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Beach Energy (BCHEY)
OTHER OTC:BCHEY
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Beach Energy
(OTC:BCHEY)
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Rating:59Neutral
Price Target:
$18.50
▲(29.01% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by mixed financial performance—strong revenue growth and low leverage, but weak profitability and pressured free cash flow trends. Technicals are supportive with the stock above major moving averages and positive MACD, though momentum is close to overextended. Valuation is helped by the high dividend yield but clouded by negative earnings (negative P/E). Earnings call tone was constructive with guidance maintained and strong balance-sheet flexibility, tempered by execution and capex risks.
Positive Factors
Strong liquidity & low leverage
Beach's large available liquidity and low net gearing provide durable financial flexibility to fund waitsia ramp-up, capital programmes and potential opportunistic M&A without immediate refinancing pressure. This reduces execution risk over the next 2–6 months and supports disciplined capital allocation.
Top-line growth and gross margin improvement
Sustained revenue expansion with a materially improved gross margin shows the business is capturing stronger netbacks and scaling operations. Over the medium term this supports operating leverage and resilience to commodity price swings if volume and cost discipline are maintained.
Waitsia ramp-up & stronger gas pricing
Waitsia commissioning, early cargo deliveries and higher realized gas prices are structural positives: they diversify sales, increase contracted and spot gas revenue, and create long-term production capacity that can underpin cash generation as the plant reaches nameplate throughput.
Negative Factors
Negative profitability metrics
Despite revenue gains, persistent negative EBIT/net margins and a negative ROE indicate the company struggles to convert sales into sustainable profits. Over months this impairs retained earnings, limits shareholder returns and raises sensitivity to cost or price shocks.
Capex intensity and weak free cash flow growth
High near-term capital guidance alongside negative FCF growth signals pressure on free cash conversion as Beach invests to expand production. This structural capex intensity may constrain discretionary spending, dividends or buybacks and elevate sensitivity to execution delays or cost overruns.
Exploration, connection timing and regulatory risk
A failed exploration well, pending FIDs for offshore tie-ins and an active government gas market review create lasting project timing and policy risk. These factors can delay monetisation of discoveries, raise development costs and reduce visibility on future domestic pricing and investment incentives.
Beach Energy (BCHEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.77B
Dividend Yield5.98%
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth15.80%
EPS Growth92.97%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.33
Shares Outstanding114,066,680
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.76
Price to Book (P/B)0.96
Price to Sales (P/S)1.43
P/FCF Ratio8.88
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit5.59
Enterprise Value/Ebitda10.55
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.99
Revenue Forecast (FY)$1.31B
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 production and sale of crude oil and natural gas. The company sells its hydrocarbons to domestic and international markets, with key revenue streams coming from the direct sale of crude oil, natural gas, and liquefied natural gas (LNG). Additionally, Beach Energy benefits from long-term contracts and pricing arrangements that provide stable cash flow. Partnerships with other energy companies and joint ventures in exploration projects further contribute to its earnings. Market factors such as oil and gas prices, production levels, and operational efficiency play significant roles in influencing the company's financial performance.
Beach Energy Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
Positive overall: the company reported solid underlying cash generation, strong safety performance, successful commissioning of Waitsia with ongoing ramp-up, a meaningful uplift in realized gas prices (+13% H1; +30% over two years), early drilling success in the Western Flank, strong liquidity (AUD 925m) and low gearing (12%). These positives offset headwinds including H1 production impacts from FY'25 flooding, an unsuccessful Hercules exploration well (expensed), a softer oil price (realized oil -12%), and ramp-up/overlift accounting complexities tied to Waitsia. Management maintained FY'26 guidance and is prioritizing disciplined capital deployment and targeted growth while retaining flexibility on dividends.Q2-2026 Updates
Positive Updates
Waitsia First Gas and Ramp-Up Progress
First gas achieved at Waitsia gas plant in early December; 2 compressors commissioned and plant has reached peak rates of 165 TJ/day to date (nameplate 250 TJ/day). Third compressor expected to commence commissioning in coming weeks; ramp-up expected over ~3-4 months.
LNG Cargoes and Upfront Revenue from Waitsia-related Activity
Delivered 4 Waitsia-related LNG cargoes during the half generating ~AUD 233 million (H1) and referenced total of 11 cargoes and ~AUD 740 million in revenue ahead of Waitsia first gas across earlier activity.
Gas Marketing & Realized Price Improvement
Sold >15 PJ of gas into spot and short-term markets; realized gas price rose 13% versus prior corresponding period to AUD 11.80/GJ, and is over 30% higher versus two years ago due to diversified marketing and recontracting.
Safety and Operational Execution
No Tier 1 or 2 process safety events and over 12 months recordable injury-free at all operated sites despite a 43% increase in man-hours and field complexity half-on-half; operated facilities >99% reliability in the half.
Western Flank Early Drilling Success
12-well appraisal and development program commenced with early success: 100% success on first 6 wells; Callawonga 26 brought online 33 days after rig release; rig campaign operating more efficiently (20% less man-hours vs comparable FY24 rig, 60% reduction in Beach personnel).
Strong Liquidity and Low Leverage
Secured refinancing and a new AUD 300 million Asian term loan, lifting available liquidity to AUD 925 million; closing cash reserves AUD 235 million and net gearing of 12% at period end.
Solid Financial and Cash Generation
Delivered total revenue of ~AUD 1.0 billion (sales revenue ~AUD 982 million), underlying EBITDA AUD 558 million and free cash flow generation of AUD 225 million; operating cash flow of AUD 442 million in the half.
Cost Discipline and Unit Operating Cost Improvement
Field operating costs were 8% lower than the prior corresponding period; operated assets delivered a unit operating cost of AUD 10 per boe for the half.
Cooper Basin Flood Recovery
Restored 97% of Cooper Basin flood-impacted production by the end of the December quarter, supporting second-half performance.
Moomba CCS Performance and Emissions Progress
Moomba CCS exceeded 12 months operation, safely storing over 1.5 million tonnes CO2 since startup and Beach received >300,000 ACCUs for FY25, supporting the target of 35% equity emissions intensity reduction by 2030.
Maintained FY'26 Guidance and Capital Discipline
Production guidance maintained at 19.7–22.5 mmboe for FY'26; FY'26 capital expenditure guidance maintained at AUD 675–775 million and sustaining capex guidance below AUD 450 million.
Balanced Capital Management — Dividend Declared
Board declared an interim dividend of AUD 0.01 per share while signalling a full-year dividend policy will be revisited at year-end as capital activity steps up in H2.
Negative Updates
H1 Production Impacted by Cooper Basin Flooding
H1 production of 9.5 million barrels of oil equivalent was largely impacted by the FY'25 Cooper Basin flood event (97% restored by end-December); production lower relative to prior period as a result.
Profit and Earnings Declines
Underlying EBITDA of AUD 558 million and underlying NPAT of AUD 219 million were down 5% and 8% respectively versus prior corresponding period; statutory earnings further impacted by expensing of an unsuccessful exploration well and costs related to unutilized NW Shelf processing capacity.
Unsuccessful Hercules Exploration Well
Hercules exploration well (offshore Victoria) failed to intercept hydrocarbons and was expensed, negatively affecting statutory results and reducing near-term upside from that prospect.
Waitsia Ramp-Up Operational Issues and Partial Overlift Complexity
Minor operational issues during ramp-up (cleanliness/strainer swaps and some vibration issues) have constrained immediate production to 165 TJ/day versus 250 TJ/day nameplate; overlift/purchased cargo accounting is complex with return profiles phased through to FY'29 (~70% cargoes delivered via swaps/purchases, ~30% Xyris production).
Realized Oil Price Weakness
Average realized oil price fell ~12% versus prior corresponding period to AUD 110/boe, contributing to lower earnings compared with the prior period.
Higher Cost of Sales for Cargo Deliveries
Higher cost of sales including third-party purchases, tolling and inventory movements to facilitate the four LNG cargoes increased costs during the half.
Near-Term Capital Intensity and Connection Costs Uncertainty
Significant upcoming capital activity in H2 and potential connection costs for La Bella and Artisan estimated in the AUD 300–400 million range (not yet finalized) plus inlet compression for Waitsia forecast circa AUD 100 million — these could pressure near-term capex if sanctioned.
Regulatory and Market Uncertainty — East Coast Gas Review
Ongoing government gas market review (potential reservation policy) introduces regulatory uncertainty which could affect future pricing and investment incentives; Beach emphasizes need for support and streamlined approvals for domestic-focused producers.
Offshore Exploration & Timing Risk
Offshore exploration is costly and higher-risk; decisions on connecting offshore discoveries (e.g., Artisan/La Bella) remain pending and final investment decisions may be affected by recent Hercules outcome and cost/scale considerations.
Dividend Prudence Reflects Capital Prioritization
Interim dividend of AUD 0.01 indicates the Board is prioritizing balance-sheet strength and funding of growth (including potential M&A) over higher near-term payouts; full-year payout remains to be determined.
Company Guidance
Beach maintained FY‑26 guidance of 19.7–22.5 million boe production, total capital expenditure of $675–$775 million and sustaining capex below $450 million; H1 metrics included 9.5 million boe production, 12.7 million boe sales, underlying EBITDA $558m, underlying NPAT $219m, free cash flow $225m and H1 capex $377m. Waitsia ramp‑up remains a key priority: nameplate 250 TJ/day (~20% of WA domestic demand), peak to date 165 TJ/day with two compressors online, third/fourth due in Q3 and a 3–4 month ramp expectation; H1 delivered four Waitsia LNG cargoes, >15 PJ sold into spot/short‑term markets and realized gas price rose to $11.80/GJ (up 13% H1, ~30% over two years). Balance sheet supports the plan with $925m available liquidity, $235m cash, $442m operating cash flow and 12% net gearing, and the Board declared an interim dividend of A$0.01/share. H2 priorities include Phase 2 Equinox (Thylacine intervention, La Bella 2 drill & Artisan completion) with FID targeted on Artisan/La Bella in H2 and production targeted for FY‑29, continued Western Flank drilling (12‑well appraisal/development—with 100% success in first six wells—followed by a 10‑well exploration campaign), while sustainability progress includes Moomba CCS >1.5 Mt CO2 stored and >300k ACCUs in FY‑25 toward a 35% equity emissions‑intensity reduction by 2030.Beach Energy Financial Statement Overview
Summary
Strong revenue growth (+17.16%) and improved gross margin (53.63%) are positives, and leverage is conservative (debt-to-equity 0.18). Offsetting this, profitability is weak with negative net/EBIT margins and negative ROE, and free cash flow growth is negative despite solid operating cash generation.Income Statement
Beach Energy's income statement reveals a mixed performance. The company experienced a significant revenue growth rate of 17.16% in the latest year, indicating strong top-line growth. However, profitability metrics such as the net profit margin and EBIT margin are negative, reflecting operational challenges and potential inefficiencies. The gross profit margin improved to 53.63%, suggesting better cost management. Overall, while revenue growth is promising, the negative profit margins highlight underlying profitability issues.45
Neutral
Balance Sheet
The balance sheet of Beach Energy shows a relatively stable financial position. The debt-to-equity ratio is low at 0.18, indicating conservative leverage and a strong equity base. However, the return on equity is negative, reflecting recent losses and impacting shareholder returns. The equity ratio stands at a healthy level, suggesting a solid capital structure. While the company maintains a strong balance sheet, the negative ROE points to challenges in generating returns on equity.60
Neutral
Cash Flow
Beach Energy's cash flow statement presents a mixed picture. Operating cash flow is robust, with a strong operating cash flow to net income ratio of 1.17, indicating efficient cash generation from operations. However, free cash flow growth is negative, and the free cash flow to net income ratio is relatively low, suggesting challenges in converting earnings into free cash flow. While operational cash flow remains strong, the negative free cash flow growth highlights potential cash flow management issues.50
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.08B | 2.11B | 1.77B | 1.62B | 1.75B | 1.52B |
| Gross Profit | 534.38M | 1.13B | 481.40M | 569.10M | 761.10M | 564.90M |
| EBITDA | 283.17M | 439.80M | -593.90M | 1.04B | 747.80M | 464.60M |
| Net Income | -118.66M | -43.80M | -475.30M | 400.80M | 500.80M | 316.50M |
Balance Sheet | ||||||
| Total Assets | 5.41B | 5.28B | 5.50B | 5.89B | 5.10B | 4.68B |
| Cash, Cash Equivalents and Short-Term Investments | 234.97M | 172.20M | 172.00M | 218.90M | 254.50M | 126.70M |
| Total Debt | 724.68M | 571.50M | 794.70M | 408.50M | 120.30M | 277.10M |
| Total Liabilities | 2.25B | 2.12B | 2.19B | 2.02B | 1.56B | 1.59B |
| Stockholders Equity | 3.17B | 3.16B | 3.31B | 3.88B | 3.54B | 3.09B |
Cash Flow | ||||||
| Free Cash Flow | 281.11M | 339.90M | -318.90M | -242.00M | 310.40M | 86.20M |
| Operating Cash Flow | 907.78M | 1.13B | 774.10M | 928.60M | 1.22B | 759.80M |
| Investing Cash Flow | -747.12M | -792.10M | -1.08B | -1.17B | -897.80M | -757.80M |
| Financing Cash Flow | -176.05M | -340.30M | 260.60M | 205.50M | -199.50M | 21.00M |
Beach Energy Technical Analysis
Negative
14.34
Price Trends
15.75
Negative
15.72
Negative
15.89
Negative
Market Momentum
-0.13
Positive
43.28
Neutral
32.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCHEY, the sentiment is Negative. The current price of 14.34 is below the 20-day moving average (MA) of 16.15, below the 50-day MA of 15.75, and below the 200-day MA of 15.89, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 32.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCHEY.
Beach Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.19B | 13.56 | 6.68% | 17.48% | 9.33% | ― | |
73 Outperform | $1.75B | 23.24 | 4.73% | 13.84% | -2.71% | -113.80% | |
70 Outperform | $2.68B | 70.74 | 1.74% | 8.18% | 1.51% | -78.38% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $2.06B | -4.30 | -20.06% | ― | -0.02% | -473.61% | |
61 Neutral | $3.04B | 16.08 | 9.58% | ― | 31.67% | ― | |
59 Neutral | $1.77B | -25.28 | -1.02% | 5.98% | 15.80% | 92.97% |
* Energy Sector Average
BCHEY
Beach Energy
15.61
-1.35
-7.97%
NOG
Northern Oil And Gas
27.59
1.02
3.84%
KRP
Kimbell Royalty Partners
14.34
1.17
8.88%
TALO
Talos Energy
12.25
3.90
46.71%
MNR
Mach Natural Resources LP
13.02
0.52
4.14%
BKV
BKV Corporation
31.33
11.93
61.49%
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.