Beach Energy delivered a pivotal quarter with the Waitsia Gas Plant reaching 94 percent of nameplate capacity, demonstrating successful operational execution on one of the company’s transformational projects. Total production increased 7 percent quarter-on-quarter to 4.8 MMboe, driven primarily by Perth Basin output surging 174 percent following the commissioning of the final two gas compressors. This ramp-up validates Beach’s ability to execute large capital projects and positions the company for material cash generation from this asset over coming years.
The financial impact of this operational progress is substantial. Sales revenue reached $419 million for the quarter, supported by 5.3 MMboe in sales volumes, with one LNG cargo lifted in February at a realised price of $13.7/MMBtu contributing $54 million in revenue. Average realised oil prices strengthened to A$125/bbl, up 19 percent quarter-on-quarter, offsetting a 6 percent decline in realised gas prices to $11.2/GJ. This revenue generation underpinned available liquidity of $974 million and net gearing of just 11 percent, providing the company with substantial financial flexibility for growth investments and shareholder returns.
Beach did revise FY26 production guidance downward to 19.4-20.3 MMboe from the prior 19.7-22.0 MMboe range, primarily reflecting wet weather impacts in the Cooper Basin and lower customer nominations in the Otway Basin. These operational headwinds were partially offset by Waitsia ramp-up performance. The guidance update indicates conservative management communication, though investors should note the company maintained capital expenditure guidance unchanged, suggesting confidence in returning to full production run rates.
Beyond current production, Beach has positioned itself for longer-term growth through both new acreage awards and capital discipline. The company received awards in new exploration permits across Queensland and the Otway Basin, expanding its East Coast gas portfolio at low entry cost. More significantly, Beach sanctioned the Moomba Central Optimisation project, targeting project completion in the first half of FY29. This debottlenecking investment will unlock additional production from the Cooper Basin JV and position the asset as a structural East Coast gas supplier, addressing Australia’s growing gas demand.
Investors should monitor several metrics going forward. The Equinox rig campaign in the offshore Otway Basin entered Phase 2 after quarter-end, with ongoing drilling activity in the Western Flank and Cooper Basin providing near-term exploration catalysts. Waitsia’s path to full nameplate capacity will indicate whether the asset can sustain the $13-15 per barrel plus lifting spreads that make LNG exports economically attractive at current global prices. Additionally, the extent to which Beach can deploy its strengthened balance sheet for accretive acquisitions or accelerated projects will be closely watched by shareholders seeking growth beyond organic fields. The announcement is price sensitive and has been classified as a material announcement by the ASX.
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.
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