Beach Energy

Beach Energy Limited (ASX: BPT) is a leading Australian energy company with a strong focus on supplying domestic and international gas markets through its extensive asset base across key Australian basins and New Zealand. With over 60 years of operational history, Beach has evolved into a significant player in the oil and gas industry, known for its high-margin, low-cost operations and commitment to sustainable growth.

Beach Energy's diversified portfolio spans core hubs in Eastern and Western Australia, where it operates major projects such as the Otway, Perth, and Cooper Basin gas fields, along with ongoing development in the Waitsia Gas Project, which is set to supply both domestic and LNG export markets. In FY24, Beach achieved total production of 18.2 million barrels of oil equivalent (MMboe) and recorded AUD 1.8 billion in sales revenue, demonstrating strong operational performance while advancing its growth projects.

Beach is committed to a gas-supported energy transition, focusing on developing long-life, resilient assets and minimizing environmental impact. Its Climate Transition Action Plan targets net-zero emissions by 2050, with substantial reductions in emissions intensity by 2030. As a responsible operator, Beach prioritizes community engagement and safety, establishing itself as a key energy provider that aligns operational success with environmental stewardship.

Beach Energy presents a compelling investment opportunity as a major contributor to Australia’s energy supply with a clear strategy to support both domestic demand and international LNG markets. The company’s diversified asset base, particularly in key gas-producing regions such as the Otway, Perth, and Cooper Basins, provides a strong foundation for sustained production growth. With the Waitsia Gas Project nearing completion and poised to support both domestic energy needs and LNG exports, Beach is set to leverage rising gas demand across the Asia-Pacific region.

Beach’s ability to maintain low-cost, high-margin operations positions it competitively within the energy sector. Its disciplined capital management framework prioritizes operational efficiency, with a targeted field operating cost of under AUD 11 per barrel of oil equivalent (boe) by FY26. Furthermore, Beach’s established infrastructure and strong market position enable it to capture value from emerging opportunities, including LNG exports from Western Australia, while balancing returns through franked dividends and potential strategic partnerships.

As global markets increasingly value companies with strong Environmental, Social, and Governance (ESG) commitments, Beach’s Climate Transition Action Plan to achieve net-zero emissions by 2050, strengthens its appeal to investors. Through advancements in carbon capture and storage (CCS) projects, renewable energy integration, and ongoing engagement with Indigenous and local communities, Beach is positioned as a responsible operator aligned with sustainable growth principles.

‍

Beach Energy is led by a highly experienced management team with deep expertise across the energy sector, project development, and financial management. Under the leadership of CEO Morné Engelbrecht, the team drives the company’s strategic direction and operational excellence. With over two decades of experience in the energy and resources industries, Morné is known for his ability to oversee large-scale projects and deliver sustainable, value-driven results.

Supporting the CEO is CFO Julie Criddle, who brings extensive experience in corporate finance and strategic planning. Julie’s financial expertise is key to Beach’s disciplined approach to capital allocation, ensuring strong fiscal management while advancing Beach’s growth projects.

The technical operations of Beach Energy are guided by Chief Operating Officer Bruce Clement, whose three decades in oil and gas operations enable him to steer complex engineering projects and maximize production efficiencies across Beach’s core assets. Alongside Bruce, General Manager of Sustainability and External Affairs Ben Collyer oversees Beach’s ESG initiatives, including its Climate Transition Action Plan and community engagement efforts. Ben’s work is integral to aligning Beach’s growth with sustainability targets, fostering trust with stakeholders and regulators.

This leadership team is bolstered by a Board of Directors composed of industry veterans with significant expertise in energy, finance, and governance. Together, they provide oversight and strategic guidance, ensuring Beach Energy remains on course to achieve its objectives as a responsible and competitive player in the energy market.

‍

Beach Energy’s growth strategy centers on disciplined expansion, operational efficiency, and commitment to a gas-supported transition. The company is focused on advancing high-value projects across its core hubs in Eastern and Western Australia to meet the growing demand for domestic and export gas. Key to this strategy is the ongoing development of the Waitsia Gas Project, expected to supply both Australian markets and LNG exports, solidifying Beach’s position as a significant energy provider in the Asia-Pacific region.

Beach Energy is committed to maximizing production from its established asset base while strategically exploring new opportunities. Its operational strategy prioritizes low-cost production and high-margin outcomes, supported by a rigorous approach to capital allocation. 

Environmental stewardship is integral to Beach’s growth plan, to support these objectives, Beach is actively pursuing carbon capture and storage (CCS) initiatives and incorporating renewable energy solutions into its operations. The company’s Moomba CCS project, currently progressing in the Cooper Basin, will play a significant role in reducing emissions and reinforcing Beach’s ESG leadership.

Beach Energy also recognizes the importance of community engagement and partnerships. By working closely with local communities, Indigenous groups, and government bodies, Beach ensures that its development plans are aligned with environmental and social expectations. Through this comprehensive strategy of sustainable growth, Beach Energy is well-positioned to drive long-term shareholder value while supporting the global energy transition.

Beach Energy has demonstrated strong financial performance, underscoring its position as a leading player in Australia’s energy sector. For FY24, the company reported AUD 1.8 billion in sales revenue, with production totaling 18.2 million barrels of oil equivalent (MMboe). Despite a challenging market, Beach maintained a solid financial footing, supported by disciplined capital management and operational efficiency across its diversified asset base.

A key component of Beach’s financial resilience is its strong balance sheet, which provides the flexibility to fund growth while returning value to shareholders. Beach’s capital management framework targets a net gearing ratio of below 15% post-completion of the Waitsia Gas Project, ensuring financial stability even as it undertakes significant capital projects. In FY24, Beach also paid a fully franked final dividend of two cents per share, reinforcing its commitment to delivering sustainable returns.

The company’s free cash flow breakeven oil price target of approximately USD 30 per barrel highlights its ability to generate positive cash flow even in fluctuating commodity markets. Furthermore, Beach’s existing infrastructure, particularly in core hubs like the Otway, Cooper, and Perth Basins, reduces capital intensity, enhancing project economics and lowering the financial barriers for future growth.

‍

Beach Energy stands as a key player in Australia’s energy landscape, driven by a commitment to operational excellence, financial discipline, and sustainable development. With a diverse asset portfolio spanning core hubs in Eastern and Western Australia, Beach is strategically positioned to meet rising domestic and international energy demand, supported by robust infrastructure and low-cost, high-margin operations.

The company’s focus on a gas-supported energy transition, anchored by its Climate Transition Action Plan, underscores its role in delivering reliable energy while minimizing environmental impact. Beach’s ongoing initiatives, including carbon capture and storage projects, emissions reduction targets, and community engagement efforts, reflect a forward-looking approach that aligns with global sustainability trends.

Led by a seasoned management team and backed by a strong balance sheet, Beach Energy is well-equipped to execute its growth strategy and capitalize on emerging opportunities in the energy market. The company’s disciplined capital management and commitment to delivering returns through dividends highlight its dedication to shareholder value.

For investors seeking exposure to a resilient energy company with a clear path to sustainable growth, Beach Energy offers a unique and compelling opportunity. As the company advances its key projects and navigates the global energy transition, Beach remains committed to delivering long-term value and responsibly powering the future.

‍