Highlights

  • Beach Energy reported FY26 sales Revenue of A$1.8 billion and underlying EBITDA of A$1.0 billion.
  • All-in free Cash Flow was positive at A$146 million, while production reached 19.4 MMboe.
  • Waitsia reached nameplate capacity of 250 terajoules a day in April 2026, although operational issues remained under review.
  • FY27 production guidance is 19.5 to 23.0 MMboe, with Capital Expenditure guided at A$600 million to A$700 million.
  • Reserve replacement remains an important operational focus after 2P reserves declined to 156 MMboe at 30 June 2026.

Beach Energy Limited (ASX:BPT) is an ASX-listed oil and gas exploration and production company headquartered in Adelaide, with producing operations across Australia and New Zealand. Its FY26 result showed positive free cash flow, higher realised gas pricing and progress at the Waitsia Gas Project, while also highlighting the importance of reserve replacement, operating consistency and disciplined capital deployment in FY27.

FY26 Earnings and Cash Flow

For the year ended 30 June 2026, Beach reported sales revenue of A$1.8 billion and underlying EBITDA of A$1.0 billion. Underlying net profit after tax was A$355 million. The average realised gas price was A$11.5 per gigajoule, up 7 per cent, while revenue from six LNG cargoes contributed A$343 million.

Field operating expenses were A$244 million, down 3 per cent, despite including Waitsia start-up costs. All-in free cash flow was positive at A$146 million and production totalled 19.4 MMboe. The company ended FY26 with available Liquidity of A$983 million and net gearing of 10.6 per cent.

Beach declared a final Dividend of 2.0 cents per share, fully franked, taking the FY26 total dividend to 3.0 cents per share.

Waitsia and Operating Activity

Waitsia reached its nameplate capacity of 250 terajoules a day in April 2026. The company also noted that performance issues at the plant were being worked through ahead of a planned shutdown, making sustained operating performance an important measure for FY27.

Elsewhere, the Western Flank Oil Drilling program delivered a 100 per cent success rate across nine appraisal and development wells. Seven wells were operating at the time of the FY26 update, with three remaining in the campaign. The Equinox rig campaign was also substantially completed within budget and included exploration, development and decommissioning activity.

Reserves and FY27 Program

Beach (ASX:BPT) reported 2P reserves of 156 MMboe at 30 June 2026, compared with 173 MMboe previously reported for the prior period. Proven reserves stood at 82 MMboe, while 3P reserves were 227 MMboe and 2C contingent resources were 174 MMboe. The decline places additional focus on exploration, appraisal and development activity as production continues.

For FY27, Beach guided to production of 19.5 to 23.0 MMboe and total capital expenditure of A$600 million to A$700 million, including sustaining capital below A$450 million. Abandonment expenditure is expected at A$100 million to A$140 million. The company also plans further Western Flank drilling, an eight-well oil exploration campaign and continued work across the Perth Basin, Taroom Trough and Otway opportunities.

Key Risks and Operating Factors

Beach remains exposed to changes in oil, gas and LNG pricing, operating performance at Waitsia and weather-related interruptions in producing basins. Reserve replacement is another important Factor because production depletes the underlying resource base over time. The scale of the FY27 capital program also means project timing, drilling outcomes and cost discipline can influence future cash flow.

Key Insights

Beach (ASX:BPT) entered FY27 with positive FY26 free cash flow, a relatively low net gearing position and a broader production base supported by Waitsia. The next phase centres on converting planned drilling and exploration into dependable production while maintaining capital discipline. Reserve replacement, Waitsia reliability and delivery against FY27 production and spending guidance are likely to remain central measures of operating progress.