Beach Energy : Asia Roadshow Presentation

ASX release

28 February 2019 Ref: #010/19

Asia Roadshow Presentation

Beach Energy Limited

ABN 20 007 617 969

25 Conyngham St, Glenside 5065, South Australia

GPO Box 175, Adelaide 5001, South Australia

T: [phone]

F: [phone]

For information, attached is the presentation that Beach Energy will be taking on its February/March 2019 Asia Roadshow this week in Singapore and Hong Kong. Also available from the Beach Energy website.

For further information contact the following on [phone]:

Investor RelationsNik Burns, Investor Relations Manager

Media

Rob Malinauskas, Head of Corporate Affairs and Community Relations

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COMPLIANCESTATEMENTS

Disclaimer

This presentation contains forward looking statements that are subject to risk factors associated with oil, gas and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and productionresults, reserve estimates, loss of market, industry competition, environmental risks, physicalrisks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delays or advancements, approvals and cost estimates.

Underlying EBITDAX (earnings before interest, tax, depreciation, amortisation, evaluation, exploration expenses and impairment adjustments), underlying EBITDA (earnings before interest, tax, depreciation, amortisation, evaluation and impairment adjustments), underlying EBIT (earnings before interest, tax, and impairment adjustments) and underlying profit are non-IFRSmeasures that are presented to provide an understanding of the performance of Beach's operations. They have not been subject to audit or review by Beach's external auditors but havebeen extracted from reviewed financial statements. Underlying profit excludes the impacts of asset disposals and impairments, as well as items that are subject to significant variability from one period to the next. The non-IFRS financial information is unaudited however the numbers have been extracted from the reviewed financial statements.

All references to dollars, cents or $ in this presentation are to Australian currency, unlessotherwise stated. References to "Beach" may be references to Beach Energy Limited or itsapplicable subsidiaries. Unless otherwise noted, all references to reserves and resources figuresare as at 30 June 2018 and represent Beach's share.

References to planned activities in FY19 and beyond FY19 may be subject to finalisation of work programs, government approvals, joint venture approvals and board approvals.

Due to rounding, figures and ratios may not reconcile to totals throughout the presentation.

Five year targets

References to five year targets refers to those targets listed in the 2018 Asia Roadshow presentation (refer ASX Release #049/18 dated 8 October 2018) and are presented on the basis the sale of a 40% interest in the Otway Basin is completed. Annual production target range of 30 to 36 MMboe in FY23. Reserves replacement ratio targeted to average 100% for the five year period FY19 to FY23, where reserve replacement ratio calculated as 2P reserves additions divided by production. Returnon capital employed (ROCE) is defined as underlying net profit after tax (underlying NPAT) dividedby the average of opening total equity and closing total equity. Targeted five year cumulative free cash flow defined as cash flow from operating activities less cash flow from investing activities (including proceeds from the sale of a 40% interest in Victorian Otway Basin assets) at a US$74.25/bbl Brent oil price in FY19 and a US$70/bbl Brent oil price from FY20 and 0.77 AUD/USD exchange rate in FY19 and 0.75 AUD/USD exchange rate from FY20.

Assumptions

FY19 guidance is uncertain and subject to change. FY19 guidance has been estimated on the basis of the following assumptions: 1. a US$61.00/bbl Brent oil price in H2 FY19; 2. 0.72 AUD/USD exchange rate in H2 FY19; 3. various other economic and corporate assumptions; 4. assumptions regarding drilling results; and 5. expected future development, appraisal and exploration projects being delivered in accordance with their current expected project schedules. These future development, appraisal and exploration projects are subject to approvals such as government approvals, joint venture approvals and board approvals. Beach expresses no view as to whether all required approvals will be obtained in accordance with current project schedules.

FY19 guidance set out in this presentation has been prepared on the basis that the proposed sale of a 40% interest in its Victorian Otway Basin assets to O.G. Energy (announced to the ASX on 5thOctober 2018) completes at the end of Q3 FY19. Completion remains subject to satisfaction of customary conditions, some of which are outside of the control of Beach and as a result the timing of settlement may differ from the assumption used in this release.

BEACH ENERGY PORTFOLIO

Beach prepares its petroleum reserves and contingent resources estimates in accordance with the Petroleum Resources Management System (PRMS) published by the Society of Petroleum Engineers. The reserves and contingent resources presented in this presentation were originally disclosed to the market in ASX release #034/18 from 2 July 2018. Beach confirms that it is not aware of any new information or data that materially affects the information included in this presentation and that all the material assumptions and technical parameters underpinning the estimates in the aforesaid market announcement continue to apply and have not materially changed. Conversion factors used to evaluate oil equivalent quantities are sales gas and ethane: 5.816 TJ per kboe, LPG: 1.398 bbl per boe, condensate: 1.069 bbl per boe and oil: 1 bbl per boe. The reference point for reserves determination is the custody transfer point for the products. Reserves are stated net of fuel and third party royalties.

1. Pro forma FY18 defined as a Beach FY18 reported production of 19.0 MMboe plus H1 FY18 Lattice production of 7.9 MMboe. H1 FY18 Lattice production was not consolidated within the accounts of Beach. This information is provided for information purposes only and should not be relied upon.

2. 2P reserves are stated as of 30 June 2018. Reserves have not been adjusted for the announced sale of a 40% interest in the Otway Basin

AHEAD OF TARGET IN FIRST HALF FY19

ProductionGuidance updateFinancial disciplineResilient cash flow generation

• ✓Beach output has exceeded expectations

• ✓High levels of facility reliability (97%)

• ✓FY19 EBITDA guidance raised

• ✓FY19 production guidance increased, capex guidance narrowed on 31 January

• ✓Net gearing 13.5% at 31 December 2018

• ✓Beach to be in a net cash position at completion of Otway sale (Q3 FY19)

• ✓Focus moves to reducing direct controllable operating costs

• ✓More than $700 million in sales revenue expected in FY19 from gas business

• ✓More free cash flow generated in H1 FY19 than annual target