Australian oil and gas producer Beach Energy reported record quarterly sales revenue of A$565 million (US$ equivalent not disclosed), a 41% increase from the previous quarter, as higher production, stronger gas prices, and increased LNG shipments boosted its financial performance.

In its first-quarter FY2027 operating report, covering the three months ended September 30, 2026, Beach Energy said total production climbed 9% quarter-on-quarter to 5.4 million barrels of oil equivalent (MMboe), supported by improved output across its Australian assets.

The company’s sales volumes increased 32% to 6.3 MMboe, reflecting higher production and the timing of LNG and crude oil shipments.

The strongest operational improvements came from the Bass Basin, where production surged 55%, while output from the Otway Basin increased 20%. Production from the Western Flank rose 15%, supported by newly connected wells and the restoration of flood-affected oil production.

The Waitsia Gas Plant in Western Australia was another key contributor, achieving a record average production rate of 219 terajoules per day (TJ/day) in August.

The facility underwent a planned maintenance shutdown in September, with operations fully restored on October 8. Since restarting, the plant has averaged approximately 235 TJ/day.

Beach Energy also benefited from two LNG cargo shipments during the quarter, generating A$115 million in revenue at an average realised price of A$15.2 per million British thermal units. The company expects one LNG cargo shipment in the second quarter.

Meanwhile, its average realised domestic gas price rose 7% to A$11.9 per gigajoule, while the average realised oil price declined 4% to A$166 per barrel.

Despite the lower quarterly oil price, Beach secured crude sales premiums of approximately US$19 per barrel, with premiums on second-quarter sales to date rising to around US$28 per barrel.

The company has also expanded its domestic gas marketing activities, securing contracts totaling 14 petajoules across FY2028–FY2030, including its first East Coast gas sales agreement linked to the Japan-Korea Marker LNG benchmark.

Beach Energy maintained its FY2027 production guidance of 19.5 million to 23 million barrels of oil equivalent, alongside planned capital expenditure of A$600 million to A$700 million.

Quarterly capital expenditure declined 46% to A$129 million, while abandonment spending reached A$96 million following the completion of the Equinox offshore rig campaign.

The company said it does not anticipate significant additional offshore abandonment expenditure until the mid-2030s, potentially reducing future pressure on cash flow.

Looking ahead, Beach is progressing expansion and exploration initiatives across its portfolio, including a A$120 million investment in compression infrastructure at the Waitsia Gas Plant, with commissioning targeted for FY2029.

In the Otway Basin, the company is preparing a proposed two-well nearshore exploration program targeting the Enterprise East and Selje prospects, potentially bringing additional natural gas supplies online from FY2029.

Beach also expanded its footprint in Queensland’s emerging Taroom Trough, securing additional exploration acreage as it evaluates new gas development opportunities.

The operational improvements come amid ongoing debate over Australian domestic gas supply policy. Beach Energy CEO Brett Woods warned that proposed gas reservation requirements could discourage new investment and increase the risk of longer-term supply shortages.

The company ended September with A$945 million in available liquidity and net debt of A$425 million, providing financial capacity to support its development program.

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