Beach Energy, an Australian oil and gas producer, reported a record quarterly sales revenue of A$565 million for the first quarter of FY2027, marking a 41% increase from the previous quarter. The surge in revenue was driven by higher production, stronger gas prices, and increased liquefied natural gas (LNG) shipments. Total production rose 9% quarter-on-quarter to 5.4 million barrels of oil equivalent (MMboe), with significant contributions from the Bass Basin, Otway Basin, and the Waitsia Gas Plant in Western Australia.
The company's sales volumes increased 32% to 6.3 MMboe, reflecting higher production and the timing of LNG and crude oil shipments. The Waitsia Gas Plant achieved a record average production rate of 219 terajoules per day (TJ/day) in August, although it underwent a planned maintenance shutdown in September. Since restarting on October 8, the plant has averaged approximately 235 TJ/day.
Beach Energy benefited from two LNG cargo shipments during the quarter, generating A$115 million in revenue at an average realized price of A$15.2 per million British thermal units. The company also saw a 7% increase in its average realized domestic gas price to A$11.9 per gigajoule, while the average realized oil price declined 4% to A$166 per barrel. Despite the lower 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.
Looking ahead, Beach Energy maintained its FY2027 production guidance of 19.5 million to 23 million barrels of oil equivalent and plans to invest A$600 million to A$700 million in capital expenditure. The company is progressing expansion and exploration initiatives, including a A$120 million investment in compression infrastructure at the Waitsia Gas Plant, with commissioning targeted for FY2029. Beach Energy CEO Brett Woods warned that proposed gas reservation requirements could discourage new investment and increase the risk of longer-term supply shortages.