Beach's Fiscal 2021 Net Operating and Free Cash Flows in Line With COVID-19-Crimped Expectations.

Beach Energy produces oil, gas, and gas liquids from multiple wholly owned projects and joint ventures in the onshore Cooper, Perth and Eromanga basins, and offshore in the Otway, Bass, and Taranaki basins. Beach merged with Cooper Basin joint-venture partner Drillsearch Energy Limited in March 2016, which increased equity production to about 10 million barrels of oil equivalent. This is now more than doubled to 28 million barrels of oil equivalent following purchase of Lattice from Origin Energy in 2018. Lattice’s scale enhancing incorporation, expanding Beach’s footprint across multiple basins and production hubs, resulted in an increase in EBITDA margins to over 70% from pre-Lattice 50% levels. But even with Lattice, our no-moat rating stands. Despite Lattice’s advantages Beach does not have sufficient resource life beyond 15 years.