Beach Energy’s FY19 result met the broker, and FY20 guidance outpaced by 8% thanks to a stronger production target.
Capital expenditure guidance across FY21-24 outpaced the broker by 45%, which will likely be allocated to boosting production given the company reported 204% reserve replacement following positive results at Western Flank.
On the downside, the broker fears lower contract price resets in FY20. Target rises to $2.11 from $2.02. Neutral rating retained.
Sector: Energy.
Target price is $2.11.Current Price is $2.11. Difference: $0.00 – (brackets indicate current price is over target). If BPT meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
