Shares in Beach Energy Ltd (ASX: BPT) were trading higher on Wednesday despite the company reporting a 9% fall in production for the second quarter of the year.
The Adelaide-based energy company's production came in at 4.5 million barrels of oil equivalent (MMboe), which was down 9% on both the preceding quarter and the same quarter last year.
Sales revenue for the quarter was 17% lower at $445 million, with the company receiving $105 per barrel of oil sold, down from $113.
The amount the company was paid for its gas improved 2% over the prior quarter to $11.90 per gigajoule.
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ASX oil share looking forward for growth
Beach Managing Director Brett Woods said the company was working on growth programs across all of its core assets.
These included the Waitsia gas plant, which was commissioned during the quarter, and which delivered its first sales gas into the pipeline network.
Mr Woods added:
I am very proud of our team's effort to support and drive the project to completion, unlocking a critical piece of infrastructure for the Western Australian gas market. The ramp-up process is well underway.
Mr Woods said in the Cooper Basin, there was higher production across operated and non-operated assets, "on the back of successful flood recovery efforts, with a majority of flood-impacted production now back online''.
It was pleasing to see the return of a drilling rig to the Western Flank this quarter and early success from the expanded 12 well oil appraisal and development campaign, with three oil wells cased and suspended in the period. This campaign will be followed by a 10-well oil exploration campaign to be drilled through the back end of FY26 and into early FY27.
Mr Woods said the company ended the quarter with $925 million in liquidity, "driven by positive quarterly cashflow generation and a new $300 million term facility, which received strong support from new and existing lenders''.
WA project ramping up
At Waitsia, the company achieved a peak production rate of 165 terajoules per day of gas compared with the nameplate capacity of 250 terajoules.
Beach said that during the third quarter, a third and fourth gas compressor would be brought online, "during which time production rates from the Waitsia Gas Plant are expected to ramp up towards nameplate capacity''.
In the Cooper Basin, Beach participated in 20 wells during the quarter, with a success rate of 70%, "from one oil appraisal well, two oil development wells, three gas exploration wells, two gas appraisal wells and 12 gas development wells''.
Beach shares were 3.2% higher on Wednesday morning at $1.13.
The company was valued at $2.51 billion at the close of trade on Tuesday.
