Beach Energy lifts production in Q3 FY26, updates outlook

Beach Energy delivered higher production and strong liquidity in Q3 FY26, while navigating weather setbacks and expanding its gas portfolio.

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The Beach Energy Ltd (ASX: BPT) share price is in focus today after the company posted a 7% lift in production to 4.8 million barrels of oil equivalent (MMboe) and quarterly sales revenue of $419 million for the third quarter of FY26.

oil and gas worker checks phone on site in front of oil and gas equipment

Image source: Getty Images

What did Beach Energy report?

  • Production increased 7% quarter-on-quarter to 4.8 MMboe, led by the Perth Basin ramp-up (up 174%)
  • Sales revenue was $419 million, down 6% from the previous quarter
  • Sales volumes totalled 5.3 MMboe (down 10% vs Q2), including one LNG cargo ($54 million revenue)
  • Average realised oil price climbed 19% to A$125/bbl; gas price averaged $11.2/GJ (down 6%)
  • Available liquidity strengthened to $974 million with net gearing reduced to 11%
  • FY26 production guidance revised to 19.4–20.3 MMboe (from 19.7–22.0 MMboe)

What else do investors need to know?

Beach Energy's quarter saw strong output from the Waitsia Gas Plant, now operating close to full capacity after the final two compressors were brought online. The company lifted one LNG cargo in February, contributing $54 million in sales.

Severe rains in the Cooper Basin and Western Flank led to some production setbacks and delayed drilling, but these operations have since resumed. Beach also secured new exploration acreage, including ATP 2081 in the Taroom Trough and three Queensland gas blocks, bolstering its East Coast gas portfolio.

On the development front, a final investment decision was made to advance the Moomba Central Optimisation project, aiming to streamline and extend infrastructure life, with completion targeted in the first half of FY29.

What did Beach Energy management say?

Managing Director and Chief Executive Officer Brett Woods said:

This was a pivotal quarter for Beach, with the Waitsia Gas Plant reaching 94% of nameplate capacity, the Equinox rig returning to commence Phase 2 of the Otway offshore campaign and a final investment decision was taken on the Moomba Central Optimisation (MCO) project. Combined with strong cash generation and three new tenement awards, the third quarter marks the continued progress on our strategy.

What's next for Beach Energy?

Looking ahead, Beach Energy will continue the ramp-up of the Waitsia Gas Plant and progress its new acreage across the Taroom Trough and Cooper Basin. Management is targeting completion of the Moomba project in H1 FY29, which should help unlock value and support longer-term output.

Production outlook for FY26 has been revised due to weather impacts but remains strong. The company's improved liquidity and disciplined approach to capital will support ongoing drilling and development across its expanded portfolio.

Beach Energy share price snapshot

Over the past 12 months, Beach Energy shares have risen 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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