Shares in oil and gas company Beach Energy Ltd (ASX: BPT) rose 1.7% to $1.84 on Thursday, after the company released its quarterly report.
It was another strong result for Beach Energy, with a 10% increase in production on the previous quarter, to 7.2 million barrels of oil equivalent (MMboe). This brings FY18 pro forma production – which includes a 12-month contribution from the Lattice assets, acquired from Origin Energy Ltd (ASX: ORG) and actually consolidated only 6 months ago – to 26.7 MMboe. At the higher end of the company's guidance.
Higher sales, combined with an 11% increase in the average realised oil price, drove a 20% increase in revenue on the previous quarter, to $471 million. The strong free cash flow allowed the company to reduce its gearing ratio from 29% to 26%, while acquiring additional stakes in the Oatway gas project, which is now fully owned, and in the BassGas project, in which Beach Energy now has a controlling interest of 54%.
Thanks to the Lattice deal and recent exploration activities, Beach Energy increased its proved and probable reserves by 320%, to 313 MMboe, extending the remaining life of reserves from 7 years to 11 years.
