Ann: Waitsia Stage 2 update, page-37

I have orders in the ASX at different prices. Still have two more trading days to buy before Half Year Report. And on Monday, might buy again!

Excerpts from AFR on 29 Jan 2023.


Uncertainty facing Australian energy stocks from global recession fears, geopolitics, the energy transition and government intervention mean that investors need to take a short-term view on the sector, and be prepared to change tack as the situation evolves, says Barrenjoey energy and utilities analyst Dale Koenders.

Adopting a “set and forget” strategy just does not work in the current market, said Mr Koenders, who still sees favourable picks in the sector, including Beach Energy and Santos, as well as refiner Ampol.



At Waitsia, which Beach owns with operator Mitsui, Mr Koenders pointed to apparently sub-par results on drilling that presented risks around gas reserves at the site in the Perth Basin, while the collapse of contractor Clough added further challenges in construction.

He said there was a “confession” required from Beach on Waitsia, with the second-quarter report on Tuesday providing the next opportunity.

But while that means he’s cautious in the very short term on Beach, “after you get past that point ... we think there’s a huge opportunity for them to materially grow production and free cash flow,” he added.