Beach Energy (BPT) is an oil and gas exploration and production company based in South Australia. BPT has oil and gas reserves of 92 million barrels of oil equivalent (mmboe) equivalent and contingent resources of 466.6 mboe.

The company holds interests in more than 300 exploration and production tenements in Australia, New Zealand, Papua New Guinea, Tanzania and Egypt among others.

FY12 and 1Q13 results

BPT reported an FY12 net profit of $164 million, a massive swing from FY11’s net loss of $97.5 million. A solid underlying profit figure of $122 million was posted, up a staggering 190% on the prior year.

Sales revenue was up 25% to $619 million, driven by higher oil and gas prices and increased sales volume. FY12 production was 7.5 mmboe, up 14% from FY11 due to better operational access and the first oil production in Egypt.

The group has more recently reported its quarterly results, with production increasing 2% on the previous quarter to 2.1 mmboe. BPT’s quarterly results put it on tract to reach its forecasted FY13 production of 8.5 – 9.0 mmboe.

Oil outlook

The chart above shows oil prices (white line) compared to BPT’s stock price (yellow line). As is evident from the chart, oil prices and BPT’s share price are highly correlated.

China accounts for over 10% of the global oil consumption and is one the fastest growing consumers of the liquid. The country’s recently released October import figures revealed that its demand for oil increased 6.6% on the prior year, to 9.76 million barrels per day.

This is the third highest level of Chinese demand on record, and as China’s economy recovers this should translate into further demand and thus an increase in the oil price.

Looking ahead

The group is in the process of expanding its current wells and exploring potential development. To that end the company has forecasted  for around $155 million in development expenditure and $195 million in exploration expenditure for FY13.

These developments and explorations are more or less funded, as the company has $352 million cash on its balance sheet and access of another $150 million via a financing facility.

We see limited risk to the groups FY13 production of 8.5 – 9.0 mmboe, given the 1Q result and in our view conservative forecast.

Given the strength of oil prices over the last month and the potential upside from its current capital expenditure program we feel that BPT share price has further appreciation ahead.

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Oil Search (ASX:OSH) is an oil and gas exploration and development company that has been operating in Papua New Guinea since 1929 and is listed on the ASX 200.

The group now explores, develops and produces oil and gas in Papua New Guinea and Australia, not to mention Yemen, Libya, Iraq and Tunisia.

Oil Search released its fourth quarter production figures today, which showed it produced 1.64 million barrels of oil in the Q4 up 10% on Q3, but down 14% from the year earlier.

The company said that it produced 6.69 million barrels of oil in CY11 compared to 7.66 million in CY10.

However OSH said that its revenue increased to US$654.3 million in CY11 from US$517.3 million in CY10, helped in part by a rise in the average realized price for oil.

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Whitehaven Coal Limited (ASX:WHC) is a coal producer in the Gunnedah Basin. The Company is engaged in the development and operation of coal mines in New South Wales. Whitehaven operates five mines in the region: Narrabri (underground), Rocglen (open cut), Sunnyside (open cut), Tarrawonga (open cut) and Werris Creek (open cut). The company is listed on the Australian Stock Exchange and is part of the S&P/ASX 200.

Whitehaven Coal and Aston Resources have reached an agreement that will create the largest strictly coal producer in Australia.

The deal, in which WHC offers 1.89 of its shares for each of Astons share, will create a company with a market value of approximately $5.1 billion.

The merger which has been billed by the companies as merger of equals has the unanimous support of both Aston’s and Whitehaven’s boards.

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Oil Search (ASX:OSH) is an oil and gas exploration and development company that has been operating in Papua New Guinea (PNG) since 1929 and is listed on the S&P/ASX 200.

OSH now explores, develops and produces oil and gas in Papua New Guinea and Australia, not to mention Yemen, Libya, Iraq and Tunisia.

Oil Search said the large gas export venture in Papua New Guinea with Exxon Mobil has had a budget increase of US$700 million.

The company announced today that the increase was due to the impact of the high Australian dollar.

Oil Search said that it has ample liquidity to increase its equity contribution to the project.

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Paladin Energy (ASX:PDN) is a uranium miner, with projects located in Africa and Australia.

PDN’s long-term goal is to establish itself as a uranium producer through identifying, acquiring and evaluating advanced uranium projects.

Today, PDN completed a $68.2 million institutional placement, priced at $1.20 per share.  This represents an 8.4% discount to its last closing price.

The group said the raising, combined with future operating cash flow and asset sales, will give it the financial flexibility to achieve its objectives.

The stock has been smashed after coming out of trading halt, and it has so far been the worst performer in the Australian share market.

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Bandanna Energy (BND) is the largest Australian thermal coal resource of any ASX listed explorer.

The group’s market capitalisation of around $614 million places BND in the top 25% of ASX listed coal companies.

The group is essentially an emerging coal explorer/developer which is positioned for significant growth.

BND confirmed last week that it is currently looking for funding to help complete the development of its key assets.

In a strategic review update released last Wednesday, BND said it would also be willing to consider external partners acquiring an interest in its assets.

As such, it has invited non-indicative bids from a number of interested parties, with the bids due for submission by the close of business on 4 May, 2011.

Bandanna Energy was one of the market’s hot stocks in the days leading to the update.

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Origin Energy (ORG) is a leading Australasian integrated energy company, participating in most segments of the energy supply chain, including natural gas and oil exploration and production, electricity generation, and energy retailing.

The company is also considered among the blue chip stocks in the Australian share market.

On 15 November, ORG announced a $2.3 billion capital raising to help pay for December’s purchase of NSW’s electricity assets.

The raising also means that ORG has reinstituted its FY11 guidance to underlying profit growth of around 15%.

The higher earnings forecast reflects an expected lower interest expense due to the paying down of debt associated with the asset purchase.

The new issue will be through an entitlement offer at $13, representing a 17% discount to ORG’s last price of $15.66.

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