The Beach Energy Ltd (ASX: APT) share price is again on a tear, with Beach shares up 23% in a month and a massive 85% since the start of the year. In fact, just over two weeks ago, you could have bought in at $1.81 and got yourself a 32% bag. So is this ASX oil player a good buy today? Let's have a look at Beach.
A refresher on Beach Energy
Beach Energy is a mid-tier oil and gas company based in Adelaide, South Australia, and is Australia's second largest oil producer. You may know the company by its former name of Beach Petroleum (hence the ticker code).
The company has a network of five oil and gas producing basins across Australia and New Zealand, which it also uses to supply roughly 15% of the east coast gas market. This includes the flagship Cooper basin, which, according to the company, is "Australia's most prolific oil and gas basin".
What's happened to Beach's share price this year?
What really lit a fire under Beach shares two weeks ago was its 2019 financial year earnings report. The company surprised investors with a stellar set of numbers, reporting a 190% increase in net profits after tax to $577 million on the back of production and sales volume increases of 55% (which included a 37% production increase in the Cooper basin).
A rising oil price also helped these numbers, as did the falling Australian dollar. And even though raw revenues have been rising, Beach has continued to make cost savings. The company's cost per barrel of oil equivalent (BOE) has steadily decreased from $9.90 in H218 to $9.20 in H219, further adding to the company's record profitability.
Foolish takeaway
If you're looking for exposure to an ASX oil and gas company, I think Beach is a great place to start. Low costs combined with a high-quality portfolio of oil and gas-producing assets make Beach a formidable player in the Australian resources sector. Like all ASX resources stocks, be prepared for some volatility though!
