Key Highlights

  • Underlying EBITDA was about A$1.0 billion, and underlying NPAT was A$355 million.
  • The Waitsia gas plant in the Perth Basin reached 250 TJ a day of nameplate capacity in April 2026.
  • 2P reserves fell to 156 MMboe from 173 MMboe, mainly because the company produced 19.4 MMboe during the year.
  • The total FY26 Dividend was 3.0 cents per share, including a final fully Franked Dividend of 2.0 cents.

Beach Energy (ASX:BPT) did both in FY26. On 6 August 2026 it reported underlying EBITDA of about A$1.0bn and confirmed that its Waitsia gas plant in Western Australia's Perth Basin had reached 250 TJ a day of nameplate capacity in April 2026. At the same time, its 2P reserves declined to 156 MMboe from 173 MMboe a year earlier, mainly because the company produced 19.4 MMboe during the year.

The central development

Beach is an Australian oil and gas producer with operations in the Cooper Basin (South Australia and Queensland), the Perth Basin, the Otway and Bass basins offshore Victoria and Tasmania, and in the Taroom Trough in Queensland. Its Commodity exposure is mainly natural gas, with oil and some liquefied Natural Gas (LNG) sales.

Underlying EBITDA of about A$1.0bn and underlying net profit after tax of A$355m.

Sales Revenue of A$1.8bn, with production of 19.4 MMboe.

An average realised gas price of A$11.5 per gigajoule, up 7%.

LNG cargo revenue of A$343m from six cargoes.

Positive all-in free Cash Flow of A$146m.

A final fully franked dividend of 2.0 cents per share, with total FY26 dividends of 3.0 cents.

Liquidity of A$983m and net gearing of 10.6%.

Waitsia and the Perth Basin

Waitsia, operated with Mitsui, is the main recent growth project. Perth Basin production rose 15% in the quarter. The gap between peak and average output shows that reliability, not nameplate capacity, drives actual revenue. Management said one LNG cargo in the quarter contributed A$56m at an average realised price of A$14.8 per million British thermal units.

Cooper Basin and offshore

In the wider Cooper Basin joint venture, 15 wells were drilled in the June quarter with a 93% success rate, including two gas discoveries at Chinstrap and Kwagga. Offshore, the Equinox rig campaign was substantially completed within budget, including the Artisan discovery and a new production interval at Thylacine West 1, while the Trefoil 1 well in the Bass Basin was plugged and abandoned.

Beach also sold its operated interest in the Otway Basin VIC/L35 asset to Amplitude Energy and O.G. Otway for A$70m upfront plus a A$3.75 per gigajoule Royalty on up to 62 PJ of gas. The announcement said this frees more than A$500m of near-term committed capital. One article estimated the benefit at about A$130m after tax; that is an estimate in that article and not a company-confirmed figure.

Reserves and why they matter

The fall in 2P reserves to 156 MMboe is the key long-term measure. Production of 19.4 MMboe was partly offset by 3.1 MMboe of positive revisions from the Western Flank and Cooper Basin joint venture, giving a net decline of 17 MMboe. An independent audit by Netherland, Sewell and Associates covered 90% of 2P reserves. The point is that replacing reserves, through exploration and development, is necessary to sustain the business.

Outlook and plans

Management's plans for FY27 include completing the remaining three Western Flank wells, starting an eight-well oil exploration campaign in the second quarter of FY27, continuing exploration in the Perth Basin and Taroom Trough, and a final Investment decision on a two-well nearshore Otway drilling campaign in the first half of FY27.

Sector and competitive position

Beach is a mid-sized domestic producer. East coast gas Supply has been tight and regulated in various ways, while Western Australia has a domestic gas reservation policy. Competitors include Santos, Woodside, Origin-linked Australia Pacific LNG and smaller producers. Beach's advantages are its Cooper Basin infrastructure, access to domestic markets and a lower-risk balance sheet, with net gearing of 10.6%. East Coast spot prices were reported below A$10 per gigajoule in May and June 2026, below the company's average realised gas price of A$11.5, which suggests price pressure to monitor.

Material risks

Commodity and gas prices: realised prices depend on contracts and East Coast spot markets, and lower spot prices can reduce revenue.

Reserves replacement: production exceeded additions in FY26.

Operational reliability: compressor problems limited Waitsia average output.

Drilling outcomes: exploration is inherently uncertain.

Regulation and policy: gas market intervention, environmental approvals and decommissioning obligations can raise costs.

Capital intensity: drilling, development and decommissioning absorb cash.

LNG and currency: cargo pricing and US dollar exposure add volatility.

What to monitor

Key signposts include Waitsia average throughput, results of the eight-well oil exploration campaign, the nearshore Otway final investment decision in the first half of FY27, the next quarterly report, reserves replacement and east coast gas prices. The first-half FY27 result will show cash generation relative to Capital spending.

Beach's FY26 result shows a company converting investment into production, but long-term value depends on replacing the reserves it depletes.