Beach Energy's Q3 FY24 Activities Report

Beach Energy Limited (ASX: $BPT) has reported a 4% quarter-on-quarter increase in production to 4.5 MMboe for the third quarter of FY24. The increase was primarily driven by higher production from the Otway and Taranaki basins, partially offset by weather-affected Cooper Basin. The Perth Basin drilling campaign concluded with a gas discovery and a successful development well, marking significant achievements for the company.

Managing Director and CEO's Perspective

It was pleasing to record no personal safety, process safety or environmental incidents during the quarter. However, our results were overshadowed by the delay to construction of the Waitsia Gas Plant and weather-related impacts to production. The ongoing emergence of quality issues at Waitsia during the pre-commissioning phase is disappointing, however, review of the contractor's latest schedule is now complete and supports Beach's guidance on capital expenditure and first gas. In the Perth Basin, we concluded our operated drilling campaign with pleasing results, including a gas discovery at Redback Deep 1. Our strategic review is progressing well, and we will communicate outcomes before the end of this financial year. We have implemented our asset-based organizational structure and are on track to deliver a 30% headcount reduction, with more than 20% to be achieved by the end of April. Once our business is re-set and strategic goals refreshed, we will be well placed to pursue our progressive dividend policy and the next phase of growth.

Outlook and Strategic Initiatives

Beach Energy's FY24 full year guidance has been updated to reflect year-to-date performance, with production guidance revised to 18.0 - 18.5 MMboe and capital expenditure expected toward the upper-end of the $900 - 1,000 million guidance range. The company continues to target first gas in Q4 FY24 and is pre-commissioning the Waitsia Gas Plant while rectifying quality issues. The Kupe South 9 well intervention works are underway to identify flow constraints, and the Moomba CCS project is 85% complete, progressing toward first CO2 injection around mid-CY2024. Beach's inaugural Climate Transition Action Plan outlines targets and decarbonization goals aligned with the intent of the Paris Agreement. The company is on track to deliver a 30% headcount reduction and aims to communicate further outcomes from the strategic review before the end of FY24. Beach Energy's strategic initiatives and outlook demonstrate its commitment to sustainable growth and operational efficiency.