BEACH PETROLEUM - BPT

[macduffy]

I pretty much agree with that, tok3n. None of my mid level oilers are thriving at present except AWE to some degree with its 42.5% of Tui, and ARQ which looks like it may be taken over by AWE. ( As a result, ARQ sp is up, AWE is down!)
I'm not into giving advice on prices - isn't it verboten on this forum? - but I would caution anyone interested in BPT that it has a fairly long history of disappointing, shareprice-wise.
But who knows, perhaps that will change one day!

[Hommel]

I have owned BPT and HZN for a couple of years now and I would have expected better from the share prices considering what has happened to oil prices lately. However I am not a seller at present.

[Dr_Who]

Q result is out. CommSec has a valuation upgrade of $1.98.

http://www.beachpetroleum.com.au/fil...8April_CBA.pdf

MEDIA RELEASE
FOR IMMEDIATE RELEASE

Ref: #049/08

INCREASED PRODUCTION AND HIGH OIL PRICES FOR
BEACH PETROLEUM’S QUARTERLY RESULTS

Beach Petroleum has posted record sales revenue of $A147.7 million in the March
quarter, up 14% from the previous quarter reflecting higher production and high oil
prices.

Oil sales revenue in the March quarter was up by 16% to $94.7 million while higher
production volumes and prices of gas and gas liquids also contributed to the results.

Total sales revenue for the nine months to March 2008 was $397 million, an increase
of 15% on the nine months to March 2007 ($345 million).
Beach Petroleum recorded an average oil price, for the nine months to March 2008,
of $A104/bbl (before taking into account hedging adjustments for the period).

In the March quarter Beach Petroleum produced 767,000 barrels of crude oil, up by
7%.
That increase was driven primarily by higher contributions from Beach’s various
Cooper/Eromanga oil projects and increased production from the BMG Project.

Beach sold a further 10% equity stake in the BMG project for A$123 million. Funds
from this sale were received on 24 April 2008.
Beach had previously sold a 10% stake in the BMG project to Itochu of Japan for the
same price.

Gas production volumes achieved by Beach in the March quarter remained steady

with higher liquid yields resulting in an increase in gas liquids production.

Total production during the quarter was 2.33 million barrels of oil equivalent, an
increase of 4% on the previous quarter.

Beach Petroleum managing director, Reg Nelson, said, “The March quarter results
continue to reflect Beach Petroleum’s growing strength in the Australian petroleum
industry.”

“Beach has continued to record significant success in the exploration program in the
western portion of the Cooper Basin and elsewhere in Australia.”

“But the company is also aiming to focus on growing the business in the international
arena.”

“Beach has a strong balance sheet and strong cash flows which it aims to utilise to

continue to build its asset portfolio.”

[macduffy]

Hmmm....
Not too sure if this report warrants large type.
Revenue for 9 mths is up 15% but this includes proceeds of the first 10% BMG sale. ($123m)
Without it, 9 mths revenue is down 20%.
Have I got this right?

[FarmerGeorge]

macduffy: If the sale of the BMG stake was counted under 'Sales Revenue' then yes I think you're right. However sales revenue is sales from oil/gas, ongoing operations. The BMG sale should not be included, it should be it's own line item. If it has been then I won't be a happy farmer.

[Bilo]

Hmmm....
Not too sure if this report warrants large type.
Revenue for 9 mths is up 15% but this includes proceeds of the first 10% BMG sale. ($123m)
Without it, 9 mths revenue is down 20%.
Have I got this right?

Beach don't do themselves any favours with their reporting. No wonder their share price keeps gravitating to 2 year lows.

Sales by quarter for the last three quarters have been AUD 131M, 130M, and 148M in the latest quarter. The sale of BMG does not appear to be included in these numbers. The poor price per barrel is likely linked to the Delhi hedging (800K barrels this year) which is in its last year of serious impact as it is reducing and phases out by June 2009 (see HY report).

They sold some of BMG, one assumes, because they needed the cash, as they were highly geared into the Delhi purchase that they snatched out of Santos's grasp, and the financing of this is likely to have caused some questioning.

So, bamboozled by mathematics, you and me and most punters don't realise that BPT is actually doing very well.

Pity about the dallying in sundry non oil/gas interests as they tend to hint that the organisation isn't adequately focussed.

I would like to see the $2 valuation tho - Commsec was it?

[Dr_Who]

I would like to see the $2 valuation tho - Commsec was it?

Here ya go.

http://www.beachpetroleum.com.au/fil...8April_CBA.pdf

CBD report says BPT valuation at $1.98, P/E 8x assuming they can meet forecast. Looks likely they can meet forecast with revenue up.

I assume this company is ripe for corporate activity if the sp stays at these levels? Will reduce alot of management cost if a bigger oil coy takes it out and re-structure to extract value. It just makes sense.

I bought some BPT for my portfolio.

[Bilo]

Here ya go.

I assume this company is ripe for corporate activity if the sp stays at these levels? Will reduce alot of management cost if a bigger oil coy takes it out and re-structure to extract value. It just makes sense.

I bought some BPT for my portfolio.

thanks Dr will study later

[macduffy]

Thanks, Bilo.
They certainly make things obscure.
On a positive note, a Fosterbroking review of PSA ( accessed from the PSA website ) estimates BPT EV/Reserve multiple favourably compared to its peers.
According to Fosters, BPT has an EV/boe of $13-30, compared to ROC $32-60, TAP $22-30, AWE $22-20 and PSA $17-70.

[FarmerGeorge]

Thanks for posting that report but honestly who are these monkeys working at CommSec? Spelling and grammatical errors and typo's a high school kid would pick up. I mean it shouldn't make a difference but it makes me suspicious of the whole report. If they miss out letters writing the document who's to say they didn't punch in the numbers wrong somewhere on their models?
Sorry but I just finished the report and had to vent that a little bit.