Beach Energy Posts 20% EBITDA Growth and $657 Million Free Cash Flow in FY25
Beach Energy has reported a robust FY25 performance marked by significant production growth, record free cash flow, and strategic progress on key projects like the Waitsia Gas Plant and Moomba CCS. The company’s disciplined cost management and gas marketing strategy underpin a confident outlook for FY26.
- 9% production growth and 16% increase in sales volumes
- 20% rise in underlying EBITDA driven by higher East Coast gas volumes and LNG cargoes
- Record pre-growth free cash flow of $657 million enabling a fully franked final dividend
- Successful commissioning and ramp-up of Waitsia Gas Plant and Moomba CCS project
- FY26 guidance targets 19.7–22.0 MMboe production with $675–775 million capital expenditure
Strong Operational and Financial Momentum
Beach Energy’s FY25 results reveal a company firmly on track to cement its position as a leading domestic energy supplier in Australia. The company delivered a 9% increase in production to 19.7 million barrels of oil equivalent and a 16% rise in sales volumes, supported by higher realised gas prices and expanded LNG cargo deliveries. Underlying EBITDA grew 20% to $1.1 billion, reflecting operational efficiencies and a disciplined gas marketing approach focused on the East Coast market.
Free cash flow surged more than fourfold to $657 million, a figure that underpinned a record fully franked final dividend of 6 cents per share. This strong cash generation also facilitated significant debt reduction, leaving Beach with a robust balance sheet and $652 million in available liquidity at year-end.
Key Project Advances and Sustainability Leadership
Critical infrastructure projects made substantial progress during the year. The Waitsia Gas Plant in Western Australia moved into commissioning and ramp-up phases, contributing $352 million in revenue from five LNG cargoes. Meanwhile, the Moomba Carbon Capture and Storage (CCS) project successfully injected over one million tonnes of CO2, positioning Beach as a pioneer in Australia’s decarbonisation efforts.
Beach also reported its best health, safety, and environmental performance in 14 years, with only one recordable injury and no significant hydrocarbon spills. The company’s sustainability initiatives include a 35% emissions intensity reduction target by 2030 and ongoing methane emissions management below 0.2% intensity.
Reserves Revision and Exploration Outlook
The company’s 2P reserves declined from 205 to 173 million barrels of oil equivalent, primarily due to a revision at the Beharra Springs Deep field following new well evaluations. Despite this, Beach is actively refreshing its exploration inventory and advancing appraisal campaigns across its core hubs, including the Otway Basin, Western Flank, and Cooper Basin joint ventures.
FY26 guidance anticipates production between 19.7 and 22.0 MMboe, with capital expenditure budgeted at $675 to $775 million. This includes growth investments in Waitsia Stage 2 completion, the Equinox rig campaign, and ongoing exploration and development activities.
Strategic Focus on Domestic Gas and Cost Discipline
Beach’s strategy emphasizes growing local gas supply to meet domestic demand, particularly on the East and West Coasts. The company has increased its exposure to spot and short-term gas markets, aiming to optimise commercial outcomes amid evolving market dynamics. Operational cost reductions remain a priority, with an 18% decrease in unit field operating costs and a 20% cut in sustaining capital expenditure achieved in FY25.
With a low free cash flow breakeven oil price now below US$30 per barrel, Beach is well positioned to navigate commodity price volatility while pursuing organic growth and opportunistic acquisitions.
Bottom Line?
Beach Energy’s FY25 performance sets a strong foundation for growth, but upcoming project execution and reserves replenishment will be key to sustaining momentum.
Questions in the middle?
- How will the reserves revision at Beharra Springs Deep impact near-term production and valuation?
- What are the risks and timelines associated with the full ramp-up of the Waitsia Gas Plant?
- How will Beach balance dividend growth with capital expenditure amid evolving gas market conditions?
