Beach Energy Reports $552M Revenue, 4.9 MMboe Production, Net Debt Falls to $312M

Operational Stability Amidst Regional Challenges

Beach Energy Limited delivered a resilient operational and financial performance in the third quarter of FY25, maintaining production at 4.9 million barrels of oil equivalent (MMboe). This steady output was underpinned by consistent performance across the Otway, Perth, and Bass Basins, with a notable 16% increase in production from the Kupe Gas Project following prior quarter maintenance downtime.

The company’s sales revenue remained robust at $552 million, bolstered by the lifting of two additional Waitsia LNG swap cargoes, which contributed $152 million in revenue. Realised average prices also improved modestly, with gas prices rising 4% to $11.0 per gigajoule and LNG prices averaging $18.9 per million British thermal units.

Financial Strength and Capital Discipline

Beach Energy’s financial position strengthened further during the quarter. Net debt was reduced by nearly 20% to $312 million, while net gearing improved to 8% from 10% in the previous quarter. Available liquidity increased to $708 million, supported by cash reserves and undrawn committed facilities. The company also returned $68 million to shareholders via an interim dividend, reflecting confidence in its cash flow generation capabilities.

Capital expenditure for the quarter was $166 million, an 8% decrease quarter-on-quarter, reflecting delays in some drilling activities. Beach now anticipates FY25 capital spend to be at the lower end of its $700-800 million guidance range, influenced by postponed offshore drilling and flood-related disruptions.

Project Progress and Operational Highlights

Significant progress was made on key projects, notably the Waitsia Stage 2 development in the Perth Basin, which is in the final commissioning phase. Temporary power and heating installations enabled flushing and pre-commissioning of the CO2 amine unit, with first sales gas targeted for mid-calendar year 2025. Beach has seconded over 20 senior personnel to support this critical phase.

In the Otway Basin, regulatory approvals were secured to commence the Equinox rig campaign, aimed at unlocking new gas volumes and decommissioning legacy wells. However, rig availability has delayed the start to late Q4 FY25, pushing some capital and restoration expenditures into FY26. The campaign includes drilling the Hercules 1 exploration well, a moderate to high-risk prospect with potential material impact.

Flood Impact in the Cooper Basin

Post-quarter, Beach Energy faced a significant flood event in the Cooper Basin, affecting both operated and joint venture assets. Early assessments indicate a potential deferral of approximately 0.5 MMboe of production in Q4 FY25, with flood remediation costs estimated at around $7 million. The flooding has also delayed the commencement of a planned 10-well appraisal and development campaign to the first half of FY26.

Operations teams are actively managing the situation to prioritise safety and environmental protection while optimising production recovery. The full extent of the flood’s impact remains uncertain and will be clearer once waters recede.

Outlook and Market Positioning

Despite these challenges, Beach Energy reaffirmed its FY25 guidance ranges, expecting production towards the middle of the 18.5-20.5 MMboe range and capital expenditure at the lower end of guidance. The company continues to target net gearing below 15% through the cycle, balancing growth investment with financial prudence.

Beach’s operational discipline, combined with strategic project execution and strong liquidity, positions it well to navigate near-term uncertainties while pursuing growth opportunities in Australia’s key basins.