The Beach Energy Ltd (ASX: BPT) share price is up 2% and could climb higher in this morning's trade, after reporting its Q4 quarterly results to shareholders before market open.
What did Beach Energy announce in its quarterly results?
Beach reported that FY19 sales revenue for the company totalled $1.9 billion, with the Otway sale proceeds making Beach debt-free as at 30 June 2019. Q4 FY2019 sales revenue of $501 million was up 7% on the prior quarter in what was a broadly positive last quarter for the group.
According to the quarterly release, Q4 FY19 free cash flow came in at $130 million, which, combined with the $262 million from its Otway sale proceeds, brings Beach to a net cash position of $172 million at 30 June 2019 – two years earlier than initially expected.
Western Flank gas production was up 32% on the quarter after the commissioning of the Middleton liquids handling expansion, with its expanded asset portfolio delivering record full-year production of 29.4 million barrels of oil equivalent (mmboe) for the Aussie oil explorer and producer. Q4 FY19 production of 7.0 mmboe was highlighted by a further 5% increase in Western Flank oil output.
Management reported that Beach also participated in 134 wells in FY19, a 40% increase over FY2018 numbers, with an overall success rate of 84%. Subsequent to quarter-end, Beach reported the Haselgrove-4 well appraisal in the Otway Basin is being completed for production testing in Q1 FY20.
The company reported the longest lateral segment drilled to date by Beach was at Kalladeina-4 with a length of 1,438 metres with 84% net reservoir.
Beach also noted its commercial agreements have been executed in the Perth Basin, with Mitsui E&P Australia agreeing to purchase 17% of Beharra Springs and its associated infrastructure subsequent to quarter end.
Overall, Beach's production fell marginally from 7.23 mmboe in June Q4 2018 to 6.97 mmboe this quarter, while sales volumes rose from 7.60 last year to 7.69 in Q4 June 2019.
