Beach Energy (ASX:BPT) has been an ASX listed company since 1961. It is an oil and gas exploration and production company headquartered in Adelaide and has oil and gas production in five basins across Australia and New Zealand.
The Group is involved in the exploration, development, and production of Oil and Gas from which revenue is derived. Gas sale contracts are spread across major Australian and New Zealand energy retailers and industrial users with oil production sales being made to major multi-national energy companies based on international market pricing.
Source: Beach Energy 2023 Annual Report
But as I highlighted back in April this year when I questioned whether it was time to buy the stock, we look forward and see the demand for LNG is set to intensify as Asia looks to LNG to power their energy grids. You wouldn’t know it looking at a 10 year chart excluding dividends, the price is at similar levels to where it started.
Source: Stockopedia ASX:BPT 10 Year Chart
Furthermore, on the home front the Australian Federal Government now sees natural gas as one of its main planks in achieving its net-zero emissions target by 2050.
As stated in the Future Gas Strategy, the Government even sees the need for more natural gas supply. Because if the status quo remains, there will be a natural gas shortage by 2028. This was noticed by the powers that be a little late, but should be no surprise for an investor.
As a result of the two reasons stated above, BPT are in the right place at the right time and have the key infrastructure already in place to benefit from this increase in demand for LNG and other gases and oil. Both these elements are vital for Price Takers such as these.
Source: Beach Energy 2023 Annual Report
As alluded to above, a key factor in BPT’s future success is their suite of key assets and infrastructure. Their suite of assets includes the Otway Gas Project and Bass Gas on Australia’s East Coast, the Waitsia Gas Project Stage 2 on the…
