The Beach Energy Ltd (ASX: BPT) share price ended Monday’s trading session in the green. However, its shares could be on watch tomorrow following an after-market release.
At the closing bell, Beach Energy shares finished up 4.22% to $1.235 a pop.
What did Beach Energy announce?
The Beach Energy share price could be on the move on Tuesday after the energy producer announced a positive update.
In its release, Beach Energy advised it has entered into a Heads of Agreement (HOA) with oil and gas company, BP.
The arrangement relates to the supply of Beach Energy’s share of liquefied natural gas (LNG) from Waitsia Gas Project Stage 2.
The HOA contains the terms and conditions for BP purchasing all 3.75 million tonnes of Beach’s expected LNG volumes. This is expected to come from the Waitsia Gas Project Stage 2, with supply forecasted to commence in the second-half of 2023.
Beach Energy noted that the annual contract volumes and supply terms are similar to the North West Shelf Gas Processing and Lifting Agreements. The terms include built-in flexibility, ensuring that LNG will flow when construction and commissioning activities have been completed.
Supply will be delivered on a Free on Board (FOB) basis from the NWS facilities in Karratha, Western Australia. BP is a joint venture partner in NWS.
The agreed price for the LNG contract is said to be linked to Brent crude oil and Japan Korea Marker price indices.
Beach and BP are targeting the execution of an LNG Supply and Purchase Agreement later this year.
About the Beach Energy share price
Over the last 12 months, Beach Energy shares have fallen around 10%, with year-to-date dropping more than 30%. The company’s share price is hovering around the lower point of its 52-week range of $1.01 and $2.04.
Beach Energy presides a market capitalisation of roughly $2.82 billion, with approximately 2.3 billion shares on its registry.
Should you invest $1,000 in Beach Energy right now?
Before you consider Beach Energy, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Beach Energy wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- Leading brokers name 3 ASX shares to buy today
- These were the best performers on the ASX 200 last week
- Guess which sector this week’s top performing ASX 200 shares come from
- The Beach Energy (ASX:BPT) share price is leaping 6% on Wednesday
- 5 things to watch on the ASX 200 on Wednesday
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/2WdLcF6