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Beach Energy (BCHEY) AI Stock Analysis

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BCHEY

Beach Energy

(Other OTC:BCHEY)

Select Model
Rating:70Outperform
Price Target:$13.50▲(8.85% Upside)
Action:upgraded
Date:11/09/26

BCHEY scores as moderately attractive, led by solid financial footing (low leverage, positive operating cash flow, improving free cash flow) and a compelling valuation (low P/E with a mid-single-digit yield). Offsetting these positives are mixed technicals (still below the 200-day average) and earnings-call risks tied to near-term operational disruptions and policy uncertainty that limit visibility despite strong underlying margins and liquidity.

Positive Factors
Strong margins and cash generationStrong underlying profitability and operating cash generation provide financial capacity to fund development, maintain assets and withstand commodity volatility. The combination of a 57% EBITDA margin and positive free cash flow during heavy project activity supports durable earnings quality over the next several quarters.
Negative Factors
Declining revenue and productionThe recent decline in revenue and production shows that Beach’s earnings remain exposed to volume disruption and liquids weakness, even when margins are strong. Continued variability in field output can reduce operating leverage, complicate planning and make sustainable growth less predictable over the medium term.

Beach Energy (BCHEY) vs. SPDR S&P 500 ETF (SPY)

-40%-30%-20%-10%0%10%20%BCHEY-23.49%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$1.45B
Dividend Yield
3.25%
Average Volume (3M)
415
Price to Earnings (P/E)
7.3
Beta (1Y)
0.76
Revenue Growth
-4.64%
EPS Growth
―
Country
US
Employees
455
Sector
Energy
Sector Strength
65
Industry
Oil & Gas Exploration & Production

Beach Energy Business Overview & Revenue Model

Company Description

Beach Energy Limited functions primarily as an oil and gas enterprise, specializing in exploration and production. Its operations include both company-managed and joint-venture projects, conducted across onshore and offshore sites, yielding oil and g...

How the Company Makes Money

Beach Energy makes money primarily by producing and selling hydrocarbons—mainly natural gas, along with crude oil/condensate and associated liquids (e.g., LPG/NGLs, where produced)—from its operated and non-operated fields. Revenue is generated when...

Beach Energy Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q4-2026)|% Change Since:0.56%|Next Earnings Date:Feb 15, 2027
Earnings Call SentimentNeutral

The call presented a mixed but resilient picture: Beach delivered strong margins, solid underlying EBITDA (USD-equivalent success in gas marketing), positive free cash flow during heavy project execution, improved liquidity (up 51%) and sustained safety/environmental performance while making progress on Waitsia and other growth options. Offsetting these positives were lower revenue (-10% YoY) driven by weaker liquids and flood-impacted production (-2% YoY), commissioning issues at Waitsia, near-term Otway decline (~10% guidance) and material policy uncertainty from the proposed domestic gas reservation that constrains inorganic deal visibility and dividend predictability. Overall, the company emphasized disciplined capital allocation, embedded cost reductions and a clear growth pipeline, but uncertainty over policy and some near-term operational impacts balance the positives.

Positive Updates

Strong underlying profitability and margins
Underlying EBITDA of $1.0 billion and an underlying NPAT of $355 million, with an EBITDA margin of 57%, demonstrating profitable operations despite volume headwinds.

Negative Updates

Revenue decline driven by lower liquids and volume impacts
Sales revenue was $1.8 billion, down 10% year-on-year, primarily due to lower crude sales volumes following Cooper Basin flood impacts and softer liquids pricing (including LNG).

Company Guidance

Beach guided FY‑27 production of 19.5–23.0 million barrels of oil equivalent, with total capital expenditure of $600–$700 million (sustaining capital expected below the $450 million operating principle), and noted planned statutory maintenance at Waitsia (≈24 days) and the Otway (28 days); FY‑26s metrics underpinning the outlook included production 19.4 MMboe, sales 22.9 MMboe, revenue $1.8 billion, underlying EBITDA $1.0 billion (57% margin), underlying NPAT $355 million (statutory $281 million), pre‑growth free cash flow $458 million and operating cash flow $890 million, closing cash $213 million and available liquidity $983 million with net gearing 10.6% (through‑the‑cycle target ~15% with capacity to ~25% for growth); reserves/resources at 30 June 2026 were 2P 156 MMboe and 2C 174 MMboe, Waitsia reached 250 TJ/day nameplate (April) and delivered six LNG cargoes (Waitsia cargoes revenue ~$343 million), Moomba CCS ~2.3 MtCO2e stored, field operating costs $11.40/boe (vs $11 target) after a 3% YoY reduction and 18% reduction in operated field costs since FY‑24, and key FY‑27 activity includes ~70 Cooper Basin JV wells, the final 3 Western Flank wells plus an 8‑well exploration campaign, two nearshore Otway wells (target all‑in < $5/GJ, IRR >20%, first gas possible H1 FY29), Perth Basin conventional wells and progress on Moomba Central Optimization (target completion FY‑29) and Waitsia inlet compression FID in H1.

Beach Energy Financial Statement Overview

Summary

Overall fundamentals look solid, supported by conservative leverage (debt-to-equity ~0.19) and consistently positive operating cash flow. Free cash flow improved and turned positive in 2025–2026, but cash conversion is still imperfect (FCF ~39% of net income in 2026) and profitability/revenue have been volatile, including a ~9.8% revenue decline in 2026.

Income Statement

63Positive

Balance Sheet

76Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue1.91B1.88B2.11B1.77B1.62B1.75B
Gross Profit419.24M411.41M1.13B481.40M569.10M761.10M
EBITDA875.60M896.77M507.48M-161.15M1.04B1.12B
Net Income280.50M275.25M-43.80M-475.30M400.80M500.80M
Balance Sheet
Total Assets5.41B5.41B5.28B5.50B5.89B5.10B
Cash, Cash Equivalents and Short-Term Investments213.01M213.01M172.20M172.00M218.90M254.50M
Total Debt632.34M632.34M571.50M794.70M408.50M120.30M
Total Liabilities2.13B2.13B2.12B2.19B2.02B1.56B
Stockholders Equity3.27B3.27B3.16B3.31B3.88B3.54B
Cash Flow
Free Cash Flow361.40M343.53M339.90M-318.90M-242.00M310.40M
Operating Cash Flow918.08M870.26M1.13B774.10M928.60M1.22B
Investing Cash Flow-755.75M-716.00M-792.10M-1.08B-1.17B-897.80M
Financing Cash Flow-113.78M-109.65M-340.30M260.60M205.50M-199.50M

Beach Energy Technical Analysis

Technical Analysis SentimentNegative
Last Price12.40

Price Trends

50DMA12.40Negative
100DMA12.25Positive
200DMA14.15Negative

Market Momentum

MACD0.05Positive
RSI46.65Neutral
STOCH4.95Positive

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 12.40 is below the 20-day moving average (MA) of 12.76, above the 50-day MA of 12.40, and below the 200-day MA of 14.15, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 4.95 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

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

BCHEY against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
WDSWDS74Outperform$39.98B13.058.55%5.46%-4.74%4.59%
BCHEYBCHEY70Outperform$1.41B7.298.74%3.25%-4.64%―
Sector *65Neutral$15.17B7.614.09%5.20%3.87%-62.32%
MURMUR62Neutral$4.98B11.028.98%3.83%13.62%231.11%
GPRKGPRK53Neutral$602.24M7.2823.64%1.14%-5.28%106.07%
EGYEGY52Neutral$564.88M-3.74-39.83%4.60%11.75%-629.11%
KOSKOS47Neutral$1.26B-2.04-76.26%―22.91%-44.22%

* Energy Sector Average

Performance Comparison

0%50%100%BCHEYKOSMUREGYWDSGPRKDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
BCHEY and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
BCHEYBeach Energy Ltd.12.40-3.89-23.86%
KOSKosmos Energy Ltd2.040.6041.67%
MURMurphy Oil35.937.6026.81%
EGYVaalco Energy5.431.6945.07%
WDSWoodside Energy Group Ltd21.234.9630.50%
GPRKGeoPark9.321.5319.58%
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.

Date of analysis: Nov 08, 2026