Beach Energy (BCHEY)
OTHER OTC:BCHEY
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Beach Energy
(OTC:BCHEY)
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Rating:59Neutral
Price Target:
$19.00
▲(32.50% 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
Revenue & Margin Improvement
Consistent top-line growth and a materially higher gross margin indicate Beach is scaling production while improving unit economics. Paired with robust operating cash flow (AUD 442m H1), this underpins sustainable cash generation and operational resilience across commodity cycles over the next several months.
Negative Factors
Negative Profitability
Despite revenue gains, negative EBIT and net margins and a negative ROE show the company struggles to convert sales into sustainable returns. Persistent unprofitable operations reduce reinvestment capacity, constrain shareholder distributions and limit long‑term value creation unless margins recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Improvement
Consistent top-line growth and a materially higher gross margin indicate Beach is scaling production while improving unit economics. Paired with robust operating cash flow (AUD 442m H1), this underpins sustainable cash generation and operational resilience across commodity cycles over the next several months.
Read all positive factors
Beach Energy (BCHEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.09B
Dividend Yield5.98%
Average Volume (3M)0.00
Price to Earnings (P/E)4.5
Beta (1Y)0.97
Revenue Growth15.80%
EPS Growth92.97%
CountryUS
Employees455
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 Cap1.55
Enterprise Value/Revenue1.55
Enterprise Value/Gross Profit6.06
Enterprise Value/Ebitda11.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.33
Revenue Forecast (FY)$1.38B
Beach Energy Business Overview & Revenue Model
Company Description
Beach 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 compan...
How the Company Makes Money
Beach Energy primarily makes money by selling hydrocarbons it produces from its upstream oil and gas fields. Its main revenue stream is the sale of natural gas (often under longer-term gas supply agreements or other contracted arrangements) and li...
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.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.
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.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
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
Positive
14.34
Price Trends
16.59
Positive
16.03
Positive
15.89
Positive
Market Momentum
0.49
Negative
62.48
Neutral
61.37
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 14.34 is below the 20-day moving average (MA) of 17.34, below the 50-day MA of 16.59, and below the 200-day MA of 15.89, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 61.37 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.84B | 11.74 | 12.05% | 13.84% | -2.71% | -113.80% | |
68 Neutral | $2.12B | 10.15 | 8.09% | 17.48% | 9.33% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $3.09B | 54.12 | 1.69% | 8.18% | 1.51% | -78.38% | |
65 Neutral | $2.72B | -2.36 | -20.26% | ― | -0.02% | -473.61% | |
59 Neutral | $2.09B | 4.50 | -3.66% | 5.98% | 15.80% | 92.97% | |
59 Neutral | $3.00B | 14.44 | 10.00% | ― | 31.67% | ― |
* Energy Sector Average
BCHEY
Beach Energy
18.04
4.17
30.11%
NOG
Northern Oil And Gas
29.55
10.29
53.43%
KRP
Kimbell Royalty Partners
15.00
4.66
45.10%
TALO
Talos Energy
16.16
9.78
153.29%
MNR
Mach Natural Resources LP
12.63
1.14
9.90%
BKV
BKV Corporation
27.82
11.92
74.97%
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.