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Beach Energy Ltd. (BCHEY)
:BCHEY
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Beach Energy
(OTC:BCHEY)
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Rating:51Neutral
Price Target:
$15.50
▲(6.75% Upside)
Beach Energy's overall stock score reflects a mix of strong revenue growth and operational achievements, tempered by profitability challenges and a bearish technical outlook. The earnings call provided positive guidance, but valuation concerns due to a negative P/E ratio weigh on the score.
Beach Energy (BCHEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.65B
Dividend Yield6.45%
Average Volume (3M)0.00
Price to Earnings (P/E)27.4
Beta (1Y)0.88
Revenue Growth15.80%
EPS Growth92.97%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.19
Shares Outstanding114,066,680
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.76
Price to Book (P/B)0.96
Price to Sales (P/S)1.43
P/FCF Ratio8.88
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue1.18
Enterprise Value/Gross Profit3.71
Enterprise Value/Ebitda3.58
Forecast
1Y Price Target
$15.50Price Target Upside6.75% Upside
Rating ConsensusHold
Number of Analyst Covering1
Beach Energy Business Overview & Revenue Model
Company DescriptionBeach 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. As of June 30, 2022, it had a production capacity of 21.8 million barrels of oil equivalent; and 283 million barrels of oil equivalent of proved and probable reserves. The company was formerly known as Beach Petroleum Limited and changed its name to Beach Energy Limited in December 2009. Beach Energy Limited was incorporated in 1961 and is headquartered in Adelaide, Australia.
How the Company Makes MoneyBeach Energy makes money through the exploration, development, and production of oil and natural gas. Its primary revenue streams include the sale of crude oil, natural gas, and natural gas liquids. The company engages in both upstream and midstream activities, which involve extracting resources from its reserves and transporting them to market. Significant partnerships with other energy companies and participation in joint ventures enhance its operational capabilities and market reach. Beach Energy's earnings are influenced by global oil and gas prices, production volumes, and operational efficiency. Additionally, the company may generate revenue from the sale of non-core assets and through strategic acquisitions that expand its resource base.
Beach Energy Earnings Call Summary
Earnings Call Date:Aug 03, 2025
(Q4-2025)
| Next Earnings Date:Feb 16, 2026
Earnings Call Sentiment Neutral
Beach Energy reported strong financial performance with significant increases in EBITDA and NPAT, a record dividend, and operational achievements, including increased production and market share in the East Coast gas market. However, these positives were tempered by challenges such as a significant noncash impairment, reserve revisions, and the impact of flooding on production.Q4-2025 Updates
Positive Updates
Strong Financial Performance
Beach Energy reported a 20% increase in underlying EBITDA to $1.1 billion and a 32% increase in underlying NPAT to $451 million. The underlying EBITDA margin improved by 300 basis points to 57%.
Record Dividend
The Board declared a record final dividend of $0.06 per share, bringing the full-year dividend to $0.09 per share, a 31% pre-growth free cash flow payout ratio.
Significant Production Increase
Total production increased by 9% to 19.7 million barrels of oil equivalent, with notable increases of 64% in the Otway Basin and 91% in the Bass Basin.
East Coast Gas Market Leadership
Beach Energy increased its share of the East Coast gas market to 19%, supplying 90% of the East Coast gas demand in 2025.
Operational Achievements
Successfully completed the offshore Otway development program and revived production in the Bass Basin. Achieved best safety performance in 14 years.
Moomba CCS Project Completion
Successfully commissioned the Moomba Carbon Capture and Storage (CCS) project, abating more than 1 million tonnes of CO2, contributing significantly to emissions reduction targets.
Negative Updates
Noncash Impairment
A $474 million post-tax impairment was recorded, primarily due to a lower near-term commodity price outlook and reserve revision at Beharra Springs.
Reserve Revision at Beharra Springs
Unexpected partial communication across a significant fault block led to a disappointing reserves revision at Beharra Springs.
Impact of Cooper Basin Flooding
Severe flooding in the Cooper Basin partially offset good production outcomes, deferring approximately 1.5 million barrels of production.
Higher Costs for Future Developments
Increased cost estimates for future development activities in the Perth Basin due to cost inflation and other factors.
Company Guidance
During the Beach Energy Limited FY '25 Full Year Results Call, Brett Woods, the Managing Director and CEO, provided a comprehensive overview of the company's performance and future guidance. Beach Energy reported a 9% increase in total production to 19.7 million barrels of oil equivalent, with significant contributions from the Otway and Bass Basins. The company's financial results reflected strong growth, with a 13% rise in sales revenue to $2 billion and a 20% increase in underlying EBITDA to $1.1 billion. The underlying EBITDA margin improved by 300 basis points to 57%, driven by structural cost savings. Beach Energy announced a record final dividend of $0.06 per share, bringing the full-year dividend to $0.09 per share, reflecting a 31% pre-growth free cash flow payout ratio. Looking ahead to FY '26, Beach Energy expects production to range between 19.7 million and 22 million barrels of oil equivalent, supported by the anticipated start-up of the Waitsia gas plant and ongoing drilling campaigns. The company remains focused on maintaining a strong balance sheet and pursuing organic and opportunistic growth to achieve its vision of becoming Australia's leading domestic energy company.Beach Energy Financial Statement Overview
Summary
Beach Energy shows strong revenue growth and a stable balance sheet with low leverage. However, profitability challenges are evident with negative profit margins and return on equity. Cash flow from operations is solid, but negative free cash flow growth suggests cash flow management issues.Income Statement
Beach Energy's income statement reveals a mixed performance. The company experienced a significant revenue growth rate of 17.16% in the latest year, indicating strong top-line growth. However, profitability metrics such as the net profit margin and EBIT margin are negative, reflecting operational challenges and potential inefficiencies. The gross profit margin improved to 53.63%, suggesting better cost management. Overall, while revenue growth is promising, the negative profit margins highlight underlying profitability issues.45
Neutral
Balance Sheet
The balance sheet of Beach Energy shows a relatively stable financial position. The debt-to-equity ratio is low at 0.18, indicating conservative leverage and a strong equity base. However, the return on equity is negative, reflecting recent losses and impacting shareholder returns. The equity ratio stands at a healthy level, suggesting a solid capital structure. While the company maintains a strong balance sheet, the negative ROE points to challenges in generating returns on equity.60
Neutral
Cash Flow
Beach Energy's cash flow statement presents a mixed picture. Operating cash flow is robust, with a strong operating cash flow to net income ratio of 1.17, indicating efficient cash generation from operations. However, free cash flow growth is negative, and the free cash flow to net income ratio is relatively low, suggesting challenges in converting earnings into free cash flow. While operational cash flow remains strong, the negative free cash flow growth highlights potential cash flow management issues.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.89B | 2.11B | 1.77B | 1.62B | 1.75B | 1.52B |
| Gross Profit | 601.70M | 1.13B | 481.40M | 569.10M | 761.10M | 564.90M |
| EBITDA | 624.60M | 439.80M | -593.90M | 609.40M | 747.80M | 464.60M |
| Net Income | 92.10M | -43.80M | -475.30M | 400.80M | 500.80M | 316.50M |
Balance Sheet | ||||||
| Total Assets | 5.73B | 5.28B | 5.50B | 5.89B | 5.10B | 4.68B |
| Cash, Cash Equivalents and Short-Term Investments | 250.70M | 172.20M | 172.00M | 218.90M | 254.50M | 126.70M |
| Total Debt | 676.60M | 571.50M | 794.70M | 408.50M | 120.30M | 277.10M |
| Total Liabilities | 2.24B | 2.12B | 2.19B | 2.02B | 1.56B | 1.59B |
| Stockholders Equity | 3.49B | 3.16B | 3.31B | 3.88B | 3.54B | 3.09B |
Cash Flow | ||||||
| Free Cash Flow | 182.60M | 339.90M | -318.90M | -242.00M | 310.40M | 86.20M |
| Operating Cash Flow | 1.08B | 1.13B | 774.10M | 928.60M | 1.22B | 759.80M |
| Investing Cash Flow | -893.00M | -792.10M | -1.08B | -1.17B | -897.80M | -757.80M |
| Financing Cash Flow | -167.50M | -340.30M | 260.60M | 205.50M | -199.50M | 21.00M |
Beach Energy Technical Analysis
Negative
14.52
Price Trends
15.44
Negative
16.01
Negative
16.14
Negative
Market Momentum
-0.16
Positive
38.83
Neutral
12.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCHEY, the sentiment is Negative. The current price of 14.52 is below the 20-day moving average (MA) of 15.35, below the 50-day MA of 15.44, and below the 200-day MA of 16.14, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 12.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCHEY.
Beach Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.45B | 6.32 | 16.84% | 18.58% | 11.56% | ― | |
72 Outperform | $2.15B | 3.63 | 27.17% | 7.65% | 2.98% | 7.94% | |
68 Neutral | $1.58B | 54.59 | -6.56% | ― | 10.59% | -3044.85% | |
67 Neutral | $1.58B | 45.09 | 4.52% | 12.84% | -2.89% | -107.61% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
57 Neutral | $1.77B | ― | -1.36% | ― | 13.20% | 55.44% | |
51 Neutral | $1.65B | 27.43 | -1.02% | 6.45% | 15.80% | 92.97% |
* Energy Sector Average
BCHEY
Beach Energy
14.40
-1.29
-8.22%
NOG
Northern Oil And Gas
22.30
-13.17
-37.13%
KRP
Kimbell Royalty Partners
12.93
-1.28
-9.01%
TALO
Talos Energy
9.30
-0.57
-5.78%
MNR
Mach Natural Resources LP
12.22
-1.80
-12.84%
BKV
BKV Corporation
21.17
3.17
17.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.