Company Overview

Beach Energy is an Australian oil and gas producer focused on conventional gas and liquids, with core operations across the Cooper Basin, Western Australia and offshore Otway Basin. The company supplies natural gas to Australia’s east coast market and generates revenue through both domestic gas sales and exposure to LNG-linked pricing.

Core Assets & Production Base

Beach Energy’s production base is centred on the Cooper Basin, Australia’s most established onshore gas province, where the company operates extensive gas fields and infrastructure. Additional output comes from the offshore Otway Basin and Western Australia, supporting supply to Australia’s east coast gas market and LNG-linked export channels.

Core Products, Customers & Competitive Position

Beach Energy produces primarily natural gas, with smaller volumes of crude oil and condensate, delivering roughly 18–20 million barrels of oil equivalent (MMboe) of annual production, with gas accounting for about 70–80% of output.
Most gas is sold under long-term contracts to Australia’s east coast energy market, including major utilities and LNG-linked buyers, providing relatively stable cash flow.
Within Australia’s gas sector, Beach sits as a mid-tier producer, smaller than giants like Woodside Energy Group but a significant supplier to the domestic gas market through assets in the Cooper and Otway basins.

Reserves & Resource Life

Beach Energy holds roughly 350–400 million barrels of oil equivalent (2P reserves) across its Australian assets, with the majority in natural gas fields within the Cooper and Otway basins.
At current production levels, these reserves imply a reserve life of roughly 15–20 years, providing a long-term production base for domestic gas supply.

Revenue Model & Profit Drivers

Beach Energy generates revenue primarily through long-term natural gas sales contracts to Australia’s east coast market, supplemented by smaller volumes of oil and condensate.
Profitability is mainly driven by gas prices, production volumes and operating costs, with earnings benefiting from exposure to tightening domestic gas supply and occasional LNG-linked pricing.

Growth Projects

Beach Energy’s main growth projects include the Waitsia Gas Project in Western Australia and continued development drilling across the Otway and Cooper basins, aimed at increasing gas output and strengthening supply to domestic markets.
These projects are expected to support higher production and improved cash flow over the coming years, particularly as new wells and processing capacity come online.

Financials

Cost Structure

Beach Energy’s cost base includes field operating expenses, development drilling and infrastructure investment, with total operating costs estimated around A$8–12 per boe depending on the basin and production mix.
Profitability is therefore highly sensitive to gas prices, production efficiency and capital expenditure, particularly during periods of heavy development drilling.

Income Statement Trends

Beach Energy’s revenue has grown from about A$1.56 billion in FY2021 to A$2.11 billion in FY2025, reflecting stronger gas prices and higher production volumes.
However, profitability has been volatile: net profit peaked near A$501 million in FY2022, before turning to losses in FY2024–FY2025 due largely to large one-off impairments and higher development costs, pushing operating income temporarily into negative territory.

Balance Sheet Trends

Beach Energy’s balance sheet remains asset-heavy, with property, plant and equipment around A$4.3 billion in FY2025, reflecting the capital-intensive nature of upstream gas development.
Total liabilities have risen from about A$1.6 billion in FY2021 to roughly A$2.1 billion in FY2025, while equity declined slightly from its FY2023 peak, suggesting recent impairments and development spending have pressured the capital base but leverage remains manageable.

Cash Flow Trends

Beach Energy continues to generate strong operating cash flow, rising from about A$760 million in FY2021 to roughly A$1.13 billion in FY2025, despite earnings volatility caused by impairments.
However, the business remains capital intensive, with annual capital expenditure between A$0.7–1.2 billion, meaning free cash flow depends heavily on gas prices and the pace of development spending.

Recent Operational Update – H1 FY26

Beach Energy reported H1 FY26 production of 9.5 MMboe (-7%) and sales volumes of 12.7 MMboe (+3%), generating roughly A$1.0 billion in revenue as higher gas prices offset softer production.

FY26 Guidance & Production Outlook

Beach Energy maintained its FY26 guidance, targeting 19.7–22.0 MMboe of production, with output expected to remain heavily gas-weighted at roughly 82% gas, 10% gas liquids and 8% oil.
The company plans A$675–775 million in capital expenditure, including the final commissioning of the Waitsia Gas Plant in the Perth Basin and ongoing drilling in the Cooper and Otway basins.
Management expects Waitsia to ramp toward ~90% plant utilisation during FY26, which could support higher gas volumes as the project reaches steady operations.

Important Recent Announcements

Beach Energy’s most important development is the start-up of the Waitsia Gas Project, which is expected to produce roughly 250 TJ of gas per day (around 90 PJ per year at full capacity) and become the company’s main growth driver.
Production in the Cooper Basin has largely recovered after the 2025 flooding, helping stabilise near-term output.
Meanwhile, new drilling campaigns and strong liquidity (~A$925m) support ongoing development and exploration aimed at extending reserves and future production growth.

Dividend & Fundamentals

Beach Energy declared an interim dividend of A$0.01 per share, implying an annualised dividend yield of about 6.1%, fully 100% franked for Australian investors.

Financial Forecasts

We expect Beach Energy to generate roughly A$1.88 billion in revenue in FY26, rising toward about A$2.09 billion by FY28 as new gas production ramps up.
EPS is forecast around A$0.17 in FY26, improving modestly to roughly A$0.19 by FY27–FY28, reflecting gradual production growth and stabilising margins.

Valuation

Based on consensus FY26 EPS of around A$0.17, and applying a reasonable 10–12× P/E for a mid-tier gas producer, Beach Energy’s implied valuation falls in a range of roughly A$1.70–A$2.05 per share, meaning BPT is undervalued currently, in our view.
The multiple reflects the company’s gas-weighted production profile and growth potential from the Waitsia project, balanced against execution risk and volatile energy prices.

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Technical view

Beach Energy is currently trading below both the 50-week and 200-week moving averages, indicating a weak medium-term trend and lack of strong bullish momentum.
The stock is consolidating near major support around A$1.10–A$1.15, while the 200-week moving average near A$1.25–A$1.30 acts as the main resistance; a break above this level would be needed to signal a meaningful trend reversal.

Beach Energy technical analysis — *Source: TradingView*

Key Risks

Beach Energy’s earnings remain highly sensitive to oil and gas prices, while delays or cost overruns in the Waitsia gas project could pressure cash flow and investor confidence.
In addition, declining output in mature basins and continued high capital expenditure may weigh on near-term profitability.

Potentials & Catalysts

The main upside driver is the successful ramp-up of the Waitsia gas project, which could significantly lift production and cash flow.
Further catalysts include new drilling success in the Cooper and Perth basins, as well as strong domestic gas prices in Australia, which would directly support revenue growth.

FAQs about Beach Energy (ASX: BPT)

1- Is Beach Energy primarily an oil or gas producer?

Beach Energy is predominantly a gas-focused producer, with gas accounting for roughly 80% of production, supplying Australia’s domestic gas market.

2- What is the main growth driver for BPT?

The Waitsia Gas Project in the Perth Basin is expected to be the company’s key growth engine, potentially adding significant production once fully ramped up.

3- Is the dividend sustainable?

The company currently offers a high dividend yield with fully franked dividends, but payouts depend on gas prices and the successful execution of major development projects.

4- What is the main risk investors should watch?

The biggest risks are energy price volatility and execution risk at major projects, particularly the ramp-up of Waitsia and ongoing capital spending.