First half production was below estimates but this was more than offset by higher pricing and sales revenue. Credit Suisse is encouraged by the successful Bauer appraisal well which may support an upgrade to reserves.
Lower domestic gas prices are likely to have minimal impact as the company is largely contracted through to the end of FY20.
While several aspects of the report were encouraging, there are risks of lower price reviews for Lattice and disappointing price discovery at BassGas/Trefoil.
Hence, the broker retains a Neutral rating. Target is raised to $2.49 from $2.37.
Sector: Energy.
Target price is $2.49.Current Price is $2.55. Difference: ($0.06) – (brackets indicate current price is over target). If BPT meets the Credit Suisse target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
