The Beach Energy Ltd (ASX: BPT) share price is pushing higher on Friday following the release of its quarterly update.
At the time of writing, the energy company's shares are up 2% to $1.35.
How did Beach perform during the first quarter?
The three months ended 30 September were reasonably positive for Beach Energy.
The company's production came in at 6.8 MMboe for the quarter, which was down 1% on the prior quarter. Management advised that higher output from Victorian Otway Basin and Cooper Basin JV was offset by lower Western Flank and BassGas volumes.
Despite this slight decline in production, Beach still delivered a 13% increase in quarterly sales revenue to $361 million compared to the prior quarter. This was driven by a 38% increase in the realised oil price, which was offset slightly by a 5% decline in the realised gas/ethane price.
At the end of the quarter, Beach had $9 million of net cash and access to $459 million in liquidity.
Beach's Managing Director and CEO, Matt Kay, was pleased with the company's start to the new financial year.
He commented: "In a period when the world has been anything but normal, I'm very pleased to see a great level of stability from our diverse portfolio of production assets."
"It was a quarter in which production met expectations, demonstrating that our team can continue to operate effectively during what has been a period of high disruption – particularly in Victoria. Sales revenues were up 13%, and Beach continues to operate in a net cash position, ensuring we remain in a robust position heading into the second quarter," Mr Kay said.
Outlook.
Beach has maintained its guidance for FY 2021. It continues to forecast production of 26 MMboe to 28.5 MMboe with a field operating cost per barrel of $8.20 to $8.75.
This is expected to lead to underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $900 million to $1,000 million for the year. Capital expenditure guidance remains unchanged at $650 million to $750 million.
