DELIVERING VALUE GROWTH 2017 INVESTOR BRIEFING DAY

Transcription

1 ASX Announcement Tuesday, 23 May 2017 ASX: WPL OTC: WOPEY Woodside Petroleum Ltd. ACN Woodside Plaza 240 St Georges Terrace Perth WA 6000 Australia DELIVERING VALUE GROWTH 2017 INVESTOR BRIEFING DAY Woodside today outlined its plans to further grow production in the years ahead, focusing on costeffective opportunities to maximise the potential of its existing assets while unlocking value from its significant resource base. At Woodside s annual Investor Briefing Day, CEO Peter Coleman said the company had successfully navigated a challenging external environment and was now poised to deliver value growth while maintaining its commitment to shareholder distributions. In the near term we expect to generate increasing cash flow and returns from our existing business and committed projects, and we see further upside potential from lower capital intensity and quickerto-market opportunities. Our portfolio offers exciting prospects for growing shareholder value that will coincide with rising global demand for gas and an anticipated supply shortfall. In particular, Woodside is well positioned to capitalise on an expected increase in demand from emerging Asian markets. Woodside has taken advantage of market conditions to strategically build its portfolio with a view to growing production by attracting resources to existing facilities on the planned Burrup Hub. At a time when large greenfield projects are challenging, Woodside is preparing to capture new value from low-cost brownfield developments. Mr Coleman outlined three five-year horizons, during which Woodside would focus on cash generation, unlocking value and repeating successes. To access the live webcast of the Investor Briefing Day, follow the link from A copy of Woodside s Investor Briefing Day 2017 slide pack is attached. Contacts: MEDIA Michelle Grady W: M: E: michelle.grady@woodside.com.au INVESTORS Damien Gare W: M: E: investor@woodside.com.au

2 SYDNEY, AUSTRALIA

3 DAMIEN GARE

4 Sheraton on the Park evacuation plan Exits to Grand Staircase

5 Agenda

6 Focus for today

7 Disclaimer and important notice

8 Statements on strategy and targets

9 Notes on Petroleum Resource Estimates

10 Glossary

11 PETER COLEMAN

12 Fundamentals

13 Our focus

14 Woodside today $

15 Introducing the Horizons Horizon I Horizon II Horizon III

16 Roadmap for today Horizon I Horizon I Horizon I Horizon I Horizon I Horizon II Horizon II Horizon II Horizon II Horizon III Horizon III Horizon III

17 Defining the future Horizon I

18 World-class LNG and oil Horizon II

19 Low-cost growth

20 Significant cash generation Horizon I Growth Wheatstone Greater Enfield Wheatstone Greater Enfield Base Base Horizon I Horizon II

21 Differentiated business model UNIQUELY POSITIONED

22 Strategy delivers value & sustainable shareholder distributions Horizon I Horizon II Horizon III

23 Carbon resilience

24 Summary

25 ANTHEA MCKINNELL

26 2016 financial performance 94.9 MMboe $868m $2.7bn 83 cps $2.6bn 24% 104 cps $114m BBB $8.5/boe Baa1

27 Leading margins and ROACE 100% 50% Source: Bloomberg (50%)

28 Woodside Cash flow supports dividends and growth Source: Bloomberg

29 Cost focus continues -48%

30 Strong liquidity

31 Balance sheet supports growth 25%

32 Access to premium diversified debt markets

33 Horizon I Cash from Operations Cash Uses

34 Horizon I Horizon II Cash from Operations Cash Uses

35 Investment 55% 45%

36 REINHARDT MATISONS STEPHEN HALL

37 LNG demand continues to grow

38 Increasing support for natural gas

39 Increasing diversity of LNG market

40 A global portfolio LNG supplier

41 % of production Balancing revenue and operational flexibility

42 Delivering strong price outcomes

43 Resilient to price downside

44 Increasing upside 20% 2x Total LNG supply Equity-lifted LNG 2x Number of supply sources

45 Creating an LNG fuels market 5 billion litres p.a. 3 billion litres p.a.

46 PETER COLEMAN

47 Defining the future Horizon I

48 Committed production growth with upside potential Senegal (SNE) Pluto expansion

49 Maintaining high margins through Horizon I

50 Wheatstone: first production mid-2017

51 Greater Enfield: high cash margins

52 Pluto: increasing capacity through expansion To KGP

53 Senegal oil: Delineating the resource base, preparing for development

54 PETER COLEMAN

55 World-class LNG and oil Horizon II

56 Uniquely positioned to commercialise key assets

57 Burrup Hub: low capital intensity concepts

58 Opportunity to fill KGP

59 Browse: one of the lowest cost undeveloped gas resources

60 Scarborough: significant uncommitted resource

61 Significant resource development through existing infrastructure

62 Myanmar Northern Rakhine Basin: Concept select early 2018

63 Myanmar Southern Rakhine Basin: Concept select end 2018

64 PETER COLEMAN

65 Establishing global hubs Horizon III

66 Kitimat: Material cost reductions

67 Kitimat: Liard basin a world-class resource

68 MIKE UTSLER

69 ktco2/year Improving health, safety and environment performance Potential savings

70 Continued outstanding operational performance OPERATIONAL EXCELLENCE 1

71 Positioning Woodside for global growth Molecules to unlock the Burrup Hub Improve energy efficiency Produce the limit LNG as transport fuel Lean, nimble and marketfocused supply chain Modular and lean LNG plant Lean capital project executive (brown and greenfield) Agile organisation and lean processes Analytics driven operations

72 PETER COLEMAN

73 Summary

74 PHIL LOADER

75 Delivering value and sustainable growth

76 Lower risk / higher impact testing new plays 2

77 Execution, value delivery and growth focus

78 High-impact drilling

79 Myanmar: Execution, commercialisation and growth

80 Myanmar: Execution, commercialisation and growth

81 Australia: Accelerated value realisation

82 Senegal: Commercialise SNE and grow resources

83 Atlantic margins and Sub-Saharan Africa

84 Inventory development, execution and value creation on target

85 SHAUN GREGORY

86 Advantage through innovation

87 Reducing exploration time and cost

88 Upstream: extending reach

89 Downstream: Plant of the Future Kitimat Concepts ($/tpa) FOOT PRINT PER MTPA

90 Improving reliability and capacity

91 Production Data Analytics DECISION MAKERS

92 Wireless instruments AGRU IMPACT

93 Unlocking Woodside s collective intelligence

94 FutureLab: Our innovation engine

95 How we do it

96 Future Proof Woodside

97 HENDRIK SNYMAN MICHAEL ROBINSON

98 Affordable energy drives our business model

99 Improvement and excellence in everything we do

100 Number of Improvements Continuously improving the business CASE STUDY

101 Disciplined way of doing business CASE STUDY Woodside Management System improving clarity and transparency, springboard for further improvement

102 Value-driven collaboration with our vendors -100x

103 A culture that encourages challenging the status quo E A CASE STUDY B D C

104 > A$740m 1 in cost savings 2.

105 Continuing to reduce Kitimat s cost of supply 30% to 40% REDUCTION

106 Minimising exposure to cost escalation

107 Conditioned to sustain low-cost performance

108