Beach Energy (BEPTF) AI Stock Analysis

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

Market Cap

$1.97B

Dividend Yield3.83%

Average Volume (3M)10.00

Price to Earnings (P/E)32.0

Beta (1Y)0.74

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees214

SectorEnergy

Sector Strength42

IndustryOil & Gas Exploration & Production

Share Statistics

EPS (TTM)0.07

Shares Outstanding2,281,333,700

10 Day Avg. Volume10

30 Day Avg. Volume10

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)0.79

Price to Sales (P/S)0.00

P/FCF Ratio15.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$0.88

Price Target Upside2.33% Upside

Rating ConsensusHold

Number of Analyst Covering12

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 Money

Beach Energy Earnings Call Summary

Earnings Call Date:Feb 05, 2025

(Q2-2025)

% Change Since: -6.52%|

Next Earnings Date:Aug 11, 2025

Earnings Call Sentiment Positive

The call reflected a strong performance in production growth, cost reductions, and financial metrics, with significant progress in strategic initiatives. However, it also acknowledged challenges related to Waitsia project delays and upcoming abandonment expenditures. The company's efforts in environmental and safety performance were highlighted, despite a minor setback due to a recordable injury.

Q2-2025 Updates

Positive Updates

Production and Revenue Growth

Production increased by 15% from the prior corresponding period. Sales revenue grew by 5% to approximately $1 billion, supported by LNG cargo deliveries.

Cost Reduction Achievements

The company achieved a 32% headcount reduction, surpassing their target of 30%. Unit field operating costs were reduced by 20%.

Improved Financial Metrics

Underlying EBITDA increased by 20% to $587 million, and underlying NPAT grew by 37% to $237 million. Operating cash flow was up 88% to $659 million.

Environmental and Safety Performance

Recorded no Tier 1 or Tier 2 process safety events and no environmental spills of more than one barrel, despite one recordable injury over Christmas.

Strong Liquidity and Gearing Position

Liquidity increased to $631 million, and net gearing reduced to 10%.

Successful Bass Basin Initiatives

Descaling initiatives resulted in an increase from 9 terajoules a day last financial year to over 25 terajoules a day in sales gas production.

Negative Updates

Waitsia Gas Plant Delays

Delays in the introduction of Xyris fuel gas into the Waitsia Gas Plant commissioning activities due to valve rectification issues.

Challenges in Maintaining Production Levels

Waitsia Gas Plant first sales gas target was maintained, but there is frustration over lengthy project delivery times.

Abandonment and Restoration Expenditures

Upcoming offshore abandonment activities as part of the Equinox campaign will impact cash flow.

Recordable Injury Incident

An employee's hand was pinched during maintenance activity, ending a record 12-month run of being recordable injury-free.

Company Guidance

In the Beach Energy Limited FY 2025 Half Year Results call, the company reported a 15% increase in production and a 5% rise in total sales revenue, reaching approximately $1 billion, while underlying EBITDA grew by 20% to $587 million and underlying NPAT surged by 37% to $237 million. The company highlighted a 20% reduction in unit field operating costs and a tenfold increase in pre-growth free cash flow to $431 million, alongside a reduction in net gearing to 10% and an increase in liquidity to $631 million. The Board declared a $0.03 per share fully franked interim dividend, reflecting a balanced approach amid strong cash flow and upcoming offshore abandonment activities. The guidance for FY 2025 was adjusted, narrowing production expectations to 18.5 million to 20.5 million barrels of oil equivalent and maintaining capital expenditure guidance at $700 million to $800 million.

Beach Energy Financial Statement Overview

Summary

Beach Energy is facing headwinds with declining revenue and profitability, leading to a negative net income. While the balance sheet remains stable, the cash flow statement highlights difficulties in maintaining free cash flow due to increased capital expenditures.

Income Statement

Neutral

Beach Energy Limited experienced a decline in revenue from the previous year, with a negative net profit margin due to a loss in net income. The EBIT and EBITDA margins are also negative, indicating operational challenges.

Balance Sheet

Neutral

The company has a moderate debt-to-equity ratio and a positive equity ratio, signifying a stable financial structure. However, the return on equity has turned negative, reflecting recent losses.

Cash Flow

Neutral

Operating cash flow remains positive, but free cash flow has decreased, indicating capital expenditure challenges. The operating cash flow to net income ratio suggests cash generation capability, but recent losses impact the free cash flow to net income ratio.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
1.89B	1.77B	1.65B	1.77B	1.56B	1.73B
	Gross Profit
600.40M	471.30M	578.60M	735.00M	519.30M	629.10M
	EBIT
556.80M	146.30M	559.70M	723.30M	510.70M	617.70M
	EBITDA
588.30M	-593.90M	1.01B	1.11B	876.00M	1.16B
	Net Income Common Stockholders
92.10M	-475.30M	400.80M	500.80M	316.50M	500.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
250.70M	172.00M	218.90M	254.50M	126.70M	109.90M
	Total Assets
5.73B	5.50B	5.89B	5.10B	5.01B	4.49B
	Total Debt
676.60M	794.70M	408.50M	120.30M	277.10M	118.80M
	Net Debt
425.90M	622.70M	189.60M	-134.20M	150.40M	8.90M
	Total Liabilities
2.24B	2.19B	2.02B	1.56B	1.93B	1.67B
	Stockholders Equity
3.49B	3.31B	3.88B	3.54B	3.09B	2.82B
Cash Flow		Free Cash Flow
179.90M	-318.90M	-242.00M	310.40M	86.20M	-46.20M
	Operating Cash Flow
1.08B	774.10M	928.60M	1.22B	759.80M	873.90M
	Investing Cash Flow
-893.00M	-1.08B	-1.17B	-897.80M	-757.80M	-899.20M
	Financing Cash Flow
-167.50M	260.60M	205.50M	-199.50M	21.00M	-39.40M

Beach Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEPTF		$1.97B	32.00	2.70%	3.83%	―	―
Sector *	57 Neutral	$7.22B	3.15	-4.49%	5.63%	0.82%	-49.15%
KRNGF		$838.80M	6.72	13.49%	5.80%	―	―
STOSF		$13.89B	11.67	7.94%	5.31%	―	―
WDS	74 Outperform	AU$43.51B	8.03	10.07%	8.15%	0.71%	120.95%
STX	45 Neutral	AU$487.37M	57.35	-4.01%	―	801.92%	-985.71%
TBN	35 Underperform	AU$378.78M	―	-10.88%	―	―	56.73%

* Energy Sector Average

Performance Comparison

BEPTF

Beach Energy

0.86

-0.17

-16.50%

KRNGF

Karoon Energy Ltd

1.08

0.03

2.86%

STOSF

Santos Limited

4.16

-0.40

-8.77%

AU:STX

Strike Energy Limited

0.17

-0.05

-22.73%

AU:TBN

Tamboran Resources Limited

0.16

-0.02

-11.11%

AU:WDS

Woodside Energy Group

22.94

-2.22

-8.82%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.