Transcript BP Story - Wyoming

BP Energy N.A.
Wyoming Pipeline Authority Meeting
October 28th, 2003
Dan J. Bump
Director – Marketing & Origination, West Region
BP Corporate Communications – 24 February 2003
Introduction
• Look at BP not just as a major producer, but also as your
preferred counter-party for:
– physical purchases/sales
– customized financial products
– asset management
• Focused on building a long term business
• Strong, sophisticated risk management capabilities
• Excellent credit rating makes BP a preferred counter-party
Who We Are
BP is an oil, gas, petrochemicals and renewables company
we have operations on 6 continents and in over 100 countries
…market capitalization of ~$200 billion
…annual revenues of $179 billion (2002)
…the 2nd largest oil company and 7th largest company in the world
…over 26,500 service stations worldwide
…serving 13 million customers every day
Our Assets And Markets Today
Upstream
• Highest profitability,
•
•
lowest cost of
supply
Distinctive gas
reserves
Leading explorer
Gas & Power
•
•
•
Global gas
monetization
presence
Leading NA & UK
gas sales
Global LNG player
Downstream
• Advantaged refining
portfolio
 World Class
Lubricants
 Advantaged real
estate in key markets
Chemicals
• Leadership in 3
sectors
• Advantaged
•
technology
Biased to high
growth markets
Brands We Market Under In North America
BP’s Growth Strategy,
Strategically Asset-based
25
BP
acquires
IGI
Q4 ‘00
20
BP
acquires
Vastar
Q4 ’00
15
10
BP
acquires
ARCO
Q2 ‘00
BP merges
with Amoco
Q3 ‘98
BP
acquires
Cibola
Q3 ‘01
BP
JV’s with
Tejas PL
Q3 ‘02
BP forms
Integrated
Supply &
Trading
Group
Q3 ‘01
5
0
Q1
Q2
Q3
1999
Q4
Q1
Q2
Q3
2000
Q4
Q1
Q2
Q3
Q4
2001
BP North American Trade Volumes (BCf/D) 1998 - present
BP Corporation North America, Inc.
Q1
Q2
Q3
2002
Q4
Q1
2003
Source: BP Internal Data
Strictly Confidential – for BP client use only
North American Gas and Power (NAGP)
Our Mission

Our Organization
To be the provider of choice for reliable gas and
electric energy throughout North America, through
providing exceptional levels of service, efficiency and
knowledge

Over 700 people across North America, managing 20bcf/d of
gas

Linked into a global Supply & Trading (IST) organization

Pan-North American coverage, via geographically based
“corridors”, focused on:
 Trading, Marketing and Origination
 Operations and Scheduling
Calgary
 Compliance across business risk, credit and control
 Market analysis, risk management and structured
products
Houston
Our North American Supply Position
Alaska
Western Production
Mackenzie Delta
BP Net Production
(MMbtu/d)
Canada
San Juan
~ 823
East Rockies
~ 145
(Wamsutter)
West Rockies
(SW Wyoming)
Wyoming
San Juan
Permian
Gulf Coast South Texas
Mid-Continent
Cove Point LNG
Gulf Coast Louisiana
Gulf of Mexico
Trinidad
~ 275
North American Gas and Power (NAGP)
West Region Goals / Strategies
• Grow producer marketing business
• Expand structured products offerings
• Provide asset management services to the increasing base of transportation capacity holders in the West
• Continue growing our portfolio of transportation & storage capacity
• Utilize corporate financial strength (AA+ credit rating) to be the preferred counter-party for long-term
transactions of all types {supply, market, transportation, etc}
• Continue providing services and solutions for Upstream flow assurance and financial stability
• Customer-Driven Focus
Our Commitment – Practical Solutions to
Manage Your Business
We are committed to an increasingly stable market
environment
– Unlocking gas supply opportunities in North America
– Supporting new infrastructure
– Providing market liquidity
We believe in providing greater reliability, flexibility
and choice
– Our risk management services help to offer supply/market
pricing structures on your terms
– Our advanced supply and logistics resources draw upon
continent wide networks and deep local knowledge
Our aspiration is to offer increasingly tailored
services that anticipate and respond to your gas
supply, pricing and risk management needs
Stability Through…..
Our scale, supply position, trading and marketing
organization and a commitment to meeting the needs of our
customers
Financial Stability
• Market Cap $200 Billion
• Fixed Assets $105 Billion
• S&P AA+ Credit Rating
Integrated Supply & Trading
• 3,000 people worldwide
• Multiple commodities (gas, oil,
ngls, finance)
• Products and Services
• Supply infrastructure
Nat.Gas Supply Position
•
Scale, Diversity and security
of supply
Reliability, through …….
Our advanced supply and logistics resources in the West
draw upon region-wide networks and deep local knowledge
Aitken Creek
AECO
Sumas
Kingsgate

Extensive operational
network; 2 bcf storage
capacity; 2 bcf/d
transportation capacity

Nominating and
balancing over 4 bcf/d

24 Hour operational
coverage

Managing and
optimizing a wide
range assets
Cherry Pt
Jackson
Prairie
Stanfield
Mist
PG&E Gas
Trans NW
NW Pipeline
CIG & WIC
Opal
Cheyenne Hub
Malin
Kern
River
PG&E CG
Socal
Carson
Clay
Basin
San Juan
El Paso &
TW
Permian
Key Offerings
Products and Risk Management
Assets and Optimization
•Physical Product Purchases and Sales
•Asset Management
–natural gas
–Transportation
–electricity
–Marketing Services
–refined products, crude
–On Site Alternative Fuels
•Risk Management
–Storage
–Fixed Price,
•Energy Management Services
–Caps/Collars,
–Supply Management
–Swaps/Options
–Integrated Custom Solutions
–Balance of Month pricing
–On-site Utilities Management
•Customized Pricing
–Co-Generation Development
–structured pricing
•Environmental Services
–exotics
–Green Power (Green Mountain Energy)
–cross Commodity
–Solar
Key Results
• Firm purchases for flow assurance
-- Index-related or fixed
-- Imbedded structured products
-- Any range of terms
•Optimizing contractual assets
-- Maximize value of transport &/or storage capacity
• Managing gas price risk
-- Fixed prices or Basis swaps
-- Collars; (fixed price or basis collars)
-- Caps, Floors
-- Enhanced caps, floors (“three-way’s”)
-- Participation swaps
-- Cross-commodity products
Conclusion
A web of Assets and Customers managed by experienced industry professionals located across
North America enables BP to deliver…
• Material physical and financial liquidity
• Firm, multi-term transactions
• Proven pricing and execution capability
• Leading edge, creative risk products
• At virtually every natural gas region in North America
BP Energy N.A.
CONTACTS:
Marketing & Origination
Dan J. Bump 303-830-3266
Bob Williams 303-830-3238
Kevin Hazell 281-366-2812
Trading (Houston)
Jeff Hornback 281-366-4808
Emily Huffman281-366-4833
BP Corporate Communications – 24 February 2003