Beach Energy Lifts Q3 Production 7% with Waitsia Compressor Boost

Production Boost Driven by Perth Basin Ramp-Up

Beach Energy (ASX:BPT) delivered a 7% lift in production to 4.8 million barrels of oil equivalent (MMboe) in Q3 FY26, powered by a remarkable 174% jump in Perth Basin output. This surge followed the commissioning of the final two gas compressors at the Waitsia Gas Plant, which neared its nameplate capacity of 250 TJ/day before a cyclone-induced shutdown. The ramp-up has been a multi-quarter effort, with the plant averaging 100 TJ/day over the quarter and briefly hitting 235 TJ/day peak production. Despite some compressor hiccups post-cyclone, production has rebounded to over 200 TJ/day with three compressors operational.

Waitsia’s LNG cargo lift in February, sold to BP at an average price of $13.7/MMBtu, generated $54 million in revenue, underpinning the company’s strong cash flow. This follows Beach’s earlier FY26 half-year results where the Waitsia ramp-up was already a key focus, contributing to robust LNG sales and a strengthened liquidity position of $974 million by quarter-end. The company’s net gearing has improved to 11%, providing flexibility for growth initiatives.

Weather Hits Cooper Basin and Western Flank Production

The Cooper Basin joint venture (JV) and Western Flank operations faced setbacks from severe rainfall, which cut production by 5% and 8% respectively. Flooding in February and March disrupted road access, delaying drilling and causing an estimated 1,200 barrels per day production loss. Despite these challenges, the Cooper Basin JV maintained a 100% drilling success rate across 10 wells, including oil development and gas appraisal wells. Drilling activities have resumed following restoration of access, with several wells cased and suspended for future production.

Beach’s oil appraisal and development campaign in the Western Flank also saw progress with three successful wells before weather interruptions. The company expects the remaining wells to be drilled across FY26 and FY27. The weather impact and compressor issues at Waitsia have prompted Beach to revise its FY26 production guidance down to 19.4–20.3 MMboe from the previous 19.7–22.0 MMboe range.

Moomba Central Optimisation Project Greenlit

In a strategic move to unlock further value, Beach and joint venture partner Santos have taken a final investment decision (FID) on the Moomba Central Optimisation (MCO) project. The project will replace seven ageing gas compressor stations with a single centralised electric-driven compressor and install modern inlet compression and gas-fired power generation at the Moomba Gas Plant. Scheduled for completion in H1 FY29, MCO aims to debottleneck infrastructure, reduce sustaining costs, and extend asset life, positioning the Cooper Basin JV as a structural East Coast gas supplier.

This decision follows the company’s earlier announcements regarding the project’s potential to support future production growth, especially from the Central Fields. The MCO initiative aligns with Beach’s broader strategy of delivering low-cost, high-margin molecules to market and enhancing portfolio longevity.

Expansion of East Coast Gas Portfolio with New Acreage

Beach expanded its footprint with new acreage awards in Queensland, securing ATP 2081 in the Taroom Trough (25% interest) alongside partners Omega Oil and Gas and Tri-Star Group. The joint venture plans a two-well drilling program in FY27, followed by a 200 km 2D seismic survey and potential follow-up drilling in FY28. The Taroom Trough is considered highly prospective for oil and condensate-rich gas, with pipeline infrastructure nearby facilitating East Coast market supply.

Additionally, Beach and Santos were awarded three blocks in the Cooper Basin, adding approximately 7,000 km2 of prospective acreage. These blocks will see seismic acquisition starting in FY27 and exploration drilling potentially commencing in FY28. Beach’s disciplined approach to securing low-cost, high-margin resources is evident in these strategic expansions.

Otway Basin Production and Rig Campaign Progress

Production in the Otway Basin declined 9% to 1.2 MMboe, mainly due to lower customer nominations and maintenance downtime. The Otway Gas Plant maintained strong reliability at over 98% during the quarter. Post-quarter, the Equinox rig campaign entered its second phase with a well intervention at Thylacine West expected to last around three weeks. Onshore Otway also saw Beach and Tri-Star awarded block RSEL-E, with seismic acquisition planned for FY27 and potential drilling campaigns under review.

Beach’s operational safety and environmental performance remained exemplary, achieving 15 months injury-free across operated assets. This safety record complements the company’s steady operational progress amid weather and market challenges.

Beach’s third quarter results continue the momentum from earlier in FY26, where the company navigated floods and ramp-up challenges to maintain a strong liquidity position and robust drilling success rates. The company’s focus on infrastructure optimisation and strategic acreage acquisition positions it well for the evolving East Coast energy market.

Beach Energy’s FY26 Q3 production increase builds on the steady ramp-up at Waitsia, following earlier Waitsia Gas Plant ramp-up and strong LNG revenue. The Cooper Basin JV’s resilience despite flooding echoes the challenges and responses documented in the company’s strong LNG sales and rising gas prices earlier this year.