What’s moving the Beach Energy (ASX:BPT) share price today?

The Beach Energy Ltd (ASX: BPT) share price is lifting today after the release of an announcement regarding the Waitsia Stage 2 gas project.
The post What’s moving the Beach Energy (ASX:BPT) share price today? appeared first on The Motley Fool Australia. –

hand on touch screen lit up by a share price chart moving higher

The Beach Energy Ltd (ASX: BPT) share price is up slightly in morning trade, after the company announced yesterday that its joint venture with Mitsui & Co. has made a final investment decision (FID) for the Waitsia Gas Project stage 2 development in Western Australia.

This decision reportedly comes after two years of the Beach Energy and Mitsui & Co. teams working to deliver this outcome.

At the time of writing, Beach Energy share price is up 1.75% to $1.86 per share.

What are the details of the decision? 

The Waitsia gas field is ranked as one of the top 5 largest onshore gas fields ever discovered in Australia. The proposed new production facility in stage 2 will lift output to 250 terajoules of natural gas each day.

The second stage of the project has an expected cost of $700 million to $800 million. Beach Energy’s contribution will be $350 million to $400 million net. Funding for the contribution will be derived from the company’s existing cash flows and facilities.

Full funding is anticipated to be delivered in the third quarter of 2021, pending regulatory approvals and commercial conditions.

If all goes to plan, Beach will commence production of the stage 2 development in the second half of 2023.

All a part of the plan 

Beach Energy managing director Matt Kay revealed that the approval of this project is core to the company’s 5-year growth strategy. Annual production of more than 37 MMboe (million barrels of oil equivalent) is being targeted by 2025.

Mr. Matt Kay spoke to the value this project could bring to shareholders:

We believe the project offers material value to Beach’s shareholders and, through the agreement to export through the North West Shelf facilities, makes Beach an LNG player for the first time in the Company’s 60-year history.

This development comes after the Western Australia premier, Mark McGowan, delivered an exemption to the state’s strict gas reservation policy for the onshore gas project.

Next steps?

Beach Energy isn’t the only company making progress on expansion plans. Its bigger brother Santos Ltd (ASX: STO) announced back in November that it was pursuing FID for the next phase of its Narrabri Gas Project.

It seems that these Aussie energy stocks aren’t turning off the gas anytime soon. The next step for Beach will be to get all the regulatory checkboxes ticked, such as approval from the state’s Environmental Protection Authority, before any works are started.

EARLY ACCESS – Our Boxing Day Sale – Save over 60% off Motley Fool Share Advisor

Right now we’re offering EARLY ACCESS to our Boxing Day sale. We’re giving you the chance to join Scott Phillips within our signature stock picking service, Motley Fool Share Advisor, for as little as $149 for a whole year’s membership.

And now is a perfect time to join during this Boxing Day Sale and collect a whopping 60% off

Join Share Advisor in our Boxing Day Deal!

More reading

Motley Fool contributor Mitchell Lawler 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.

The post What’s moving the Beach Energy (ASX:BPT) share price today? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!