Sydney - Beach Energy announced today that its second-quarter production of oil and natural gas has declined by 4% compared to the previous quarter, despite higher oil prices. The company has also adjusted its production guidance for fiscal 2024.
During the three months ending in December, Beach Energy produced a total of 4.3 million barrels of oil equivalent, down from the 4.5 million barrels in the prior quarter.
As a result of its half-year performance, Beach Energy has revised its production guidance for fiscal 2024. The company now projects a production range of 18 to 20 million barrels of oil equivalent, narrowing it down from the previous guidance of 18 to 21 million.
Additionally, the capital expenditure guidance for fiscal 2024 has been revised to between 900 million Australian dollars (US$591.93 million) and A$1 billion, compared to the previous range of A$850 million to A$1 billion.
Key Milestones Reached
Despite the decline in production, Beach Energy is proud to announce that it has achieved important project milestones across its operations. Bruce Clement, Interim Chief Executive of Beach Energy, highlights the significance of these achievements.
"These commercial outcomes are a further demonstration of Beach's ability to deliver new gas volumes to the domestic market, and are key milestones toward our expected step-up in production rates and cash flow to come this calendar year and beyond," Clement stated.
Non-Cash Impairment Charge Expected
In its FY 2024 half-year results, Beach Energy anticipates recognizing a non-cash impairment charge amounting to approximately A$721 million, or A$505 million after tax. This charge is related to Cooper Basin producing assets and various exploration assets.