Shares in the oil and gas producer have been up and down today after the company released its trading results
The post The Beach Energy (ASX:BPT) share price wobbles after quarterly update appeared first on The Motley Fool Australia. –
Beach Energy shares have slipped from their opening price of $1.265 and are currently trading at the previous close of $1.25 apiece.
Let’s comb through the oil and gas producer’s results in finer detail.
Beach’s fourth quarter results
Beach Energy recorded fourth quarter sales revenue of $421 million, which grew 7% from the previous quarter.
The company said this was largely due to a 10% higher realised price of oil at $99.7 per barrel.
Fourth quarter production was 5.96 million barrels of oil equivalent (MMboe), a slight decrease from the third quarter production of 5.99 MMboe.
In addition, the company reported sales volume of 6.44 MMboe, an increase of ~4% quarter on quarter.
These results contributed to a full-year production of 25.63 MMboe and full-year sales revenue of $1.52 billion.
The company also provided some colour on its FY 2021 guidance.
Beach forecasts FY21 production in the ranges of 25.2 – 25.7 MMboe, in line with previous estimates.
Beach also sees underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $850 – $900 million, which sits “at the top end of guidance”, according to the company.
Additional takeouts from the report
Additional takeouts from the report include an update on its Western Flank review, which played havoc on the company’s share price back in April.
Referencing the review, Beach Energy managing director and chief executive Matt Kay said:
In the Western Flank, following the April reserves downgrade, we have completed a thorough subsurface review and our attention turns to the recommencement of drilling activities, beginning with oil development and gas exploration wells, with an oil exploration program expected to follow.
The company also made progress on several emissions-targeting projects throughout the quarter, according to Kay:
Our emissions reduction program is progressing well, including the installation of a new mercury removal unit at the Otway Gas Plant… Additionally, the proposed Moomba Carbon Capture and Storage Project also took a step forward, receiving a $15 million commitment from the Commonwealth Government.
Beach will release its full year audited results in 16 August 2021, where FY 2022 guidance will also be provided.
Beach Energy share price snapshot
The Beach Energy share price has had a choppy year to date, posting a loss of 30% since January 1.
This has extended the loss of 15.5% incurred over the previous 12 months.
For comparison, the S&P / ASX 200 Index (ASX: XJO) has climbed 19% over this same time period.
At the time of writing, Beach Energy has a market capitalisation of $2.85 billion.
Should you invest $1,000 in Beach Energy right now?
Before you consider Beach Energy, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Beach Energy wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
Here’s why the Beach Energy (ASX:BPT) share price is in the red today
What happened on the US stock market overnight and how could it impact ASX shares?
The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.