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Beach Energy Limited (AU:BPT)
:BPT

Beach Energy (BPT) AI Stock Analysis

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AU:BPT

Beach Energy

(OTC:BPT)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
AU$1.00
▼(-13.04% Downside)
Beach Energy's overall stock score reflects a mixed financial performance with strong revenue growth but profitability challenges. The earnings call provided positive guidance and highlighted operational efficiencies, which are promising. However, technical indicators suggest a bearish trend, and valuation metrics indicate concerns with a negative P/E ratio.
Positive Factors
Revenue Growth
Strong revenue growth reflects effective market strategies and increased demand, positioning Beach Energy for sustained financial performance.
Operational Efficiency
Operational efficiencies and cost reductions enhance profitability and competitiveness, supporting long-term financial health.
East Coast Gas Market Leadership
Dominant market position in the East Coast gas market strengthens Beach Energy's strategic influence and revenue potential.
Negative Factors
Profitability Challenges
Ongoing profitability challenges indicate operational inefficiencies, which may hinder financial stability and growth prospects.
Noncash Impairments
Significant impairments reflect asset valuation concerns and potential future earnings pressure, impacting financial resilience.
Reserves Revision
Reserves revision may affect future production capacity and revenue, posing a risk to long-term resource availability and growth.

Beach Energy (BPT) vs. iShares MSCI Australia ETF (EWA)

Beach Energy Business Overview & Revenue Model

Company DescriptionBeach Energy Limited operates as an oil and gas exploration and production company. It engages in the operated and non-operated, onshore and offshore, and oil and gas production in five producing basins across Australia and New Zealand. The company also explores, develops, produces, and transports hydrocarbons; and sells gas and liquid hydrocarbons. As of June 30, 2022, it had a production capacity of 21.8 million barrels of oil equivalent; and 283 million barrels of oil equivalent of proved and probable reserves. The company was formerly known as Beach Petroleum Limited and changed its name to Beach Energy Limited in December 2009. Beach Energy Limited was incorporated in 1961 and is headquartered in Adelaide, Australia.
How the Company Makes MoneyBeach Energy generates revenue primarily through the exploration, production, and sale of oil and natural gas. Its main revenue streams include the sale of crude oil, natural gas, and gas liquids to domestic and international markets. The company has established contracts with various customers, including utility companies and industrial users, which provide a stable revenue base. Additionally, Beach Energy benefits from partnerships and joint ventures with other energy companies, which allow for shared resources and expertise in exploration and production. The company also engages in hedging strategies to mitigate the risks associated with fluctuating commodity prices, thereby contributing to its financial stability and profitability.

Beach Energy Earnings Call Summary

Earnings Call Date:Aug 03, 2025
(Q4-2025)
|
Next Earnings Date:Feb 16, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant increases in production, revenue, and dividends, positioning Beach Energy as a leader in the East Coast gas market. However, the company faced challenges with noncash impairments, reserve revisions, and flooding impacts.
Q4-2025 Updates
Positive Updates
Strong Financial Performance
Total production increased by 9% to 19.7 million barrels of oil equivalent, sales volumes rose 16% to 24.7 million barrels of oil equivalent, and sales revenue increased by 13% to $2 billion. Underlying EBITDA increased by 20% to $1.1 billion, and underlying NPAT increased by 32% to $451 million.
Record Dividend
The Board declared a record final dividend of $0.06 per share, bringing the total dividends declared for the year to $0.09 per share, representing a 31% pre-growth free cash flow payout ratio.
East Coast Gas Market Leadership
Beach's operated assets and nonoperated interests now supply 19% of the entire East Coast domestic gas market, with East Coast gas production increasing by 23% in FY '25.
Operational Efficiency and Cost Reduction
The company achieved $130 million in cost reductions, a 20% reduction in sustaining capital, and an 18% unit operating cost reduction.
Moomba CCS Project Success
The Moomba CCS project is successfully storing CO2, abating more than 1 million tonnes, equivalent to removing roughly 400,000 cars from Australian roads.
Negative Updates
Noncash Impairments
The company recorded a $474 million post-tax impairment of its Cooper Basin and Perth Basin carrying values, driven by a lower near-term commodity price outlook and cost inflation.
Reserves Revision at Beharra Springs
A disappointing reserves revision at Beharra Springs due to unexpected partial communication across a more significant fault block, leading to a reduction in reserves.
Impact of Flooding in Cooper Basin
Severe flooding in the Cooper Basin late in the financial year partially offset good production outcomes, affecting production and capital activities.
Company Guidance
During the Beach Energy FY '25 Full Year Results Call, guidance for FY '26 was outlined with several key metrics highlighted. Production for FY '26 is expected to be between 19.7 million and 22 million barrels of oil equivalent, with variation driven by the timing of Waitsia's start-up, Cooper Basin flooding impacts, and customer nominations in the Otway Basin. The company has set an ambitious target to reduce its pre-growth free cash flow breakeven oil price to well below $30 a barrel. Beach Energy aims to sustain its low-cost operations, targeting a unit operating cost of $11 per barrel of oil equivalent. The company also declared a record dividend of $0.06 per share, bringing the total for the year to $0.09 per share, reflecting a 31% pre-growth free cash flow payout ratio. For FY '26, capital and abandonment expenditure is guided between $675 million and $775 million, with significant investment in the Equinox rig campaign. The guidance reflects Beach Energy's strategic focus on operational efficiencies, maintaining financial flexibility, and pursuing both organic and opportunistic growth.

Beach Energy Financial Statement Overview

Summary
Beach Energy shows a mixed financial performance. While revenue growth and cash flow generation are strong, profitability remains a concern with negative net income and EBIT margins. The balance sheet is stable with moderate leverage, but the company needs to address its operational inefficiencies to improve overall financial health.
Income Statement
55
Neutral
The company has shown a positive revenue growth rate of 11.59% in the latest year, indicating a strong top-line performance. However, the negative EBIT and net income margins reflect operational challenges and profitability issues. The gross profit margin remains healthy, but the decline in EBIT and EBITDA margins suggests increasing costs or inefficiencies.
Balance Sheet
65
Positive
The balance sheet shows a moderate debt-to-equity ratio, indicating a manageable level of leverage. The equity ratio is strong, suggesting a solid capital structure. However, the return on equity has been negative, reflecting the company's recent profitability challenges.
Cash Flow
70
Positive
The company has demonstrated a significant improvement in free cash flow growth, which is a positive indicator of cash generation capability. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion. However, the free cash flow to net income ratio remains negative, highlighting ongoing profitability issues.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.11B2.11B1.77B1.62B1.75B1.56B
Gross Profit676.60M1.13B481.40M569.10M761.10M594.90M
EBITDA394.40M439.80M-593.90M609.40M736.30M876.00M
Net Income-43.80M-43.80M-475.30M400.80M500.80M316.50M
Balance Sheet
Total Assets5.28B5.28B5.50B5.89B5.10B5.01B
Cash, Cash Equivalents and Short-Term Investments172.20M172.20M172.00M218.90M254.50M126.70M
Total Debt571.50M571.50M794.70M408.50M120.30M277.10M
Total Liabilities2.12B2.12B2.19B2.02B1.56B1.93B
Stockholders Equity3.16B3.16B3.31B3.88B3.54B3.09B
Cash Flow
Free Cash Flow382.80M339.90M-318.90M-242.00M310.40M86.20M
Operating Cash Flow1.13B1.13B774.10M928.60M1.22B759.80M
Investing Cash Flow-792.10M-792.10M-1.08B-1.17B-897.80M-757.80M
Financing Cash Flow-340.30M-340.30M260.60M205.50M-199.50M21.00M

Beach Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.15
Price Trends
50DMA
1.20
Negative
100DMA
1.19
Negative
200DMA
1.22
Negative
Market Momentum
MACD
-0.02
Positive
RSI
36.49
Neutral
STOCH
24.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BPT, the sentiment is Negative. The current price of 1.15 is below the 20-day moving average (MA) of 1.19, below the 50-day MA of 1.20, and below the 200-day MA of 1.22, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.49 is Neutral, neither overbought nor oversold. The STOCH value of 24.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BPT.

Beach Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
AU$48.52B10.588.51%6.74%17.13%61.35%
67
Neutral
$1.18B5.8713.85%4.58%-17.02%-35.47%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
65
Neutral
$20.38B12.896.59%5.85%-5.81%-17.90%
60
Neutral
AU$2.62B-1.02%7.79%17.16%90.79%
45
Neutral
AU$413.93M-2.09-42.02%59.48%-1714.71%
35
Underperform
AU$754.78M-9.79-14.41%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BPT
Beach Energy
1.15
-0.11
-8.59%
AU:KAR
Karoon Energy Ltd
1.62
0.28
21.25%
AU:STO
Santos Limited
6.26
0.11
1.81%
AU:STX
Strike Energy Limited
0.11
-0.09
-45.00%
AU:TBN
Tamboran Resources Limited
0.20
0.07
53.85%
AU:WDS
Woodside Energy Group
24.73
2.49
11.20%

Beach Energy Corporate Events

Mitsubishi UFJ Financial Group Ceases Substantial Holding in Beach Energy
Dec 5, 2025

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in Beach Energy Limited as of December 5, 2025. This change in substantial holding is due to a series of transactions involving the sale and purchase of securities by entities controlled by First Sentier Group Limited and Morgan Stanley, affecting the voting securities of Beach Energy.

First Sentier Group Ceases Substantial Holding in Beach Energy
Dec 4, 2025

Beach Energy has announced that First Sentier Group Limited and its related bodies corporate have ceased to be substantial holders in the company as of December 2, 2025. This change in substantial holding could impact Beach Energy’s shareholder structure and influence its market dynamics, potentially affecting investor confidence and the company’s strategic decisions moving forward.

Beach Energy Director Increases Shareholding
Nov 14, 2025

Beach Energy Limited has announced a change in the director’s interest, with Sally-Anne Georgina Layman acquiring an additional 41,500 fully paid ordinary shares through an on-market purchase. This change reflects a significant increase in her indirect shareholding, now totaling 86,500 shares, which may indicate confidence in the company’s future performance and could impact stakeholder perceptions positively.

Beach Energy Announces AGM Results for 2025
Nov 12, 2025

Beach Energy Limited announced the results of its Annual General Meeting held on November 12, 2025. The meeting’s outcomes, which were in accordance with relevant corporate regulations, could influence the company’s strategic direction and stakeholder relations, impacting its position in the energy industry.

Beach Energy’s Waitsia Gas Plant Ready for Production
Nov 6, 2025

Beach Energy has announced that the Waitsia Gas Plant has reached the Ready For Start Up milestone, transitioning from construction to production operations. This development is crucial for the Western Australia gas market, with the plant having a nameplate capacity of 250 TJ/day. The project, a joint venture with Mitsui E&P Australia, is expected to begin exporting sales gas within two weeks, with production ramping up to near full capacity over the next four months. The involvement of Beach’s senior personnel was instrumental in achieving this milestone and mitigating delays.

Beach Energy Reports Strong Start to FY26 with Increased Production and Revenue
Oct 19, 2025

Beach Energy Limited reported an 8% increase in production for the first quarter of FY26, driven by higher demand and recovery efforts in the Cooper Basin. Sales volumes rose by 15% and sales revenue by 18%, reaching $537 million, supported by the lifting of two Waitsia LNG cargoes. The company is nearing the start-up of the Waitsia Gas Plant, with critical systems mostly commissioned. Beach Energy continues to play a vital role in Australia’s energy landscape by supplying 100% of its East Coast gas production to the domestic market, amid ongoing national gas market reviews.

Beach Energy Announces Cessation of Securities Due to Unmet Conditions
Oct 8, 2025

Beach Energy Limited announced the cessation of certain securities due to unmet conditions. Specifically, 14,338 matched rights and 567,673 performance rights have lapsed as the conditions for these securities were not satisfied by the end of September 2025. This announcement reflects a potential impact on the company’s capital structure and may influence stakeholder perceptions regarding the company’s operational performance and strategic execution.

Beach Energy Issues New Performance Rights to Employees
Oct 8, 2025

Beach Energy Limited has announced the issuance of 903,240 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s strategy to incentivize and retain key personnel, potentially impacting its operational efficiency and market positioning.

Mitsubishi UFJ Financial Group Adjusts Stake in Beach Energy
Oct 2, 2025

Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder in Beach Energy Limited, following a series of transactions involving the purchase of securities by an entity controlled by Morgan Stanley. This change in substantial holding could impact Beach Energy’s shareholder dynamics and influence its market perception, as Mitsubishi UFJ Financial Group adjusts its investment strategy.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025