Beach Energy (BCHEY) AI Stock Analysis

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Beach Energy

(OTC:BCHEY)

Rating:60Neutral

Price Target:

$17.50

▼(-1.74%Downside)

Beach Energy's overall stock score is driven by significant operational improvements and a positive earnings call, despite financial challenges. The technical analysis and valuation suggest moderate optimism, while the absence of major corporate events leaves these factors as the primary drivers.

Beach Energy (BCHEY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.02B

Dividend Yield3.47%

Average Volume (3M)0.00

Price to Earnings (P/E)33.2

Beta (1Y)0.79

Revenue Growth5.88%

EPS GrowthN/A

CountryUS

EmployeesN/A

SectorEnergy

Sector Strength44

IndustryOil & Gas Exploration & Production

Share Statistics

EPS (TTM)1.30

Shares Outstanding114,066,680

10 Day Avg. Volume0

30 Day Avg. Volume0

Financial Highlights & Ratios

PEG Ratio0.28

Price to Book (P/B)0.89

Price to Sales (P/S)0.00

P/FCF Ratio17.24

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$17.50

Price Target Upside-1.74% Downside

Rating ConsensusHold

Number of Analyst Covering0

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 makes money through the exploration, development, and production of oil and natural gas. Its primary revenue streams include the sale of crude oil, natural gas, and natural gas liquids. The company engages in both upstream and midstream activities, which involve extracting resources from its reserves and transporting them to market. Significant partnerships with other energy companies and participation in joint ventures enhance its operational capabilities and market reach. Beach Energy's earnings are influenced by global oil and gas prices, production volumes, and operational efficiency. Additionally, the company may generate revenue from the sale of non-core assets and through strategic acquisitions that expand its resource base.

Beach Energy Earnings Call Summary

Earnings Call Date:Feb 05, 2025

(Q2-2025)

% Change Since: -4.96%|

Next Earnings Date:Aug 11, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant production growth, cost reductions, and strong financial performance, with notable environmental achievements. However, challenges were noted in the commissioning of the Waitsia Gas Plant and a recordable injury incident. Overall, the positive achievements and financial metrics outweigh the challenges.

Q2-2025 Updates

Positive Updates

Production Growth and Cost Reduction

Beach Energy reported a 15% increase in production and a 20% reduction in unit field operating costs. These achievements were driven by higher production in the Otway and Bass Basins, and successful cost-out initiatives.

Strong Financial Performance

The company recorded a 20% increase in underlying EBITDA to $587 million and a 37% increase in underlying NPAT to $237 million. Operating cash flow increased by 88% to $659 million.

Successful LNG Cargoes and Revenue Growth

Beach Energy lifted two LNG cargoes in the first half, contributing $139 million to revenue and supporting a 5% increase in total sales revenue to approximately $1 billion.

Environmental and Safety Achievements

The company reported no Tier 1 or Tier 2 process safety events and no significant environmental spills. The Moomba CCS project exceeded expectations, contributing to emissions reduction equivalent to taking 700,000 cars off the road annually.

Negative Updates

Challenges in Waitsia Gas Plant Commissioning

Delays were experienced due to quality issues at the valve station, which affected the timeline for introducing fuel gas into the plant. Despite these challenges, the first sales gas target remains in the first quarter of FY 2025.

Recordable Injury

The company experienced one recordable injury over the Christmas period, ending a 12-month run of being recordable injury-free.

Company Guidance

During the Beach Energy Limited FY 2025 Half Year Results call, significant financial metrics and operational achievements were highlighted. Beach Energy reported a 15% increase in production and a 37% rise in underlying NPAT to $237 million. Sales revenue grew by 5% to approximately $1 billion, driven by strong production and strategic LNG swaps. The company achieved a 20% reduction in field operating costs, contributing to a 20% rise in underlying EBITDA to $587 million. Cash flow improved significantly, with pre-growth free cash flow increasing tenfold to $431 million. The company's liquidity strengthened to $631 million, and net gearing was reduced to 10%. A $0.03 per share fully franked interim dividend was declared. The strategic review led to a 32% headcount reduction, surpassing the target of 30%. Key projects included the completion of the Thylacine West wells, Moomba CCS commissioning, and the success of wellbore descaling in the Bass Basin, which increased gas production from 9 to over 25 terajoules per day.

Beach Energy Financial Statement Overview

Summary

Beach Energy is facing financial challenges with inconsistent revenue growth, negative EBIT and EBITDA, and a net loss impacting shareholder returns. The equity base remains strong, but increased leverage and negative free cash flow indicate financial pressures.

Income Statement

Neutral

Beach Energy's income statement shows declining financial performance. The revenue growth has been inconsistent, with a notable decline this year. The company reported a negative EBIT and EBITDA, indicating operational challenges. The net profit margin turned negative in the latest year, reflecting a significant loss compared to previous profits.

Balance Sheet

Neutral

The balance sheet of Beach Energy indicates a mixed situation. The equity ratio remains strong, suggesting a solid equity base relative to total assets. However, the debt-to-equity ratio has increased, pointing towards rising leverage. Return on equity has turned negative due to the net loss, impacting shareholder returns.

Cash Flow

Neutral

Beach Energy's cash flow statement highlights significant pressure. The operating cash flow remains positive but has decreased, while free cash flow is negative due to high capital expenditures. This leads to a negative free cash flow to net income ratio, raising concerns about cash generation relative to earnings.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.77B	1.62B	1.75B	1.52B	1.65B
Gross Profit	481.40M	569.10M	761.10M	564.90M	611.40M
EBITDA	-593.90M	609.40M	747.80M	464.60M	733.50M
Net Income	-475.30M	400.80M	500.80M	316.50M	500.80M
Balance Sheet
Total Assets	5.50B	5.89B	5.10B	4.68B	4.22B
Cash, Cash Equivalents and Short-Term Investments	172.00M	218.90M	254.50M	126.70M	109.90M
Total Debt	794.70M	408.50M	120.30M	277.10M	118.80M
Total Liabilities	2.19B	2.02B	1.56B	1.59B	1.40B
Stockholders Equity	3.31B	3.88B	3.54B	3.09B	2.82B
Cash Flow
Free Cash Flow	-318.90M	-242.00M	310.40M	86.20M	-46.20M
Operating Cash Flow	774.10M	928.60M	1.22B	759.80M	873.90M
Investing Cash Flow	-1.08B	-1.17B	-897.80M	-757.80M	-899.20M
Financing Cash Flow	260.60M	205.50M	-199.50M	21.00M	-39.40M

Beach Energy Technical Analysis

Technical Analysis Sentiment

Positive

Last Price17.81

Price Trends

50DMA

17.17

Positive

100DMA

16.85

Positive

200DMA

16.91

Positive

Market Momentum

MACD

0.19

Positive

RSI

57.19

Neutral

STOCH

54.09

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCHEY, the sentiment is Positive. The current price of 17.81 is above the 20-day moving average (MA) of 17.54, above the 50-day MA of 17.17, and above the 200-day MA of 16.91, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 54.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCHEY.

Beach Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (44)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCHEY	60 Neutral	$2.02B	33.16	2.70%	3.47%	5.88%	―
Sector *	44 Neutral	AU$1.42B	-7.08	-23.02%	7.05%	5.33%	-26.92%
NEXT	―	$3.13B	―	-43.50%	―	―	―
MNR	77 Outperform	$1.74B	9.22	12.64%	24.08%	―	―
TALO	69 Neutral	$1.52B	59.57	0.95%	―	31.40%	92.89%
CRGY	58 Neutral	$2.78B	23.27	-3.54%	6.87%	31.58%	-114.70%
BKV	49 Neutral	$1.88B	―	-13.36%	―	2.24%	-918.36%

* Energy Sector Average

Performance Comparison

BCHEY

Beach Energy

17.81

-1.69

-8.67%

NextDecade

12.00

3.95

49.07%

TALO

Talos Energy

8.50

-3.46

-28.93%

CRGY

Crescent Energy Company Class A

8.73

-2.89

-24.87%

MNR

Mach Natural Resources LP

14.70

-1.62

-9.93%

BKV

BKV Corporation

22.14

4.09

22.66%

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: Jun 14, 2025