Beach Energy’s Waitsia JV has entered into an agreement to supply Alinta Energy with 20TJ of gas per day through an expanded processing facility. A potential opening for Waitsia gas will be provided by expected volume declines at the North West Shelf, the broker notes.
The broker sees a risk in the WA domestic gas market remaining relatively well supplied by capacity increases at other projects, limiting Beach’s upside on the west coast. The broker is more interested in upcoming reserve updates for the Cooper JV and Western Flank.
Neutral and $2.10 target retained.
Sector: Energy.
Target price is $2.10.Current Price is $1.93. Difference: $0.17 – (brackets indicate current price is over target). If BPT meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
