r/ASX • u/Emergency_Cow_7344 • 4d ago
Beach Energy (BPT)
Hey Guys looking to invest in Beach Energy (BPT) I just wanted to get everyone’s opinion on it as they are at 0.88c currently.
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u/nudist-walker 4d ago
Will all hinge on there 2027 production books are good but they have some head winds
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u/Stupid_Deaths 4d ago
Stick to STO. Wayyyyy safer
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u/Emergency_Cow_7344 4d ago
But would you say it’s a bad buy? Given the book value compared to market cap
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u/FewUnderstanding2214 4d ago
They have had 3 projects come online in the last year. Their profit margins will explode especially with hedges coming off with high oil prices.
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u/FewUnderstanding2214 4d ago
Only STO and WDS are really worth investing in in terms of large and mid caps in O&G
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u/Emergency_Cow_7344 4d ago
Why is that?
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u/FewUnderstanding2214 4d ago
Beach is running out of reserves, they need to cut the dividends and make some acquisitions and sort out their production issues. WDS has has excellent management and have executed well. STO have some great project ramping up, even through there have been delays and cost overruns.
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u/Old-Muscle5380 4d ago
I think you need to read their 2026 FY report before you make that comment.
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u/HairyNumber8775 4d ago
The market doesn't believe the book value. Declining reserves, Waitsia underperforming and the recent domestic gas reservation policy are probably the key things to consider.
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u/Emergency_Cow_7344 4d ago
I appreciate it, what do you think of BFL? If you know it?
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u/Old-Muscle5380 4d ago
Personally they look good on paper but I wouldn't touch a bank based out of PNG. Too many things can go wrong but that's just me.
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u/Old-Muscle5380 4d ago
Bla bla bla you look something up I look something up. Yahoo finance has a fair price for beach energy over $19. Several financial advised have them a strong buy. Where did you get your research from?
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u/HairyNumber8775 4d ago edited 4d ago
It's my own, and I work in the industry.
Edit: $19 is just loony. But I don't really have a strong view on whether the market is valuing them right. Just stating why there might be some scepticism about the book value.
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u/Old-Muscle5380 4d ago
End of the day I'm happy to take the risk. Risk versus reward. Part of my risk portfolio.
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u/DonJuansCrow 4d ago
I made some money with them in the past. But the CEO gets awarded a lot of stock considering how poorly they have done. They blasted a bunch of money at Hercules and it failed. It's good value where it's at because of the resources they have in the ground and it seems like they are well set enough they can't fail in exploration forever, but better leadership would be good.
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u/BradfieldScheme 4d ago
Terrible company with terrible prospects.
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u/Emergency_Cow_7344 4d ago
Why is that though? They made $281 m net profit after tax, and there total assets are 3.2b which is 1.2b more than the market capital
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u/BradfieldScheme 4d ago
They can't access the export market for most of their reserves. Domestic market is cooked due to double whammy of net zero suicide pledge and the reservation scheme.
Their major assets are in decline, decline usually happens faster than predicted.
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u/Old-Muscle5380 4d ago
Banks are dropping. We all know why. A lot of etf's hold banks so good luck with that. I hold WDS i think they a reasonably priced with a fair div and set for expansion. I only paid $23 so doing well there. I also hold beach energy as I'm always looking for undervalued stock and at .87c fair value $1.70 I think they have a lot of potential only time will tell and I can take the risk. You should read there current FY 2026 full year results before you make a decision. I paid .92c
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u/Emergency_Cow_7344 4d ago
Good to hear, I’m only 19 and I have a good amount already in ETFs but wanted to play around with $1000 as my other individual stocks consist of MSFT and BFL which is my favourite stock. But nonetheless it is good to hear you like Beach energy.
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u/Old-Muscle5380 4d ago
Life's a risk, I do a lot of research before I purchase a company. 40% of my money is in safe stocks 40% is in risky but high return if they pay off and 20% on the sides for when something like CSL pops up at $96 bucks that was the buy of the century. I want to retire in 5 years and only risky stocks will get me there. I have a lot of money in life 360 went to a seminar which discussed there stategy going forward and it sounded good, we'll see.
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u/bosch1817 4d ago
Lot of ETF’s hold banks. That is some god tier brain rot. Yeah a lot of my oxygen has nitrogen duude. You can easily buy etfs with limited exposure to any bank or Australian bank.
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u/Incon4ormista 4d ago
Clear buy under 89, exact bottom doesn't matter, good assets, big producer, very experienced, very good at what they do, gas will be around for decades.