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Beach Energy Limited (BEPTF)
OTHER OTC:BEPTF

Beach Energy (BEPTF) AI Stock Analysis

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

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
45
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
60
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
50
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.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.89B1.77B1.65B1.77B1.56B1.73B
Gross Profit
600.40M471.30M578.60M735.00M519.30M629.10M
EBIT
556.80M146.30M559.70M723.30M510.70M617.70M
EBITDA
588.30M-593.90M1.01B1.11B876.00M1.16B
Net Income Common Stockholders
92.10M-475.30M400.80M500.80M316.50M500.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
250.70M172.00M218.90M254.50M126.70M109.90M
Total Assets
5.73B5.50B5.89B5.10B5.01B4.49B
Total Debt
676.60M794.70M408.50M120.30M277.10M118.80M
Net Debt
425.90M622.70M189.60M-134.20M150.40M8.90M
Total Liabilities
2.24B2.19B2.02B1.56B1.93B1.67B
Stockholders Equity
3.49B3.31B3.88B3.54B3.09B2.82B
Cash FlowFree Cash Flow
179.90M-318.90M-242.00M310.40M86.20M-46.20M
Operating Cash Flow
1.08B774.10M928.60M1.22B759.80M873.90M
Investing Cash Flow
-893.00M-1.08B-1.17B-897.80M-757.80M-899.20M
Financing Cash Flow
-167.50M260.60M205.50M-199.50M21.00M-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
$1.97B32.002.70%3.83%
57
Neutral
$7.22B3.15-4.49%5.63%0.82%-49.15%
$838.80M6.7213.49%5.80%
$13.89B11.677.94%5.31%
AUWDS
74
Outperform
AU$43.51B8.0310.07%8.15%0.71%120.95%
AUSTX
45
Neutral
AU$487.37M57.35-4.01%801.92%-985.71%
AUTBN
35
Underperform
AU$378.78M-10.88%56.73%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.