ASX Announcement Artisan 1 Gas Discovery
23-Dec-2020: Beach Energy (BPT): Waitsia Gas Project Stage 2 Reaches FID
plus: Woodside (WPL): NWS Project Participants Execute Gas Processing Agreements
[I often hold BPT shares, although not at this point in time, however I am holding WPL shares currently.]
10-Nov-2020: Enterprise 1 Gas Discovery
--- click on the link above for the full announcement ---
[I do often hold BPT shares, however not at this point in time. I note BPT has moved up +13% (at 11:52am Sydney time) this morning on the back of this announcement - and the rise in the oil price overnight.]
03-Nov-2020: Beach expands Cooper Basin portfolio
[I hold SXY shares.] The Beach announcement wasn't available when I posted the Senex (SXY) straw a few minutes ago, but it is now.
[I do not currently hold BPT shares, but they are on my Strawman.com scorecard. My current energy sector holdings include WPL, COE & SXY.]
07-May-2020: Macquarie Australia Conference Presentation
$80 million in net cash (no debt) as at March 31, 2020, with $530m of available liquidity (if and when required).
FY21 FCF BREAKEVEN OIL PRICE $0/BBL (does not include growth investment - assumes zero oil production). [i.e. they ain't going broke!]
22-Apr-2020: Quarterly report for the period ended 31 March 2020
Q3 FY20 production increases 8% to 6.9 MMboe, continued growth in Western Flank oil
Beach ends quarter in net cash position; Black Watch-1 well completed
Review of FY21 work program underway, FY20 guidance maintained
--- click on link above for more ---
10-Mar-2020: I bought BPT shares this morning.
Good S&P/ASX100 Energy company, with good management.
Good exposure to Australian east-coast gas demand. They currently supply around 15% of the Australian east coast natural gas demand, and (very importantly) almost all of their gas is sold under fixed-price supply contracts.
They said last month that they have minimal spot gas price exposure: More than 99% of East Coast gas sales in H1 FY20 was sold under contract, with 98% expected to be sold under contract in H2 FY20.
That's critally important. It means that Beach know exactly what they'll be earning from their gas as long as those contracts remain in force, regardless of what the oil prices does. These are multi-year contracts.
They are also currently Australia's LARGEST onshore oil producer.
Possible M&A activity in the sector may well benefit BPT, as either a target or even as the acquirer of a smaller player such as COE or SXY (I hold both of those companies also).
Very solid balance sheet. Have only had net debt once in the past 10 years. As at 31-Dec-19, had $60m net cash. No net debt.
The following points are from their FY2020 H1 results released last month:
Growth program execution progressing well:
Operational excellence program delivering results:
Full year FY20 guidance updated:
BPT were trading at over $2.60/share in September and again in January, and they closed yesterday at $1.33, so they're down over 50% from their recent highs (peaked at $2.87 on 20-Jan-2020). They are not worth half as much in March than they were in January. They have been oversold.
The shock moves by Russia and Saudi Arabia (to lower prices and increase supply, presumably to crush the US shale oil industry) will certainly impact the oil price, which gas prices are tethered to, and the demand for both oil and gas will be lower this year due to the impact of COVID-19, but longer term I believe this will be a good price-point to pick up some good quality energy companies, especially those with significant natural gas businesses such as BPT and Woodside (WPL).