Beach Energy Ltd

BPT: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$5.70	Rjcc	Zdgzwcq

Beach Energy Earnings: Sharpened Focus on Costs Anticipated Under New CEO Brett Woods

Mark Taylor

Feb 12, 2024

Our AUD 2.50 fair value estimate for no-moat Beach Energy stands. That’s despite the midsize Australasian oil and gas producer reporting lower than expected first-half fiscal 2024 underlying net profit after tax, down 12% to USD 113 million or AUD 7.5 cents per share. Our target was USD 155 million or AUD 10 cents per share. Higher-than-expected third-party gas costs for the maiden Waitsia LNG cargo and higher Cooper Basin joint venture costs ate into margins. Despite this, our midcycle estimates remain largely intact. We expect efficiencies and cost-outs under new CEO Brett Woods to lead to margin recovery.

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