Why is the Beach Energy share price sinking 5% on Thursday?

What’s going on with the Beach Energy share price? We take a look.

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Key points

  • Beach Energy shares are sinking 5% to $1.615 during morning trade
  • The board has appointed Morné Engelbrecht as its permanent CEO
  • Prior to this, Engelbrecht held the top job in an acting capacity for six months

The Beach Energy Ltd (ASX: BPT) share price is in reverse today following a senior leadership change within the company.

During morning trade, the oil and gas producer’s shares are down 5% to $1.615. This also comes after oil prices tumbled overnight.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is also deep in negative territory, down 1.67% to 7,063 points. This is likely in part due to heavy Wall Street losses overnight on the back of investor fears surrounding rising inflation.

Beach Energy appoints new CEO

In a statement to the ASX, Beach Energy advised it has appointed Morné Engelbrecht as its new CEO, effective today.

This concludes the board’s extensive international search to fill the top job which commenced late last year. Notably, Engelbrecht secured the role after spending the last six months as acting CEO.

His strong performance in overseeing the company’s progress of its major capital programs put him as the ideal candidate.

With more than 20 years’ experience across the oil, gas, and resource sector, Engelbrecht joined Beach Energy in 2016.

Holding the role of chief financial officer, he became instrumental in the acquisition and integration of Lattice Energy.

Prior to 2016, Engelbrecht held various senior financial, commercial, and advisory roles at InterOil, Lihir Gold, Harmony Gold, and PwC.

Notably, he was appointed to the Board of the Australian Petroleum Production & Exploration Association (APPEA) in November 2021.

Beach Energy chair Glenn Davis touched on the appointment, saying:

We are very pleased that Morné has accepted the role of Chief Executive Officer.

Morné has clearly demonstrated his leadership capabilities over many years with Beach and his credentials are ideally suited for continuing the delivery of our strategy.

On behalf of the Board, we welcome Morné to the role.

A fall in oil prices overnight is also likely weighing on Beach Energy shares. According to Bloomberg, the WTI crude oil price is down 2.8% to US$109.09 a barrel and the Brent crude oil price is down 2.5% to US$109.12 a barrel.

Beach Energy share price snapshot

Over the last 12 months, the Beach Energy share price has surged 24%. It is also up 27% this year to date.

Its shares hit a 52-week high of $1.77 in March before travelling in circles. 

Based on today’s price, Beach Energy has a market capitalisation of roughly $3.96 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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