Slowly but surely, after years of patience and slow growth, Beach Energy (BPT) is emerging as an oil and gas play of increasing interest.
Cash is rolling in the door, it has some good deals going, high oil prices are helping, and it is perhaps the best ‘tight gas/fracking‘ play in the country – certainly US oil giant Chevron thinks so.
Revenue hit a record in the June quarter and in the 2012-13 financial year, the company has lots of cash – some of it from Chevron – and Beach says it will be able to fund nearly half a billion of exploration and development work this year from its own resources, which is something of an achievement.
And the company has forecast a 16% lift in production in 2013-14, on top of a 7% rise in the year to June.
BPT 1Y – Beach looking better
The company, which produces most of its oil and gas in central Australia’s Cooper Basin, expects annual production of 8.7 to 9.3 million barrels of oil equivalent (mmboe) in the 2013-14 financial year, according to its June quarter and full year production report yesterday.
Beach produced 8.0 million barrels of oil equivalent (mmboe) in the year to June 30, after record quarterly oil production for the June quarter.
Beach generated record full year revenue of $698 million in 2012-13, from an average oil price of $110.80 a barrel and sales of nearly 9.0 mmboe.
Revenue in the June quarter was a record $200 million.
It has also forecast spending of between $420 million and $480 million on development and exploration in 2013-14, including $90 million to $100 million on its unconventional gas interests in the Cooper Basin, where Chevron is a joint venture partner.
Beach’s long time managing director Reg Nelson said a new pipeline in the Cooper Basin’s west area, had helped it reach oil production of 10,000 barrels a day there and boosted the result.
It also reported a better than expected $348 million in cash, boosted by the payments from Chevron.
The company also has a $150 million bank facility which it will use to help finance its exploration and development work.
Beach shares rose 1.9% or 2.5 cents, to $1.355.
