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Beach Energy Ltd - Stock Quote BPT

Rating as of

Morningstar's Beach Energy Ltd Stock Analysis

Valuation
Currency in AUD
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Beach Energy's Fiscal Third-Quarter Revenue Increases 15% to USD 330 Million on Higher Pricing

Mark Taylor Senior Equity Analyst

Business Strategy and Outlook

| Mark Taylor |

Beach Energy produces oil, gas, and gas liquids from multiple wholly owned projects and joint ventures in the onshore Cooper, Perth and Eromanga basins, and offshore in the Otway, Bass, and Taranaki basins. Beach merged with Cooper Basin joint-venture partner Drillsearch Energy Limited in March 2016, which increased equity production to about 10 million barrels of oil equivalent. This is now more than doubled to 23 million barrels of oil equivalent following purchase of Lattice from Origin Energy in 2018. Lattice’s scale enhancing incorporation, expanding Beach’s footprint across multiple basins and production hubs, resulted in an increase in EBITDA margins to over 70% from pre-Lattice 50% levels. But even with Lattice, our no-moat rating stands. Despite Lattice’s advantages Beach does not have sufficient resource life beyond 15 years.

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Key Statistics - BPT

Beach Energy Ltd's Company Profile

Business Description

Beach produces oil, gas, and gas liquids from numerous joint ventures in the onshore Cooper and Eromanga basins. Beach merged with Cooper Basin joint-venture partner Drillsearch Energy Limited in March 2016, which increased equity production to about 10 million barrels of oil equivalent. This is now more than doubled to 23 million barrels of oil equivalent following the successful purchase of Lattice from Origin Energy in 2018. The average field life is 10 years based on forecast production and 313 mmboe of proven and probable reserves. We credit life of nearly 15 years, assuming substantial conversion of 2C contingent resources into reserve category with drilling. Shale gas resources are blue-sky.

Contact
80 Flinders Street, Level 8
Adelaide, SA, 5000, Australia
T +61 883382833
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings
Fiscal Year End Jun 30, 2022
Stock Type
Employees 214