Beach Energy Limited

FY26 production was 19.4 million barrels of oil equivalent, 2% below the prior year. Sales volumes were 22.9 million barrels of oil equivalent and revenue was $1.8 billion, down 10% year over year. Underlying EBITDA was $1 billion, EBITDA margin improved to 57%, underlying NPAT was $355 million, and statutory earnings were $281 million. Realized gas pricing was up 7% year over year, field operating costs were down 3%, pre-growth free cash flow was $458 million, operating cash flow was $890 million, and closing cash was $213 million. Beach ended the year with $983 million of available liquidity and net gearing of 10.6%. FY27 guidance is for production of 19.5 million to 23 million boe and capital expenditure of $600 million to $700 million, with sustaining capex expected to remain below $450 million. The Board declared a final dividend of $0.02 per share, bringing full-year dividends to $0.03 per share fully franked.

Brett Woods framed FY26 as a year of executing the strategic reset, with safer operations, better margins, and stronger cash generation despite production headwinds. He emphasized the company’s role as a domestic gas supplier and said Beach is prioritizing disciplined organic investment and selective inorganic growth to extend reserve life. His tone was constructive and confident, especially around the offshore Otway, Perth Basin, and Western Flank opportunities, but repeatedly stressed capital discipline and flexibility given policy uncertainty.

Anne-Marie Barbaro said the business offset lower volumes and softer liquids pricing through disciplined cost management and stronger gas pricing. She cited $1.8 billion of sales revenue, $1 billion of underlying EBITDA, 57% EBITDA margin, $355 million of underlying NPAT, $890 million of operating cash flow, $422 million of sustaining capital cash payments, and $213 million of year-end cash. She also highlighted $983 million of available liquidity, a $300 million Asian term loan completed in December, and net gearing of 10.6%, all of which support future organic and inorganic growth while keeping gearing below the roughly 15% target.

Analysts focused heavily on the refreshed capital management framework and what it means for dividends, gearing, and acquisition appetite. Management said there is no strict payout policy; dividends will be considered after sustaining capital, growth investment, and balance sheet needs, with flexibility retained because of gas policy uncertainty. Questions also centered on the domestic gas reservation scheme and whether it would make East Coast deals harder; Brett Woods said the buyer-seller spread is wider, but deals are still possible, and Beach will remain active across both East and West Coast opportunities. On Waitsia, management explained the ramp-up issues were tied to compressor lubrication and packing, said fixes are being implemented in the planned shutdown, and expressed confidence in reaching sustained performance closer to nameplate.