil spill costs and provisions (pre-tax(1)) bn FY10 FY11 Total Income statement Charge / (credit) for the period 40.9 (3.7) 37.2 Balance sheet(2) Brought forward…
  22. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 22
    BP 4Q11 Results and 2012 Strategy Script and slides Divestments US Wytch Farm Natural Gas Liquids Canada(3) Midstream Aluminium Egypt Western Western Desert Canada Gas Permian Assets LukArco Cumulative divestments…
  23. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 23
    BP 4Q11 Results and 2012 Strategy Script and slides Sources and uses of cash 2010 2011 35 35 30 30 Inorganic Disposals capex 25 25 Inorganic 20 capex 20 Disposals bn bn 15 15 Organic Organic Operating capex 10…
  24. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 24
    BP 4Q11 Results and 2012 Strategy Script and slides Net debt ratio 35 30 25 20 to 30% 20 % 15 10 to 20% 10 to 20% 10 5 0 2008 2009 2010 2011 2012 2013 Net debt ratio = net debt / (net debt + equity) Net debt…
  25. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 25
    BP 4Q11 Results and 2012 Strategy Script and slides 2012 Guidance bn 2011 2012 guidance Organic capital expenditure 19.1 22 DD&A(1) 11.1 1.0 higher Production excluding TNK-BP 2,460mboed flat, underlying(2) Other businesses…
  26. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 26
    BP 4Q11 Results and 2012 Strategy Script and slides Financial framework Increased investment to grow the firm Intention to grow distributions over time in line with improving circumstances of the firm Dividend: progressive…
  27. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 27
    BP 4Q11 Results and 2012 Strategy Script and slides Bob Dudley: Group Chief Executive Bob Dudley Group Chief Executive Progress in the US 28 Thanks Brian. Now lets look at the progress we have made since the oil spill…
  28. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 28
    BP 4Q11 Results and 2012 Strategy Script and slides Progress in the US Response completion: focus on restoration Shoreline clean up essentially complete Patrolling and maintenance continues Environmental restoration Natural…
  29. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 29
    BP 4Q11 Results and 2012 Strategy Script and slides Legal proceedings: Limitation and Liability Trial (MDL 2179) Civil liability trial will begin 27 February 2012 and is likely to last into 2013 (with breaks between the three…
  30. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 30
    BP 4Q11 Results and 2012 Strategy Script and slides Legal proceedings: MDL 2179 timeline(1) 2010 2011 2012 2013 2014+ MDL 2179 formed and master complaints Discovery and motions Start of Limitation and Liability trial phase 1…
  31. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 31
    BP 4Q11 Results and 2012 Strategy Script and slides Upstream 32 So let me now turn to the Upstream and our plans for restoring and growing value in this vital part of our business. 32
  32. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 32
    BP 4Q11 Results and 2012 Strategy Script and slides Upstream: focus on value Our new operating model Driving risk reduction and strengthening execution capability Active portfolio management Leading to a reshaping and rescaling…
  33. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 33
    BP 4Q11 Results and 2012 Strategy Script and slides New operating model now in place Relentless focus on safety and managing risk Organization in place and aligned with delivery Exploration: Access, Exploration and Appraisal…
  34. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 34
    BP 4Q11 Results and 2012 Strategy Script and slides Active portfolio management to continue Divestments (bn) Acquisitions (bn) New Access 30 US: Gulf of Mexico Angola: Kwanza and Benguela basins Australia: Ceduna basin Namibia:…
  35. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 35
    BP 4Q11 Results and 2012 Strategy Script and slides Potential for stronger growth, diverse resource mix and new market exposure Resources, bn boe (excluding TNK-BP) Prospect Non-proved Inventory Conventional Viscous / gas Heavy…
  36. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 36
    BP 4Q11 Results and 2012 Strategy Script and slides Upstream scale: focus on value not volume Large enough to take part in world scale Production, mmboed (excluding TNK-BP) projects 3.0 Greater leverage to exploration success…
  37. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 37
    BP 4Q11 Results and 2012 Strategy Script and slides Operating cash to grow faster than production Upstream operating cash (excluding TNK-BP) 2011 operating Growth driven by Divested 2014 operating cash at oil price of Angola,…
  38. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 38
    BP 4Q11 Results and 2012 Strategy Script and slides Major projects underpin operating cash growth Deepwater Gas Giant Fields Start- Gross Gross Gross Project WI%(2) Project WI% Capacity Project WI% up Capacity Capacity 2012…
  39. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 39
    BP 4Q11 Results and 2012 Strategy Script and slides Gulf of Mexico has returned to work Exploration and Appraisal Rigs on BP operated fields Moccasin discovery 2011 2012 2013 Kaskida appraisal Development Driller II Mad Dog…
  40. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 40
    BP 4Q11 Results and 2012 Strategy Script and slides Growing upstream value in 2012 Excluding TNK-BP Operating cash Expected to grow based on operating cash margin improvement Production Underlying production broadly flat(1)…
  41. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 41
    BP 4Q11 Results and 2012 Strategy Script and slides Longer term investments play to our strengths Exploration with a focus on Deepwater Material positions created / added to via new access deals Plans to double investment…
  42. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 42
    BP 4Q11 Results and 2012 Strategy Script and slides Robust pipeline for the longer term Exploration Pre-FID Post-FID Australia GoM(1): Kaskida, Thunder Angola: Block 18 West, Angola: Kizomba Angola: LNG, Block 31 Asia Horse Water…
  43. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 43
    BP 4Q11 Results and 2012 Strategy Script and slides Growing upstream investment Increasing investment in Upstream 2012-2014 investment, bn Exploration Doubling exploration investment Future Deepwater projects Investing near…
  44. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 44
    BP 4Q11 Results and 2012 Strategy Script and slides 20KTM the next challenge in deepwater Building 20KTM capability The next deepwater technical frontier: 15 thousand PSI BP is investing in technology to enable exploration,…
  45. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 45
    BP 4Q11 Results and 2012 Strategy Script and slides Upstream summary Operating model is reducing risk and strengthening execution capability Portfolio being focused potential for stronger growth with diversified resource mix and…
  46. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 46
    BP 4Q11 Results and 2012 Strategy Script and slides TNK-BP 47 And now let me give you a summary of TNK-BP, which continues with its consistent track record of delivery, despite the challenges. 47
  47. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 47
    BP 4Q11 Results and 2012 Strategy Script and slides TNK-BP Unique position in Russia, continued strong performance World class integrated oil and gas company Russias number two oil producer(1) 4.8bn boe of proved reserves(2), 23bn…
  48. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 48
    BP 4Q11 Results and 2012 Strategy Script and slides TNK-BP: potential for growth Drivers of growth Mature fields: application of technology Major projects: Yamal, Uvat and Verkhnechonskoye Refining: yield and quality…
  49. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 49
    BP 4Q11 Results and 2012 Strategy Script and slides Alternative Energy 50 And finally, a few comments about our Alternative Energy business before handing over to Iain to cover the downstream. 50
  50. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 50
    BP 4Q11 Results and 2012 Strategy Script and slides Alternative Energy: a focused renewable footprint Strategic intent Wind Biofuels 13 operating farms 1 pilot plant Position for growth of renewables 2 under construction 1…
  51. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 51
    BP 4Q11 Results and 2012 Strategy Script and slides Iain Conn: Chief Executive, Refining & Marketing Iain Conn Chief Executive Refining & Marketing Refining & Marketing 52 Thank you Bob and good afternoon. Its a…
  52. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 52
    BP 4Q11 Results and 2012 Strategy Script and slides World class downstream business The highest quality downstream business Hydrocarbon value chains delivering leading returns and cash flow growth Incorporating three…
  53. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 53
    BP 4Q11 Results and 2012 Strategy Script and slides World class downstream business Safe and reliable operations Becoming a leader in process safety Industry leading reliability and availability Excellent execution Compliance,…
  54. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 54
    BP 4Q11 Results and 2012 Strategy Script and slides Underlying performance improvement 10 2bn performance t c o s/bbl t p . 9 improvement(1) vs 2009 m e nprofit 8 in g r e p l a c e cost x u n d e r lyreplacement 7…
  55. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 55
    BP 4Q11 Results and 2012 Strategy Script and slides Competitive position Underlying ROACE % (post tax)(1) Underlying Net Income /bbl(3) 30 6 25 5 20 4 15 3 10 2 5 1 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011…
  56. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 56
    BP 4Q11 Results and 2012 Strategy Script and slides Portfolio performance Pre-tax underlying replacement Business Environment cost profit by business (Indexed 2004 = 100) Refining & Petchems margin environment 7 200 350 6…
  57. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 57
    BP 4Q11 Results and 2012 Strategy Script and slides Turning to Lubricants, underlying pre-tax RCP was 1.2 billion, down 11% year-on- year and in line with 2009 levels. Volumes were also down by 4%. Base oil prices rose by over 30% during…
  58. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 58
    BP 4Q11 Results and 2012 Strategy Script and slides Earnings and operating cash flow momentum Sources of earnings growth Operating cash flow growth (in a 2009 refining environment) Earnings - On track for +2bn performance…
  59. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 59
    BP 4Q11 Results and 2012 Strategy Script and slides Refining & Marketing summary World class downstream - Safety, excellent execution, portfolio quality, exposure to growth 2011 is a record year of Refining & Marketing earnings…
  60. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 60
    BP 4Q11 Results and 2012 Strategy Script and slides Bob Dudley: Group Chief Executive Bob Dudley Moving BP forward 60 Thanks Iain. So let me just conclude by summarising this first part of todays presentation. 61
  61. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 61
    BP 4Q11 Results and 2012 Strategy Script and slides Moving BP Forward (1) 15 major upstream projects w onstream 2012-2014 (2) flo sh g ca Whiting onstream 2H 2013 t in ra Payments to US Trust Fund end in 2012 o pe in…
  62. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 62
    BP 4Q11 Results and 2012 Strategy Script and slides Moving BP Forward 10 - point plan What you can expect What you can measure 1. Relentless focus on safety and managing 6. Active portfolio management to continue risk 7. New…
  63. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 63
    BP 4Q11 Results and 2012 Strategy Script and slides Moving BP Forward Year of consolidation now behind us Safety is our continuing priority 2012 a year of milestones: 2013/14 brings financial momentum - Around 50% improvement in…
  64. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 64
    BP 4Q11 Results and 2012 Strategy Script and slides For those here in person, I will now hand over to our Head of Investor Relations, Jess Mitchell, to explain the arrangements for the break-outs. Thank you. [Webcast ends] 65
  65. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 65
    BP 4Q11 Results and 2012 Strategy Script and slides Break-out sessions Upstream 1st Floor Longer term investments play to our strengths Mike Daly: Executive Vice President, Exploration Andy Hopwood: Executive Vice President,…
  66. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 66
    BP 4Q11 Results and 2012 Strategy Script and slides SECRET 2011 Results and Strategy Presentation 2011 Results and 7 February 2012 Strategy Presentation 7 February 2012 65 [Picture for when attendees reconvene for…
  67. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 67
    BP 4Q11 Results and 2012 Strategy Script and slides Q&A Iain Conn Bob Dudley Chief Executive, Group Chief Executive Refining & Marketing Andy Hopwood Brian Gilvary Executive Vice President, Chief Financial Officer Strategy…
  68. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 68
    BP 4Q11 Results and 2012 Strategy Script and slides Q&A Iain Conn Bob Dudley Chief Executive, Group Chief Executive Refining & Marketing Andy Hopwood Brian Gilvary Executive Vice President, Chief Financial Officer Strategy…
  69. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 69
    BP 4Q11 Results and 2012 Strategy Script and slides SECRET 2011 Results and Strategy Presentation 7 February 2012 Moving BP forward 69 Q&A session Bob Dudley closing remarks: Ladies and gentlemen, thank you very…
  70. 2011 Results and Strategy Presentation – Bp Energy Partners Lp – slide 70
    BP 4Q11 Results and 2012 Strategy Script and slides improve. We have made a strong start on the portfolio, were building the cash generation and we have begun to provide those rewards. Thank you to those who have stayed with us on the…

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