Beach Energy delivered its strongest quarterly result on record, with sales revenue reaching $565 million while production rose 9% quarter-on-quarter to 5.4 million barrels of oil equivalent. The strong showing reflects disciplined operational execution across the company’s portfolio combined with higher commodity prices and effective marketing strategies that have enabled the company to capture additional value from its product mix.
The 41% quarter-on-quarter increase in revenue came from higher sales volumes, including two LNG cargoes lifted in the period, and a 7% increase in the average realised gas price to $11.9 per gigajoule. Beach’s oil sales benefited from premiums of approximately US$19 per barrel, a metric that has improved to around US$28 per barrel for Q2 sales executed to date. The company achieved these results while improving production from its major asset clusters, with the Otway Basin up 20%, Western Flank up 15%, and Bass Basin production up 55% compared to the previous quarter. The Waitsia Gas Plant in the Perth Basin reached a record average monthly production rate of 219 terajoules per day in August before scheduled maintenance, demonstrating the asset’s enhanced operational capability.
The quarter saw completion of Beach’s Equinox rig campaign, which was focused on offshore abandonment activities. The company has now concluded all material abandonment expenditure anticipated in the short to medium term, with no further significant spending expected before the mid-2030s. This substantially derisks Beach’s capital expenditure profile and improves cash generation visibility, an important consideration given the abandonment costs that consumed $96 million during the quarter. Total liquidity as at 30 September stood at $945 million, comprising $205 million in cash reserves and $740 million in undrawn committed facilities.
Beach’s management has maintained its financial guidance for fiscal 2027, projecting production of between 19.5 million and 23.0 million barrels of oil equivalent alongside capital expenditure of $600 million to $700 million. The guidance includes investment in the Waitsia Inlet Compression project, which the joint venture expects to cost approximately $120 million net to Beach over fiscal 2027 and 2028, with start-up targeted for fiscal 2029. Beyond this near-term project, management’s gas marketing strategy continues to expand medium-term domestic gas sales contracts, with the company securing 14 petajoules of commitments across fiscal 2028 to 2030, including its first JKM-linked domestic gas sales contract on the east coast.
Beach expects to lift one LNG cargo in Q2 of fiscal 2027 and continues to forecast the unwinding of its overlift position with the North West Shelf by year-end. The company’s asset sales process also progressed, with the VIC/L35 transaction now expected to complete in the second half of fiscal 2027 pending regulatory approvals. This quarterly announcement is price sensitive and flagged as material by the ASX.
Our exclusive top 5 stock picks
Five high conviction stocks that didn't make the public list. Backed by institutional research. Subscribe for free access.
Thanks for subscribing, please check your email to confirm your subscription to instantly access your report.
View the full ASX announcement (PDF)
About Beach Energy Limited (ASX: BPT)
Beach Energy Limited is an oil and gas exploration and production company headquartered in Adelaide, South Australia. It produces gas, oil, and natural gas liquids from five basins across Australia and New Zealand. The company explores, develops, and transports hydrocarbons including liquified natural gas, liquified petroleum gas, condensate, and oil.
If you would like to discuss this announcement, request a callback or call us on 1300 889 603.