Key Highlights

• Per the quarterly report, production rose in the Otway Basin by 20% to 1.5 MMboe, in the Western Flank by 15% and in the Bass Basin by 55%, and August was a six-year monthly high.

• For the year to 30 June 2026, reported on 6 August 2026, Beach recorded sales Revenue of $1.8 billion, underlying EBITDA of $1.0 billion and underlying net profit after tax of $355 million.

• About 90% of 2P reserves were audited by Netherland, Sewell & Associates.

• FY27 production guidance of 19.5-23.0 MMboe and Capital Expenditure guidance of $600-700 million were unchanged in the September quarter report.

How much of Beach Energy's near-term outlook now rests on a handful of gas facilities running reliably? For Beach Energy Limited (ASX:BPT), the answer is: a lot. Its September 2026 quarterly report, released on 21 October 2026, showed production of 5.4 million barrels of oil equivalent (MMboe), up 9% on the June quarter, and sales revenue of $565 million, up 41% and the highest quarterly revenue Beach has reported. But the same report disclosed that a statutory shutdown at the Waitsia Gas Plant in Western Australia started on 4 September and that full restart was delayed until 8 October because of air cooler plug failures. The quarter shows both the Operating Leverage and the operating risk.

The central development

Beach is an Australian oil and gas producer with exposure to natural gas, oil and condensate, and liquefied Natural Gas (LNG). Per the quarterly report, production rose in the Otway Basin by 20% to 1.5 MMboe, in the Western Flank by 15% and in the Bass Basin by 55%, and August was a six-year monthly high. Realised gas prices rose 7% to $11.9 per gigajoule, while realised oil prices fell 4% to $166 per barrel. Two LNG cargoes were lifted in the quarter, with one expected in the December quarter.

Waitsia is the key asset. The plant reached its nameplate capacity of 250 terajoules a day in April 2026 and set a record monthly average of 219 TJ/day in August. Since the delayed restart, output has averaged about 235 TJ/day. The company also made a final Investment decision on the Waitsia Inlet Compression project, with about $120 million of net capital expenditure and start-up expected in FY29.

FY26 results

For the year to 30 June 2026, reported on 6 August 2026, Beach recorded sales revenue of $1.8 billion, underlying EBITDA of $1.0 billion and underlying net profit after tax of $355 million. Production was 19.4 MMboe. The average realised gas price was $11.5/GJ, up 7%, and LNG revenue from six cargoes was $343 million. Field operating expenses were $244 million, down 3%, including Waitsia start-up costs. All-in free Cash Flow was positive $146 million. Net gearing was 10.6%, and Liquidity was $983 million. The final Dividend was 2.0 cents per share, fully franked, taking total FY26 dividends to 3.0 cents.

Underlying figures exclude items management considers non-recurring; the statutory result may differ and should be read in the full financial report. Net Debt at 30 September 2026 was $425 million, up 10% from the prior quarter, mainly due to abandonment spending and the FY26 final dividend, and total liquidity was $945 million.

Reserves

Beach's 2P reserves, which are proved plus probable volumes, were 156 MMboe at 30 June 2026, down from 173 MMboe a year earlier. Production of 19.4 MMboe was partly offset by positive net revisions of 3.1 MMboe from the Western Flank and the Cooper Basin joint venture. About 90% of 2P reserves were audited by Netherland, Sewell & Associates. Replacing less than production in a year is a pressure point for any producer.

Guidance and projects

FY27 production guidance of 19.5-23.0 MMboe and capital expenditure guidance of $600-700 million were unchanged in the September quarter report. The range is wide. Other projects include a campaign of oil wells on the Western Flank, an eight-well oil exploration campaign planned to start in the second quarter of FY27, and continued exploration in the Perth Basin and the Taroom Trough. In the Otway Basin, a two-well nearshore campaign (Enterprise East and Selje) is awaiting a final investment decision in the second quarter of FY27, with drilling planned for the first half of FY28. A 28-day integrity shutdown at Otway began after quarter-end, and the statutory inspection interval was extended from four to six years. A seven-day shutdown at Kupe in New Zealand's Taranaki Basin is planned for November 2026.

Sector and competitive position

East-coast Australian gas Supply is tight, and prices have been elevated relative to history, which supports Beach's realised price. Beach competes with larger producers such as Santos and Woodside for domestic gas customers. The Otway gas price review is in arbitration, backdated to 1 July 2026, so a price reset could move revenue either way. Government policy on domestic gas reservation and price caps is a continuing risk. Oil exposure ties Earnings to global prices.

Risks and what to monitor

Risks include plant reliability at Waitsia, Otway and Kupe; Commodity price swings, notably for oil and LNG; the outcome of the Otway pricing arbitration; reserve replacement; abandonment and decommissioning costs, which pushed up net debt in the quarter; and capital discipline given the capex range of $600-700 million. The $43.5 million class action settlement awaits a court hearing expected by the end of calendar 2026, and the VIC/L35 sale is expected to complete in the second half of FY27 subject to approvals.

Overall, Beach has operating momentum and moderate gearing, but its guidance range and recent outages show how dependent results are on facilities running steadily.