Beach reports cash, production up for year

BEACH Energy has reported another strong quarter in its fourth quarter of financial 2019 report released this morning, with production for period lower but full-year production above guidance. 
Beach reports cash, production up for year Beach reports cash, production up for year Beach reports cash, production up for year Beach reports cash, production up for year Beach reports cash, production up for year

Helen Clark

Editor

 
Oil and liquids led while gas was down and LPG saw a huge boost in boost in both volume and value in the quarter. 
 
It produced 6.97 million barrels of oil equivalent and produced 29.39MMboe. 
"The combined business is now well and truly and up and running," managing director Matt Kay told Energy News this morning.  
 
"The assets are performing well. If you look at the way we're positioned at the moment with the success we've had this year, with an 84% drilling success rate we'll continue to reinvest strongly in our business." 
 
At this point, after acquiring Lattice Energy and farming down 40% of tis Otway Basin assets to O.G. Energy Beach isn't looking for any major new acquisitions, he said.  
 
Rather it's looking to reinvest in the Cooper and spent on its Otway Basin assets, with a ten well program coming made up of eight development wells. 
 
Full-year production was 29.4 million barrels of oil equivalent, very slightly above guidance, and capital expenditure of $447 million, very slightly below the lower end of guidance. 
 
Oil production was up for the quarter by 10% from 1.96 million barrels ending March to 2.15MMbbl in the June quarter, while the previous corresponding quarter stood at 1.83MMbbl. 
 
Gas production was slightly down, at 24.9 petajoules compared with 28.8PJ in March, a change of 7%. Beach produced 110.9PJ for the year. 
 
However LPG production rose by 64% for the quarter to stand at 74,000 tonnes over 45,000t and 254,000t for financial 2019. Condensate production was up 11% at 681,000bbl compared 612,000 in March and 2.5MMbbl for the year. 
 
Total oil and gas sales for the quarter were up 2% at 7.68MMboe, from 7.52MMboe and stood at 31.17MMboe for the year. 
 
Sales revenue was $501 million and 7% higher than the previous quarter thanks to higher liquids sales across all sectors and higher pricing. Sales revenue for the year was $1.92 billion. 
 
Revenue from gas sales was down 8% at $173 million from $188 million the prior quarter and $176 million the same quarter last year. LPG sales revenue rise 76%. 
The average realised price of all products was up 4% to US$65.2 per barrel, with an average financial 2019 price pf $61.8/bbl. 
 
Capex for the three month period rose by 53% over the last quarter thanks to a doubling of operated Western Flank wells drilled, the beginning of drilling in South Australia's Otway Basin, and ling lead items for the upcoming drilling campaigns in the Perth and Victorian Otway Basins. 
 
Beach had no drawn debt at the end of the quarter and net cash reserves of $172 million and an undrawn credit facility of $450 million, equalling $662 million in liquidity. 
 
It had operating cash flow of $288 million, which took in cash tax payments of $13 million, cash receipts of $262 million from the sale of 40% of its Otway Basin assets, cash capex of $158 million and debt repayments of $375 million. 
 
Free cash flow was $130 million which it said was in line with the prior quarter. 
 
Production wise its Cooper Basin joint venture assets were 3% above the prior quarter, its Western Flank 11% above the prior quater, its other Cooper Basin assets down 23%, its Perth Basin assets up 11%, its Victorian Otway assets down 18% thanks to its sale of assets to O.G. Energy while BassGas was down 33% and its New Zealand Kupe field up 1%. 
 
In the Perth Basin Beharra Springs made up 78% of production and Waitsia 22%. 
Beach shares the assets 50-50 with Mitsui
 
BassGas is down 54% over the previous year thanks to field decline, lower customer nominations and 11 days of unplanned downtime. 
 
Beach is down almost 1% today sitting at $2.02.