Beach Energy Limited: JQ26 Result: Pressure on production & growth

Research evidence excerpt

Beach Energy Limited: JQ26 Result: Pressure on production & growth

Global Research

22 July 2026ab

Beach Energy Limited Equities

AustraliaJQ26 Result: Pressure on production & growth

Oil Companies, Secondary

12-month rating Sell

Update on capital framework to preserve flexibility to pursue growth

Beach Energy (BPT) 4Q FY26 result missed market expectations on sales revenue (Figure 12m price target A$0.85

1Production,salesandrevenuevsUBSeandconsensus) due to weaker production at Waitsia from ongoing commissioning challenges assoc. Prior : A$0.95

with the compressor trains. This saw FY26 production marginally miss the bottom end of

Price (22 Jul 2026) A$0.88

guidance that was reset lower at the Mar-26 result. Lower prod'n in turn pushes the

obligation to settle the (8PJ) NWS over lift position into FY27. BPT will update the market RIC: BPT.AX BBG: BPT AU

on the outcome of a review of its capital management framework at the FY26 result (6

Trading data and key metrics

Aug). Given BPT's short reserve life and focus on building its resource base via both

52-wk range A$1.40-0.84

organic & inorganic opportunities, we expect the review to afford the Board more

discretion for lower dividend payouts (than the current policy of 40-50% of FCF ex major Market cap. A$2.00b/US$1.40b

growth) until its growth challenges are addressed—Figure 5DPSandDivYieldoutlok outlines our div Shares o/s 2,281m (ORD)

expectations materially below consensus. We remain Sell rated with the outlook for BPT Free float 70%

challenged by the overhang of lower-for-longer domestic gas prices under the Fed Gov's Avg. daily volume ('000) 10,065

proposed Domestic Gas Reservation Policy, continued commissioning challenges with Avg. daily value (m) A$10.1