Beach Energy Reports Q4 FY26 Production of 4.9 MMboe as Waitsia Gas Plant Hits 250 TJ/Day Peak

Waitsia Gas Plant Production Boosts Perth Basin Output by 15%

Beach Energy’s Perth Basin operations recorded a 15% production increase in Q4 FY26, propelled by the Waitsia Gas plant, operated jointly with Mitsui. The plant reached a record peak production rate of 250 terajoules per day (TJ/day) since commissioning. Despite compressor challenges, the facility averaged 121 TJ/day, substantially contributing to Beach’s consolidated quarterly production of 4.9 MMboe.

The Waitsia Gas plant remains central to Beach’s Perth Basin strategy, progressively ramping to full design capacity. Collaboration with Mitsui on optimisation has enabled processing and LNG cargo deliveries alongside conventional gas sales, diversifying revenue streams. The quarter included one Waitsia LNG cargo delivery, generating $56 million in revenue at an average realised LNG price of $14.8/MMBtu, underscoring the export capability’s commercial impact on group revenue.

Western Flank Oil Appraisal Achieves 100% Drilling Success

During Q4, Beach completed three safely drilled, cased, and suspended oil wells in its twelve-well Western Flank Cooper Basin appraisal campaign, maintaining a 100% drilling success rate to date. Notably, the quad-lateral Bauer 70 well accessed four McKinlay reservoir targets from a single wellbore using existing infrastructure at about half the cost of two dual-lateral wells, with an anticipated oil rate near 450 barrels per day.

This well design exemplifies Beach’s engineering focus on maximising resource recovery while optimising capital deployment amid current market conditions. The Western Flank appraisal has yielded critical subsurface insights to guide future development. Managing Director Brett Woods emphasized this campaign reflects "Beach's focus on cost discipline and efficiency," reinforcing the company’s commitment to disciplined capital allocation and competitive unit economics. These successful wells position Beach to advance production decisions on incremental oil volumes.

Cooper Basin JV Drills 15 Wells with 93% Success and Two Gas Discoveries

The Cooper Basin joint venture drilled 15 wells in Q4, achieving a 93% success rate and discovering two gas fields at Chinstrap and Kwagga, expanding the JV’s resource base. This drilling activity underscores the productivity and exploration focus within Beach’s upstream portfolio, with the Cooper Basin as a key source of current production and future growth.

Alongside drilling, the JV progressed engineering and procurement for the Moomba Central Optimisation project, aimed at enhancing recovery and efficiency from producing assets. The combination of new gas discoveries and optimisation of mature infrastructure highlights Beach’s balanced strategy of resource base expansion and maximising legacy asset value, positioning the Cooper Basin as a cornerstone of its medium-term organic growth pipeline.

Equinox Rig Campaign Completes Thylacine West Intervention and Artisan Discovery Well

Beach concluded the Otway Basin segment of its Equinox rig campaign in Q4, successfully executing subsea interventions including the Thylacine West 1 well, which improved production from suspended Waarre reservoirs, and completing the Artisan discovery well. The campaign also involved plug and abandonment of the Trefoil 1 well in the Bass Basin, advancing Beach’s Otway portfolio optimisation within budget.

The Thylacine West intervention delivered notable production gains, demonstrating value from subsea interventions and recompletions in mature assets. The Artisan discovery completion adds a new production asset, bolstering proved and probable reserves for future cash flow. The campaign is on track to conclude with Yolla 1 plug and abandonment, maintaining budget discipline. These offshore operations contributed to Beach’s 18-month recordable-injury-free safety milestone.

VIC/L35 Divestment to Amplitude Energy Unlocks $500 Million Capital

Beach sold its operated interest in Otway Basin’s VIC/L35 licence to Amplitude Energy and O.G. Otway for $70 million upfront plus a $3.75/GJ production royalty on up to 62 PJ of gas. The transaction implies an approximate $130 million after-tax value, monetising the asset while retaining economic upside via royalties from the Artisan discovery. This divestment frees over $500 million in near-term committed capital for higher-return exploration and development.

The sale closed after meeting well completion criteria, pending regulatory approvals. This portfolio optimisation aligns with Beach’s capital discipline by transferring non-core assets to specialist operators while maintaining upside exposure. The upfront payment enhances liquidity amid strong commodity prices, and the royalty preserves optionality on Artisan without future capital obligations. Management indicated this capital reallocation will support Beach’s organic growth pipeline, including Western Flank exploration, Perth Basin prospects, Otway nearshore targets, and Taroom Trough acreage.

Q4 Revenue of $400 Million Driven by Strong Oil Prices and LNG Cargo

Beach generated $400 million in Q4 FY26 sales revenue from 4.8 MMboe sales, a 5% sequential decrease mainly due to Cooper Basin oil lifting timing, partially offset by a 39% surge in average realised oil price to $174/barrel. Overall average realised sales price increased 7% to $84 per barrel of oil equivalent, reflecting geopolitical tensions and constrained supply boosting global energy prices.

Average realised gas price declined slightly by 1% to $11.1/GJ, supported by Beach’s contracted gas portfolio amid softer East Coast spot prices below $10/GJ in May and June 2026. One LNG cargo contributed $56 million at an average realised LNG price of $14.8/MMBtu, highlighting the Waitsia Gas plant’s export value. Full-year FY26 sales volumes totaled 22.9 MMboe with aggregate revenue of $1,801 million, underscoring Beach’s substantial cash-generating asset base.

Safety Milestone: 18 Months Recordable-Injury-Free and Zero Tier 1 or 2 Events

Beach achieved 18 months without a recordable injury in Q4 FY26 while conducting major offshore activities, active Cooper Basin drilling, and daily operations across all sites. No Tier 1 or 2 process safety events occurred, with a total recordable injury frequency rate (TRIFR) of 0.0 for FY26. This reflects a strong safety culture and process management across Beach’s operations in the Perth, Cooper, Otway, and Taranaki Basins.

Managing Director Brett Woods stated, "achieving a record 18 months recordable-injury free while safely executing major offshore activities, active drilling campaigns in the Cooper Basin and daily operations across all sites, is an exceptional outcome." The zero process safety events demonstrate effective hazard control in complex operations, crucial for sustainable asset value.

Financial Strength with $983 Million Liquidity and 10.6% Net Gearing

Beach’s financial position improved significantly in Q4 and FY26, supported by strong cash flow and disciplined capital management. Liquidity reached $983 million, providing flexibility to manage commodity volatility and fund growth. Net gearing declined to 10.6%, offering capacity for strategic acquisitions or accelerated development. The $400 million quarterly revenue, buoyed by oil prices and LNG cargoes, underpinned liquidity growth and debt reduction.

A capital management framework review is underway, with findings to be disclosed alongside full-year FY26 results on 6 August 2026. This review will guide dividend policy, debt reduction, and capital allocation for FY27 and beyond. The strengthened balance sheet and VIC/L35 divestment capital release enhance Beach’s options for shareholder returns, debt reduction, or investment in higher-return projects. Investors await full-year results for guidance on capital priorities and FY27 outlook.

Full-Year FY26 Results and FY27 Guidance Scheduled for 6 August 2026

Beach will release full-year FY26 results and FY27 production and financial guidance on 6 August 2026, accompanied by a webcast. The company confirmed Q4 and full-year FY26 production at 4.9 MMboe and 19.4 MMboe respectively in this report, providing early quantitative data ahead of detailed results. Full-year sales volumes were 22.9 MMboe, down 7% year-on-year, mainly due to Cooper Basin oil sales timing and Otway Basin maintenance downtime.

The full-year announcement will include detailed financials, cash generation metrics, and shareholder returns for FY26, alongside management commentary on commodity price assumptions and FY27 production guidance. The capital management review results will be a key focus, particularly regarding dividend or special returns given the strong balance sheet and portfolio optimisation. Outcomes from Western Flank exploration, Cooper Basin JV success, and Otway and Taroom Trough opportunities will shape medium-term growth prospects outlined in FY27 guidance.