Beach Energy (BPT) has been a sector underperformer over recent years due to reserve and production issues and MM has seen no reason to look for performance reversion from the stock. Yesterday we saw BPT fall over -8% following some weak well testing results at their first test in the Perth Basin. There now seems to be insufficient resources to flow gas with Trigg 1 to be abandoned, the stock closed near fresh multi-month lows in the process and further downside rerating now seems likely especially when combined with the disappointment in when April Beach Energy (BPT) reported MQ23 sales revenue ~10% below consensus due to an 8% miss to production estimates.
- We have no interest in BPT until further notice.
MM is neutral to bearish BPT short term
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