March quarter revenue was weaker than Macquarie expected, driven by a lower realised oil price and lower-than-forecast production.
While guidance has been maintained, Beach Energy expects key metrics to come in at the lower end of ranges.
Macquarie assesses the gas business is essentially covering operating costs and, hence, the technical break-even on cash flow is not exposed to oil.
Additionally, there is a net cash position and additional liquidity on the balance sheet. Outperform rating and $1.90 target maintained.
Sector: Energy.
Target price is $1.90.Current Price is $1.24. Difference: $0.66 – (brackets indicate current price is over target). If BPT meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges – negative figures indicate an expected loss).
