Beach Energy Delivers Strong FY24 Production

About Beach Energy Limited

Beach Energy Limited (ASX: BPT), a leading Australian oil and gas producer, has posted strong fiscal year production results, underpinned by high-performing assets in the Cooper Basin, Otway Basin, and Western Flank. The company’s operational momentum has prompted renewed investor confidence in its long-term outlook, with Beach well positioned to capitalise on favourable domestic gas market conditions and disciplined growth execution.

With a diversified portfolio of oil and gas assets across Australia and New Zealand, Beach continues to demonstrate resilience through production consistency, infrastructure investments, and a robust development pipeline.

Strong FY24 Production Performance

Beach Energy’s latest update highlighted a notable increase in production volumes across key assets, driven by successful well completions, infrastructure optimisation, and improved reservoir performance. The company delivered a material lift in gas output from the Otway Basin, where the commissioning of new wells and facility upgrades supported improved throughput and reliability.

Oil production from the Western Flank of the Cooper Basin also exceeded expectations, reflecting higher recovery rates and strong operational uptime. Across the broader portfolio, total production volumes for the fiscal year met or exceeded internal forecasts, supporting steady revenue generation and margin resilience amid moderate commodity pricing.

These results reinforce the operational depth and technical execution capacity that underpin Beach’s current and future development programs.

Asset Optimisation and Infrastructure Progress

A key factor in Beach’s production success has been its continued focus on asset optimisation and infrastructure development. The company has made significant progress at the Otway Gas Plant, with enhanced processing capacity and improved flow efficiency following recent upgrades.

Beach also reported strong well performance from the Enterprise and Thylacine fields, which contribute significantly to its east coast gas supply portfolio. The company’s ongoing investment in compression, separation, and pipeline facilities has not only supported production reliability but also reduced unit operating costs.

The integration of infrastructure upgrades with field development planning ensures Beach can maintain high utilisation rates, monetise resources efficiently, and support long-term contractual obligations in the domestic gas market.

Domestic Gas Market Tailwinds

Beach continues to benefit from favourable supply-demand dynamics in the east coast gas market, where long-term structural underinvestment and rising industrial demand are contributing to tighter supply conditions. The company’s established gas assets and contract portfolio provide a reliable revenue base with price escalation mechanisms built into key agreements.

Notably, Beach holds firm gas sales agreements with domestic utilities and industrial customers, providing earnings visibility and helping to de-risk capital investments in expansion projects. As governments and businesses focus on energy security and transition planning, Beach’s role in supplying low-cost, stable gas becomes increasingly important.

This strategic positioning supports long-term value creation while allowing the company to manage market volatility and regulatory shifts more effectively.

Disciplined Capital Allocation and Growth Focus

Beach remains committed to a disciplined capital management approach, balancing reinvestment in core assets with shareholder returns and debt management. The company continues to progress value-accretive developments, including the Waitsia Stage 2 project and potential exploration tie-ins across the Perth Basin.

Capital expenditure remains in line with guidance, with Beach emphasising cost control and staged investment to align with market conditions and cash flow generation. The company’s strong balance sheet and conservative gearing provide flexibility to fund future growth while maintaining financial resilience.

Beach also maintains a modest dividend payout, with potential for future increases tied to sustained production performance and free cash flow growth.

Strategic Outlook and ESG Commitments

Looking ahead, Beach Energy has outlined a clear strategic roadmap centred on maximising the value of its existing assets through production optimisation and greater leverage of its infrastructure. The company is also focused on developing new gas resources to meet rising domestic demand, while supporting the broader energy transition through lower-emissions project design and a strong commitment to environmental stewardship. The company continues to integrate sustainability considerations into its project development, including emissions reduction targets and carbon intensity reporting. Beach is progressing initiatives to reduce flaring, improve energy efficiency, and assess carbon capture potential across key assets.

By aligning its growth strategy with ESG imperatives, Beach aims to deliver long-term returns while maintaining a strong social licence to operate.

Beach Energy’s strong fiscal production performance reflects the strength of its asset base, disciplined execution, and strategic focus on operational efficiency. As the company continues to invest in infrastructure, optimise field performance, and deliver secure gas supply to the domestic market, it remains well positioned to navigate industry headwinds and capitalise on emerging opportunities.

With a balanced portfolio, resilient cash flows, and a clear growth vision, Beach stands out as a reliable, mid-cap energy producer capable of delivering value across cycles. The company’s operational momentum and infrastructure-driven approach will continue to underpin its role in Australia’s evolving energy landscape.