BEACH ENERGY LIMITED Beach Energy Limited | Quarterly report for the period ended 30 June 2022
For personal use only
ASX Announcement
FY22 Fourth Quarter Activities Report
Reference #020/22 | Date 20 July 2022 |
Quarterly production up 9% to 5.6 MMboe and quarterly revenue up 10% to $504 million
- Production increase underpinned by higher customer gas demand from the offshore Otway Basin
- Otway Basin production up 83% to 1.5 MMboe, supported by recent Geographe 4 and 5 commissioning
- Western Flank oil production decline slowed to 4% for the quarter; FY22 decline in daily oil production rate of 32%, compared with guidance of 35-45%
- Revenue increase underpinned by higher gas production, a higher average realised gas price (up 4% to $8.7/GJ) and one additional oil lifting
Successful completion of the Otway Basin offshore drilling campaign
- Final two wells, Thylacine West 2 and Thylacine North 2, successfully drilled and completed
- Drilling campaign delivered one new gas discovery and six gas development wells
Continued strong momentum in delivery of key development projects
- Targeting mid-2023 for connection of the four Thylacine wells and Enterprise to the Otway Gas Plant
- Waitsia Stage 2 remains on schedule for first LNG sales in H2 2023; first three of six wells drilled
- Close to signing the LNG SPA with bp for all 3.75 MT of Beach's Waitsia Stage 2 LNG volumes
- Additional SACB JV rig now drilling in the Cooper Basin and focused on gas development
- Western Flank oil exploration campaign completed with two commercial discoveries from 10 wells
Drilling of Yolla West potentially deferred due to lack of suitable rig availability
Further strengthening of financial position to support growth and capital management initiatives
- $765 million liquidity at quarter-end with improved net cash position of $165 million (Q3 FY22: $7 million)
- Significant liquidity and cash reserves maintained throughout FY22 (original guidance for peak net gearing of up to 10% in FY22)
FY22 full-year results and FY23 guidance to be released on 15 August 2022
Key Metrics | Jun. | Mar. | Jun. | Qtr on Qtr | FY22 | |
Q4 FY21 | Q3 FY22 | Q4 FY22 | Change | |||
Production (MMboe) | 6.0 | 5.2 | 5.6 | 9% | 21.8 | |
Sales Volumes (MMboe) | 6.4 | 5.2 | 5.9 | 13% | 22.4 | |
Sales Revenue ($ million) | 421 | 458 | 504 | 10% | 1,749 | |
Realised Oil Price ($/bbl) | 99.7 | 176.5 | 167.2 | (5%) | 140.1 | |
Realised Sales Gas/Ethane Price ($/GJ) | 7.6 | 8.4 | 8.7 | 4% | 8.1 | |
For further information, please contact the following on +61 8 8338 2833
Investor Relations | Derek Piper, General Manager Investor Relations |
Media | Chris Burford, Corporate Affairs Manager |
Beach Energy Limited | Page 1 of 16 |
Beach Energy Limited | Quarterly report for the period ended 30 June 2022
For personal use only
Comments from Chief Executive Officer, Morné Engelbrecht
"A key plank of the Beach strategy is to continue investing in new gas supply to support the east coast market. Our results this quarter against the backdrop of the current energy crisis validate this strategy.
"This quarter Beach supplied an additional 3.5 PJ (0.6 MMboe) of gas from the Otway Gas Plant to Australian domestic retailers, thanks in part to recent commissioning of two Geographe development wells.
"We enter FY23 with strong momentum as we complete our major development projects and deliver more new gas to the domestic market. In the Otway Basin, we will connect four offshore Thylacine development wells and the Enterprise discovery to the Otway Gas Plant to bring production rates back to full capacity. In the Perth Basin, Waitsia Stage 2 is developing material gas volumes for both domestic and global LNG markets.
"Beach remains focused on delivering our major Otway and Perth Basin development projects. We are also planning for our next phase of growth, including exploration in the Perth, Otway, and Cooper basins, and we do so with a Balance Sheet capable of supporting our growth aspirations", Mr Engelbrecht said.
Financial
Sales volumes
Total sales volumes of 5,892 kboe were 13% higher than the prior quarter, mainly due to higher production and one additional oil lifting at Port Bonython (Q3 FY22 liftings: two). Gas sales volumes of 22.8 PJ were 17% higher than the prior quarter due to increased customer demand in the Otway Basin. Condensate sales volumes were 21% below the prior quarter due to one less lifting.
Sales Volumes | Jun. | Mar. | Jun. | Qtr on Qtr | FY22 | |
Q4 FY21 | Q3 FY22 | Q4 FY22 | Change | |||
Own Product | 1,569 | 857 | 961 | 12% | 4,057 | |
Oil (kbbl) | Third Party | 168 | 126 | 208 | 66% | 648 |
Total Oil | 1,737 | 982 | 1,169 | 19% | 4,705 | |
Sales Gas | Own Product | 21.0 | 19.3 | 22.6 | 17% | 82.3 |
and Ethane | Third Party | 0.7 | 0.3 | 0.3 | (13%) | 1.4 |
(PJ) | Total Gas | 21.7 | 19.6 | 22.8 | 17% | 83.6 |
Own Product | 55.9 | 51.6 | 53.3 | 3% | 196.1 | |
LPG (kt) | Third Party | (1.3) | 0.1 | 0.1 | (4%) | 0.3 |
Total LPG | 54.6 | 51.6 | 53.4 | 3% | 196.4 | |
Own Product | 544 | 468 | 366 | (22%) | 1,723 | |
Condensate | Third Party | 2 | (1) | 2 | nm | 2 |
(kbbl) | ||||||
Total Condensate | 546 | 467 | 368 | (21%) | 1,725 | |
Total Sales Volumes (kboe) | 6,444 | 5,227 | 5,892 | 13% | 22,362 | |
Total Own Product (kboe) | 6,170 | 5,047 | 5,633 | 12% | 21,476 | |
Total Third Party (kboe) | 274 | 181 | 259 | 43% | 886 | |
Note: Figures and ratios throughout this report may not reconcile to totals due to rounding |
Beach Energy Limited | Page 2 of 16 |
Beach Energy Limited | Quarterly report for the period ended 30 June 2022
For personal use only
Sales revenue
Total sales revenue of $504 million was 10% higher than the prior quarter due to higher sales volumes and higher realised gas prices. The average realised sales price across all products of $85.6 per boe was 2% below the prior quarter. The average realised oil price decreased by 5% to $167.2 per bbl and the average realised gas price increased by 4% to $8.7 per GJ.
Sales Revenue | Jun. | Mar. | Jun. | Qtr on Qtr | FY22 | |||
($ million) | Q4 FY21 | Q3 FY22 | Q4 FY22 | Change | ||||
Oil | 173 | 173 | 195 | 13% | 659 | |||
Sales Gas and Ethane | 165 | 164 | 199 | 22% | 674 | |||
LPG | 35 | 56 | 56 | 1% | 202 | |||
Condensate | 48 | 65 | 53 | (18%) | 214 | |||
Sales Gas and Gas Liquids | 248 | 285 | 309 | 8% | 1,090 | |||
Total Sales Revenue | 421 | 458 | 504 | 10% | 1,749 | |||
Total Own Product | 401 | 437 | 468 | 7% | 1,650 | |||
Total Third Party | 20 | 22 | 37 | 70% | 99 | |||
Average Realised Prices | Jun. | Mar. | Jun. | Qtr on Qtr | FY22 | |||
Q4 FY21 | Q3 FY22 | Q4 FY22 | Change | |||||
All Products ($/boe) | 65.3 | 87.7 | 85.6 | (2%) | 78.2 | |||
Oil ($/bbl) | 99.7 | 176.5 | 167.2 | (5%) | 140.1 | |||
Sales Gas and Ethane ($/GJ) | 7.6 | 8.4 | 8.7 | 4% | 8.1 | |||
LPG ($/tonne) | 640 | 1,081 | 1,055 | (2%) | 1,028 | |||
Condensate ($/bbl) | 87.1 | 140.1 | 145.3 | 4% | 124.2 | |||
Capital expenditure
Capital expenditure of $251 million was 23% higher than the prior quarter. Exploration and Appraisal expenditure was 7% below the prior quarter due to completion of the Western Flank oil exploration campaign in the Cooper Basin. Development, Plant and Equipment expenditure was 27% higher than the prior quarter due to continued progress with major capital projects in the Otway and Perth basins.
Capital Expenditure | Jun. | Mar. | Jun. | Qtr on Qtr | FY22 |
($ million) | Q4 FY21 | Q3 FY22 | Q4 FY22 | Change | |
Exploration and Appraisal | 25 | 29 | 27 | (7%) | 107 |
Development, Plant and Equipment | 149 | 176 | 224 | 27% | 765 |
Total Capital Expenditure | 173 | 205 | 251 | 23% | 872 |
Beach Energy Limited | Page 3 of 16 |
Beach Energy Limited | Quarterly report for the period ended 30 June 2022
For personal use only
Liquidity
As at 30 June 2022, Beach had total liquidity of $765 million (Q3 FY22: $607 million), comprising cash reserves of $255 million and undrawn debt of $510 million. Net cash at the end of the quarter was $165 million (Q3 FY22: $7 million). Beach's net cash position benefited from additional oil lifting receipts, partially offset by higher payments for income tax and restoration liabilities.
Liquidity | Jun. | Mar. | Jun. | Qtr on Qtr |
($ million) | Q4 FY21 | Q3 FY22 | Q4 FY22 | Change |
Cash Reserves | 127 | 167 | 255 | 52% |
Drawn Debt | (175) | (160) | (90) | (44%) |
Net Cash / (Debt) | (48) | 7 | 165 | >100% |
Undrawn Facilities | 275 | 440 | 510 | 16% |
Capital structure
Beach's capital structure as at 30 June 2022 is set out below.
Capital Structure | Mar. | Jun. | Qtr on Qtr | ||
Q3 FY22 | Q4 FY22 | Change | |||
Fully Paid Ordinary Shares | 2,281,333,656 | 2,281,333,656 | - | ||
Unlisted Employee Rights | 7,552,563 | 7,433,153 | (119,410) | ||
Hedging
As at 30 June 2022, Beach had no hedging in place.
FY22 full-year guidance
The following table compares FY22 guidance with preliminary FY22 full-year results. Beach's FY22 full-year results and FY23 guidance will be released on 15 August 2022.
FY22 full-year guidance | Preliminary FY22 full-year result | |
Production | 21.0 - 23.0 MMboe | 21.8 MMboe |
Capital Expenditure | $900 - 1,000 million | $872 million |
Unit Field Operating Costs1 | $11.50 - 12.50 per boe | Towards lower end |
Unit DD&A2 | $15.75 - 16.75 per boe | At top end |
- Unit field operating costs exclude pipeline tariffs, royalties and third-party purchases
- Depreciation, Depletion and Amortisation excludes corporate DD&A
Beach Energy Limited | Page 4 of 16 |
Beach Energy Limited | Quarterly report for the period ended 30 June 2022
Production (net to Beach)
Jun. | Mar. | Jun. | Qtr on Qtr | FY22 | ||||
only | Q4 FY21 | Q3 FY22 | Q4 FY22 | Change | ||||
Sales Gas | PJ | 20.9 | 19.4 | 22.3 | 15% | 82.2 | ||
Total | LPG | kt | 54 | 51 | 49 | (3%) | 204 | |
Production | Condensate | kbbl | 405 | 382 | 411 | 8% | 1,606 | |
Oil | kbbl | 1,518 | 1,026 | 984 | (4%) | 4,417 | ||
Total | kboe | 5,955 | 5,154 | 5,615 | 9% | 21,786 | ||
Cooper | Sales Gas | PJ | 7.8 | 7.2 | 6.9 | (3%) | 29.4 | |
Basin Joint | LPG | kt | 19 | 17 | 15 | (13%) | 67 | |
use | ||||||||
Venture | Condensate | kbbl | 153 | 124 | 126 | 1% | 524 | |
Oil | kbbl | 263 | 240 | 230 | (4%) | 958 | ||
Total | kboe | 1,912 | 1,732 | 1,663 | (4%) | 7,079 | ||
Cooper | Sales Gas | PJ | 2.1 | 1.7 | 1.2 | (29%) | 6.7 | |
Basin | LPG | kt | 11 | 9 | 7 | (24%) | 36 | |
Western | Condensate | kbbl | 60 | 65 | 56 | (13%) | 287 | |
personal | Flank | Oil | kbbl | 1,251 | 782 | 750 | (4%) | 3,441 |
Total | kboe | 1,763 | 1,209 | 1,065 | (12%) | 5,172 | ||
Other | Sales Gas | PJ | 0.2 | 0.1 | 0.1 | (16%) | 0.6 | |
Cooper | LPG | kt | 0 | 0 | 0 | (15%) | 2 | |
Basin | Condensate | kbbl | 6 | 5 | 4 | (4%) | 19 | |
Oil | kbbl | 4 | 4 | 4 | (3%) | 19 | ||
Total | kboe | 40 | 36 | 32 | (13%) | 147 | ||
South | Sales Gas | PJ | 0.3 | 0.2 | 0.2 | 18% | 0.7 | |
Australian | Condensate | kbbl | 0 | 0 | 0 | 18% | 1 | |
Otway Basin | Total | kboe | 51 | 26 | 31 | 18% | 119 | |
Perth Basin | Sales Gas | PJ | 2.0 | 1.9 | 2.0 | 6% | 7.5 | |
Total | kboe | 344 | 327 | 347 | 6% | 1,282 | ||
Victorian | Sales Gas | PJ | 4.1 | 4.1 | 7.7 | 88% | 20.6 | |
Otway Basin | LPG | kt | 7 | 8 | 12 | 46% | 35 | |
Condensate | kbbl | 47 | 68 | 113 | 66% | 287 | ||
For | ||||||||
Total | kboe | 800 | 842 | 1,539 | 83% | 4,097 | ||
Bass Basin | Sales Gas | PJ | 1.7 | 1.1 | 1.1 | (7%) | 4.8 | |
LPG | kt | 5 | 3 | 2 | (31%) | 13 | ||
Condensate | kbbl | 58 | 38 | 36 | (6%) | 166 | ||
Total | kboe | 398 | 258 | 233 | (10%) | 1,086 | ||
Taranaki | Sales Gas | PJ | 2.7 | 3.1 | 3.0 | (2%) | 12.0 | |
Basin | LPG | kt | 12 | 13 | 13 | (1%) | 51 | |
Condensate | kbbl | 80 | 81 | 76 | (7%) | 323 | ||
Total | kboe | 645 | 724 | 705 | (3%) | 2,805 |
Beach Energy Limited | Page 5 of 16 |
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Beach Energy Limited published this content on 19 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2022 23:03:05 UTC.
