Beach Energy Shares Uplifted After The Release Of Investors Briefing Presentation


On 27 September 2018, Beach Energy Limited’s (ASX: BPT) share price uplifted by 7.8% after the release of 2018 Investors Briefing Presentation. In the presentation, the company indicated its plans for growth from its newly expanded and diversified portfolio. The company is planning to increase its production to 34–40 MMboe in next five years. In FY 2018, the company achieved the Production level of 19.0 MMBoe. In FY 2018, the company successfully completed the acquisition of Lattice Energy which has resulted in record production and profits for the company. The operating cashflow of the company in FY 2018 was $663 million and underlying NPAT was $302 million. The Company is planning a sale process to farm down a 30-40% interest in Victorian Otway Basin assets, however the company is planning to retain the operatorship. The company is planning to use the proceeds of the sale to fund a portion of Beach’s future capital program. In the last five years, the company saw substantial growth in the return on capital employed (ROCE) which is driven by highly accretive growth investment, oil prices and higher gas prices. The company is targeting ROCE to be 17%-20% in the next five years and cumulative free cash flow to be greater than $2.3 billion. 

For FY2019, the company is targeting production to 26-28 MMboe. By the end of FY 2019, Net gearing is expected to be greater than 20%. The capital expenditure of the company is expected to be in between $460 to $540 million. Depreciation, depletion and amortization is expected to be around $400 to $450 million in FY2019. The EBITDA of the company is expected to be in between $1.1 to $1.2 billion. The company is now focusing on its direct controllable operating costs and it is planning to reduce $30 million of direct controllable operating cost by the end of the FY 2020. By the end of FY 2019, the company is planning to have $60 million of synergy and operating efficiencies. By the end FY 2019, the company is also going to have a participation in up to 133 wells. The company is also evaluating its options for capital management. The company is expecting to be debt free by the end of FY 2020.

BPT’s share traded at $2.145 with a market capitalization of $4.53 billion as on 27 September 2018 (AEST 1:30 PM).

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report