Today, on 30th April 2019, Beach Energy Limited (ASX: BPT) announced a quarterly report for the period ending March 2019. The company highlighted financial and operational performance in the report, where it showcased a record level of oil production up by 10% to 7.23 MMboe, resulting in an increase in the sales revenue by 19% to $470 million as compared to the previous corresponding period. This was due to strong customer demand, increased oil production, and higher realised oil and gas prices. Quarterly oil production at Western Flank touched a record level of 1.4 MMbbl, which is an increase of 12% as compared to the previous corresponding period, and the Bauer cumulative production has surpassed 20 million barrels.
The gas business continues to excel with 10% increase in production as compared to the previous corresponding period, along with an increase in the higher realised price of 6% to $7.0 per GJ, and high facility reliability. The group reported an increase in FY19 YTD free cash flows at $427 million, where its net debt further reduced by $112 million to $219 million as on March 31, 2019, and BPT is on track to be debt free upon completion of the Otway sale.
The group reported a record high drilling success rate in the quarter with 93% drilling success rate from 27 wells drilled, including 11 of 12 appraisal wells being successful.
The company was awarded VIC/P73 permit, offshore Otway Basin, which is comprised of the undeveloped La Bella gas findings and enhancing the value of existing infrastructure and reserves. The acquisition of an interest in Ironbark prospect in Western Australia has progressed with the satisfaction of a critical condition precedent.
In its FY19 guidance, the production is expected to be towards the upper end of the guidance range of 28 to 29 MMboe, driven by higher oil output, improved facility reliability and continued strong customer demand for gas. The underlying EBITDA is expected to be at the upper end of the guidance range of $1.25 billion to $1.35 billion, due to the strong production outlook and higher liquid prices. The CapEx is expected to be at the lower end of the guidance range ($450 million to $500 million). The depreciation, depletion and amortisation expense is expected to be in the upper end of the range at $450 million to 500 million.
The second Western Flank operated rig commenced drilling operations during the quarter, and a third rig is expected to start drilling operations during Q4 FY19.
At market close on 30th April 2019, the stock of Beach Energy was trading at $2.13, down 2.294% with a market capitalisation of $4.97 billion. Its current PE multiple is at 12.86x, and its last EPS was noted at A$0.170. Its annual dividend yield has been noted at 0.92%. Today, it reached day’s high at $2.21 and day’s low at $2.12, with a daily volume of 3,714,734. Its 52 weeks high price stands at $2.27 and 52 weeks low price at $1.275, with an average volume of 9,575,408. Its absolute return for the past one year, six months and three months are 37.97%, 36.68%, and 32.93%, respectively.