This report is an updated version of the report published on 16 June 2025 at 10:49 AM AEST.  

Beach Energy Limited (ASX: BPT)

BPT is an Australia-based oil & gas exploration and production company with a diverse portfolio of assets across Australia and New Zealand. Beach Energy's core business involves both operated and non-operated assets, producing natural gas, LPG, condensate, and crude oil. The company is a key supplier of gas to Australia's domestic markets and exports LNG through long-term contracts.

Recommendation Rationale – SELL at AUD 1.400

• Trading Around Resistance: BPT’s share price has crossed its R1 level recommended on 12 June 2025 and is approaching its R2. However, its 14-day Relative Strength Index (RSI) is hovering around 62.21; hence, the stock may witness some consolidation before moving higher.

• Decline in Production & Revenue: BPT's production and sales volumes went down by 3% and 5% QoQ, respectively, in the March 2025 quarter. Sales revenue stood at AUD 392mn for the quarter ended 31 March 2025, down 2% from AUD 563mn in the December 2024 quarter.
• Overvalued Multiples: On a forward 12-month basis - key valuation multiples (EV/EBITDA and Price/Cash Flow) are higher than median of the Energy sector.
• Risks: BPT is exposed to volatile oil and gas prices, regulatory changes, operational disruptions, and environmental liabilities, all of which can impact its financial performance.

BPT Daily Chart

Valuation Methodology: Price/Cash Flow Approach (FY June'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering the turnaround in bottom-line in H1FY25, increased free cash flow, 50% increase in interim dividend, reduced net debt and gearing levels. For conducting the valuation, the following peers have been considered: Karoon Energy Ltd (ASX: KAR), Woodside Energy Group Ltd (ASX: WDS), Amplitude Energy Ltd (ASX: AEL) and others have been considered.

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current price of AUD 1.400 (as of 16 June 2025, at 10:05 AM AEST).

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 16 June 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.    

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.