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BPT - Beach Energy

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a big difference between acquire ( take at least 51% of the STX shares ) and a JV of convenience ( for example 70% of WGO with STX holding the remaining 30% ).

watch this play for more twists and turns ( IMO )
Morning divs4ever,
There is gas. There is a market. The other aspect not really discussed much is that STX has diversity. Fertiliser. There is a market. There is damand in that space too. Certainly, interesting times ahead.

Kind regards
rcw1
 
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Good afternoon
Been reported today (06/12/22):

Shares in the Kerry Stokes-backed Beach Energy are down 6 per cent amid concern over its ability to deliver the Waitsia gas project in Western Australia following the collapse of Clough, a chief contractor on the facility.

Gas from Waitsia will be supplied to the North West Shelf LNG export venture but Clough's plunge into voluntary administration has raised concern over delays.

"Beach and Mitsui E&P Australia, its joint venture partner and Waitsia operator, will work closely with the administrator, contractors, and stakeholders to ensure continued progress of the 250 TJ/day Waitsia Stage 2 gas plant," Beach said in a statement to the ASX.

"Beach has been working with Mitsui in planning for various outcomes and will continue to work to deliver the best outcome for the project."

Have a very nice day today.

Kind regards
rcw1
 
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have mixed feelings on this news , a little disappointed on the possible delay , but i also hold several Clough rivals which MIGHT get an extra opportunity

i hold BPT ( free-carried' ) and several listed engineering/services companies but if Clough fails completely who has the spare capacity ready at short notice ??
 
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have mixed feelings on this news , a little disappointed on the possible delay , but i also hold several Clough rivals which MIGHT get an extra opportunity

i hold BPT ( free-carried' ) and several listed engineering/services companies but if Clough fails completely who has the spare capacity ready at short notice ??
Mate reckon it will be a temporary setback....

Kind regards
rcw1
 

Dona Ferentes

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With Strike acquiring a 19.9% interest in Warrego, things have changed again.... Some comment:


Strike’s move could mean Beach is no longer a contender because it’s scheme of arrangement offer needs 100% of Warrego’s shares. Hancock Energy has not put any conditions on its offer and could buy shares in the open market if it wants to.

The Strike and Warrego jointly -controlled gas field is not producing but Beach and Mitsui control the Waitsia field nearby. Mitsui’s plans to develop the field at a cost of more than $760 million have been hit by the collapse of its contractor, Clough Australia.

A probable outcome would be for Strike to do a deal with Beach and Mitsui to grab Warrego and amalgamate the two fields with a stage development plan that sees the costs and revenues from Waitsia finance the development of West Erregulla and several smaller structures though to be in the area.

With Strike shares at 36.5 cents, Warrego shares look a bargain at 30.5 cents, but that’s questionable given all the known unknowns in this increasingly complex situation.

Beach shares were down nearly 10% at $1.64. Yes, oil prices are weakening but was yesterday’s share price fall a judgement from some investors that Beach is being squeezed out of the Warrego play? Beach can certainly deal itself back in, if it and its 30% shareholder Kerry Stokes both want to, along with Mitsui.
 
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Good morning
Has been reported this morning 09/12/22:

Beach Energy bows out of the bidding war for Warrego, leaving Strike Energy and Gina Rinehart's Hancock group in the race for a bigger gas play in Western Australia.

The Kerry Stokes-backed group had five days to bring its 25c per share offer up to Hancock's 'superior' 28c takeover bid even as Strike Energy moved on a potential 19.9 per cent blocking stake to any deal.

Beach has now determined not to exercise its matching right, focusing on its own exploration efforts instead, conveying its decision to Beach's management.

"The multiple party bidding process for Warrego has reinforced our view of the value of our dominant acreage position in the Perth Basin and encourages us to expand our current active exploration drilling program in one of the most exciting gas plays in Australia," Beach chief executive Morné Engelbrecht said.

"In applying Beach's disciplined approach to inorganic growth, we propose to invest further exploration capital into our existing prospects and drilling inventory in the Perth Basin. Beach will look to accelerate exploration, development and commercialisation of our acreage to deliver more gas for Western Australia,” Mr Engelbrecht said.
 

Dona Ferentes

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Will Beach try to mop up other partners in the onshore Perth basin? There's plenty of acreage; NWE is in the mix.
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given certain investment groups have decided to avoid in investing in fossil fuel exploration/development , and a possible tightening of credit generally , one might wonder how much major share-holder The Stokes Family and BPT are willing to spend on acquisitions , will they be patient , or calmly cherry-pick the opportunities as they arrive ( for instance distressed engineering/services companies )

i hold BPT ( 'free-carried' ) and SVW
 

Dona Ferentes

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Waitsia reserves downgraded 11%

Morné Engelbrecht, Beach’s chief executive officer, “remains confident” that the firm can fulfil its contractual obligations.
“Beach is navigating a challenging period while we work hard to deliver our major growth projects in the Otway and Perth basins."
While we have announced a reduction to our Perth Basin proven and provable (2P) reserves following the Waitsia development drilling campaign, we remain confident in the Perth Basin as a major growth area including our ability to supply 3.75 Mt of LNG volumes to bp and meeting our domestic demand commitment.”

The company said the reduction in total 2P reserves by 10.6 million barrels of oil equivalent (MMboe) is due to “increased structural complexity in the Waitsia field and poor reservoir quality in the High Cliff reservoir at Waitsia.”

The update came as BPT’s output and sales revenue tumbled in the December quarter, missing market expectations.

.....And back to around $1.50
 

Dona Ferentes

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...expectations.
.....And back to around $1.50
reported yesterday

Beach Energy has made an important change to dividend policy to allow it to start giving shareholders more of its half a billion plus in unused franking credits.

The most immediate impact of the change in policy was the doubling in the size of the interim from one cent per share paid a year ago to 2 cents per share (fully franked of course) with the prospects of more – if earnings improve, as the company expects from 2024 and 2025.

Beach explained the change in Monday’s release, “This enables distribution of franking credits to shareholders (around $590 million as at December 31), adding, “Our continued Balance Sheet strength, including a net cash position at the end of the half, supports our decision to implement our new dividend policy now.
“It ensures Beach can continue to invest further in growth beyond our current projects while increasing dividend payments to shareholders.


The company said it had a net cash and liquidity position at December 31 of $609 million.
“The new dividend policy will reward our shareholders for their ongoing commitment to our strategy, targeting a payout ratio of 40-50% of pre-growth free cash flow and enabling the distribution of our substantial franking credit balance.
Having invested in our major growth projects we are now in a position to reward shareholders.”
 

Dona Ferentes

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Done and dusted.

...
Beach Energy provides the following summary of results from the Trigg 1 gas exploration well, the first Beach-operated well in the Perth Basin exploration program (Beach 50% and operator; Mitsui E&P Australia 50%).

The well reached total depth of 4,914 metres (measured depth) on 3 June. Gas shows were present in the primary Kingia target however no gas could be recovered with wireline testing. The reservoir is interpreted to be tight with insufficient porosity and permeability to flow gas. Testing this significant southerly step-out of the Kingia play meant that reservoir presence and quality was the primary pre-drill risk for this prospect.

Trigg 1 will be plugged and abandoned and the pre-planned side-track, Trigg 2, a contingent appraisal well,will not be drilled. The rig will now move to the Trigg Northwest 1 well location. After Trigg Northwest 1, Tarantula Deep 1 and Beharra Spring Deep 2 will be drilled.
 
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^^^
Yesterday's p/f update from G Canavan (fat tails advisory) still had BPT as a buy along with the other oil/gas producers (WDS, STO). In the fossil energy section he has ORG and WHC on hold.
Will be interested in his eventual update which I expect to remain buy for BPT after this untoward event and market price adjustment. Personally, more likely I will buy WDS before considering BPT but price might alter that.

Not Held
 

Dona Ferentes

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Beach came out with a good Q4 report (not too much going wrong !). The SP is above $1.60, first time in CY23. A strong oil price helps.

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