Microsoft Word - ASX Release - FY16 Guidance
For Immediate Release - 29 July 2015
Ref. #038/15
ASX Ltd
Companies Announcement Office
Electronic Lodgement System
Dear Sir,
FY16 GUIDANCE - PRODUCTION VOLUMES AND CAPITAL EXPENDITURE
Production volumes: 7.8 - 8.6 MMboe
Capital expenditure: $240 - $270 million
Higher year‐on‐year gas sales volumes expected, due in part to utilisation of storage volumes
Beach Energy Ltd (ASX: BPT, "Beach") provides the following guidance in relation to FY16 production volumes and capital expenditure. Guidance excludes potential impacts from weather related events, other unforeseen operational delays, exploration successes and corporate activity (acquisitions / divestments or farm‐ins / farm‐outs). Production guidance is net of fuel.
Production volumes
The recent industry‐wide focus on preserving cash reserves and liquidity has seen reduced drilling activity across the Cooper Basin and lower expectations for near‐term production profiles. Accordingly, the FY16 production guidance range of 7.8 to 8.6 MMboe reflects the impact of natural field decline and curtailed drilling activity. Consideration has also been given to timing of new wells and facilities coming online.
Despite lower production, gas sales volumes in FY16 are expected to be higher than FY15 levels as a result of likely drawdown from storage.
Capital expenditure
The FY16 capital expenditure program has been prepared under the assumption of a continuing lower oil price environment, with a focus on preserving cash reserves and maintaining liquidity. Accordingly, a major reduction in capital expenditure is budgeted, with lower priority projects deferred. The FY16 capital expenditure guidance range of $240 to $270 million is summarised below.
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ASX Release
Capital Expenditure FY15A
$ million
FY16 Guidance
$ million
DEVELOPMENT
Cooper Basin (SACB and SWQ JVs) 228 145 - 160
Cooper Basin (non SACB and SWQ JVs) 45 45 - 50
International 12 -
Total Development Expenditure 285 190 - 210
EXPLORATION
Cooper Basin (SACB and SWQ JVs) 7 5 - 10
Cooper Basin (non SACB and SWQ JVs) 38 30 - 35
Unconventional 60 5
International 19 5
Other Australia 7 5
Total Exploration 131 50 - 60
TOTAL CAPITAL EXPENDITURE 416 240 - 270
As at 30 June 2015, Beach had a robust liquidity profile comprising cash on hand of $170 million, drawn debt of $150 million and undrawn debt of $150 million. The FY16 capital expenditure program is expected to be fully funded in order to achieve a similarly strong liquidity profile at the end of FY16.
Yours sincerely,
Rob Cole
Managing Director
For more information please contact the following on +61 8 8338 2833: Corporate
Rob Cole Managing Director
Chris Jamieson Group Executive External Affairs
Investor Relations
Derek Piper Investor Relations Manager
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