BPT - Beach Energy

[luvbhatnagar]

Does anyone have any thoughts on BPT? They seem to be at an interesting place at the moment.

Highlights below are from a Commsec report on the back of the BPT 3Q15 production report

– Production of 2.1mmboe was down 11% qoq due mainly to natural decline across oil assets and planned downtime at Moomba. Revenue of $131m was down 33% qoq due to lower realised oil prices and lower sales volumes (down 23% qoq), with lower seasonal gas demand and lower production the key factors.

– FY15 production guidance narrowed to 8.9-9.2mmboe, from 8.9-9.4mmboe previously. FY15 capex guidance was unchanged at $430–470m. FY16 capex is expected to be materially below FY15 levels with lower SACB and SWQ JV development spend, and minimal expenditure on unconventional gas as the Stage 2 scope is determined for the Nappamerri Trough natural gas program.


Cooper oil – Bauer facilities expansion complete, production expected to remain steady

Bauer fluid handling capacity is now at 75kbbl/d, an increase of 25kbbl/d following the commissioning of four new separators. BPT is planning for further capacity upgrades (highlighting the possibility of up to 100kbbl/d by end CY15) to sustain production rates. Subsequent to quarter end, the Bauer-19 development well (the first well in the first pad drilling campaign) was brought onto production, contributing significantly to strong oil production from the former PEL 91 permit (the first two weeks of April saw gross production of 11,850bbl/d). This level of production is anticipated to be maintained through the remainder of CY15 as remaining wells from the two Bauer pad drilling campaigns are brought online, the Stunsail and Pennington facilities are commissioned, and other wells including Chiton-3, Hanson-2 and Balgowan-1 are brought online.

 

[So_Cynical]

Bought a few today - averaged down as i hold already at like 90C from 4 years ago..42c a Decade+ low and the company has changed just a little from that time, issued just a few (sarcasm) shares as well over the years.

A this level has to be a good thing over time #2 on shore oil and gas producer.

 

[JTLP]

Do they still have the shale assets?
Pretty worthless now I would have thought...

 

[So_Cynical]

Do they still have the shale assets?
Pretty worthless now I would have thought...

Yep still have the largest proven shale gas deposit in the southern hemisphere, hadn't thought about it in worthless terms, certainly won't get developed further with the current oil/gas price...was thinking about the other oil and gas reserves and production, conventional production, and all that cash and the low debt.

It's a long term punt, beach used to be a junior, now they are a major onshore producer...some deep value starting to appear in the energy and mining sector.

 

[So_Cynical]

Bought a few today - averaged down as i hold already at like 90C from 4 years ago..42c

A this level has to be a good thing over time #2 on shore oil and gas producer.

Bought a few more for the IB account at 42c at around the same time as above, 76 days in the trade, out today for a 38% profit...should've loaded up.

 

[Boggo]

Keeping an eye on the BPT behaviour, bit of hesitation today with the rest of the market but has been quietly moving along under without attracting any discussion.

First target area reached but a move to the next two would be nice.
(Second chart close rounded to 2 places)

(click to expand)

 

[tech/a]

Keeping an eye on the BPT behaviour, bit of hesitation today with the rest of the market but has been quietly moving along under without attracting any discussion.

First target area reached but a move to the next two would be nice.

(click to expand)

Yeh saw that.
Looks good Boggo.

 

[Boggo]

Yeh saw that.
Looks good Boggo.

Yes, didn't think that something like that would unnoticed

Quite a few nice patterns in place at the moment, just need the overall market (tide) to carry them through.

 

[adds4]

two p & a lately, BPT was having a really good upto that. Both with COE. One exploration and one appraisal. Thats oil and gas, win some loose some. Share price still going up nice and steady, and the oil price looks like sticking as well. Good times ahead

 

[Gringotts Bank]

 

[So_Cynical]

$1.575 and looking good with all the positive sentiment around POO and POG (Gas) ~ banged up a ten year chart and like many big stocks Beach has gone basically nowhere for the last decade except that it has gone somewhere, Beach is now a very big producer and with the Lattice purchase from Origin its now a multi basin onshore and offshore producer.

They supply around 15% of the gas that sells into the east coast gas market, big record sales and supply, the 10 year chart below shows my major purchases in green and sales in red, still holding with an average price of 65c hows that for timing hey.
~

 

[systematic]

$1.575 and looking good with all the positive sentiment around POO and POG (Gas)

Nicely done, So Cynical, and nice summary and chart. Love the 42c buy.
I'm in ~$1.26 early Feb, so I'd be happy to see it keep going!

 

[So_Cynical]

I reckon Beach is due for a re-rating, watching a presentation last night one of the senior execs said that they could be debt free in just 4 years if they wanted to be...over 1B in annual revenues now.

 

[greggles]

Beach Energy rejected historical resistance of $1.80 as it did back in April and July 2014, although you certainly can't complain about the run it has had in the last 12 months.

Currently trading at $1.57, this is probably just a temporary setback and I imagine it will make another attempt at breaking through $1.80 sometime soon.

 

[Joules MM1]

Beach Energy rejected historical resistance of $1.80 as it did back in April and July 2014, although you certainly can't complain about the run it has had in the last 12 months.

Currently trading at $1.57, this is probably just a temporary setback and I imagine it will make another attempt at breaking through $1.80 sometime soon.

View attachment 87555

rejected or accepted?
if price rejects resistance surely it breaks thru as seller reject and do not accept lower prices?
if price accepts resistance then sellers bail at best available price

i know diff t's use diff terminology but i've never understood how resistance can be rejected, respected and accepted yeah sure

 

[Joules MM1]

as an old school idea look for the (hold your breadth![pun]) cup n handle set

 

[greggles]

rejected or accepted?
if price rejects resistance surely it breaks thru as seller reject and do not accept lower prices?
if price accepts resistance then sellers bail at best available price

i know diff t's use diff terminology but i've never understood how resistance can be rejected, respected and accepted yeah sure

You have a point there. Respected might have been a better term. Or perhaps I just should have said failed to break through historical resistance at $1.80. In any case, yeah, that was what I meant.

 

[leyy]

Beach Energy rejected historical resistance of $1.80 as it did back in April and July 2014, although you certainly can't complain about the run it has had in the last 12 months.

Currently trading at $1.57, this is probably just a temporary setback and I imagine it will make another attempt at breaking through $1.80 sometime soon.

View attachment 87555

Could be timing or coincidence but BPT got hit the hardest with crude oil tanking 4%.

Both Santos and Woodside shed circa 4%

 

[greggles]

Currently trading at $1.57, this is probably just a temporary setback and I imagine it will make another attempt at breaking through $1.80 sometime soon.

...and Beach Energy breaks through $1.80 and hits all time highs. Currently up 5.68% today to $1.86 and looking bullish.

 

[barney]

Certainly had a good run … I remember telling my Brother at Xmas lunch 2015 that OIL was getting close to a bottom and we should all consider accumulating OIL Futures …. Be sipping Pina Coladas in the Bahamas by now lol … Coulda Shoulda Woulda