The Motley Fool

How Beach Energy Ltd (ASX:BPT) expanded production and quadrupled reserves

Shares in oil and gas company Beach Energy Ltd (ASX: BPT) rose 1.7% to $1.84 on Thursday, after the company released its quarterly report.

It was another strong result for Beach Energy, with a 10% increase in production on the previous quarter, to 7.2 million barrels of oil equivalent (MMboe). This brings FY18 pro forma production – which includes a 12-month contribution from the Lattice assets, acquired from Origin Energy Ltd (ASX: ORG) and actually consolidated only 6 months ago – to 26.7 MMboe. At the higher end of the company’s guidance.

Higher sales, combined with an 11% increase in the average realised oil price, drove a 20% increase in revenue on the previous quarter, to $471 million. The strong free cash flow allowed the company to reduce its gearing ratio from 29% to 26%, while acquiring additional stakes in the Oatway gas project, which is now fully owned, and in the BassGas project, in which Beach Energy now has a controlling interest of 54%.

Thanks to the Lattice deal and recent exploration activities, Beach Energy increased its proved and probable reserves by 320%, to 313 MMboe, extending the remaining life of reserves from 7 years to 11 years.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.