The Beach Energy Ltd (ASX: BPT) share price is edging forward today and is now trading 0.5% higher at $1.51.
The company's share price has impressed so far in 2022, climbing 20% and outpacing the benchmark S&P/ASX 200 Index (ASX: XJO) in that time.
But can the energy player climb higher after its spike earlier this year? One broker thinks so. Let's take a look.
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Diversified exposure to a suite of assets, this broker says
Analysts at JP Morgan are constructive on Beach Energy shares, noting the company provides numerous value streams in its offering.
"We think Beach provides good exposure to a diversified suite of assets in Australia," the broker said. "Net debt is close to zero and therefore Beach has the strongest balance sheet of the large caps under our coverage."
JP Morgan analysts also reckon that Beach Energy remains on track with its growth aspirations, especially now that issues at its Western Flank segment are largely resolved. This should lead to a material increase in production in the broker's estimation.
"We forecast production of 22mmboe in FY2022 (at the midpoint of guidance) and 23mmboe in FY23 before stepping up to 29mmboe in FY24," JP Morgan remarked.
It also forecasts $1.6 billion in revenue for the company this year, jumping to $1.66 billion in FY23 and $1.97 billion the year after.
However, analysts still view some risk surrounding Western Flank with its recent well interruptions – something investors should consider.
The broker also notes the Beach Energy share price performance has been largely underpinned by company-specific drivers, instead of sector strengths or market bullishness alone.
This could bode in well for its earnings profile and forward valuations, the broker says – something its analysts are constructive on, even with the embedded risks.
"Nonetheless, at the current valuation, we remain overweight," the broker concluded.
Beach Energy share price snapshot
Over the last 12 months, the Beach Energy share price has fallen almost 8%. Yet, it has climbed more than 20% this year to date.
In the past month of trading, the company's shares have gained another 7%, pushing Beach Energy well ahead of the major indices in 2022.
