Beach Energy Ltd
ASX:BPT
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Beach Energy Ltd
Beach Energy Ltd., founded in 1961, emerged from Australia’s rich tapestry of resource discovery, carving its niche in the exploration and production of oil and gas. Born in the heartland of South Australia's Cooper Basin, the company's journey from a nascent explorer to a formidable force in the energy sector encapsulates its resilient spirit and strategic acumen. Over the years, Beach Energy has honed its expertise in extracting hydrocarbons, leveraging advanced technologies and innovative approaches to maximize output while minimizing environmental impact. With diversification at its core, Beach Energy has expanded its portfolio, venturing into various basins across Australia and New Zealand, including the highly lucrative Bass and Otway Basins.
Guided by a philosophy of strategic partnerships and acquisitions, Beach Energy operates across the entire spectrum of oil and gas production, from upstream exploration to delivering resources to market. Their revenue model is primarily centered on the sale of crude oil, natural gas, and petroleum products. The company's ability to generate profits hinges on its efficiency in both finding and extracting these energy resources, as well as navigating the volatile commodity markets. Endeavoring to stay ahead in a rapidly evolving energy landscape, Beach Energy continues to innovate, balancing its traditional oil and gas operations with potential inroads into sustainable energy solutions. In doing so, it remains a critical player in powering industries and communities across the region, maintaining a keen eye on sustainability and long-term viability in its operations.
Beach Energy Ltd., founded in 1961, emerged from Australia’s rich tapestry of resource discovery, carving its niche in the exploration and production of oil and gas. Born in the heartland of South Australia's Cooper Basin, the company's journey from a nascent explorer to a formidable force in the energy sector encapsulates its resilient spirit and strategic acumen. Over the years, Beach Energy has honed its expertise in extracting hydrocarbons, leveraging advanced technologies and innovative approaches to maximize output while minimizing environmental impact. With diversification at its core, Beach Energy has expanded its portfolio, venturing into various basins across Australia and New Zealand, including the highly lucrative Bass and Otway Basins.
Guided by a philosophy of strategic partnerships and acquisitions, Beach Energy operates across the entire spectrum of oil and gas production, from upstream exploration to delivering resources to market. Their revenue model is primarily centered on the sale of crude oil, natural gas, and petroleum products. The company's ability to generate profits hinges on its efficiency in both finding and extracting these energy resources, as well as navigating the volatile commodity markets. Endeavoring to stay ahead in a rapidly evolving energy landscape, Beach Energy continues to innovate, balancing its traditional oil and gas operations with potential inroads into sustainable energy solutions. In doing so, it remains a critical player in powering industries and communities across the region, maintaining a keen eye on sustainability and long-term viability in its operations.
Production & Results: FY23 production was 19.5 million barrels of oil equivalent, down 11% year-on-year, but seen as a solid result given limited new catalysts.
Revenue & Earnings: Sales revenue fell 8% to $1.6 billion, with underlying EBITDA down 12% to $982 million and underlying NPAT at $385 million.
Guidance: FY24 production is guided to 18–21 million barrels with capex of $850 million to $1 billion; guidance range widened due to project timing and offtake uncertainties.
Waitsia Project: Waitsia Stage 2 first gas is targeted for mid-2024 after disruption from contractor insolvency; capex forecast for Waitsia is $450–$500 million net to Beach.
Otway Gas Plant: Otway capacity is 170 TJs/day, but current offtake is limited to 50 TJs/day due to customer decisions; price arbitration with the offtaker is underway.
Dividend: Declared final dividend doubled to $0.04 per share, reflecting a 100% year-on-year increase.
Costs & Liquidity: Net debt at $166 million and net gearing of 4%. Costs are generally rising across the business due to industry-wide inflation.
Sustainability: Targeting 35% emissions intensity reduction by 2030; Moomba CCS project 70% complete and key to emissions reduction goals.
