Full Year 2026 Beach Energy Ltd Earnings Call

August 6, 2026

Speaker #1: Thank you for standing by, and welcome to the Beach Energy Ltd FY26 full-year results. All participants are in listen-only mode. There will be a presentation followed by a question-and-answer session.

Operator: Thank you for standing by, and welcome to the Beach Energy Limited FY26 full year results. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Brett Woods, Managing Director and Chief Executive Officer. Please go ahead.

Operator: Thank you for standing by, and welcome to the Beach Energy Limited FY 2026 full year results. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Brett Woods, Managing Director and Chief Executive Officer. Please go ahead.

Speaker #1: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Brett Woods, Managing Director and Chief Executive Officer.

Speaker #1: Please go ahead.

Speaker #2: Good morning, everyone, and welcome to Beach Energy's FY26 full-year results presentation. Joining me today is Amory Babaro, our Chief Financial Officer. Together, we will take you through this year's operational and financial results, the progress we have made against our strategic priorities, and the outlook for FY27 before opening the lines for Q&A.

Brett Woods: Good morning, everyone, and welcome to Beach Energy's FY26 full year results presentation. Joining me today is Anne-Marie Barbaro, our Chief Financial Officer. Together, we will take you through this year's operational and financial results, progress we have made against our strategic priorities, and the outlook for FY27 before opening the lines for Q&A. FY26 was a year of tangible delivery against the strategic reset we outlined 2 years ago. We assisted our operator in bringing a major project into production at Waitsia, executed a large offshore campaign in Victoria, recommenced drilling in the Western Flank after nearly a 3-year hiatus, grew margin across our business through an embedded cost discipline, commercial focus, and the owner's mindset, and maintained a strong focus on safe and reliable operations. Importantly, that discipline translated into strong cash generation and strengthened balance sheet.

Brett Woods: Good morning, everyone, and welcome to Beach Energy's FY 2026 full year results presentation. Joining me today is Anne-Marie Barbaro, our Chief Financial Officer. Together, we will take you through this year's operational and financial results, progress we have made against our strategic priorities, and the outlook for FY27 before opening the lines for Q&A. FY 2026 was a year of tangible delivery against the strategic reset we outlined two years ago. We assisted our operator in bringing a major project into production at Waitsia, executed a large offshore campaign in Victoria, recommenced drilling in the Western Flank after nearly a three-year hiatus, grew margin across our business through an embedded cost discipline, commercial focus, and the owner's mindset, and maintained a strong focus on safe and reliable operations. Importantly, that discipline translated into strong cash generation and strengthened balance sheet.

Speaker #2: FY26 was a year of tangible delivery against the strategic reset we outlined two years ago. We assisted our operator in bringing a major project into production at Wakefield, executed a large offshore campaign in Victoria, recommenced drilling in the Western Flank after nearly a three-year hiatus, grew margin across our business through an embedded cost discipline, commercial focus, and the owner's mindset, and maintained a strong focus on safe and reliable operations.

Speaker #2: Importantly, that discipline translated into strong cash generation and a strengthened balance sheet. Beach delivered positive all-in free cash flow during a major period of project execution, supported by increased realized gas pricing, lower field operating costs, and disciplined capital allocation.

Brett Woods: Beach delivered positive all-in free cash flow during a major period of project execution, supported by increased realized gas pricing, lower field operating costs, and disciplined capital allocation. We also reinforced, as a critical supplier of domestic gas on the East Coast, our operated assets and non-operated interests supplied approximately 19% of total gas demand, with 100% of our East Coast gas production delivered to domestic customers. As a result, Beach enters FY27 in a stronger financial position with greater flexibility to fund disciplined organic investment, pursue value accretive on organic opportunities with a view to building the resource base to support the next phase of growth. Slide two sets out our compliance statements, which I'll leave to you to read at your leisure. We begin with our headline results on slide three.

Speaker #2: We also reinforced that, as a critical supplier of domestic gas on the East Coast, our operated assets and non-operated interests provide approximately 19% of total gas demand, with 100% of our East Coast gas production delivered to domestic customers.

Speaker #2: As a result, Beach enters FY27 in a stronger financial position, with greater flexibility to fund disciplined organic investment and pursue value-accretive inorganic opportunities, with a view to building the resource base to support the next phase of growth.

Speaker #2: FY2 sets out our compliance statements, which I'll leave to you to read at your leisure. We begin with our headline results on Slide 3.

Speaker #2: FY26 headline results demonstrate the resilience of Beach's operating model, with commercial execution and cost discipline helping offset production headwinds and support strong cash generation.

Brett Woods: FY26 headline results demonstrate the resilience of Beach's operating model, with commercial execution and cost discipline helping offset production headwinds and support strong cash generation. Production of 19.4 million barrels oil equivalent was 2% below the prior year, primarily due to the Cooper Basin flood event and further severe rainfall in February and March of this year. All operated assets delivered above their FY26 targets, but this was partially offset by the delayed first production and a slower ramp-up for Waitsia. Waitsia achieved its nameplate capacity of 250 terajoules a day in April, and Beach will continue the ongoing support of the operator as it continues to work towards sustained production rates. Sales volumes were 22.9 million barrel of oil equivalent, with revenue of AUD 1.8 billion.

Brett Woods: FY 2026 headline results demonstrate the resilience of Beach's operating model, with commercial execution and cost discipline helping offset production headwinds and support strong cash generation. Production of 19.4 million barrels oil equivalent was 2% below the prior year, primarily due to the Cooper Basin flood event and further severe rainfall in February and March of this year. All operated assets delivered above their FY 2026 targets, but this was partially offset by the delayed first production and a slower ramp-up for Waitsia. Waitsia achieved its nameplate capacity of 250 terajoules a day in April, and Beach will continue the ongoing support of the operator as it continues to work towards sustained production rates. Sales volumes were 22.9 million barrel of oil equivalent, with revenue of AUD 1.8 billion.

Speaker #2: Production of 19.4 million barrels of oil equivalent was 2% below the prior year, primarily due to the Cooper Basin flood event and further severe rainfall in February and March of this year.

Speaker #2: All operated assets delivered above their FY26 targets, but this was partially offset by the delayed first production and a slower ramp-up for Wakefield. Wakefield achieved its nameplate capacity of 250 barrels a day in April, and Beach will continue the ongoing support of the operator as it continues to work towards sustained production rates.

Speaker #2: Sales volumes were 22.9 million barrels of oil equivalent, with revenue of $1.8 billion. While lower production reduced sales volumes, revenue benefited from six LNG cargoes with a 7% uplift in realized gas pricing.

Brett Woods: While lower production reduced sales volumes, revenue benefited from six LNG cargoes with a 7% uplift in realized gas pricing, reflecting the continued value of our targeted gas marketing strategy. Cost discipline also remained a key focus, with total field operating costs reduced by 3%, including the addition of the Waitsia gas plant operations from December. Together with stronger realized gas pricing, this supported underlying EBITDA of AUD 1 billion and pre-growth free cash flow of AUD 458 million. Today, we announced a refreshed capital management framework, which is designed to support disciplined growth and increase total shareholder returns over time, while maintaining prudence as we navigate through a period of uncertainty with the domestic gas reservation policy still under review. The approach is deliberately disciplined.

Speaker #2: Reflecting the continued value of our targeted gas marketing strategy. Cost discipline also remained a key focus, with total field operating costs reduced by 3%, including the addition of the Wakefield Gas Plant operations from December.

Speaker #2: Together with stronger realized gas pricing, this supported underlying EBITDA of $1 billion and pre-growth free cash flow of $458 million. Today, we announce a refreshed capital management framework, which is designed to support disciplined growth and increase total shareholder returns over time.

Speaker #2: Whilst maintaining prudence as we navigate through a period of uncertainty, with the domestic gas reservation policy still under review, we will continue to review the framework as our portfolio evolves. But the approach is deliberately disciplined.

Speaker #2: It preserves financial flexibility, directs capital to the opportunities with the strongest returns, and provides a clear pathway to grow total shareholder returns over time.

Brett Woods: It preserves financial flexibility, directs capital to the opportunities with the strongest returns. It provides a clear pathway to grow total shareholder returns over time. Within this framework, the board has declared a final dividend of AUD 0.02 per share, bringing full year dividends declared to AUD 0.03 per share, fully franked. Slide four brings together the key FY26 milestones that demonstrate delivery against the strategy. Across our core hubs, FY26 was defined by safe execution and the delivery of critical infrastructure. In the West, Waitsia commenced production in December, establishing a long-life infrastructure platform in the Perth Basin. We are working closely with operator Mitsui to move the plan towards steady state operations following a planned statutory shutdown in September.

Brett Woods: It preserves financial flexibility, directs capital to the opportunities with the strongest returns. It provides a clear pathway to grow total shareholder returns over time. Within this framework, the board has declared a final dividend of AUD 0.02 per share, bringing full year dividends declared to AUD 0.03 per share, fully franked. Slide four brings together the key FY 2026 milestones that demonstrate delivery against the strategy. Across our core hubs, FY 2026 was defined by safe execution and the delivery of critical infrastructure. In the West, Waitsia commenced production in December, establishing a long-life infrastructure platform in the Perth Basin. We are working closely with operator Mitsui to move the plan towards steady state operations following a planned statutory shutdown in September.

Speaker #2: Within this framework, the Board has declared a final dividend of 2 cents per share, bringing full-year dividends declared to 3 cents per share, fully franked.

Speaker #2: Slide 4 brings together the key FY26 milestones that demonstrate delivery against the strategy. Across our core hubs, FY26 was defined by safe execution and the delivery of critical infrastructure.

Speaker #2: In the West, Wakefield commenced production in December, establishing a long-life infrastructure platform in the Perth Basin. We are working closely with operator Mitsui to move the plant toward steady-state operations, following a planned statutory shutdown in September.

Speaker #2: On the East Coast, Beach supplied 100% of its gas production to domestic customers, with our operator and non-operator interests supplying approximately 19% of the total East Coast gas demand.

Brett Woods: On the East Coast, Beach supplied 100% of its gas production to domestic customers, with our operated and non-operated interests supplying approximately 19% of the total East Coast gas demand. This clearly reinforces the critical role of domestic-only producers in the Australian economy, and why we continue to advocate for policy settings that support new supply and long-term energy security. Safety performance was also a standout. The team achieved 18 months recordable injury-free while executing major offshore activity, drilling in the Cooper Basin, and day-to-day field operations across our portfolio. This is an exceptional outcome last achieved in 2011, when Beach operated only in the Cooper Basin. Moomba CCS also continued to perform strongly, with nearly 2.3 million tons of CO2 equivalently safely stored since startup.

Speaker #2: This clearly reinforces the critical role of domestic-only producers in the Australian economy. And while we continue to advocate for policy settings that support new supply and long-term energy security,

Speaker #2: Safety performance was also a standout. The team achieved 18 months recordable injury-free while executing major offshore activity, drilling in the Cooper Basin, and day-to-day field operations across our portfolio.

Speaker #2: This is an exceptional outcome, last achieved in 2011, when Beach operated only in the Cooper Basin. Member CCS also continued to perform strongly, with nearly 2.3 million tonnes of CO2 equivalent safely stored since startup.

Speaker #2: We also maintain our focus on margins and cash generation, with commercial execution and cost discipline helping to convert operational delivery into strong financial outcomes.

Brett Woods: We also maintain our focus on margins and cash generation, with commercial execution and cost discipline helping to convert operational delivery into strong financial outcomes. Our targeted gas marketing strategy saw 29 petajoules of gas sold into spot and short-term markets across a diversified customer base, supporting high realized gas pricing and improved margins. The six LNG cargoes at Waitsia delivered revenue of AUD 343 million, supported by a combination of gas time swaps, purchases, Waitsia production, and North West Shelf lifting arrangements. Our sustainable growth pillar remains focused on lengthening the duration of our portfolio. In FY26, we took disciplined steps to high-grade the portfolio, monetize high-cost and low-margin investments, and add exposure to attractive growth opportunities across Queensland, the Cooper Basin, and the onshore Otway. During the year, we announced the sale of our 60% operated interest in VIC/L35, the offshore permit that contains the Artisan discovery.

Brett Woods: We also maintain our focus on margins and cash generation, with commercial execution and cost discipline helping to convert operational delivery into strong financial outcomes. Our targeted gas marketing strategy saw 29 petajoules of gas sold into spot and short-term markets across a diversified customer base, supporting high realized gas pricing and improved margins. The six LNG cargoes at Waitsia delivered revenue of AUD 343 million, supported by a combination of gas time swaps, purchases, Waitsia production, and North West Shelf lifting arrangements. Our sustainable growth pillar remains focused on lengthening the duration of our portfolio. In FY 2026, we took disciplined steps to high-grade the portfolio, monetize high-cost and low-margin investments, and add exposure to attractive growth opportunities across Queensland, the Cooper Basin, and the onshore Otway. During the year, we announced the sale of our 60% operated interest in VIC/L35, the offshore permit that contains the Artisan discovery.

Speaker #2: Our targeted gas marketing strategy saw 29 petajoules of gas sold into spot and short-term markets across a diversified customer base, supporting high realized gas pricing and improved margins.

Speaker #2: The six LNG cargoes at Wakefield delivered revenue of $343 million, supported by a combination of gas time swaps, purchases, Wakefield production, and Northwest Shelf lifting arrangements.

Speaker #2: Our sustainable growth pillar remains focused on lengthening the duration of our portfolio. In FY26, we took disciplined steps to high-grade the portfolio, monetize high-cost and low-margin investments, and add exposure to attractive growth opportunities across Queensland, the Cooper Basin, and the onshore Otway.

Speaker #2: During the year, we announced the sale of our 60% operated interest in VIC L35, the offshore permit that contains the Artisan discovery. That transaction enables Beach to monetize the asset while preserving exposure to future development through a production royalty.

Brett Woods: That transaction enables Beach to monetize the asset while preserving exposure to future development through a production royalty. Importantly, it also allows us to redeploy more than AUD 500 million of near-term capital to higher value opportunities. We also expanded our footprint in Queensland through new acreage awards with our joint venture partners in the Taroom Trough and Cooper Basin, alongside additional acreage in the onshore Otway. The Taroom Trough is one of Australia's most active exploration and appraisal areas, and I will speak to that in more detail later in the pack. The three new Cooper Basin joint venture blocks capture an existing field extension and further strengthen our exploration portfolio. We also acknowledge the Queensland Government's proactive approach to the release and award of exploration acreage in both the Taroom and the Cooper. A supportive government is paramount to establish affordable and reliable energy over the long term.

Speaker #2: Importantly, it also allows us to redeploy more than $500 million of near-term capital to high-value opportunities. We also expanded our footprint in Queensland through new acreage awards with our joint venture partners in the Tarum Trough and Cooper Basin.

Speaker #2: Alongside additional acreage in the onshore Otway. The Tarum Trough is one of Australia's most active exploration and appraisal areas, and I'll speak to that in more detail later in the pack.

Speaker #2: The three new Cooper Basin joint venture blocks capture an existing field extension and further strengthen our exploration portfolio. We also acknowledge the Queensland Government's proactive approach to the release and award of exploration acreage in both the Tarum and the Cooper.

Speaker #2: A supportive government is paramount to establishing affordable and reliable energy over the long term. On the organic front, we commenced our Western Flank oil appraisal and development program, with success across all nine wells drilled to date.

Brett Woods: On the organic front, we commenced our Western Flank oil appraisal and development program, with success across all nine wells drilled to date. The remaining three wells are scheduled to be drilled in H1 FY27, along with the commencement of an eight-well exploration campaign. Taken together, these milestones demonstrate that Beach is delivering against the strategy, operating safely, improving margins, strengthening the portfolio, and building the resource base to support disciplined growth. Turning to slide five, FY26 was a record year for health and safety and environmental performance, achieved during a period of significant operational activity across the portfolio. The team safely executed more than 1.5 million work hours, including the offshore Equinox campaign in Victoria, an active onshore drilling program in the Western Flank, and day-to-day operations across our operated assets.

Brett Woods: On the organic front, we commenced our Western Flank oil appraisal and development program, with success across all nine wells drilled to date. The remaining three wells are scheduled to be drilled in H1 FY27, along with the commencement of an eight-well exploration campaign. Taken together, these milestones demonstrate that Beach is delivering against the strategy, operating safely, improving margins, strengthening the portfolio, and building the resource base to support disciplined growth. Turning to slide five, FY 2026 was a record year for health and safety and environmental performance, achieved during a period of significant operational activity across the portfolio. The team safely executed more than 1.5 million work hours, including the offshore Equinox campaign in Victoria, an active onshore drilling program in the Western Flank, and day-to-day operations across our operated assets.

Speaker #2: The remaining three wells are scheduled to be drilled in the first half of FY27, along with the commencement of an eight-well exploration campaign.

Speaker #2: Taken together, these milestones demonstrate that Beach is delivering against the strategy: operating safely, improving margins, strengthening the portfolio, and building the resource base to support disciplined growth.

Speaker #2: Turning to slide 5, FY26 was a record year for health, safety, and environmental performance. This was achieved during a period of significant operational activity across the portfolio.

Speaker #2: The team safely executed more than 1.5 million work hours, including the offshore Equus campaign in Victoria, an active onshore drilling program in the Western Flank, and day-to-day operations across our operated assets.

Speaker #2: Beach has now been recordable injury-free for more than 18 months, a performance level last achieved in 2011, when the company operated a single offshore asset.

Brett Woods: Beach has now been recordable injury-free for more than 18 months, a performance level last achieved in 2011 when the company operated a single offshore asset. Importantly, we recorded no Tier 1 process safety events during the year, noting our last Tier 1 process safety event was in February 2020. This outcome reflects the discipline of our operating model, the commitment to our people, and the focus on planning, risk management, and frontline execution. Those foundations will remain critical in FY27 as we continue to work across programs over our core hubs. Slide six shows how the owner's mindset we introduced through the strategic reset is now embedded in the way Beach operates, allocates capital, and captures value across the portfolio. For us, an owner's mindset means every asset team is accountable for safe delivery, cost discipline, capital efficiency, and the commercial value of every molecule produced.

Speaker #2: Importantly, we recorded no T1 process safety events during the year, noting our last T1 process safety event was in February 2020. This outcome reflects the discipline of our operating model, the commitment of our people, and the focus on planning, risk management, and frontline execution.

Speaker #2: Those foundations will remain critical in FY27 as we continue to work across programs over our core hubs. Slide 6 shows how the owner's mindset we introduced through the strategic reset is now embedded in the way Beach operates.

Speaker #2: Allocates capital and captures value across the portfolio. For us, an owner's mindset means every asset team is accountable for safe delivery, cost discipline, capital efficiency, and the commercial value of every molecule produced.

Speaker #2: It is about making decisions as an owner of the capital, not simply operators of the assets. That discipline is visible in the operating cost base.

Brett Woods: It is about making decisions as an owner of the capital, not simply operators of the assets. That discipline is visible in the operating cost base. Operated fields have reduced by 18% since FY24, reflecting structural cost out, tighter activity planning, and stronger frontline accountability. While FY26 field operating costs finished slightly above our AUD 11 per barrel oil equivalent target at AUD 11.40 per barrel, this was impacted by lower production and weather-related disruptions in the Western Flank. The underlying cost trajectory remains clear and strong. The same mindset is evident commercially. We have been deliberately and actively managing uncontracted gas volumes, increasing exposure to spot and short-term markets, adopting alternative pricing models, and optimizing routes to market across our portfolio. Since H1 FY24, this has supported a 29% uplift in average realized gas pricing. Importantly, this operating discipline is translating into cash outcomes.

Brett Woods: It is about making decisions as an owner of the capital, not simply operators of the assets. That discipline is visible in the operating cost base. Operated fields have reduced by 18% since FY 2024, reflecting structural cost out, tighter activity planning, and stronger frontline accountability. While FY 2026 field operating costs finished slightly above our AUD 11 per barrel oil equivalent target at AUD 11.40 per barrel, this was impacted by lower production and weather-related disruptions in the Western Flank. The underlying cost trajectory remains clear and strong. The same mindset is evident commercially. We have been deliberately and actively managing uncontracted gas volumes, increasing exposure to spot and short-term markets, adopting alternative pricing models, and optimizing routes to market across our portfolio. Since H1 FY 2024, this has supported a 29% uplift in average realized gas pricing. Importantly, this operating discipline is translating into cash outcomes.

Speaker #2: Operator fields have reduced by 18% since FY24, reflecting structural cost-out, tighter activity planning, and stronger frontline accountability. While FY26 field operating costs finished slightly above our $11 per barrel oil equivalent target, at $11.40 per barrel, this was impacted by lower production and weather-related disruption in the Western Flank.

Speaker #2: The underlying cost trajectory remains clear and strong. The same mindset is evident commercially. We have been deliberately and actively managing uncontracted gas volumes, increasing exposure to spot and short-term markets, adopting alternative pricing models, and optimizing routes to market across our portfolio.

Speaker #2: Since H1 FY24, this has supported a 29% uplift in average realized gas pricing. Importantly, this operating discipline is translating into cash outcomes. We have kept our pre-growth free cash flow break-even oil price well below US$30 per barrel for the last two financial years, and continue to meet our sustaining capital target.

Brett Woods: We have kept our pre-growth free cash flow breakeven oil price well below US$30 per barrel for the last two financial years and continue to meet our sustaining capital target. That is the owner's mindset in practice. Lower structural costs, higher realized value, disciplined capital deployment, and strong cash generation. slide seven sets out our position on the domestic gas reservation and the role policy can play in supporting new supply. Beach supports prospective reservation for new gas developments, provided it is implemented on a must-offer, not must-sell basis. That distinction is important because it ensures new domestic suppliers are made available to Australian customers while preserving market discipline, investment confidence, and efficient allocation of gas to the customers who value it most. Our support is conditional on any scheme being prospective, rules-based, transparent, and linked to a published adequacy test.

Speaker #2: That is the owner's mindset in practice: lower structural cost realized, higher realized value, disciplined capital deployment, and strong cash generation. Slide 7 sets out our position on the domestic gas reservation and the role policy can play in supporting new supply.

Speaker #2: Beach supports prospective reservation for new gas developments, provided it is implemented on a must-offer, not must-sell, basis. That distinction is important because it ensures new domestic supplies are made available to Australian customers, while preserving market discipline, investment confidence, and efficient allocation of gas to the customers who value it most.

Speaker #2: Gas supporters are conditional on any scheme being prospective, rules-based, transparent, and linked to a published adequacy test. It should also recognize physical market realities, prioritize domestic supply close to customers and infrastructure, and align obligations with the market and the assets capable of serving.

Brett Woods: It should also be recognized physical market realities prioritizing domestic supply close to customers and infrastructure and aligning obligations with market and the asset capable of serving. For Beach, this reinforces the strategic choices that we are making. We have monetized higher-cost developments through sale, and we are prioritizing low-cost onshore developments where gas can be brought to market efficiently, while continuing to target high-margin, large-scale offshore opportunities that can materially extend life and scale to our portfolio. At the same time, our marketing strategy will remain focused on value capture and customer alignment. We will continue working closely with customers, expanding our routes to market across domestic supply, LNG export, and emerging demand, and using portfolio flexibility to maximize value while supporting reliable energy supply.

Speaker #2: For Beach, this reinforces the strategic choices that we are making. We have monetized higher-cost developments through sale, and we are prioritizing low-cost onshore developments where gas can be brought to market efficiently, while continuing to target high-margin, large, off-scale offshore opportunities that can materially extend life and scale to our portfolio.

Speaker #2: At the same time, our marketing strategy will remain focused on value capture and customer alignment. We will continue working closely with customers, expanding our routes to market across domestic supply, LNG export, and emerging demand, and using portfolio flexibility to maximize value while supporting reliable energy supply.

Speaker #2: Slide 8 sets out our reserves and resources position as at 30 June 2026, and the actions underway to rebuild and extend the resource base.

Brett Woods: slide eight sets out our reserves and resources position as at 30 June 2026, and the actions underway to rebuild and extend the resource base. 2P reserves were 156 million barrels of oil equivalent at year-end. The annual movement was primarily driven by production of 19.4 million barrels of oil equivalent, partially offset by positive revisions from the Western Flank campaign and through the Cooper Basin joint venture. The key contributors included the Western Flank, reflecting successful oil appraisal and development drilling and improved performance across our operated assets. The Cooper Basin joint venture reflecting improvement in reservoir performance, exploration success, and additional undeveloped opportunities. The proportion of 2P developed reserves increased slightly to 77%, up from 76% in the prior year, supported by successful drilling activity in the Western Flank. Our 2C contingent resource position remained broadly stable at 174 million barrels of oil equivalent at 30 June 2026.

Speaker #2: 2P reserves were 156 million barrels of oil equivalent at year-end. The annual movement was primarily driven by production of 19.4 million barrels of oil equivalent, partially offset by positive revisions from the Western Flank campaign and through the Cooper Base and joint venture.

Speaker #2: The key contributors included the Western Flank, reflecting successful oil appraisal and development drilling, and improved performance across our operated assets. The Cooper Basin and joint venture reflected improvement in reservoir performance, exploration success, and additional undeveloped opportunities.

Speaker #2: The proportion of 2P developed reserves increased slightly to 77%, up from 76% in the prior year, supported by successful drilling activity in the Western Flank.

Speaker #2: Our 2C continued resource position remained broadly stable at 174 million barrels of oil equivalent at 30 June 2026. Further detail on our reserve position is included in the annual report, which has been released today.

Brett Woods: Further detail on our reserve position is included in the annual report, which has been released today. Looking ahead, the FY27 program is focused on building the resource base with targeted organic growth opportunities across the portfolio. This includes active exploration and appraisal across our East and West Coast assets. Planned seismic activity across the recently awarded Queensland gas exploration blocks to high-grade future opportunities, and progressing the Moomba Central Optimisation Project. The MCO project is expected to improve production recovery, reduce fuel consumption, and support lower development costs through a more optimized central field drilling strategy, ultimately improving the pathway from 2C to 2P reserves. In parallel, we will continue to progress growth opportunities in the offshore Otway T30, T50P permits, as well as the Perth Basin backfill opportunities, which we will cover in more detail later in the presentation.

Speaker #2: Looking ahead, the FY27 program is focused on building the resource base with targeted organic growth opportunities across the portfolio. This includes active exploration and appraisal across our East and West Coast assets.

Speaker #2: Plant seismic activity across the recently awarded Queensland gas exploration blocks to high-grade future opportunities, and progressing the Mumba Central Optimization (MCO) project. The MCO project is expected to improve production recovery, reduce fuel consumption, and support lower development costs through a more optimized central field drilling strategy, ultimately improving the pathway from 2C to 2P reserves.

Speaker #2: In parallel, we will continue to progress growth opportunities in the offshore Otway, T30, and T50P permits, as well as the Perth Basin backfill opportunities, which we will cover in more detail later in the presentation.

Speaker #2: With that, I'll now hand over to Anne-Marie for a deeper dive into our FY26 financial results.

Brett Woods: With that, I'll now hand over to Anne-Marie for a deeper dive into our FY26 financial results.

Brett Woods: With that, I'll now hand over to Anne-Marie for a deeper dive into our FY 2026 financial results.

Speaker #1: Thank you, Brett, and good morning, everyone. FY26 headline financial metrics demonstrate the resilience of the business, with disciplined cost management and commercial execution helping offset lower volumes and softer liquids pricing, largely reflected through LNG.

Anne-Marie Barbaro: Thank you, Brett, and good morning, everyone. FY26 headline financial metrics demonstrate the resilience of the business with disciplined cost management and commercial execution, helping offset lower volumes and softer liquids pricing, largely reflected through LNG. Sales revenue of AUD 1.8 billion was 10% below the prior year, primarily reflecting lower crude sales volumes following Cooper Basin flood impacts and lower gas sales volumes in the Otway. This was partly offset by the contribution from six Waitsia LNG cargos and stronger realized gas pricing, reflecting continued execution of our targeted gas marketing strategy. These commercial benefits, combined with structural cost reduction across our operated assets, supported our underlying EBITDA of AUD 1 billion with an improvement in EBITDA margin at 57% and underlying net profit after tax of AUD 355 million.

Anne-Marie Barbaro: Thank you, Brett, and good morning, everyone. FY 2026 headline financial metrics demonstrate the resilience of the business with disciplined cost management and commercial execution, helping offset lower volumes and softer liquids pricing, largely reflected through LNG. Sales revenue of AUD 1.8 billion was 10% below the prior year, primarily reflecting lower crude sales volumes following Cooper Basin flood impacts and lower gas sales volumes in the Otway. This was partly offset by the contribution from six Waitsia LNG cargos and stronger realized gas pricing, reflecting continued execution of our targeted gas marketing strategy. These commercial benefits, combined with structural cost reduction across our operated assets, supported our underlying EBITDA of AUD 1 billion with an improvement in EBITDA margin at 57% and underlying net profit after tax of AUD 355 million.

Speaker #1: Sales revenue of $1.8 billion was 10% below the prior year, primarily reflecting lower crude sales volumes following Cooper Basin flood impacts and lower gas sales volumes in the Otway.

Speaker #1: This was partly offset by the contribution from six-weight-year LNG cargoes and stronger realized gas pricing, reflecting continued execution of our targeted gas marketing strategy.

Speaker #1: These commercial benefits, combined with structural cost reduction across our operated assets, supported our underlying EBITDA of $1 billion, with an improvement in EBITDA margin to 57%, and underlying net profit after tax of $355 million.

Speaker #1: Statutory earnings were $281 million, with a difference to underlying earnings primarily reflecting the write-off of the unsuccessful Hercules exploration well at the half-year, and costs associated with unutilized North West Shelf processing capacity prior to the commencement of production at Waitsia.

Anne-Marie Barbaro: Statutory earnings were AUD 281 million, with a difference to underlying earnings primarily reflecting the write-off of the unsuccessful Hercules exploration well at the H1, and costs associated with unutilized North West Shelf processing capacity prior to the commencement of production at Waitsia. Turning to slide 11, the waterfall chart highlights the year-on-year movement in underlying NPAT. Lower sales revenue, down 10% on the prior year, reflected lower crude and gas sales volumes, combined with softer liquids pricing. These impacts were partly offset by higher realized gas pricing, up 7% on the prior year, and the benefit of one additional LNG cargo from Waitsia. Cost of sales benefited from lower third-party purchases following the commencement of production at Waitsia, coupled with lower royalties, which were driven by lower revenue in the flood-impacted Cooper Basin.

Speaker #1: Turning to slide 11, the waterfall chart highlights the year-on-year movement in underlying NPAT. Lower sales revenue, down 10% on the prior year, reflected lower crude and gas sales volumes combined with softer liquids pricing.

Speaker #1: These impacts were partly offset by higher realized gas pricing, up 7% on the prior year, and the benefit of one additional LNG cargo from Waitsia.

Speaker #1: Cost of sales benefited from lower third-party purchases following the commencement of production at Waitsia, coupled with lower royalties, which were driven by lower revenue in the flood-impacted Cooper Basin.

Speaker #1: This was partly offset by higher tolling, LNG-related inventory movements, and depreciation following commencement of production at Waitsia. Field operating costs were 3% lower than the prior year, and that includes the addition of Waitsia gas plant operations from December.

Anne-Marie Barbaro: This was partly offset by higher tolling, LNG-related inventory movements, and depreciation following commencement of production at Waitsia. Group operating costs were 3% lower than the prior year, and that includes the addition of Waitsia gas plant operations from December. This demonstrates the cost discipline now embedded across our operated assets and reinforces the strength of the operating model. Higher other income included recognition of carbon credits received during the year at market value. The revaluation of the condensate overlift liability initially recognized when we lifted the one-off Waitsia cargo in the H1 of FY24 and foreign exchange gains during the period. Slide 12 reflects the movement in cash during FY26, with closing cash reserves of AUD 213 million. Operating cash flow of AUD 890 million reflected the benefit of six Waitsia LNG cargoes, strong realized gas pricing, and continued cost discipline across the business.

Anne-Marie Barbaro: This was partly offset by higher tolling, LNG-related inventory movements, and depreciation following commencement of production at Waitsia. Group operating costs were 3% lower than the prior year, and that includes the addition of Waitsia gas plant operations from December. This demonstrates the cost discipline now embedded across our operated assets and reinforces the strength of the operating model. Higher other income included recognition of carbon credits received during the year at market value. The revaluation of the condensate overlift liability initially recognized when we lifted the one-off Waitsia cargo in the H1 of FY 2024 and foreign exchange gains during the period. Slide 12 reflects the movement in cash during FY 2026, with closing cash reserves of AUD 213 million. Operating cash flow of AUD 890 million reflected the benefit of six Waitsia LNG cargoes, strong realized gas pricing, and continued cost discipline across the business.

Speaker #1: This demonstrates the cost discipline now embedded across our operated assets and reinforces the strength of the operating model. Higher other income included recognition of carbon credits received during the year at market value.

Speaker #1: The revaluation of the condensate overlift liability, initially recognized when we lifted the one-off Waitsia cargo in the first half of FY24, and foreign exchange gains during the period.

Speaker #1: Slide 12 reflects the movement in cash during FY26, with closing cash reserves of $213 million. Operating cash flow of $890 million reflected the benefit of six wet-year LNG cargoes, strong realized gas pricing, and continued cost discipline across the business.

Speaker #1: Operating cash flows also include Beach's offshore decommissioning activities conducted during the financial year as part of the Equinox campaign, which is now largely complete.

Anne-Marie Barbaro: Operating cash flows also include Beach's offshore decommissioning activities conducted during the financial year as part of the Equinox campaign, which is now largely complete. Sustaining capital cash payments were AUD 422 million, including sustained capital incurred of AUD 394 million and working capital movements well below the AUD 450 million operating principle, reinforcing the capital discipline now embedded in the business. Importantly, Beach delivered positive all-in free cash flow during the year of elevated capital activity, including heightened offshore activity and the decommissioning of four offshore wells. The outcome further strengthened our financial position and preserved flexibility to fund future growth. Slide 13 highlights the strength of Beach's financial position at year-end and the flexibility it provides to fund disciplined growth. We ended FY26 with AUD 983 million of available liquidity, up 51% on the prior year.

Anne-Marie Barbaro: Operating cash flows also include Beach's offshore decommissioning activities conducted during the financial year as part of the Equinox campaign, which is now largely complete. Sustaining capital cash payments were AUD 422 million, including sustained capital incurred of AUD 394 million and working capital movements well below the AUD 450 million operating principle, reinforcing the capital discipline now embedded in the business. Importantly, Beach delivered positive all-in free cash flow during the year of elevated capital activity, including heightened offshore activity and the decommissioning of four offshore wells. The outcome further strengthened our financial position and preserved flexibility to fund future growth. Slide 13 highlights the strength of Beach's financial position at year-end and the flexibility it provides to fund disciplined growth. We ended FY 2026 with AUD 983 million of available liquidity, up 51% on the prior year.

Speaker #1: Sustaining capital cash payments were $422 million, including sustaining capital incurred of $394 million and working capital movements. This is well below the $450 million operating principle, reinforcing the capital discipline now embedded in the business.

Speaker #1: Importantly, Beach delivered positive all-in free cash flow during the year of elevated capital activity, including heightened offshore activity and the decommissioning of four offshore wells.

Speaker #1: The outcome further strengthened our financial position and preserved flexibility to fund future growth. Slide 13 highlights the strength of Beach's financial position at year-end and the flexibility it provides to fund disciplined growth.

Speaker #1: We ended FY26 with $983 million of available liquidity, up 51% on the prior year. This was supported by positive free cash flow generation and the $300 million Asian term loan secured in December, completed with strong lender support.

Anne-Marie Barbaro: This was supported by positive free cash flow generation and the AUD 300 million Asian Term Loan secured in December, completed with strong lender support. We also maintained a low leverage position with net gearing of 10.6% at year-end. This remains below our target of below 15%, providing balance sheet capacity to support disciplined organic investment and assessment of value-accretive inorganic growth opportunities. As noted, the board has declared a final dividend of AUD 0.02 per share, bringing full-year dividends declared to AUD 0.03 per share while preserving flexibility to fund the next phase of growth. I'll talk to this decision more now. Slide 14 sets out our refreshed capital management framework, which is designed to support disciplined growth and increase total shareholder returns over time while maintaining prudence as we navigate through a period of uncertainty with the domestic gas reservation policy still under review. The hierarchy is clear.

Speaker #1: We also maintained a low leverage position with net gearing of 10.6% at year-end. This remains below our target of 15%, providing balance sheet capacity to support disciplined organic investment and assessment of value-accretive inorganic growth opportunities.

Speaker #1: As noted, the board has declared a final dividend of $0.02 per share, bringing full-year dividends declared to $0.03 per share while preserving flexibility to fund the next phase of growth.

Speaker #1: I'll talk to this decision more now. Slide 14 sets out our refreshed capital management framework, which is designed to support disciplined growth and increased total shareholder returns over time, whilst maintaining prudence as we navigate through a period of uncertainty with the domestic gas reservation policy still under review.

Speaker #1: The hierarchy is clear. First, we'll fund the sustaining capital required to operate the base business safely, reliably, and efficiently. Second, we'll allocate capital to organic and inorganic growth opportunities only where they are value-accretive, risk-balanced, and meet our disciplined hurdle rates.

Anne-Marie Barbaro: First, we'll fund the sustaining capital required to operate the base business safely, reliably, and efficiently. Second, we'll allocate capital to organic and inorganic growth opportunities only where they are value accretive, risk balanced, and meet our discipline hurdle rates. Our through-the-cycle gearing target remains around 15%, with capacity to move up to 25% through the growth cycle where the returns justify it. This provides the flexibility to navigate the current period of domestic gas market review uncertainty, while continuing to pursue high return opportunities across the portfolio. Surplus free cash flow after sustaining capital growth and balance sheet requirements will then be available for the board to consider shareholder distributions, including dividends and other capital returns. Put simply, the framework prioritizes four things: sustaining the base business, investing in growth where it creates value, maintaining a strong balance sheet, and returning surplus cash to shareholders.

Speaker #1: Our through-the-cycle gearing target remains around 15%, with capacity to move up to 25% through the growth cycle where the returns justify it. This provides the flexibility to navigate the current period of domestic gas market review uncertainty, while continuing to pursue high-return opportunities across the portfolio.

Speaker #1: Surplus free cash flow, after sustaining capital, growth, and balance sheet requirements, will then be available for the Board to consider shareholder distributions, including dividends and other capital returns.

Speaker #1: Put simply, the framework prioritizes four things: sustaining the base business, investing in growth where it creates value, maintaining a strong balance sheet, and returning surplus cash to shareholders.

Speaker #1: We'll continue to review the framework as the portfolio evolves, but the approach is deliberately disciplined. It preserves financial flexibility, directs capital to the opportunities with the strongest returns, and provides a clear pathway to grow total shareholder returns over time.

Anne-Marie Barbaro: We'll continue to review the framework as the portfolio evolves. The approach is deliberately disciplined. It preserves financial flexibility, directs capital to the opportunities with the strongest returns, and provides a clear pathway to grow total shareholder returns over time. With that, I'll hand back to Brett to take you through the outlook.

Speaker #1: With that, I'll hand back to Brett to take you through the outlook.

Speaker #2: Thank you, Emily. I will now take you through the outlook for FY27 and the key activities that will support our next phase of growth.

Brett Woods: Thank you, Anne-Marie. I will now take you through the outlook for FY27 and the key activities that will support our next phase of growth. Slide 16 sets out our FY27 guidance, which reflects a continued focus on disciplined execution, safe operations, and targeted investment across the portfolio. For production, we are guiding between 19.5 and 23 million barrels of oil equivalent. This range incorporates planned statutory maintenance shutdowns at Waitsia and the Otway gas plants, Western Flank recovery from prior year flood impacts, progressive connection of the remaining oil development wells during the FY26 campaign, and a prudent view of Waitsia performance as the plant moves towards steady state operations following the planned statutory shutdown in September. In the Western Flank, recovery activities are continuing with the remaining flood-impacted wells representing approximately 600 barrels of oil per day, expected to be progressively restored in the H1.

Brett Woods: Thank you, Anne-Marie. I will now take you through the outlook for FY27 and the key activities that will support our next phase of growth. Slide 16 sets out our FY27 guidance, which reflects a continued focus on disciplined execution, safe operations, and targeted investment across the portfolio. For production, we are guiding between 19.5 and 23 million barrels of oil equivalent. This range incorporates planned statutory maintenance shutdowns at Waitsia and the Otway gas plants, Western Flank recovery from prior year flood impacts, progressive connection of the remaining oil development wells during the FY 2026 campaign, and a prudent view of Waitsia performance as the plant moves towards steady state operations following the planned statutory shutdown in September. In the Western Flank, recovery activities are continuing with the remaining flood-impacted wells representing approximately 600 barrels of oil per day, expected to be progressively restored in the H1.

Speaker #2: Slide 16 sets out our FY27 guidance, which reflects a continued focus on disciplined execution, safe operations, and targeted investment across the portfolio. For production, we are guiding between 19.5 and 23 million barrels of oil equivalent.

Speaker #2: This range incorporates planned statutory maintenance shutdowns at Waitsia and the Otway gas plants; Western Flank recovery from prior-year flood impacts; progressive connection of the remaining oil development wells during the FY26 campaign; and a prudent view of Waitsia performance as the plant moves towards steady state operations following the planned statutory shutdown in September.

Speaker #2: In the Western Flank, recovery activities are continuing, with the remaining flood-impacted wells representing approximately 600 barrels of oil per day expected to be progressively restored in the first half.

Speaker #2: We will also connect the remaining oil development wells drilled during the recent campaign. In the Cooper Basin joint venture, production is expected to remain broadly flat, with ongoing drilling activity expected to offset natural field decline.

Brett Woods: We will also connect the remaining oil development wells drilled during the recent campaign. In the Cooper Basin joint venture, production is expected to remain broadly flat, with ongoing drilling activity expected to offset natural field decline. In the Otway Basin, we expect field decline close to 10% during the year, together with a planned 28-day statutory maintenance shutdown. The extension of maintenance cycle interval from 4 years to 6 years reflects the strength of our detailed risk-based inspection program and supports more efficient long-term operation of the asset. For capital expenditure, we're guiding between AUD 600 to 700 million. The program is increasingly focused on our onshore assets with active drilling campaigns across our east and west coast portfolios.

Speaker #2: In the Otway Basin, we expect field decline close to 10% during the year, together with a planned 28-day statutory maintenance shutdown. The extension of the maintenance cycle interval from four years to six years reflects the strength of our detailed risk-based inspection program.

Speaker #2: And supports more efficient long-term operation of the asset. For capital expenditure, we're guiding between $600 million and $700 million. The program is increasingly focused on our onshore assets, with active drilling campaigns across our east and west coast portfolios.

Speaker #2: We'll also progress the Mumba Central optimization project in the Cooper Basin joint venture. And we are targeting final investment decisions for the two-well exploration and development campaign in Otway nearshore and the Waitsia Inlet compression project in the first half of FY27.

Brett Woods: We'll also progress the Moomba Central Optimisation Project in the Cooper Basin joint venture, and we are targeting final investment decisions for the 2 well exploration and development campaign in Otway Nearshore and the Waitsia Inlet Compression Project in the H1 of FY27. The standing capital expenditure is expected to remain below our AUD 450 million operating principle, reinforcing the capital discipline embedded in our investment decisions and project execution. Abandonment expenditure reflects the completion of the Equinox campaign, which is due to complete in the coming days. In addition to our progressive onshore abandonment activity, which remains consistent with our approach to safely and responsibly manage end-of-field-life obligations across our broad portfolio. Slide 17 summarizes the active FY27 work program across our core hubs, with capital investment directed to opportunities that can stabilize production, grow the resource base, and enhance the value of our existing infrastructure.

Speaker #2: Sustaining capital expenditure is expected to remain below our $450 million operating principle, reinforcing the capital discipline embedded in our investment decisions and project execution.

Speaker #2: The Bannerman expenditure reflects the completion of the Equinox campaign, which is due to complete in the coming days. In addition to our progressive onshore Bannerman activity, which remains consistent with our approach to safely and responsibly manage end-of-field life obligations across our broad portfolio.

Speaker #2: Slide 17 summarizes the active FY27 work program across our core hubs, with capital investment directed to opportunities that can stabilize production, grow the resource base, and enhance the value of our existing infrastructure.

Speaker #2: Our FY27 program includes multiple drilling campaigns across the Western Flank, Cooper Basin joint venture, Room Trough, and Perth Basin. Activity is focused on adding production, testing new exploration opportunities, and building future gas supply options.

Brett Woods: Our FY27 program includes multiple drilling campaigns across the Western Flank, Cooper Basin joint venture, Taroom Trough, and Perth Basin. Activity is focused on adding production, testing new exploration opportunities, and building future gas supply options. Over in the Otway, we are targeting FID in the H1 of the financial year on a 2-well initial exploration and development campaign, which I'll talk to in more detail in the coming slides. We are also progressing key infrastructure projects, including Moomba Central Optimisation and targeting FID of Waitsia Inlet Compression, which is designed to support recovery, reduce unit costs, and enable future supply. In parallel, we'll continue to mature the high margin, large scale offshore Otway opportunities in T30 and T50P, where the focus is on high grading prospects and progressing with the right partnership structure.

Speaker #2: Over in the Otway, we are targeting FID in the first half of the financial year on a two-well nearshore exploration and development campaign, which I'll talk to in more detail in the coming slides.

Speaker #2: We are also progressing key infrastructure projects, including Mumba Central optimization and targeting FID of Waitsia Inlet compression, which is designed to support recovery, reduce unit costs, and enable future supply.

Speaker #2: In parallel, we'll continue to mature the high-margin, large-scale offshore Otway opportunities in T30 and T50P, where the focus is on high-grading prospects and progressing with the right partnership structure.

Speaker #2: In the Perth Basin, conventional and tight gas backfill opportunities provide a pathway to extend the value of wet-year infrastructure over time. All activity remains governed by operating principles: safe execution, capital discipline, returns focus, and clear alignment to growing the resource base.

Brett Woods: In the Perth Basin, conventional and tight gas backfill opportunities provide a pathway to extend the value of Waitsia infrastructure over time. All activity remains governed by operating principles, safe execution, capital discipline, returns focus, and clear alignment to growing the resource base. Slide 18 outlines our activity across the Cooper Basin, where our focus is on disciplined drilling, production and recovery, and infrastructure optimization. Starting in the operated Western Flank, we plan to drill the final 3 wells of the FY26 oil appraisal and development program in H1. These wells were delayed by severe rainfall earlier this year. We will then undertake an 8-well oil exploration campaign focused on extending play fairways and identifying new drilling opportunities for future years.

Brett Woods: In the Perth Basin, conventional and tight gas backfill opportunities provide a pathway to extend the value of Waitsia infrastructure over time. All activity remains governed by operating principles, safe execution, capital discipline, returns focus, and clear alignment to growing the resource base. Slide 18 outlines our activity across the Cooper Basin, where our focus is on disciplined drilling, production and recovery, and infrastructure optimization. Starting in the operated Western Flank, we plan to drill the final 3 wells of the FY 2026 oil appraisal and development program in H1. These wells were delayed by severe rainfall earlier this year. We will then undertake an 8-well oil exploration campaign focused on extending play fairways and identifying new drilling opportunities for future years.

Speaker #2: Slide 18 outlines our activity across the Cooper Basin, where our focus is on disciplined drilling, production and recovery, and infrastructure optimization. Starting in the operated Western Flank, we plan to drill the final three wells of the FY26 oil appraisal and development program in the first half.

Speaker #2: These wells were delayed by severe rainfall early this year. We will then undertake an A-well oil exploration campaign focused on extending play fairways and identifying new drilling opportunities for future years.

Speaker #2: The Western Flank program will use a fit-for-purpose onshore rig, which the team has been able to operate with a 20% reduction in man-hours and at a materially lower cost.

Brett Woods: The Western Flank program will use a fit-for-purpose onshore rig, which the team have been able to operate at a 20% reduction in man-hours and a materially lower cost. In the Cooper Basin joint venture, Beach and operator Santos will be targeting the drilling of approximately 70 wells in the year. The JV will progress in Moomba Central Optimisation with long lead works underway and completion targeted for FY29. Moomba Central Optimisation is designed to rationalize existing satellite facilities into a new centralized compression facility, reducing operating complexity and support future production growth from the central field's drilling program. Moving to the Taroom Trough, ATP 2081 gives Beach a 25% interest in an emerging onshore gas and liquids play. Strategically located adjacent to multi-TCF CSG to LNG production hubs, regional export infrastructure, and local supply lines.

Speaker #2: In the Cooper Basin joint venture, Beach and operator Santos will be targeting the drilling of approximately 70 wells in the year. The JV will progress the Mumba Central optimization, with long-lead works underway and completion targeted for FY29.

Speaker #2: Mumba Central optimization is designed to rationalize existing satellite facilities into a new centralized compression facility, reducing operating complexity and supporting future production growth from the central fields drilling program.

Speaker #2: Moving to the Troom Trough, ATP281 gives Beach a 25% interest in an emerging onshore gas and liquids play. Strategically located adjacent to multi-TCF CSG-to-LNG production hubs, regional export infrastructure, and local supply lines.

Speaker #2: ATP281 sits adjacent to Amigas' Canyon Prospect, which is in close proximity to Shell's Dunks and Stone gas condensate play, with more than 10 Tcf of contingent and prospective resources currently booked in adjacent fields by industry peers.

Brett Woods: ATP 2081 sits adjacent to Amiga's Canyon prospect, which is in close proximity to Shell's Dunk Sandstone gas condensate play. With more than 10 TCF of contingent and prospective resources currently booked in adjacent fields by industry peers. The attraction for Beach is disciplined exposure to a material resource opportunity with liquids potential and proximity to the established Queensland energy markets. We are working closely with the joint venture partners, Amiga and Tri-Star, with preparation works underway for the drilling of 2 vertical wells planned to commence from October. The program follows Amiga's Canyon-3 and Canyon-4 wells in the adjacent acreage and is designed to test that play, inform reservoir understanding, and support future appraisal planning. Subject to encouraging drilling results, the joint venture will then consider to optimize horizontal well placement and stimulation planning in H2 of the financial year.

Speaker #2: The attraction for Beach is disciplined exposure to a material resource opportunity with liquids potential and proximity to the established Queensland energy markets. We are working closely with the joint venture partners, Amiga and Tristar, with preparation works underway for the drilling of two vertical wells planned to commence from October.

Speaker #2: The program follows Amiga's Canyon 3 and Canyon 4 wells in the adjacent acreage and is designed to test that play, informed by reservoir understanding and to support future appraisal planning.

Speaker #2: Subject to encouraging drilling results, the joint venture will then consider optimizing horizontal well placement and stimulation planning in the second half of the financial year.

Speaker #2: Turning to nearshore Otway Basin, we are currently maturing a two-well exploration and development campaign targeting Enterprise East and Soldier prospects, both of which have the potential to provide near-term backfill to the Otway Gas Plant.

Brett Woods: Turning to Nearshore Otway Basin, we are currently maturing a 2-well exploration and development campaign targeting Enterprise East and Seligi prospects, both of which have the potential to provide near-term backfill to the Otway gas plant. Enterprise East is located immediately southeast of the producing Enterprise field, and Seligi is approximately 4 kilometers to the west. On success, gas can be tied back through the Enterprise pipeline, processed at the Otway gas plant. These prospects offer a near-term, low-cost opportunity to backfill the Otway gas plant. Given we can utilize existing infrastructure and drill from the onshore Enterprise pad to target an all-in development cost of less than AUD 5 per gigajoule. This is an opportunity with a clearer and lower cost development pathway than the offshore alternatives which we have strategically monetized during the financial year. The program is progressing towards final investment decision in H1 of FY27.

Speaker #2: Enterprise East is located immediately southeast of the producing Enterprise field, and Soldier is approximately four kilometers to the west. On success, gas can be tied back through the Enterprise pipeline and processed at the Otway Gas Plant.

Speaker #2: These prospects offer a nearer-term, low-cost opportunity to backfill the Otway Gas Plant, given we can utilize existing infrastructure and drill from the onshore Enterprise pad to target an all-in development cost of approximately less than $5 per gigajoule.

Speaker #2: This is an opportunity with a clearer and lower-cost development pathway than the offshore alternatives, which we have strategically monetized during the financial year. The program is progressing towards final investment decision in the first half of FY27.

Speaker #2: Upon success, the first gas could be delivered from the first half of FY29, with economics targeting an internal rate of return well above 20%. It is a strong strategic fit for Beach, with modest capital exposure, attractive economics, and direct leverage to existing infrastructure already connected to the market, subject to approvals and exploration success.

Brett Woods: Upon success, the first gas could be delivered from H1 FY29, with economics targeting internal rate of return well above 20%. It is a strong strategic fit for Beach, modest capital exposure, attractive economics, and direct leverage to existing infrastructure already connected to market, subject to approvals and exploration success. Beyond the nearshore options, the Otway represents Beach's largest scale growth opportunities in the basin, with the potential to expand portfolio life and leverage our existing infrastructure. T/50P and T-30P adjacent, 100% owned by Beach permits covering more than 3,200 square kilometers. These permits contain a deep inventory of prospects and leads underpinned by newly reprocessed 3D seismic and advanced geophysical workflows. The prospects are around 130 kilometers offshore in water depths ranging from approximately 200 meters to 1,500 meters. Several of the main prospect clusters are well within subsea tieback distance to the operated Thylacine platform.

Speaker #2: Beyond the nearshore options, the Otway represents Beach's larger-scale growth opportunities in the basin, with the potential to expand portfolio life and leverage our existing infrastructure.

Speaker #2: T50 and T30P, adjacent 100% owned Beach permits, cover more than 3,200 square kilometers. These permits contain a deep inventory of prospects and leads underpinned by newly reprocessed 3D seismic and advanced geophysical workflows.

Speaker #2: The prospects are around 130 kilometers offshore, with water depths ranging from approximately 200 meters to 1,500 meters. Several of the main prospect clusters are well within subsea tieback distance to the operated Thalassine platform.

Speaker #2: Upon success, these opportunities provide scaled, meaningful backfill or expansion to the Otway Gas Plant and support the long-term value of Beach's existing Otway infrastructure.

Brett Woods: In a success case, these opportunities provide scaled, meaningful backfill or expansion to the Otway gas plant and support the long-term value of Beach's existing Otway infrastructure. Our immediate focus is to mature the prospects, progress the development concept, and deliver a joint venture to bring these opportunities forward. That partnership process is designed to bring capability and capital, share subsurface and execution risk, and allow Beach to retain exposure to the material upside within our disciplined capital framework. This is probably the point that I get very excited about Beach's future. slide 22 provides some technical detail on the FOCS prospects within the offshore Otway inventory and demonstrates the technical work underway to mature that. Discoveries in the Otway are driven by the interpretation of strong seismic signatures which are observed in this region.

Speaker #2: Our immediate focus is to mature the prospects, progress the development concept, and deliver a joint venture to bring these opportunities forward. That partnership process is designed to bring capability and capital, share subsurface and execution risk, and allow Beach to retain exposure to the material upside within our disciplined capital framework.

Speaker #2: This is probably the point that I get very excited about Beach's future. Slide 22 provides some technical detail on the FOLKS prospects within the offshore Otway inventory and demonstrates the technical work underway to mature that.

Speaker #2: Discoveries in the Otway are driven by the interpretation of strong seismic signatures, which are observed in this region. All Beach's and adjacent gas condensate discoveries have a very strong relationship between their rock physics, their gas and liquids fill, and their seismic amplitude response.

Brett Woods: All Beach's and adjacent gas condensate discoveries have a very strong relationship between their rock physics, their gas and liquids fill, and their seismic amplitude response. We are utilizing the latest technology in geophysical analysis to extend what we observe at Thylacine, Geograph, Enterprise and Artisan, as well as the other recent discoveries and dry wells in the region, to model what is a multi-TCF scale opportunity of prospects and leads outboard of our existing infrastructure. The seismic section within slide 22 indicates a very strong amplitude conformance to structure and interpreted gas water flat spot, strongly indicating the potential of gas within these prospects. Below that seismic section, see the seismic gathers and rock physics assessments, which indicate that gas and oil-bearing rocks will have a strong response and compares very favorably with the producing fields we know well in the Otway Basin.

Speaker #2: We are utilizing the latest technology in geophysical analysis to extend what we observe at Thalassine, Geographe, Enterprise, and Artisan, as well as the other recent discoveries and dry wells in the region, to model what is a multi-Tcf scale opportunity of prospects and leads outboard of our existing infrastructure.

Speaker #2: The seismic section within slide 22 indicates a very strong amplitude conformance to structure and an interpreted gas-water flat spot, strongly indicating the potential of gas within these prospects.

Speaker #2: Below that seismic section, the seismic gathers and rock physics assessments indicate that gas and oil-bearing rocks will have a strong response and compare very favorably with the producing fields we know well in the Otway Basin.

Speaker #2: The amplitude response conforms to the interpreted structure, and the AVO response is consistent with the type of signal we would expect to see in gas-bearing reservoir settings.

Brett Woods: The amplitude response conforms to the interpreted structure, and the AVO response is consistent with the type of signal we would expect to see in gas-bearing reservoir settings. We've then extended that assessment with advanced quantitative interpretation and seismic conversion techniques, which has further improved our understanding of the prospect inventory, including the likely distribution of reservoir and fluid fill. The map on the side is an output of the seismic inversion, which illustrates a potential gas-filled anomaly across the broader FOCS complex, which is significant in scale, being multiple TCF, and relatively close to the Thylacine analog that you can also see on that slide. The seismic response we have observed across these blocks with the latest reprocessing have delineated some of the most compelling opportunities that I have seen in offshore Australia for a very long time.

Speaker #2: We've then extended that assessment with advanced quantitative interpretation and seismic conversion techniques, which has further improved our understanding of the prospect inventory, including the likely distribution of reservoir and fluid fill.

Speaker #2: The map on the side is an output of the seismic conversion, which illustrates a potential gas field anomaly across the broader Folkes complex. This is significant in scale, being multiple Tcf, and is relatively close to the Thalassine analog that you can also see on that slide.

Speaker #2: The seismic response we have observed across these blocks with the latest reprocessing has delineated some of the most compelling opportunities that I have seen in offshore Australia for a very long time.

Speaker #2: The seismic indicators do not completely remove exploration risk and are not an actual substitute for drilling, but what they do provide is strong prospect definition, better targeting selection, and greater confidence in how we high-grade the offshore Otway inventory.

Brett Woods: What they do provide is a strong prospect definition, better targeting selection, and greater confidence in how we high-grade the offshore Otway inventory. On that basis, FOCS represents a material scale opportunity that we will continue to mature through the partnership process and our disciplined capital allocation framework. Slide 23 builds on FOCS opportunity by showing a range of trapping geometries identified across this very broad complex. The technical work has identified conventional structural traps clustered on a sub-regional high with amplitude fit to structure and very strong AVO support that is consistent with our geophysical model. Interpretation of potential reservoir quality is also informed by the nearby Geograph and Thylacine analogs, which provide the important basin calibration.

Speaker #2: On that basis, Folks represents a material scale opportunity that we will continue to mature through the partnership process and our disciplined capital allocation framework.

Speaker #2: Flight 23 builds on FOLKS opportunity by showing a range of tracking geometries identified across this very broad complex. The technical work has identified conventional structural traps clustered on a subregional high, with amplitude fit to structure and very strong AVO support.

Speaker #2: That is consistent with our geophysical model. Interpretation of potential reservoir quality is also informed by the nearby geographic and thalassine analogs, which provide important basin calibration.

Speaker #2: This diversity of trapping geometries gives Beach multiple targets within one broad complex, strengthening the offshore Otway inventory while still allowing the team to high grade targets before any drilling commitment.

Brett Woods: This diversity of trapping geometries gives Beach multiple targets within one broad complex, strengthening the offshore inventory while still allowing the team to high-grade targets before any drilling commitment. Our focus remains on continuing technical maturation, prioritizing the highest quality targets, and progressing the opportunity with the right partner and capital structure. My mission with the offshore has always been to unlock scale, as scale delivers the lowest unit cost and delivers the highest margin. I'm very proud of the team who have developed this deep inventory of prospects and leads, and I'm excited to bring this opportunity forward as we seek to develop the right partner group to unlock this high-value opportunity. Slide 24 highlights the Perth Basin backfill opportunities, which provide long-term organic growth options and a pathway to extract further value from our West Coast infrastructure.

Speaker #2: Our focus remains on continuing technical maturation, prioritizing the highest quality targets, and progressing the opportunity with the right partner and capital structure. My mission with the offshore has always been to unlock scale, as scale delivers the lowest unit cost and delivers the highest margin.

Speaker #2: I'm very proud of the team who have developed this deep inventory of prospects and leads, and I'm excited to bring this opportunity forward as we seek to develop the right partner group to unlock this high-value opportunity.

Speaker #2: Flight 24 highlights the Perth Basin backfill opportunities, which provide long-term organic growth options and a pathway to extract further value from our West Coast infrastructure.

Speaker #2: Near term conventional targets sit close to the wait sea field and provide potential low cost, high margin development opportunities through this existing infrastructure. In FY27, we plan to drill two conventional wells at Stowellia and Waitsia South with further seismic work proposed to high grade the next phase of drilling opportunities.

Brett Woods: Near-term conventional targets sit close to the Waitsia field and provide potential low-cost, high-margin development opportunities through this existing infrastructure. In FY27, we plan to drill two conventional wells at Stawellias and Waitsia South, with further seismic work proposed to high-grade the next phase of drilling opportunities. Beyond the conventional program, tight gas provides longer-dated resource potential around the Waitsia infrastructure position. Multiple discovered resource opportunities were originally identified by former joint venture operator AWE following the drilling of Senecio-3 in the L1-L2 permit. These opportunities are close to existing infrastructure and could provide a future source of Waitsia backfill, subject to the technical maturation, regulatory settings, joint venture approval, and our normal capital allocation thresholds. Emerging regulatory reform is expected in 2026, with the first activity targeted for FY28 if the technical, regulatory, and commercial conditions support progression.

Speaker #2: Beyond the conventional program, tight gas provides longer-dated resource potential around the Waitsia infrastructure position. Multiple discovered resource opportunities were originally identified by former joint venture operator AWE following the drilling of Sinesia 3 in the L1 and L2 permits.

Speaker #2: These opportunities are close to existing infrastructure and could provide a future source of Waitsia backfill, subject to technical maturation, regulatory settings, joint venture approval, and our normal capital allocation thresholds.

Speaker #2: Emerging regulatory reform is expected in 2026, with first activity targeted for FY28, if the technical, regulatory, and commercial conditions support progression. Flight 25 shows how understanding of the Perth Basin tight gas inventory has evolved over time.

Brett Woods: Slide 25 shows how our understanding of the Perth Basin tight gas inventory has evolved over time and why it remains a longer-dated option for Waitsia backfill. When Beach acquired the asset from Lattice in 2018, the portfolio included a material 2C contingent resource booking. That resource was subsequently de-booked as the regulatory environment evolved, and the pathway to an active development plan was set aside. Emerging regulatory reform has allowed Beach to refresh the industry and assess opportunities that were previously removed from book 2C resources. In parallel, data from Senecio, Waitsia-A, and Senecio-1 have improved our understanding of the reservoir presence, distribution, and structure, and the potential to provide a longer-term source of backfill is exciting. Critically must be aligned to our capital allocation thresholds.

Speaker #2: And why it remains a longer-dated option for Waitsia backfill. When Beach acquired the asset from Lattice in 2018, the portfolio included a material 2C contingent resource booking.

Speaker #2: That resource was subsequently debooked as the regulatory environment evolved, and the pathway to an active development plan was set aside. Emerging regulatory reform has allowed Beach to refresh the industry and assess opportunities that were previously removed from booked 2C resources.

Speaker #2: In parallel, data from Sinesia, Waitsia 8, and Sinesia 1 have improved our understanding of the reservoir presence, distribution, and the potential to source of backfill is exciting.

Speaker #2: Any activity will remain subject to technical maturation, joint venture decisions, and approvals. But critically, it must be aligned to our capital allocation thresholds. That, together with the conventional exploration program, means the tight gas inventory gives Beach a deeper set of organic options around infrastructure that is already built and connected to market.

Brett Woods: Backing together with the conventional exploration program, the tight gas inventory gives Beach a deeper set of organic options around infrastructure that is already built and connected to market. Again, this opportunity excites me. Having large-scale discovered resource close to infrastructure is a clear strategic advantage. We can pursue longer-term scale potential while remaining disciplined on timing, risk, and returns. To conclude, FY26 is a year of tangible delivery against our strategic reset. We brought key infrastructure into production, operated safely through a period of significant activity, improved margins through commercial focus and cost discipline, and delivered positive free cash flow while funding major project and decommissioning activities. Importantly, we exit the year with a stronger financial position and a clearer platform for growth.

Brett Woods: Backing together with the conventional exploration program, the tight gas inventory gives Beach a deeper set of organic options around infrastructure that is already built and connected to market. Again, this opportunity excites me. Having large-scale discovered resource close to infrastructure is a clear strategic advantage. We can pursue longer-term scale potential while remaining disciplined on timing, risk, and returns. To conclude, FY 2026 is a year of tangible delivery against our strategic reset. We brought key infrastructure into production, operated safely through a period of significant activity, improved margins through commercial focus and cost discipline, and delivered positive free cash flow while funding major project and decommissioning activities. Importantly, we exit the year with a stronger financial position and a clearer platform for growth.

Speaker #2: Again, this opportunity excites me. Having a large-scale discovered resource close to infrastructure is a clear strategic advantage. We can pursue longer-term scale potential while remaining disciplined on timing, risk, and returns.

Speaker #2: To conclude, FY26 was a year of tangible delivery against our strategic reset. We brought key infrastructure into production, operated safely through a period of significant activity, improved margins through commercial focus and cost discipline, and delivered positive free cash flow while funding major project and decommissioning activities.

Speaker #2: Importantly, we exit the year with a stronger financial position and a clearer platform for growth. A strong balance sheet gives us flexibility to fund disciplined organic investment, access value-accretive inorganic opportunities, and continue building the resource base that will underpin long-term shareholder returns.

Brett Woods: Our balance sheet gives us flexibility to fund disciplined organic investment, assess value-accretive inorganic opportunities, and continue building the resource base that will underpin long-term shareholder returns. Looking ahead to FY27, our priorities are unchanged. Operate safely, maintain the owner's mindset, maximize value from every molecule, invest with discipline across our core hubs, and progress the organic opportunities that can extend portfolio life and strengthen future returns. We are clear that growth must be value-accretive, risk-balanced, and consistent with our capital allocation framework. That discipline will guide how we progress the active work program, mature our organic opportunities, and evaluate inorganic opportunities. With that, I would like to thank you for joining us today. Anne-Marie and I will be now pleased to take your questions.

Speaker #2: Looking ahead to FY27, our priorities are unchanged: operate safely, maintain the owner's mindset, maximize value from every molecule, invest with discipline across our core hubs, and progress the organic opportunities that can extend portfolio life and strengthen future returns.

Speaker #2: We are clear that growth must be value accretive, risk-balanced, and consistent with our capital allocation framework. That discipline will guide how we progress the active work program, mature our organic opportunities, and evaluate inorganic opportunities.

Speaker #2: With that, I'd like to thank you for joining us today. Amra and I will now be pleased to take your questions.

Speaker #1: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Adam Martin with E&P. Please go ahead.

Speaker #1: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Adam Martin with ENP. Please go ahead.

Speaker #3: Okay, morning Brett and Marie. Hopefully you can hear okay. There's a bit of feedback there. But yeah, just on the domestic gas reservation policy, it does look quite challenging for your business.

Adam Martin: Yeah. Morning, Brett and Anne-Marie. Hopefully, you can hear okay. Catch a bit of feedback there. Yeah, just on the domestic gas reservation policy, it does look sort of quite challenging for your business. I suppose, what are the one or two things you're trying to change here? What are you looking to address there, Brett, please?

Speaker #3: I suppose, what are the one or two things you're trying to change here? What are you looking to address there, Brett, please?

Speaker #2: Yeah, in terms of my advocacy at the moment with the government, I'm really focused on making sure it's prospective, that we have a market that acts like a market, not through kind of forced sale into the East Coast market in particular.

Brett Woods: Yeah. In terms of my advocacy at the moment with the government, really focused on making sure it is prospective, that we have a market that acts like a market, not through forced sale into the East Coast market in particular. We have tried to delever as much as we can our exposure to uncontracted gas through some contracting. Effectively, over 80% of our volumes are exposed either to liquids or term contracts. We will continue to manage our portfolio, and I will continue to engage with the government to get something that makes sense. Critically, 65% to 75% of the gas that is used in Australia is being delivered by domestic producers. We represent a critical part of that sector, and I have had positive engagement with the government in terms of making sure that we defend that.

Speaker #2: What we've done is, we've tried to limit as much as we can our exposure to uncontracted gas through some contracting. Effectively, over 80% of our volumes are exposed either to liquids or term contracts.

Speaker #2: So we will continue to manage our portfolio, and I'll continue to engage with the government to get something that makes sense. Critically, 65 to 75% of the gas that's used in Australia has been delivered by domestic producers.

Speaker #2: We represent a critical part of that sector, and I've had positive engagement with the government in terms of making sure that we defend that. If I was to point anyone to one key message, it is that the ACCC have highlighted that gas prices between $12 and $13 are required to continue to support the market and deliver long-term value across the East Coast.

Brett Woods: If I was to point anyone to one key message is, the ACCC have highlighted that gas prices between AUD 12 and AUD 13 are required to continue to support the market and deliver long-term value across the East Coast. I will continue advocating for our position as strong as I can to make sure that our voice is heard and that people understand the potential impact of any reservation policy.

Speaker #2: So I'll continue advocating for our position as strongly as I can to make sure that our voice is heard and that people understand the potential impacts of any reservation policy.

Speaker #3: Okay, thank you. Just a second question, on the capital management policy—slide 14—there’s not a lot of detail there, just on numbers.

Adam Martin: Okay. Thank you. Just a second question. Just on the capital management policy, slide 14. There is not a lot of detail there, just on numbers. We have obviously, as a market, got to try and forecast the dividend. Are you sticking to a percentage of free cash? Is it percentage of profit? Just a bit more color there, please, how we should think about modeling it.

Speaker #3: We will see, as the market guide, and try to forecast the dividend. Are you sticking to a percentage of free cash? Is it a percentage of profit?

Speaker #3: Just a bit more color there, please—how we should think about modeling it.

Speaker #2: Yeah, our focus is really, as we described, our focus on supporting our sustaining business, supporting our growth agenda, and making sure that we deliver against that.

Brett Woods: Yeah, our focus is really, as we described, is our focus on supporting our sustaining business, supporting our growth agenda, and making sure that we deliver against that. We were focused on our balance sheet and continuing to support having a very strong balance sheet. After we have met those critical hurdles, that gives the board the ability to distribute any excess cash as appropriate.

Speaker #2: We will focus on our balance sheet and continue to support having a very strong balance sheet. And after we've met those critical hurdles, that gives the board the ability to distribute any excess cash as appropriate.

Speaker #3: Okay, thank you. So, no real change in numbers—just to focus on the balance sheet, effectively, for the time being.

Adam Martin: Okay. Thank you. No real change in numbers, but just as focused on the balance sheet effectively for the time being.

Speaker #4: So I guess, Adam, I would say that we don't have a strict payout policy. We are being very deliberate in maintaining flexibility to ensure that what we're driving is not just cash returns for shareholders, but total shareholder returns.

Anne-Marie Barbaro: I guess, Adam, I would say that we don't have a strict payout policy. We are being very deliberate in maintaining flexibility to ensure that what we're driving is not just cash returns for shareholders, but total shareholder returns. It will-

Speaker #4: But it will be looked at through your all-in cash flow lens.

Adam Martin: Yep

Anne-Marie Barbaro: be looked at through your all-in cash flow lens.

Speaker #3: Okay, okay. Thank you. Thanks, Brett. Thanks, Emily.

Adam Martin: Okay. Thank you. Thanks, Britt. Thanks, Anne-Marie.

Speaker #2: Yes, thanks, Adam.

Brett Woods: Yes. Thanks, Adam.

Speaker #1: Thank you. Your next question comes from Tom Allen with UBS. Please go ahead.

Operator: Thank you. Your next question comes from Tom Allen with UBS. Please go ahead.

Speaker #2: Good morning, Brett, Emory, and the broader team. Just again on the new capital framework—so it's also prioritizing inorganic growth now over dividends. Could you give some detail on Beach's strategic framework that you will apply when you consider growth opportunities?

Tom Allen: Morning, Brett, Anne-Marie, and the broader team. It's also prioritizing inorganic growth now over dividends. Can we please get more detail on Beach's strategic framework that you will apply when you consider growth opportunities. Specifically, what type of assets are in, and importantly, what are out of scope, what size of project, what product mix you're seeking. It sounds like your gearing target has changed relative to the full year 2025 results. If I recall correctly, Beach had noted at the time that you'd stretch gearing to 30% to 35%, and you'd base that on gearing levels akin to the leverage at the completion of the Lattice acquisition in 2018. Today it sounds like you're looking for big scale opportunities, but at a much more conservative gearing ceiling.

Speaker #2: So, specifically, what type of assets are in, and importantly, what are out of scope? Size of project? What product mix are you seeking? It sounds like your gearing target has changed relative to the full year '25 results.

Speaker #2: If I recall correctly, Beach had noted at the time that you'd stretched gearing to 30 to 35%, and you'd based that on gearing levels akin to the leverage at the completion of the Lattice acquisition in 2018.

Speaker #2: And so today, it sounds like you're looking for large-scale opportunities, but at a much more conservative gearing ceiling. I'm keen to understand more detail on those specific targets that might fit your strategic profile.

Tom Allen: Keen to understand more detail on those specific targets that might fit your strategic profile.

Speaker #2: Yeah, I think if I just go to your final part first, in terms of gearing, I think we've always said that 15 is our 15% is our target level, which would which we would stretch to 25.

Brett Woods: Yeah, I think, if I just go to your final part first. In terms of gearing, I think we've always said that 15% is our target level, which we would stretch to 25%. Particularly that's pointing to opportunities that require development capital that aren't associated with any production. I think to stretch that a little bit, we would have to see a producing asset, like we had with the Lattice acquisition that could offset or drive that gearing down in very short term. Fundamentally, if we were looking at an asset acquisition that didn't come immediately with production, we would cap out at that 25% to make sure that we've got that strength remaining in our balance sheet. It would only through an ongoing production lens that we could push that, and that we've been very disciplined about that.

Speaker #2: And particularly, that's pointing to opportunities that require development capital that aren't associated with any production. I think if, to kind of stretch that a little bit, we would have to see a producing asset, like we had with Waitsia—with the Lattice acquisition—that could offset or drive that gearing down in the very short term.

Speaker #2: Fundamentally, if we're looking at an asset acquisition that didn't come immediately with production, we would cap out at that 25% to make sure that we've got that strength remaining in our balance sheet.

Speaker #2: It would only be through an ongoing production lens that we could push that, but we've been very disciplined about that. And in terms of where we're focused, the west coast of Australia, still.

Brett Woods: In terms of where we're focused, we're very much focused on the East Coast and the West Coast of Australia still. We are seeing those as the areas that are focused where we have our infrastructure. That is primarily where we're looking at. I think it was 2 years ago, we outlined what our hurdle rates were across our strategic review. We have high hurdle rates, well north of 12% is our minimum hurdle rates for the way we evaluate our future opportunities.

Speaker #2: We are seeing those as opportunities in the areas that are focused, where we have our infrastructure. That is primarily where we're looking. And I think it was two years ago we outlined what our hurdle rates were across our strategic review.

Speaker #2: And we have high hurdle rates—well north of 12% is kind of our minimum hurdle rate for the way we evaluate our future opportunities.

Speaker #2: So, we're looking at that combination, and I think at the half year I alluded to the fact that we've done a lot of work on our existing organic base. I was pleased to share with you today some of that, in terms of our offshore WA and our Perth Basin opportunities that we look at, as well as the ongoing work we've done through our Western Flank.

Brett Woods: We're looking at that combination, I think at the H1, I alluded to the fact that we've done a lot of work on our existing organic base, and I was pleased to share with you today some of that in terms of our offshore Otway and our Perth Basin opportunities that we look at, as well as the ongoing work we've done through our Western Flank. I don't think it will come as any surprise that Beach is looking to extend its reserve life, and we see 2 key ways of doing that, obviously organically, but also inorganically across opportunities in the west and east coasts of Australia.

Speaker #2: So, I don't think it will come as any surprise that Beach is looking to extend its reserve life, and we see two key ways of doing that.

Speaker #2: Obviously, organically, but also inorganically across opportunities on the west and east coasts of Australia.

Speaker #5: Thanks for the detail, Brett. The plan that you've outlined for FY27 today does look busy from an organic growth perspective. You've got drilling planned in nearly all your key hubs.

Tom Allen: Thanks for the detail, Brett. The plan that you've outlined for FY27 today, it does look busy from an organic growth perspective. You've got drilling planned near all your key hubs You've spoken on this call about the challenges associated with the federal domestic gas reservation scheme, but could you please guide what East and West Coast gas price is required to support your drilling plans, particularly your offshore Otway Focus target that you've spent some time talking about today? You've made mention in the past about offshore particularly needing to be scale and needing strong domestic gas prices, and you've called out that ACCC reference at AUD 12 to 13 a gigajoule. Is that the hurdle, or at what price would you walk away from those opportunities?

Speaker #5: You've spoken on this call about the challenges associated with the federal domestic gas reservation scheme. But could you please guide what East and West Coast gas price is required to support your drilling plans?

Speaker #5: Particularly your offshore, uh, wave, folks target that you've spent some time talking about today. You've mentioned in the past that offshore, particularly, needs to be at scale and needs strong domestic gas prices.

Speaker #5: And you've called out that a triple C reference at $12 to $13 a gigajoule—is that the hurdle, or at what price would you walk away from those opportunities?

Speaker #2: Yeah, so we've looked very disciplined at our capital framework for this year. And everything we're executing this year is supported by the, any effectively, domestic gas price realization.

Brett Woods: Yeah. We've looked very disciplined at our capital framework for this year. Everything we're executing this year is supported by any effectively domestic gas price realization given they're close to infrastructure. I think I indicated through the nearshore Otway, that we're targeting that AUD 5 all in. We see that is irrespective of what domestic gas reservation could do in the near term, that can deliver strong margins and strong growth. Scale is critical. If you looked at the reason why we opted to trade out of Artisan, it was to kind of de-leverage us from things that required, for Beach, a higher gas price to generate our hurdle rates. We were able to monetize that, and we have access to what would've been AUD 500 million of capital now to deploy to things that deliver value.

Speaker #2: Given they're close to infrastructure, I think as indicated through the nearshore Otway, we're targeting that $5 all-in. So we see that as irrespective of what domestic gas reservation could do in the near term.

Speaker #2: That can deliver strong margins and strong growth. And scale is critical. If you look at the reason why we opted to trade out of Artisan, it was to kind of deleverage us from things that required, for Beach, a higher gas price to generate our hurdle rates.

Speaker #2: We were able to monetize that, and we have access to what would have been $500 million of capital now to deploy to things that deliver value.

Brett Woods: The deeper water, which is just outboard of the Thylacine feature, are multiple TCF. We should be able to deliver those, for mid to low single digit all-in development costs if it delivers the scale we're expecting. Irrespective of what could happen in the DGR, we're making sure that we have our opportunity set that is strong enough to handle that. Hence, Anne-Marie and I have been very focused on articulating our discipline. It's all about discipline for us. I won't be executing things that can't make money, on even the way that the current DGR has been described at the moment.

Speaker #2: The deeper water, which is just outboard of the Thalassine feature, has multiple TCFs. So, we should be able to deliver those for mid- to low-single-digit all-in development costs, if it delivers the scale we're expecting.

Speaker #2: So, irrespective of what could happen in the DGR, we're making sure that we have our opportunity set strong enough to handle that.

Speaker #2: So, hence, Amory and I have been very focused on articulating our discipline—it's all about discipline for us. I won't be executing things that can't make money.

Speaker #2: Even the way that the current DGR has been described at the moment—we believe, through our engagement, that we can deliver a better outcome in terms of the DGR.

Brett Woods: We believe through our engagement that we can deliver a better outcome in terms of the DGR. We're just making sure that we have that discipline programmed into our model, that we don't have any unexpected surprises in terms of the gas market.

Speaker #2: But we're just making sure that we have that discipline programmed into our model, so that we don't have any unexpected surprises in terms of the gas market.

Speaker #5: Thanks, Brett. My final question just to follow up on that is that if the domestic cash reservation policy is applied as drafted, which we interpret to be on a must sell gas basis with the government trying to break that nexus with an LNG net back price on the domestic market, would Beach what I'm hearing is that the growth projects that you're identifying here still stand.

Tom Allen: Thanks, Brett. My final question, just to follow up on that, is that if the domestic gas reservation policy is applied as drafted, which we interpret to be on a must-sell gas basis, with the government trying to break that nexus with an LNG net-back price in the domestic market, what I'm hearing is that the growth projects that you're identifying here still stand. You'll still seek to target the same growth opportunities. Can we rule out that you'd consider international opportunities?

Speaker #5: You'll still seek to target the same growth opportunities. And can we rule out that you would consider international opportunities?

Speaker #2: Yeah, at this moment, we're not looking at anything internationally. I think, maybe in a year or two's time, if something happens, we'd maybe readdress that.

Brett Woods: Yeah. At this moment, we're not looking at anything internationally. I think maybe in a year or two's time, if something happens, we'd maybe readdress that. At the moment, our priority is certainly within Australia. Certainly, I can confirm that everything we're looking at executing meets our disciplined execution of capital, i.e., that, even on a as written DGR policy, that we would be executing these programs. We're not spending capital in hope. We're making sure that we've got the discipline in the business and the assets to make sure that I can deliver strong returns for our shareholders.

Speaker #2: But at the moment, our priority is certainly within Australia. And certainly, I can confirm that everything we're looking at executing meets our disciplined execution of capital, i.e., that even on an as-written DGR policy, we would be executing these programs.

Speaker #2: We're not spending capital in hope. We're making sure that we've got the discipline in the business and the assets to ensure that I can deliver strong returns for our shareholders.

Speaker #5: Thanks, Brett.

Tom Allen: Thanks, Brett.

Speaker #1: Thank you. Your next question comes from Gordon Ramsey with RBC. Please go ahead.

Operator: Thank you. Your next question comes from Gordon Ramsay with RBC. Please go ahead.

Speaker #6: Well, thank you. Thanks, Brett and Marie, for the presentation today. I'm just going to come back to this refreshed capital management framework. You've only got one slide in the presentation on it.

Gordon Ramsay: Well, thank you. Thanks, Brett and Anne-Marie, for the presentation today. I'm just going to come back to this refreshed capital management framework. You've only got one slide in the presentation on it, and I guess the market, from my opinion anyway, was looking for a bit more detail here. Anne-Marie, you said it's based on an all-in free cash flow lens. If we compare FY25 and FY26, your all-in free cash flows dropped by 56%. Your dividend should have dropped by that much, your debt's actually gone up. I guess what I'm looking at is, what kind of metrics should we focus on for the dividend going forward? You kept it purposely vague, but it makes it really hard for us to come up with any kind of reasonable forecast for the dividend then.

Gordon Ramsay: Well, thank you. Thanks, Brett and Anne-Marie, for the presentation today. I'm just going to come back to this refreshed capital management framework. You've only got one slide in the presentation on it, and I guess the market, from my opinion anyway, was looking for a bit more detail here. Anne-Marie, you said it's based on an all-in free cash flow lens. If we compare FY 2025 and FY 2026, your all-in free cash flows dropped by 56%. Your dividend should have dropped by that much, your debt's actually gone up. I guess what I'm looking at is, what kind of metrics should we focus on for the dividend going forward? You kept it purposely vague, but it makes it really hard for us to come up with any kind of reasonable forecast for the dividend then.

Speaker #6: And I guess the market, from my opinion anyway, was looking for a bit more detail here. And where you said it's based on an all-in free cash flow lens.

Speaker #6: If we compare FY 25 and FY 26, your all in free cash flow is dropped by 56%. I mean, should we be your dividend should have dropped by that much.

Speaker #6: And then your debt's actually gone up. So I guess what I'm looking at is: what kind of metrics should we focus on for the dividend going forward?

Speaker #6: You kept it purposely vague, but it makes it really hard for us to come up with any kind of reasonable forecast for the dividend.

Speaker #6: And.

Speaker #4: Yeah, and I guess that's the point, Gordon, is that with the backdrop of uncertainty in the gas market review and Beach's stated need for growth to ultimately deliver longer-term shareholder returns, we have sort of retained full flexibility on the dividend at this time.

Anne-Marie Barbaro: Yeah. I guess the point, Gordon, is that with the backdrop of uncertainty in the gas market review and Beach's stated need for growth to ultimately deliver longer-term shareholder returns, we have sort of retained full flexibility on the dividend at this time. It doesn't necessarily mean that that's the way it will be for the long term. At this time, we are retaining full flexibility. From that perspective, I do understand that it's not simple to model because we're not giving you a payout ratio. That is the way that Beach is looking at the dividend at the moment. It is firstly prioritizing the base business and growth, and then whatever's left, a decision could be made on that basis as to cash returns to shareholders.

Speaker #4: It doesn't necessarily mean that that's the way it will be for the long term. But at this time, we are retaining full flexibility. So from that perspective, I do understand that it's not simple to model because we're not giving you a payout ratio.

Speaker #4: But that is the way that Beach is looking at the dividend at the moment. It is, firstly, on growth, and then whatever's left, a decision could be made on that basis as to cash returns to shareholders.

Speaker #2: Yeah, just to add, this year we had, this last financial year, an extensive period of offshore abandonment. We don't have any offshore abandonment coming until next decade.

Brett Woods: Yeah, just to add, this last financial year, we had an extensive period of offshore abandonment. We don't have any offshore abandonment coming until next decade. In terms of all-in free cash flow, we had a large capital expenditure period. Having nearly AUD 1 billion worth of flexibility in our balance sheet to acquire is strong. I think one of the most important things for me is delivering that TSR outcome for shareholders, which for us at the moment, we see growing our reserve life, and executing on high-value opportunities as a real priority for our business. We still have a very strong cash flow-generating business and we're looking at what flexibility we can have to deploy that capital Delivering growth and above, making sure that we have that sustaining business operating well.

Speaker #2: So, in terms of free cash flow, we had a large capital expenditure period. We will be having not only $1 billion worth of flexibility in our balance sheet to acquire, which is strong.

Speaker #2: And I think one of the most important things for me is delivering that TSR outcome for shareholders, which for us at the moment, we see growing our reserve life and executing on high-value opportunities as a real priority for our business.

Speaker #2: But we still have a very strong cash flow generating business, and we're looking at what flexibility we can have to deploy that capital—above delivering growth and above making sure that we have that sustaining business operating well.

Speaker #6: Good point. I agree on reserve life. It looks like it's on a 2P basis, six, seven years. Just another question on weights here—was inlet compression always part of the field development plan on that?

Gordon Ramsay: Good point. I agree on reserve life, it looks like it's on 2P basis, 6, 7 years. Just another question on Waitsia. Was inlet compression always part of the field development plan on that-

Speaker #2: Yeah, absolutely. There's no acceleration. Inlet compression—that was always part of the plan. I think we've talked about it several times over the last few years.

Brett Woods: Yeah, absolutely.

Brett Woods: Okay.

Brett Woods: There's no acceleration in Inlet Compression. That was always part of the plan. I think we've talked about it several times over the last few years. It's just bringing that to everyone's attention that it's coming up, FID, shortly. It's part of our 2P reserves, is another way to think of it. Always part of the plan.

Speaker #2: So it's just bringing that to everyone's attention that it's coming up FID-ing shortly. It's part of our 2P reserves, is another way to think of it.

Speaker #2: Always part of the plan.

Speaker #6: Okay. And thank you very much for the information on slides 22 and 23. I really like that stuff.

Gordon Ramsay: Okay. Thank you very much for the information on slides twenty-two and twenty-three. I really like that stuff.

Speaker #2: Yeah, cheers. Well, I was worried I might kind of nerd out too much for everyone, but for me, it's about putting that core part of how we grow the business to life.

Brett Woods: Yeah, cheers. Well, I was worried I was going to nerd out too much for everyone, but for me, it's putting that core part of how we grow the business to life. For me, it's exciting opportunities for Beach to step into.

Speaker #2: And for me, it's exciting opportunities for Beach to step into.

Speaker #6: Thank you.

Gordon Ramsay: Thank you.

Speaker #1: Thank you. Your next question comes from Nick Burns with Jordan Australia. Please go ahead.

Operator: Thank you. Your next question comes from Nik Burns with Jarden Australia. Please go ahead.

Speaker #7: Hi, Brett and Marie, and thanks for taking my questions today. Another question around inorganic growth: uncertainty surrounding the proposed domestic gas reservation scheme must make it very challenging for you to value gas opportunities on the east coast at the moment.

Nik Burns: Hi, Brett and Anne-Marie, and thanks for taking my question today. Another question around inorganic growth. Uncertainty surrounding the proposed domestic gas reservation scheme must make it very challenging for you to value gas opportunities on the East Coast at the moment. Is it possible to do deals at the moment whilst this uncertainty exists, or do you really need to wait until we see the final workings and wording of the scheme, and therefore, if you are going to pursue inorganic opportunities in the near term, it would be more likely on the West Coast than East Coast? Thanks.

Speaker #7: Is it possible to do deals at the moment while this uncertainty exists? Or do you really need to wait until we see the final workings and wording of the scheme, and therefore, if you are going to pursue inorganic opportunities in the near term, would it be more likely on the west coast than the east coast?

Speaker #7: Thanks.

Speaker #2: I think what you raised is an important point, Nick. I agree with you, and I'd always answer your questions, mate. You don't have to thank me for it.

Brett Woods: I think what you raised is an important point, Nik. I agree with you, and I always answer your questions, mate. You don't have to thank me for it. For me, I think the buyer-seller spread is probably large at the moment across with the uncertainty associated with the East Coast domestic gas reservation. However, there's always great ways you can structure opportunities where both parties can be protected through that spread. I don't think it's impossible to do a deal at the moment. I think it's very possible, and we will continue to have those types of engagements with the right parties on assets that we see can liberate value. We have a very strong balance sheet.

Speaker #2: For me, I think the buyer-seller spread is probably large at the moment, along with the uncertainty associated with the East Coast domestic gas reservation.

Speaker #2: However, there are always great ways you can structure opportunities where both parties can be protected through that spread. So I don't think it's impossible to deal at the moment.

Speaker #2: I think it's very possible. And we'll continue to have those types of engagements with the right parties on assets that we see can liberate value.

Speaker #2: We have a very strong balance sheet. We're one of the parties that can execute and support growth across the market. And we'll definitely be looking across the East Coast as well as the West Coast to grow our business.

Brett Woods: We're one of the parties that can execute and support growth across the market, and we will be looking definitely across the East Coast as well as the West Coast to grow our business.

Speaker #7: That's great. And just on weights here, obviously the plants had challenges ramping up to nameplate. We obviously track the daily production data, but can you just give us a bit more color on what's been happening there?

Nik Burns: That's great. Just on Waitsia, obviously, the plant's had challenges ramping up to nameplate. We obviously track the daily production data. Can you just give us a bit more color on what's been happening there, and I guess more importantly, your confidence that the upcoming 24-day scheduled maintenance, your confidence that you will be able to address these issues and we will see sustained performance closer to at the 250 terajoules a nameplate. Cheers.

Speaker #7: And I guess more importantly, your confidence that the upcoming 24 day schedule maintenance, your confidence that you will be able to address these issues and we will see sustained performance closer to at the 250 terajoule a day nameplate.

Speaker #7: Cheers.

Speaker #2: Yeah, really good question. Thanks, Nick. Yeah, so critically, we've had some issues with the lubrication rates and the packing around the compressors at Waitsia, which means that they've been episodically tripping.

Brett Woods: Yeah, really good question. Thanks, Nik. Critically, we've had some issues with the lubrication rates and the packing around the compressors at Waitsia, which means that they've been episodically tripping. Over the last few months, what we've done is we've trialed different types of injection rates through the lube system and packing solutions. We've recently had success in delivering one that is now performing as per its expectation. Part of our 24-day statutory maintenance shutdown across Waitsia, we'll be upgrading those pieces. All of that work is just within our sustaining capital piece. There is no additional capital required across there. Once we've installed that, effectively that fix, I don't really want to call it a fix, but that different way of lubricating and packing, we should be able to deliver sustained production through those export compressors.

Speaker #2: So over the last few months, what we've done is we've trialed different types of injection rates through the lube system and packing solutions.

Speaker #2: And we've recently had success in delivering one that is now performing as per its expectation. So, as part of our 24-day statutory maintenance shutdown across Waitsia, we'll be upgrading those pieces.

Speaker #2: All of that work is just within our sustaining capital piece. There is no additional capital required across there. So, once we've installed that—effectively, that fix—I don't really want to call it a fix, but that different way of lubricating and packing, we should be able to deliver sustained production through those export compressors.

Speaker #2: And we've had some other minor issues, which are just commissioning issues associated with the hot water system and others, which we'll be able to fully correct—a few valve issues that I've mentioned in our half-year and previously.

Brett Woods: We've had some other minor issues, which are just commissioning issues associated with the hot water system and others, which we'll be able to fully correct, a few valve issues that I've mentioned in our half year and previously, and we'll be able to fully correct that over those 24-day periods. There's no additional capital associated with the 24-day shutdown. It's all within our sustaining capital and our operating cost base. Upon delivering that, we see no reason why we shouldn't be able to deliver against our forecast rates at Waitsia.

Speaker #2: And we'll be able to fully correct that over those 24-day periods, so there's no additional capital associated with the 24-day shutdown. It's all within our sustaining capital and our operating cost base.

Speaker #2: And upon delivering that, we see no reason why we shouldn't be able to deliver against our forecast rates and weights here.

Speaker #7: That's great, Brett. If I can just slip in one more quickly. You've previously talked about obtaining an extension to Waitsia's use permit to export LNG beyond the end of calendar '28.

Nik Burns: That's great, Brett. If I can just slip in one more quickly. You've previously talked about obtaining an extension to Waitsia's permit to export LNG beyond the end of calendar 2028. Can you give us any update on that? Thanks.

Speaker #7: Can you give us any update on that? Thanks.

Speaker #2: Yeah, so we've had some positive affirmation from the Premier in Western Australia that he's aligned with that. We're still ongoing in our discussions with the North West Shelf group.

Brett Woods: Yeah. We've got positive affirmation from the Premier of Western Australia that he's aligned with that. We're still ongoing our discussions with the North West Shelf group. Just making sure that we've just completed our reserves update for the year. Very strong reserves outcomes across Waitsia, so very comfortable where we are. I haven't got a date for that to be finalized, but that is something that's ongoing and positive engagement with the joint venture at both sides, the North West Shelf and with the government in extending that. There isn't any foreseeable shortage across the West Coast, so we see more access to LNG as a very viable solution for us.

Speaker #2: And just making sure that we've just completed our reserves update for the year. Very strong reserves outcomes across the weights here, so very comfortable where we are.

Speaker #2: So, I haven't got a date for that to be finalized, but that is something that's ongoing, and there's positive engagement with the joint venture on both sides—the North West Shelf and with the government—in extending that.

Speaker #2: There isn't any foreseeable shortage across the West Coast. So, we see more access to LNG as a very viable solution for us.

Speaker #7: That's clear. Thanks, Brett.

Nik Burns: That's clear. Thanks, Brett.

Speaker #2: Yes.

Brett Woods: Yes.

Speaker #1: Thank you. Your next question comes from Rob Coe with Morgan Stanley. Please go ahead.

Operator: Thank you. Your next question comes from Rob Koh with Morgan Stanley. Please go ahead.

Speaker #8: Good morning. Thanks for the presentation. I just have a further question about the capital allocation, and can you maybe give us a sense of how the Board is thinking about reserve life and reserve cover within that framework?

Rob Koh: Good morning. Thanks, for the presentation. Just, I guess, a further question about the capital allocation.

Rob Koh: Can you maybe give us a sense of how the board is thinking about reserve life and reserve cover within that framework? Is there a particular level of reserve cover that then pivots you back towards cash for shareholders?

Speaker #8: Is there a particular level of reserve cover that then pivots you back towards cash for shareholders?

Speaker #2: That's a really good question. I would like to think that having a business with more than 10 years' reserve life is something that I would love—that's an objective of mine.

Brett Woods: That's a really good question. I would like to think that having a business that has more than 10 years reserve life is something that I would love. That's an objective of mine, and I think our organization and board are aligned to delivering that type of outcome. That just gives us a more sustainable business moving forward, where the overhang for any shortage of reserve life will disappear, and we've got that line of sight to long-going earnings and returns. For me, as managing director and CEO, I am very much focused on extending our reserve life to a platform that's north of 10 years and have a portfolio of opportunities that can sustain that growth in terms of reserve life.

Speaker #2: And I think the organization and board are aligned to delivering that type of outcome. That just gives us a more sustainable business moving forward, where the overhang from any shortage of reserve life will disappear.

Speaker #2: And we've got that line of sight to long-going earnings and return. So, for me, as the Managing Director and CEO, I am very much focused on extending our reserve life to a platform that's north of 10 years.

Speaker #2: And have a portfolio of opportunities that can sustain that growth in terms of reserve life.

Speaker #8: Yeah, cool. So that's kind of versus the 80 now. So if this year's campaigns—if everything goes to plan—you could actually be there quite quickly.

Rob Koh: Yeah. Cool. That's versus the eight-ish now. If this year's campaigns, if everything goes to plan, you could actually be there quite quickly. Is that the right way to think about it?

Speaker #8: Is that the right way to think about it?

Speaker #2: I think we want to see, just on the assets we have at the moment and the opportunities we have, that it does a combination of growing the 2C and a little bit of the 2P.

Brett Woods: I think just on the assets we have at the moment, the opportunities we have, it does a combination of grows the 2C and a little bit of the 2P. I think Otway in itself could actually deliver that, but we won't be drilling Otway until later this decade. We'll have to go through the approvals process and build the right joint venture. What I'm excited about is we have opportunities in the Perth Basin and in offshore Otway through the Taroom Trough, across our East Coast, that all could materially change our reserve life. That can deliver us that objective of having a business that is able to deliver strong TSR earnings, a strong TSR outcome for the shareholders.

Speaker #2: But I think Otway itself could actually deliver that. But we won't be drilling Otway until later this decade. We'll have to go through the approvals process and build the right joint venture.

Speaker #2: But what I'm excited about is we have opportunities in the Perth Basin and offshore Otway through the Tarum and across our east coast that all could materially change our reserve life.

Speaker #2: And that can deliver us that objective of having a business that is able to deliver strong TSR earnings—strong TSR outcomes—for the shareholders.

Speaker #8: Yeah. Okay, cool. Well, wish you all the best with the drilling. My next question, I guess, is tying together the domestic gas policy and this Folks prospect.

Rob Koh: Yeah. Okay. Cool. Well, wish you all the best with the drilling. My next question, I guess, tying together the domestic gas policy and this FOCS prospect, I hope I'm pronouncing that correctly. Is it possible that there is actually an upside in a Victorian development? I mean, that would be domestic gas as the nearest route to market. Maybe if you've brought in an international who has a domestic liability, and then FOCS provides like a swap. Is that a possible upside?

Speaker #8: I hope I'm pronouncing that correctly. Is it possible that there is actually an upside in a Victorian development? I mean, that would be domestic gas as the nearest route to market.

Speaker #8: But maybe if you've brought in an international who has a domestic liability, and then folks provide like a swap—is that a possible upside?

Speaker #2: Yeah, well, the government's plan actually highlights that the opportunities for swaps are critical within delivering that. So the modeling we've done indicates that if the government pushes more for that northern gas to come down, we'll soon leave the southern market short.

Brett Woods: Yeah. Well, the government's plan actually highlights that the opportunities for swaps are critical within delivering that. The modeling we've done indicating that, if the government pushes more for that northern gas to come down, will soon leave the southern market short. Without the right level of transportation, what we see is probably a bit of a yo-yo outcome in terms of higher pricing in the southern markets, just through lack of investment and ongoing supply. You look at opportunities like FOCS, which have scale. It doesn't need double-digit pricing to make money, what it does is deliver incredible returns. Also liquids.

Speaker #2: And without the right level of transportation, what we see is probably a bit of a yo-yo outcome in terms of higher pricing in the southern markets, just through lack of investment and ongoing supply.

Speaker #2: So, you look at opportunities like folks which have scale. It doesn't need double-digit pricing to make money, but what it does is deliver incredible returns.

Speaker #2: And also liquids. Our area, from what we're expecting, is to have high liquids content in that region as well, which again helps support refining in Australia.

Brett Woods: Our area through, what we're expecting, is to have high liquids content in that region as well, which again, helps support refining in Australia, liquid security in Australia, and LPGs in Australia, which I think is also important, and it's been certainly part of my narrative with the government.

Speaker #2: Liquid security in Australia, and LPGs in Australia, which I think is also important and has certainly been part of my narrative with the government.

Speaker #8: All right. Very good. Sounds good. Thank you so much.

Rob Koh: All right. Very good. Sounds good. Thank you so much.

Speaker #2: Yes.

Brett Woods: Cheers.

Speaker #1: Thank you. Your next question comes from UN Minogue with Baron Joey. Please go ahead.

Operator: Thank you. Your next question comes from Ewan Minogue with Barrenjoey. Please go ahead.

Speaker #7: Good morning, Brett and Maria, and the broader team. Just on the offshore Otway, on slide 21, you call out a potential infrastructure expansion opportunity.

Ewan Minogue: Morning, Brett and Marianne and broader team. Just on the offshore Otway, on slide 21, you call out a potential infrastructure expansion opportunity. Can you give us any more detail on what that might look like and also what the right JV structures there could be that you mentioned just before?

Uwan Minogue: Morning, Brett and Marianne and broader team. Just on the offshore Otway, on slide 21, you call out a potential infrastructure expansion opportunity. Can you give us any more detail on what that might look like and also what the right JV structures there could be that you mentioned just before?

Speaker #7: Can you give us any more detail on what that might look like? And also, what the right JV structures there could be that you mentioned just before?

Speaker #2: Yeah, so when we look at bringing some of those opportunities back over Thalassane and into the Otway gas plant, clearly that could backfill it and deliver incredible support for longevity across the Otway gas plant.

Brett Woods: Yeah. When we look at bringing some of those opportunities back over Thylacine and into the Otway gas plant. Clearly they could backfill it and deliver incredible support for longevity across the Otway gas plant. The Otway gas plant. We have a large piece of land and has the ability to add a potential train. If you were to get multiple TCFs of outcome there is a clear pathway to be able to expand Otway gas plant to support a larger flow of volume. I think the great thing about being an infrastructure owner there, it gives us that flexibility. When we're seeing such strong seismic character in those offshore, it gives me confidence that we've got high-value line of sight for extending the life of Otway. I'm very excited about what that opportunity can bring.

Speaker #2: The Otway gas plant—we have a large piece of land and the ability to add a potential train. So if you were to get multiple TCFs of outcome there, there is a clear pathway to be able to expand the Otway gas plant to support larger flow of volume.

Speaker #2: So, I think the great thing about being an infrastructure owner there is it gives us that flexibility. And when we're seeing such strong seismic character in those offshore areas, it gives me confidence that we've got high-value line of sight for extending the life of Otway.

Speaker #2: So, I'm very, very excited about what that opportunity can bring. And in terms of the right partner base, I think it kind of goes to the previous question.

Brett Woods: In terms of the right partner base, I think it goes to the previous question. There's a lot of interest from players about having offsets of volumes in the southern market to help support their existing domestic gas obligation or their social license for gas in Australia. We're seeing a lot of inbounds on this opportunity at the moment because it offers scale, it offers material scale for the southern market. Yeah. For me, delivering the right joint venture is about delivering the best value outcome for Beach, minimizing our capital deployed, leveraging our footprint, and maximizing long-term value for our business.

Speaker #2: There's a lot of interest from players about having offsets of volumes in the southern market, to help support their existing Domestic Gas Obligation or their social license for the gas in Australia.

Speaker #2: So we're seeing a lot of inbounds on this opportunity at the moment because it offers scale. It offers material scale for the southern market.

Speaker #2: So yeah, for me, delivering the right joint venture is about delivering the best value outcome for Beach, minimizing our capital deployed, leveraging our footprint, and maximizing long-term value for our business.

Speaker #7: And then, given the DGR that you guys have covered, could you just talk about what you're seeing in terms of customer contracting and demand at the moment?

Ewan Minogue: Given the DGR that you guys have covered, could you just talk about what you're seeing in terms of customer contracting and demand at the moment? Is there almost a bit of a freeze on that whilst we wait for this to be resolved by the end of the year?

Uwan Minogue: Given the DGR that you guys have covered, could you just talk about what you're seeing in terms of customer contracting and demand at the moment? Is there almost a bit of a freeze on that whilst we wait for this to be resolved by the end of the year?

Speaker #7: Is there almost a bit of a freeze on that while we wait for this to be resolved by the end of the year?

Speaker #2: I think what I think, there is a bit of a freeze—not a complete chill. So we've done, we've executed several really strong contracts over the last half, and we're very pleased with that pricing.

Brett Woods: I think there is a bit of a freeze, not a complete chill. We've executed several really strong contracts over the last half, and very pleased with that pricing. Unfortunately, I can't share with you, that's commercial in confidence. They're strong pricing, in that ACCC and above that level. That is exciting for me. I see opportunity for us to continue to contract and also diversify our routes to market further from our book at the moment.

Speaker #2: Unfortunately, I can't share that with you. That's because of commercial and confidentiality reasons. But they're strong pricing, kind of in that ACCC and above that level. So that is exciting for me.

Speaker #2: I see an opportunity for us to continue to contract and also diversify our routes to market further, from our book at the moment.

Speaker #7: And apologies to flog a dead horse, but just one more question on the dividend in a couple of management frameworks. Appreciate you're trying to retain flexibility. Does that mean there are scenarios in which you would consider not paying a dividend?

Ewan Minogue: Apologies to flog a dead horse, but just one more question on the dividend and the capital management framework. Appreciate you're trying to retain flexibility. Does that mean there's scenarios in which case you would consider not paying a dividend?

Uwan Minogue: Apologies to flog a dead horse, but just one more question on the dividend and the capital management framework. Appreciate you're trying to retain flexibility. Does that mean there's scenarios in which case you would consider not paying a dividend?

Speaker #2: I think the flexibility is as it says. We're looking at having to deliver value for all shareholders, and we see TSR accretion as really important for us.

Brett Woods: I think the flexibility is as it says. We're looking at having to deliver value for all shareholders, and we see TSR accretion is really important for us, and that could come through inorganic growth. We're doing it on an all-in free cash flow basis. That's really the key part and ultimately giving the organization or the board the flexibility to make those decisions. Once we've finished our half year and our full year outcomes, we can understand where we're deploying capital and whether we should be delivering that. Rather than being overly specific about it, we just want to make sure that we've got that flexibility understood by the market.

Speaker #2: And that could come through inorganic growth, and we're doing it on an all-in free cash flow basis. So that's really kind of the key part.

Speaker #2: And ultimately, giving the organization or the board the flexibility to make those decisions once we've finished our half-year and our full-year outcomes. We can understand where we're deploying capital and whether we should be delivering that, rather than being overly specific about it.

Speaker #2: We just want to make sure that we've got that flexibility understood by the market.

Speaker #7: Great. Thanks, guys.

Ewan Minogue: Great. Thanks, guys.

Uwan Minogue: Great. Thanks, guys.

Speaker #1: Thank you. Your next question comes from Mark Wiseman with Macquarie Group. Please go ahead.

Operator: Thank you. Your next question comes from Mark Wiseman with Macquarie Group. Please go ahead.

Speaker #7: Oh, good day, Brett and Marie. Thanks for the update today. I had a couple of questions. Firstly, on the CAPEX budget—that's come in a little higher than I think the market was looking for.

Mark Wiseman: Oh, good day, Brett and Marie. Thanks for the update today. I had a couple of questions. Firstly, on the CapEx budget, that's come in a little higher than I think the market was looking for. On the Cooper Basin JV, the 50% of the AUD 600 to 700 million, could you just unpack what sits within that? How much of that is MCO versus other drilling-related CapEx or other infrastructure?

Speaker #7: On the Cooper Basin JV, the 50% of the $600 to $700 million—could you just unpack what sits within that? How much of that is MCO versus other drilling-related CAPEX or other infrastructure?

Speaker #3: Yeah, so I guess there is always quite an active program in the CBJV, and it does generally comprise a fair chunk of our capital.

Anne-Marie Barbaro: Yeah. I guess, there is always quite an active program in the CBJV, and it does generally comprise a fair chunk of our capital. This year, we're looking at drilling about 70 wells in the Cooper Basin joint venture again. I think you should hopefully have some indicators as to what that would cost. MCO is being delivered over a few years. They're spread fairly evenly over the next few years there as well. I think we've given the total project guidance on that one, as AUD 250 for Beach. Probably look at about a third of that being spent this financial year coming.

Speaker #3: So this year, we're looking at drilling about 70 wells in the Cooper Basin joint venture again. So I think you should hopefully have some sort of indicators as to what that would cost.

Speaker #3: And MCO is being delivered over a few years, so it's spread fairly evenly over the next few years as well. So I think we've given the total project guidance on that one.

Speaker #3: That's $250 million for Beach, so probably sort of look at about a third of that being spent this financial year coming.

Speaker #2: Yeah, so one of the key objectives we've had, and really good engagement with the operator, is as we're doing MCO, we've kind of limited the amount of drilling we've got so that we can hold ourselves fairly flat in terms of our capital profile, as MCO delivers a high level of value accretion for the assets.

Brett Woods: Yeah. One of the key objectives we've had, and really good engagement with operator is, as we're doing MCO, we've limited the amount of drilling we've got so that we can hold ourselves fairly flat in terms of our capital profile as MCO delivers a high level of value accretion for the asset. We've been able to maintain our production, and we believe we'll be able to hold production flat across the Cooper with that level of execution. That balances our capital spend through the Cooper Basin joint venture.

Speaker #2: So we're able to maintain our production, and we believe we'll be able to hold production flat across the Cooper. With that level of execution, that balances our capital spend through the Cooper Basin joint venture.

Speaker #7: Okay, thank you. And just on the Perth Basin, you're announcing two wells to be drilled, seismic, and then more drilling in FY28. I guess since the last drilling campaign, you've had more time to look at the basin and where the prospects are.

Mark Wiseman: Okay. Thank you. Just on the Perth Basin, if you're announcing two wells to be drilled, seismic and then more drilling in FY28. I guess since the last drilling campaign, you've had more time to look at the basin and where the prospects are. Could you just help us understand and also revisiting the tight gas play, could you just help us to understand when do you ideally need more gas to backfill the Waitsia Stage 2 plant? How do you weigh up those opportunities of third-party gas, going back to the tight gas and exploration?

Speaker #7: Could you just help us understand, and also revisiting the tight gas play, could you help us understand when you would ideally need more gas to backfill the Waitsia Stage Two plant? And how do you weigh up those opportunities of third-party gas, going back to the tight gas and exploration?

Speaker #2: Yeah, so we've got the final two development wells to go into Waitsia here as part of the 2B and C campaigns, Stage 2.

Brett Woods: Yeah. We've got the final two development wells to go into Waitsia, part of the two, B and C campaigns.

Anne-Marie Barbaro: Stage 2, yeah.

Speaker #2: And then what we see is we've clearly got a great view now of conductivity within weights here, or a good emerging view. We're seeing really good, strong defense for our 1P, 2P numbers at the moment across weights here.

Brett Woods: Stage 2. What we see is, we've clearly got a great view of now of connectivity within Waitsia, or a good emerging view. We're seeing really good strong defense for our 1P, 2P numbers at the moment across Waitsia. We see those 2 wells as being the next logical, conventional additions in the L1, L2 blocks adding to Waitsia. It's always going to be the closest, conventional opportunities will be the highest value in the near term. Dalwelie and Waitsia South represent 2 very compelling opportunities. The team have completed a lot of seismic reprocessing. We understand the basin much more, and we clearly had a bit of a hiatus of exploration drilling there, and it's the right time to add some more. We're still very strong in terms of our 2P estimates, just having completed our reserve review with independent reserves auditor.

Speaker #2: So we see those two wells as being the next logical conventional additions in the L1 and L2 blocks, adding to rates here. And it's always going to be that the closest conventional opportunities will be the highest value in the near term.

Speaker #2: So Dowelia and Waitsia South represent two very compelling opportunities. And the team have completed a lot of seismic reprocessing; we understand the basin much more.

Speaker #2: And we clearly had a bit of a hiatus of exploration drilling there, and it's the right time to add some more. We're still very strong in terms of our 2P estimates.

Speaker #2: We've just completed our reserve review with an independent reserves auditor, so we're strong and very comfortable with our current range. But I think one of the great opportunities for us is a combination of either working with the resources that we have in hand—i.e., the exploration around our existing infrastructure base, whether it be Beach-operated or Mitsui-operated.

Brett Woods: We're strong and very comfortable with our current range, but I think one of the great opportunities for us is a combination of either working with the resources that we have in hand, i.e., the exploration around our existing infrastructure base, whether it be Beach operated or Mitsui operated. We're 50/50 across all those. Hence doing some seismic to unlock some more of those plays. Also the tight gas opportunities. Tight gas was really an option for us long-term. When Beach originally wrote that off, there was a fracking moratorium, which has disappeared. More recently, the regulatory framework in support of doing more activity in terms of tight gas is currently being executed. What that does is it represents a very large scale, very long-term addition to the basin and optionality. I think opportunities with adjacent asset owners are always there.

Speaker #2: We're 50/50 across all those, and hence doing some seismic to unlock some more of those plays, and also the tight gas opportunities. Tight gas was really an option for us long term.

Speaker #2: When Beach originally wrote that off, there was a fracking moratorium, which has since disappeared. More recently, the regulatory framework supporting increased activity in terms of tight gas is currently being executed.

Speaker #2: But what that does is it represents a very large-scale, very long-term addition to the basin and optionality. I think opportunities with adjacent asset owners are always there.

Speaker #2: And that may come at a higher margin than, maybe, tight gas, depending on its proximity. We'll continue to have those conversations to see what maximizes long-term value.

Brett Woods: That may come at a higher margin than maybe tight gas, depending on its proximity. We'll continue to have those conversations to see what maximizes long-term value across at Waitsia, and in support of turning or extending the life of the opportunity. There's no shortening of the life. Don't take that away. The Waitsia opportunity is as planned, and delivering strong value. We see great opportunities to extend that given there really hasn't been a whole lot of exploration drilling in the basin for quite some time. Now we understand those structures more and what works and where there's some challenges. We're targeting those opportunities that we think are low risk and can be immediately tied back into our infrastructure.

Speaker #2: Across that weighs here. And in support of turning or extending the life of the opportunity, there's no shortening of the life. I don't take that away.

Speaker #2: The Waitsia opportunity is as planned and delivering strong value. But we see great opportunities to extend that, given there really hasn't been a whole lot of exploration drilling in the basin for quite some time.

Speaker #2: And now we understand those structures more, and what works, and where there are some challenges. We're targeting those opportunities that we think are low risk and can be immediately tied back into our infrastructure.

Speaker #7: Thanks. Thanks, Brett. And Emery, I've just got one more question, if I could, on the Tarum Trough. You've taken an exciting position there, but it is a modest-sized position.

Mark Wiseman: Thanks, Brett and Emery. I've just got 1 more question, if I could, on the Taroom Trough. You've taken an exciting position there, but it is a modest-sized position. Could you just give us some context on how you and Bill are thinking about the Taroom Trough in terms of where we are on the journey? Would you consider allocating more capital before seeing more drilling results, given the asset acreage values there at the moment? Do you drill these 2 wells, have a look at what's happening around you and try and sort of weigh up how to rightsize that over time?

Speaker #7: Could you just give us some context on how you and Bill are thinking about the Tarum Trough, in terms of where we are on the journey?

Speaker #7: Would you consider allocating more capital before seeing more drilling results, given the asset acreage values there at the moment? Or do you drill these two wells, have a look at what's happening around you, and try and sort of weigh up how to right-size that over time?

Speaker #2: Really good question, Mark. I'm a firm believer in the opportunity that is represented at Tarum, so we're actively looking at how we manage that portfolio.

Brett Woods: Really good question, Mark. I am a firm believer in the opportunity that is represented at Taroom. We are actively looking at how we manage that portfolio. It is only a relatively conservative position at the moment, 25% interest in a block. We have got a great relationship through our AMI with Omega and Tri-Star, and we will continue to work with them on liberating value. They have got wells going down now, and then we drill our two wells. With good success, we would probably opt to drill a horizontal and stimulate that and get some production rates out of there. To cut to the chase, I do think this is an opportunity where Beach could lean in further, and it is one of those things that we are currently evaluating.

Speaker #2: It is only a relatively conservative position at the moment—25% interest in a block. We've got a great relationship through our AMI with Amiga and Tristar.

Speaker #2: And we'll continue to work with them on liberating value. They've got a well going down now, and then we drill our two wells. We've had good success.

Speaker #2: We'd probably opt to drill a horizontal and stimulate that, and get some production rates out of there. But to cut to the chase, I do think this is an opportunity where Beach could lean in further, and it's one of those things that we're currently evaluating.

Speaker #7: Okay. Thanks very much. Just.

Mark Wiseman: Okay. Thanks very much. Cheers.

Speaker #1: Thank you. Your next question comes from Baden Moore with CIDIC CLSA. Please go ahead.

Operator: Thank you. Your next question comes from Bayden Moore with CITIC CLSA. Please go ahead.

Speaker #8: Oh, thanks for taking the question. Yeah, you've got some gearing targets. There's a lot of projects here. Just as you reflect on the size of your team and what you're doing, would this be, I guess, a way to think about it in terms of project sequencing?

Bayden Moore: Thanks for taking the question. I get you have got some gearing targets. There is a lot of projects here. Just as you reflect on the size of your team and what you are doing, would this be, I guess, a way to think about it in terms of project sequencing? Is this capital deployment rate probably a high watermark from an organic CapEx perspective? My second question, I was just wondering, as you referenced that AUD 12 price, and I guess the repricing seemed to be an opportunity that you are still flagging versus your current portfolio. Can you give a quantum of how much gas you think you have still got to reprice upwards towards or potentially over that recommended gas price?

Baden Moore: Thanks for taking the question. I get you have got some gearing targets. There is a lot of projects here. Just as you reflect on the size of your team and what you are doing, would this be, I guess, a way to think about it in terms of project sequencing? Is this capital deployment rate probably a high watermark from an organic CapEx perspective? My second question, I was just wondering, as you referenced that AUD 12 price, and I guess the repricing seemed to be an opportunity that you are still flagging versus your current portfolio. Can you give a quantum of how much gas you think you have still got to reprice upwards towards or potentially over that recommended gas price?

Speaker #8: Is this capital deployment rate probably a high watermark from an organic capex perspective? And my second question, I was just wondering, as you reference that $12 price—and I guess the repricing seemed to be an opportunity that you're still flagging versus your current portfolio—can you give a quantum of how much gas you think you've still got to reprice upwards towards, or potentially over, that recommended gas price?

Speaker #2: I think we're currently going through a price negotiation with Origin, or just about to commence that. That is a backward-looking contractual basis. I think that should be seen as a positive outcome for our business over the next period.

Brett Woods: I think we're currently going through a price negotiation with Origin or just about to commence that. That is a backward-looking contractual basis. I think that should see as a positive outcome for our business over the next period. In terms of our capital, I think what we're doing is we're deploying capital very wisely across our business and against our objectives in terms of discipline. I'm not sure exactly what you meant by the high watermark. Our exploration is about making sure that we've got the resource base and we've got the resource growth moving forward. I think that is well within the framework's objective to deliver a higher level of reserve life and turn some of those opportunities into something that is tangible for long-term value creation for our shareholders.

Speaker #2: In terms of our capital, I think what we're doing is deploying capital very wisely across our business and against our objectives in terms of discipline.

Speaker #2: So, I'm not sure exactly what you meant by the high watermark. Our exploration is about making sure that we've got the resource base and we've got the resource growth moving forward.

Speaker #2: And I think that is well within the framework's objective: to deliver a high level of reserve life and turn some of those opportunities into something that is tangible for long-term value creation for our shareholders.

Speaker #8: Yeah, I think what I was trying to get at is, do you think the $700 million spend rate is essentially an envelope that you'll sit within going forward as you sequence projects, or whether you can give any more medium-term guidance on your rate of deployment of capital?

Bayden Moore: Yeah, I think I was trying to get at, do you think the 700 million spend rate is essentially an envelope that you'll sit within going forward, as you sequence projects? Or whether you can give any more medium-term guidance on your rate of deployment of capital?

Baden Moore: Yeah, I think I was trying to get at, do you think the 700 million spend rate is essentially an envelope that you'll sit within going forward, as you sequence projects? Or whether you can give any more medium-term guidance on your rate of deployment of capital?

Speaker #2: Yeah, no, we can't really give any more than that at the moment. I think our focus is, if we capture an exciting opportunity, or one of our opportunities comes to bear, there'll be capital associated with that.

Brett Woods: Yeah, no, we can't really give any more than that at the moment. I think our focus is if we capture an exciting opportunity, or one of our opportunities come to bear, there'll be a capital associated with that. That will occur on a project-by-project basis, as long as it makes its investment thresholds.

Speaker #2: And that will occur on a project-by-project basis, as long as it meets its investment thresholds.

Speaker #8: All right. Thank you.

Speaker #2: Yes.

Bayden Moore: All right. Thank you.

Baden Moore: All right. Thank you.

Speaker #1: Thank you. There are no further questions at this time. And that does conclude our conference for today. Thank you for participating. You may now disconnect.

Brett Woods: Cheers.

Operator: Thank you. There are no further questions at this time, and that does conclude our conference for today. Thank you for participating. You may now disconnect.

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