Beach Energy Lifts Output Goal, Trims Capex Plans
By Robb M. Stewart
MELBOURNE, Australia--Beach Energy Ltd. (BPT.AU) has nudged up its annual production target and reduced its spending plans as it gets set to finalize a deal to buy a basket of oil-and-gas assets that will expand its position in key fields in Australia.
Beach said Wednesday it now expects production of between 25.5 million and 27.6 million barrels of oil equivalent in the year through June, including the assets being acquired, from an earlier forecast of 24.9 million-27.2 million.
The target includes increased output from Beach's existing operations, with production now expected to be between 10.6 million and 11.0 million barrels from those assets from 10.0 million-10.6 million previously.
Capital expenditure is expected to be between 405 million Australian dollars (US$327.9 million) and A$455 million where Beach previously anticipated spending A$425 million-A$535 million, in part as certain projects it is acquiring are delayed.
The energy company is set this week to close the A$1.59 billion acquisition of Origin Energy Ltd.'s (ORG.AU) conventional oil-and-gas assets, sharply boosting its scale with a footprint in basins around the country. The addition of the assets will more than double annual production, to an estimated 25 million-27 million barrels.
It followed on an all-stock deal agreed in 2015 to buy Drillsearch Energy Ltd., which merged two midtier producers that already were partners on several projects and shared a focus on the Cooper Basin straddling the borders of South Australia and Queensland states.
Beach's sales revenue for the three months through December totaled A$208 million, a rise of 17% over the prior quarter as its realized oil price jumped 25% and production rose about 3% to 2.6 million barrels.
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(END) Dow Jones Newswires
January 30, 2018 17:48 ET (22:48 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.