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BP Energy N.A. Wyoming Pipeline Authority Meeting October 28th, 2003 Dan J. Bump Director – Marketing & Origination, West Region. Introduction. Look at BP not just as a major producer, but also as your preferred counter-party for: physical purchases/sales customized financial products - PowerPoint PPT PresentationTRANSCRIPT
BP Corporate Communications – 24 February 2003
Wyoming Pipeline Authority MeetingOctober 28th, 2003
Dan J. BumpDirector – Marketing & Origination, West Region
BP Energy N.A.
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
…market capitalization of ~$200 billion
BP is an oil, gas, petrochemicals and renewables company
we have operations on 6 continents and in over 100 countries
…annual revenues of $179 billion (2002)
…over 26,500 service stations worldwide
…the 2nd largest oil company and 7th largest company in the world
…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
Chemicals• Leadership in 3
sectors• Advantaged
technology• Biased to high
growth markets
Downstream• Advantaged refining
portfolioWorld Class
LubricantsAdvantaged real
estate in key markets
Brands We Market Under In North America
BP’s Growth Strategy,Strategically Asset-based
BP Corporation North America, Inc. Strictly Confidential – for BP client use only
0
5
10
15
20
25
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1999 2000 2001 2002 2003
BP North American Trade Volumes (BCf/D) 1998 - present
BP merges with Amoco
Q3 ‘98
BP acquiresARCOQ2 ‘00
BPacquiresVastarQ4 ’00
BP forms Integrated Supply & Trading GroupQ3 ‘01
BPacquires
IGIQ4 ‘00
BPacquiresCibolaQ3 ‘01
BPJV’s with Tejas PLQ3 ‘02
Source: BP Internal Data
Calgary
Houston
North American Gas and Power (NAGP)
Our Mission To be the provider of choice
for reliable gas and electric energy throughout North America, through providing exceptional levels of service, efficiency and knowledge
Our Organization 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 Compliance across business risk,
credit and control Market analysis, risk
management and structured products
Our North American Supply Position
Trinidad
Canada
Wyoming
San Juan
Gulf of Mexico
Alaska
Permian Gulf Coast Louisiana
Mid-Continent
Gulf Coast South Texas
Mackenzie Delta
Cove Point LNG
BP Net Production(MMbtu/d)
San Juan ~ 823East Rockies(Wamsutter)
~ 145
West Rockies(SW Wyoming)
~ 275
Western Production
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 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
We are committed to an increasingly stable market environment – Unlocking gas supply opportunities in North America– Supporting new infrastructure– Providing market liquidity
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
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
Socal
PG&E CG
Malin
Stanfield
SumasKingsgate
AECO
Opal Cheyenne Hub
Permian
San JuanKern River
PG&E Gas Trans NW
Jackson Prairie
Mist
Aitken Creek
NW Pipeline
Clay Basin
CIG & WIC
El Paso & TW
Cherry Pt
Carson
Products and Risk Management•Physical Product Purchases and Sales–natural gas –electricity –refined products, crude•Risk Management –Fixed Price, –Caps/Collars, –Swaps/Options–Balance of Month pricing•Customized Pricing –structured pricing –exotics –cross Commodity
Assets and Optimization•Asset Management
–Transportation–Marketing Services–On Site Alternative Fuels–Storage
•Energy Management Services
–Supply Management–Integrated Custom Solutions–On-site Utilities Management–Co-Generation Development
•Environmental Services–Green Power (Green Mountain Energy)–Solar
Key Offerings
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 Corporate Communications – 24 February 2003
CONTACTS:Marketing & OriginationDan J. Bump 303-830-3266Bob Williams 303-830-3238Kevin Hazell 281-366-2812
Trading (Houston)Jeff Hornback 281-366-4808Emily Huffman 281-366-4833
BP Energy N.A.