Beach Energy says a strong fourth quarter at its Western Flank site in South Australia will help it beat its full-year production guidance.
The oil and gas explorer produced 6.97 million barrels of oil equivalent in the three months to June 30 to bring annual production to 29.39 mmboe, beating FY19 expectations of 28 mmboe to 29 mmboe.
Beach told the ASX on Wednesday that its Western Flank operations recorded a 5.0 per cent fourth-quarter increase in oil output, and a 32 per cent rise in gas production after commissioning the Middleton liquids handling expansion.
Royal Bank of Canada Capital Markets oil and gas analyst Ben Wilson said Beach had narrowly beaten his expectations in terms of production, sales, revenue and net cash.
“We think the forward outlook for Beach is positive with renewed activity levels in the Cooper basin,” Mr Wilson said.
“With an expanding cash position, the company is well placed to pursue organic growth, grow through M&A (mergers and acquisitions), or expand the dividend base.”
At 1154 AEST, Beach Energy shares were down 1.5 cents, or 0.74 per cent, at $2.025 against the backdrop of a near 0.70 per cent rise for the overall energy sector.