28/11/2024 09:55

Beach Energy Ltd (BPT) $1.24

BPT has found some love in the last two months after delivering reasonable production updates in mid-October. It was important for the company to rekindle some confidence with analysts after their massive downgrade to reserves in August. We don’t regard BPT as a quality business that we want to own, but it is a high beta play on the oil price. If/when oil bounces, BPT is likely to outperform both WDS and STO.

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29/10/2024 09:31

Beach Energy Ltd (BPT) $1.27

BPT has declined 20% year-to-date, handing the wooden spoon to Woodside in the majors so far in 2024. In June, BPT announced plans to diversify into gas power generation and storage as part of a far-reaching turnaround strategy, but they followed up this fresh outlook in August with a significant downgrade to reserves at its Enterprise natural gas field by a whopping 34%, taking the overall group reserves down by ~20%– hence we are in no hurry with BPT. We have consistently highlighted the challenging nature of BPT’s assets, and they continue to validate these concerns.

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06/09/2024 09:22

Beach Petroleum Ltd (BPT) $1.13

BPT’s new boss, Brett Woods, intends to diversify the oil & gas producer into gas power generation and storage as part of a far-reaching turnaround strategy, but since the bold announcement in June, the stock has fallen over 27%.

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20/06/2024 09:49

Beach Energy Ltd (BPT) $1.46

BPT fell 4.25% on Wednesday following downgrades from Macquarie, Jarden, and Citi—a painful trifecta for the oil and gas company after it presented its Strategic Review and plan to become Australia's leading domestic energy company on Tuesday.

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08/04/2024 16:50

Beach Energy (BPT) $1.61

BPT -15.04%: the gas company announced the 3rd delay and cost increase to stage 2 of their Waitsia joint venture that was due to come on in just a few months. Capex expectations have been increased by $150m, or ~30%, just 1Q out from when the market was pricing in first production.

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13/02/2024 09:28

Beach Energy Ltd (BPT) $1.71

BPT popped +3.3% yesterday to a 52-week high after announcing a 1H underlying profit of $172.7. The numbers were weaker for production, leading to the winding back of full-year guidance, but it had a good 6-months in terms of earnings. They also announced the freezing of projects in a turnaround bid – the news was welcomed with upgrades from Citi, Macquarie and RBC.  

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08/12/2023 09:17

Beach Energy Ltd (BPT) $1.46

BPT is the junior player compared to STO and WDS. We see no reason to consider BPT given the challenging nature of their assets. With BPT, capex risks are also an issue, although it does look set to increase its free cash flow (FCF) over the next year.

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27/07/2023 09:31

Beach Energy Ltd (BPT) $1.63

BPT rallied +6.9% yesterday making it the best-performing stock on the main board as it played catch up to the recently strong Energy Sector.

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11/07/2023 09:16

Beach Energy Ltd (BPT) $1.385

Beach Energy (BPT) has struggled both in 2023 and over recent years due to reserve and production issues, the markets sentiment towards BPT wasn’t helped last month by some weak well-testing results at their first test in the Perth Basin although the stock has bounced following the news, the shares are now trading on an Est. 8.45x earnings for FY23.

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08/06/2023 09:19

Beach Energy Ltd (BPT) $1.305

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.

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