Beach Energy delivered quarterly production of 4.9 million barrels of oil equivalent in the June quarter, capping full year FY26 output of 19.4 MMboe while advancing what appears to be a carefully sequenced portfolio reset. The quarter’s highlight was continued ramp-up of the Waitsia Gas Plant in the Perth Basin, which grew 15% quarter-on-quarter and reached a peak production rate of 250 terajoules per day despite compressor performance constraints. This production acceleration matters because it demonstrates Beach has a material near-term growth engine independent of additional capital intensity, potentially reshaping expectations around future cash generation.
Operationally, the company reported $400 million in sales revenue from 4.8 MMboe sold in the quarter, benefiting from a 39% increase in the average realised oil price to $174 per barrel while gas prices held relatively flat at $11.1 per gigajoule. A single liquefied natural gas cargo contributed $56 million at a realised price of $14.8 per million British thermal units. The balance sheet remains robust with available liquidity of $983 million and net gearing of just 10.6%, providing flexibility for the capital management framework review the company indicated is underway.
More strategically, Beach optimised its Otway portfolio through the sale of its operated interest in VIC/L35, which includes the Artisan discovery. The deal structure is noteworthy: a $70 million upfront payment plus a production royalty of $3.75 per gigajoule on production up to 62 petajoules. Beach estimates an implied transaction value of approximately $130 million after tax while freeing up $500 million in near-term capital for redeployment. This move suggests management confidence in higher-return opportunities elsewhere while demonstrating fiscal discipline at a time when commodity prices remain volatile.
Drilling execution remained strong across the portfolio. The company completed three wells on the Western Flank 100% successfully and achieved a 93% success rate across 15 wells in the Cooper Basin joint venture campaign, including two gas discoveries. The quad-lateral Bauer 70 well exemplifies Beach’s efficiency focus, accessing four reservoir targets from a single wellbore at approximately half the cost of conventional dual-lateral completion while targeting around 450 barrels of oil per day. The company also reported a record 18 months recordable-injury free with zero Tier 1 or 2 process safety events in the quarter, achieving a total recordable injury frequency rate of 0.0 for the full financial year.
Full year FY26 results are scheduled for 6 August 2026. This announcement is price sensitive and has been flagged as material by the ASX.
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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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