BPT - Beach Energy

[oldblue]

It's true that BPT is mainly a gas producer but its 2P reserves in the Cooper/Eromanga Basin are only 235 PJ. ( They sold off their 445 PJ of 2P Surat Basin reserves when they sold their interest in Tipton West to AOE.)

I'm sure that gas has a big future and massive amounts will be needed, both domestically and for export as LNG. But coal seam methane appears to be the best prospect here. AOE alone has 2692 2P reserves! No wonder BG, Shell, Petronas, ConocoPhilips etc are paying up big to get a foothold in Australian csm.

 

[Annwn]

A quick look at the chart shows a large symmetrical triangle , forming since Feb 09, making lower highs and higher lows, breakout is usually downward.
Vol decreasing

 

[Tysonboss1]

It's true that BPT is mainly a gas producer but its 2P reserves in the Cooper/Eromanga Basin are only 235 PJ. ( They sold off their 445 PJ of 2P Surat Basin reserves when they sold their interest in Tipton West to AOE.)

Beach Took $70M worth of Arrow stock as part of the payment for it's CSG assets, so beach is also a cheap way of gaining some exposure to AOE.

Yes CSG is fantastic, But don't discount conventional natural gas, thee is still ship loads of conventional gas to be dicovered.

 

[oldblue]

Beach Took $70M worth of Arrow stock as part of the payment for it's CSG assets, so beach is also a cheap way of gaining some exposure to AOE.

Yes CSG is fantastic, But don't discount conventional natural gas, thee is still ship loads of conventional gas to be dicovered.

I'm sure that there is still a lot of conventional gas to be discovered but the difference is that AOE's csg reserves are already just that, Proved and Probable (2P) plus an even bigger number of 3P.

One of the biggest issues that I have with BPT is the number of shares on issue. $70m spreads pretty thinly over 1.036 billion shares - something less than 7 cents per share.

Disc: Still holding a few BPT.

 

[Tysonboss1]

I'm sure that there is still a lot of conventional gas to be discovered but the difference is that AOE's csg reserves are already just that, Proved and Probable (2P) plus an even bigger number of 3P.

One of the biggest issues that I have with BPT is the number of shares on issue. $70m spreads pretty thinly over 1.036 billion shares - something less than 7 cents per share.

Disc: Still holding a few BPT.

Don't get me wrong I hold arrow as well, But I think at the moment BPT is better value. Aoe has less earnings per share but is 2.7 times the price, and as I stated earlier BPT benefits from any upside in AOE due to them holding AOE stock.

 

[oldblue]

Yes, the market is looking well ahead of current earnings but that's what markets do!
I hold both, with a heavy weighting towards AOE because I see them as having a lot more potential upside than Beach.

 

[pointr]

BPT today announced that a fully franked 2 cent special dividend will be paid in September to shareholders registered at the end of August. This is stated to be from the proceeds of the Tipton sale, but may also act as a bit of a sweetener for DLS holders to sell to BPT. My only whinge ( and a recurring theme in this thread) is that a DRP will be involved as usual for those who wish to participate so our pie will be divided into more and therefore smaller pieces.

 

[Tysonboss1]

My only whinge ( and a recurring theme in this thread) is that a DRP will be involved as usual for those who wish to participate so our pie will be divided into more and therefore smaller pieces.

Yes your piece of the pie shrinks ( in percentage terms ), but due to all the capital retained in the company the actual pie grows bigger.

for example if you owned 1% of the company, after the DRP you may only own 0.98% due to new shares beening issued, how ever the company is worth 0.02% more due to less funds been distributed.

so yes your piece of the pie shrinks, but over all the pie gets bigger, so you are really about the same + because the company anticipates that some shareholders will be using the DRP they will probally declare dividends larger than they would be had the DRP not existed.

 

[pointr]

Thanks for that explanation Tysonboss1, my chief whinge is not so much the DRP but the huge number of shares out there. I don't know if BPT will ever consider a share buyback if it makes money at some point in the future. My other gripe about this one is selling or not buying more Aussie CSG assetts and instead getting involved in projects in the Middle East where geopolitical risks are a factor. We hold some BPT,and I hope its share price goes up, it is however one I will sell quickly should we need some $$'s.

 

[oldblue]

You're starting to sound very much like me, pointr!

It's all very well having the capital pie getting bigger but we need that capital to provide bigger fillings (earnings) otherwise all we end up with is more pastry!
I would think that if BPT don't do a buyback now that they have the Tipton West cash, then it's unlikely that they'll be in a position to do so for some time. And no, I don't expect a buyback.

 

[TheAbyss]

Made a post earlier in another thread along the lines of "A rising tide raises all boats". BPT has defied that theory despite all efforts to raise itself and in fact has actually managed to buck the tide and retreat in face of an overall upwardly trending market.

I have posted the chart for BPT's last 3 months which is abysmal! They have tried a lot of things here including special dividends, take overs, posting profits, showing large sums of cash on their books, removed all debt. What more can they do? Damned if i know as despite their efforts the market has sold them off at every opportunity. Do they really need to do a share buy back? Looks to me like they would be flooded with acceptances but then have no cash for further exploration etc.

Even a rising oil price hasn't helped (or maybe it has and the bad news is on the way). All i can deduce is that their must be something very ugly we cant see or a large percentage of the market just doesnt understand them. Is it their aging stoic management style (some of whom have all the presence of a pot plant) that is so uninspiring no one wants to buy in?

Love to buy some of these guys but until there is some sort of compelling event either way you just cant justify it.

Does anyone have anything to share regarding Beach, positive or negative?

 

[oldblue]

I think its all been said before - bad luck(?) in the timing of buying out hedges: the propensity to sell good assets in favour of foreign adventures; the scatter-gun approach to foreign parts - Spain, Albania, Tanzania, Egypt; the steady but unexciting production from the Cooper; the emphasis on a large "contingent resource" of "unconventional gas".
But I think that the biggest hurdle to BPT's SP performing is its now quite massive share capital, well over a billion shares on issue now and set to grow with the special dividend and the final dividend being largely underwritten as to reinvestment. It's going to take some equally hefty profit results to mean much when they're spread over so many shares and assets like Tipton West can only be sold once!

Memories of last year's issue at $1-43 linger!

 

[ShareDevil]

When the rest of the market see these CSG projects topple over they may just see the wisdom in Beach's management. CSG is very expensive to get out and is not a dead set winner as has been described above. Oil in a barrel is.

I'm still holding long term believing somewhat in their ability to find oil and develop it. Here's hoping.

 

[philly]

Do I understand yesterdays ASX announcement correctly and is BPT proposing to take a 51% interest in EPR in exchange for releasing EPR from paying for its share of drilling the Fermat-1 well??
If this is so then IMHO this is probably a good move as the Otway Basin seems prospective for oil and gas but remains pretty much unexplored.
BPT is cashed up and may start spinning the drill bit.
What impact will this have on the BPT share price??
I hold BPT

 

[Julia]

Made a post earlier in another thread along the lines of "A rising tide raises all boats". BPT has defied that theory despite all efforts to raise itself and in fact has actually managed to buck the tide and retreat in face of an overall upwardly trending market.

I have posted the chart for BPT's last 3 months which is abysmal! They have tried a lot of things here including special dividends, take overs, posting profits, showing large sums of cash on their books, removed all debt. What more can they do? Damned if i know as despite their efforts the market has sold them off at every opportunity. Do they really need to do a share buy back? Looks to me like they would be flooded with acceptances but then have no cash for further exploration etc.

Even a rising oil price hasn't helped (or maybe it has and the bad news is on the way). All i can deduce is that their must be something very ugly we cant see or a large percentage of the market just doesnt understand them. Is it their aging stoic management style (some of whom have all the presence of a pot plant) that is so uninspiring no one wants to buy in?

Love to buy some of these guys but until there is some sort of compelling event either way you just cant justify it.

Given all you have said above (and I've had a quick look at the dismal chart) can you say why you would 'love to buy some'. There are dozens of terrific companies out there doing really well with rising SP's. Why would you have an interest in a dog like this?

When the rest of the market see these CSG projects topple over they may just see the wisdom in Beach's management. CSG is very expensive to get out and is not a dead set winner as has been described above. Oil in a barrel is.

I'm still holding long term believing somewhat in their ability to find oil and develop it. Here's hoping.

No place for 'hope' in the market, ShareDevil. I'd make the same point to you as above. How long will you hold if it continues on its downward trend?
Do you have an exit point?

 

[TheAbyss]

Given all you have said above (and I've had a quick look at the dismal chart) can you say why you would 'love to buy some'. There are dozens of terrific companies out there doing really well with rising SP's. Why would you have an interest in a dog like this?

Because they have cash in the bank, revenue stream, prospects etc. On the surface they should be in an uptrend as they tick a lot of boxes for investment. They look undervalued on this basis hence maybe worth a speculative buy. But just cant do it.

Yes they have a truckload of shares and management is staid to say the least. There has to be something wrong but i cant see what.

No i won't be buying any any time soon as there are a lot of others out there.

 

[swm79]

Given all you have said above (and I've had a quick look at the dismal chart) can you say why you would 'love to buy some'. There are dozens of terrific companies out there doing really well with rising SP's. Why would you have an interest in a dog like this?

Because they have cash in the bank, revenue stream, prospects etc. On the surface they should be in an uptrend as they tick a lot of boxes for investment. They look undervalued on this basis hence maybe worth a speculative buy. But just cant do it.

Yes they have a truckload of shares and management is staid to say the least. There has to be something wrong but i cant see what.

No i won't be buying any any time soon as there are a lot of others out there.

what IS going on there???

5c off its 12mth low... strange.

MACD crossover on the daily 3month range

i agree, somethings not quite right

 

[Julia]

what IS going on there???

5c off its 12mth low... strange.

MACD crossover on the daily 3month range

i agree, somethings not quite right

swm79

Could you please use the quote tags correctly so that you only quote under my name what I have actually said, which was "why would anyone invest in this company etc."
You have made it look as though I have said all that is contained in the quoted portion which I certainly haven't.

 

[Julia]

Given all you have said above (and I've had a quick look at the dismal chart) can you say why you would 'love to buy some'. There are dozens of terrific companies out there doing really well with rising SP's. Why would you have an interest in a dog like this?

Because they have cash in the bank, revenue stream, prospects etc. On the surface they should be in an uptrend as they tick a lot of boxes for investment. They look undervalued on this basis hence maybe worth a speculative buy. But just cant do it.

Yes they have a truckload of shares and management is staid to say the least. There has to be something wrong but i cant see what.

No i won't be buying any any time soon as there are a lot of others out there.

The Abyss, because you haven't used the Quote Tags correctly it's difficult to understand what you are quoting, from whom, and what constitute your own remarks. Joe has a thread on how to use the Quote Tags. Could you please read it so you don't cause this confusion.

 

[swm79]

swm79

Could you please use the quote tags correctly so that you only quote under my name what I have actually said, which was "why would anyone invest in this company etc."
You have made it look as though I have said all that is contained in the quoted portion which I certainly haven't.

1000 appologies Julia. i ususally do use the tags correctly i didnt notice his mistake - i quoted Abyss, his quote was incorrect ipso facto