Beach Energy Limited

FY26 sales revenue was $1.8 billion, down 10% year over year; production was 19.4 million barrels of oil equivalent, down 2%; underlying EBITDA was $1 billion; underlying NPAT was $355 million; statutory earnings were $281 million; and pre-growth free cash flow was $458 million. Realized gas pricing increased 7% year over year, total field operating costs fell 3%, and field operating costs were $11.40 per barrel of oil equivalent, slightly above the $11 target. Operating cash flow was $890 million, sustaining capital cash payments were $422 million, closing cash was $213 million, available liquidity was $983 million, and net gearing was 10.6%. The Board declared a final dividend of $0.02 per share, bringing full-year dividends to $0.03 per share fully franked. For FY27, Beach guided production of 19.5 million to 23 million barrels of oil equivalent and capital expenditure of $600 million to $700 million, while sustaining capital is expected to remain below the $450 million operating principle.

Brett Woods framed FY26 as a year of execution against Beach’s strategic reset, highlighting Waitsia first production, the offshore Victoria campaign, resumed Western Flank drilling, cost discipline and a stronger balance sheet. He repeatedly emphasized an “owner’s mindset,” saying the company is focused on maximizing value from every molecule, extending reserve life, and investing only where returns are disciplined and value-accretive. His tone was confident and constructive, especially on organic growth opportunities in the Otway, Perth Basin, and Cooper Basin, while still stressing prudence amid domestic gas policy uncertainty.

Anne-Marie Barbaro said the financial result reflected disciplined cost management and commercial execution offsetting lower volumes and softer liquids pricing. She cited $1.8 billion of revenue, $1 billion of underlying EBITDA, 57% EBITDA margin, $355 million of underlying NPAT, and $281 million of statutory earnings, with the gap driven mainly by the Hercules exploration write-off and Northwest Shelf unutilized processing costs before Waitsia production began. On cash flow, she pointed to $890 million of operating cash flow, $422 million of sustaining capital cash payments, closing cash of $213 million, $983 million of liquidity, and net gearing of 10.6%, and said the company is keeping dividend policy flexible rather than using a fixed payout ratio.

Analysts pressed management on domestic gas reservation policy, asking what Beach is trying to change and whether the policy would make East Coast gas investments uneconomic. Brett said Beach wants any scheme to be prospective, market-based and not a must-sell framework, and argued Beach can still manage the portfolio and contract more gas, noting that over 80% of volumes are exposed to liquids or term contracts. Questions also focused on the new capital framework and dividend model; management said there is no strict payout ratio, that the board will prioritize sustaining capital, growth and balance sheet strength, and that any surplus cash may then be returned. On Waitsia, management explained that compressor lubrication and packing issues caused episodic trips, but said the planned shutdown should address them within sustaining capital and that there is no extra capex required.