Beach and bp sign Waitsia LNG HOA

Finally a ray of sunshine for BPT holders.

Share price popping a little today (about 4%) from a deal for BPT and bp. 3.75 million tonnes of LNG from the Waitsia Gas Project Stage 2 will be supplied to bp.

Reecnt pressures in the share price towards downward trend has been accelerated by the removal of BPT from the ASX100 index effective Sep 20 2021. Perhaps this is a turnaround point.

Disclosure: Current shareholder 

FY21 Results were not great - compared to FY20: 

• Production down 4%
• Sales revenue down 8%
• NPAT down 37%
• Dividends down 13%
• P/E Ratio of 7.71 (as at 25 Aug 21)

BPT has attributed the results to:

• Declines in oil prices (3%)
• Declines in product sales volume (6%)
• Unsuccessful Ironbark exploration
• Relinquishment of the Wherry exploration permit (New Zealand)
• Surrendering of Barque exploration permit
• Impairment of its Ottaway asset

FY22 Guidance

• Lower production guidance (25.6MMboe was FY21 actual, FY22 guidance is 21.0-23.0
• Larger capex (Actual FY21 $671, FY22 guidance is $900-1100).

Goldman has a Neutral rating with a target price of $1.40. Morningstar has a $2.50 fair value estimate. Is this stock so ugly it's a buy? Or just too hard? I honestly can't decide...given the nature of the business it is incredibly capex heavy and that won't change. It also doesn't really have a moat.