Beach Energy (ASX:BPT) outlined a “solid” set of underlying first-half FY26 results, pointing to major project delivery milestones, flood recovery in the Cooper Basin, and improved gas pricing as key drivers of performance. Managing Director and CEO Brett Woods and CFO Anne-Marie Barbaro said the company finished the half-year in a strengthened financial position and expects heightened capital activity in the second half.
Operational milestones: Waitsia first gas, flood recovery, and offshore campaign progress
Woods said the first half was “very active” across Beach’s core basins, highlighted by first gas from the Waitsia Gas Plant in early December. The plant is in ramp-up, with two sales gas compressors commissioned and peak rates reaching 165 terajoules per day to date. The third compressor was expected to commence commissioning in the “coming weeks,” with Beach targeting ramp-up toward the facility’s 250 terajoules per day nameplate capacity.
In the Cooper Basin, Beach continued restoring operations after severe flooding in late FY25. Woods said 97% of flood-impacted production was back online by the end of the December quarter, with remaining wells expected to return over the next quarter. Beach also brought the Ventia 101 rig into the Western Flank to start a 12-well oil appraisal and development program.
Offshore, Beach delivered phase one of the Equinox rig campaign, which included drilling the Hercules exploration prospect and safely completing three offshore well abandonments across the Otway and Bass Basins. Woods said Hercules was a “moderate to high-risk target” and did not intercept hydrocarbons.
Financial results: revenue of about AUD 1 billion, EBITDA of AUD 558 million, and interim dividend
Barbaro said results reflected solid performance amid Waitsia ramp-up and flood recovery. Production totaled 9.5 million barrels of oil equivalent, which management said was largely impacted by the Cooper Basin flood event. Sales volumes increased 3% to 12.7 million barrels of oil equivalent, supported by delivery of four LNG cargoes in the period.
Beach reported underlying EBITDA of AUD 558 million and underlying NPAT of AUD 219 million, down 5% and 8%, respectively, compared with the prior corresponding period. Barbaro said earnings were impacted by lower production in the flood-impacted Cooper Basin and a softer Brent price. The average realized oil price was 12% lower at AUD 110 per barrel, while average realized gas prices rose 13% to AUD 11.80.
Management also highlighted cost and cash flow metrics. Build operating costs were 8% lower than the prior corresponding period, and Beach’s operated assets delivered unit operating costs of AUD 10 per barrel of oil equivalent. Pre-growth free cash flow was AUD 225 million.
The board declared an interim dividend of AUD 0.01 per share. In Q&A, Barbaro said Beach’s dividend policy remains a full-year policy and “there has been currently no change,” describing the interim payment as a prudent first-half payout given expected higher second-half activity. Woods said the company would revisit capital returns at full-year results and emphasized it would not pursue transactions “for deal-for-deal sake.”
Gas marketing and market outlook: higher realized prices and policy engagement
Management emphasized that Beach sold more than 15 petajoules of gas into spot and short-term markets during the half, which it said contributed to a 13% increase in realized gas prices versus the prior corresponding period and more than a 30% increase in realized gas prices over the past two years. Woods said customer diversification on the East Coast had expanded from “nearly two customers” to 15, spanning industrial customers, retailers, and gas-fired power generation.
Woods also discussed the East Coast gas market review released in late December, centered on a recommendation to develop a reservation policy model, with further consultation expected and a legislative process potentially occurring in the first half of FY27. He said Beach is supportive of a prospective domestic gas reservation policy but argued it must be paired with streamlined approvals and incentives to drive exploration and development. Woods said he was engaging on the review and expressed concern about potential outcomes that could disadvantage domestic-only producers during higher-margin winter periods.
Waitsia LNG cargoes, liquidity, and balance sheet position
Beach lifted four LNG cargoes during the half, generating AUD 233 million in revenue, Woods said. He also said the company had delivered a total of 11 cargoes and AUD 740 million in revenue “ahead of the Waitsia first gas,” facilitated through a mix of Xyris plant production, gas time swaps, and purchase and lifting arrangements with the North West Shelf.
In Q&A, Barbaro said roughly 30% of cargoes to date had been delivered via Xyris gas production, with about 70% delivered through swaps and purchases, with returns of volumes “phased relatively evenly” through to FY29. Woods indicated that as Waitsia ramps toward full commissioning, the need for further swaps should be “massively diminished,” with Beach unwinding its remaining position as production increases.
The company completed refinancing of its 2025 and 2026 facility maturities and secured a new AUD 300 million Asian term loan, lifting total available liquidity to AUD 925 million. Barbaro said Beach ended the half with cash reserves of AUD 235 million and net gearing of 12%.
Second-half priorities and guidance: Equinox phase two, Western Flank drilling, and FID targets
Beach maintained FY26 production guidance of 19.7 to 22.5 million barrels of oil equivalent and capital expenditure guidance of AUD 675 million to AUD 775 million. Woods said the second half would include Waitsia ramp-up, phase two of the Equinox offshore campaign, continued Cooper Basin joint venture drilling, and the Western Flank appraisal and development program, followed by a 10-well oil exploration campaign planned for late FY26 into FY27.
Woods said early results in the Western Flank included a 100% success rate from the first six wells, with Kallowonga 26 brought online 33 days from rig release, supported by pre-laid flowlines and a faster rig. He said the program remained on budget and was being executed safely.
For offshore Victoria, Woods said phase two of the Equinox campaign is expected to begin when the rig returns at the end of the third quarter, including a Thylacine West intervention, drilling and completion of the La Bella 2 development well, and completion of Artisan 1, followed by two further Bass Basin abandonments. Management is targeting final investment decision on the Artisan and La Bella connections in the second half of FY26, with gas production targeted for FY29.
Barbaro noted statutory earnings were affected by expensing the unsuccessful Hercules exploration well and costs linked to unutilized North West Shelf processing capacity.
About Beach Energy (ASX:BPT)
Beach Energy Limited operates as an oil and gas exploration and production company. It engages in the operated and non-operated, onshore and offshore, and oil and gas production in five producing basins across Australia and New Zealand. The company also explores, develops, produces, and transports hydrocarbons; and sells gas and liquid hydrocarbons. The company was formerly known as Beach Petroleum Limited and changed its name to Beach Energy Limited in December 2009. The company was incorporated in 1961 and is headquartered in Adelaide, Australia.
