Broker names 2 of the best ASX energy share to buy in FY23

With oil prices still trading at elevated levels, some investors may be interested in gaining exposure to the energy sector.

For those that are, the two ASX shares listed below could be worth considering. They have been named by Bell Potter as two of its top picks in the energy sector for FY 2023.

Here’s what you need to know:

Beach Energy Ltd (ASX: BPT)

The first energy share that Bell Potter is bullish on is Beach Energy. It believes the company is well-placed to benefit from high oil prices in the short term and its growth plans over the medium term.

The broker explained:

BPT should continue to benefit from elevated crude prices in the shortterm, though operating leverage from its Western Flank asset will shrink as gas and LNG production from its growth projects ramp up over the next two years.

The company’s growth ambitions are fully funded; new development wells in the Victorian Otways should be commissioned by the end of FY23, lifting production capacity to plant limits (205TJ/day, gross) while improving marketing of gas volumes on a spot basis. The company’s timely entry into global LNG markets (expected from 1H CY2023), through its Waitsia Stage 2 development, coincides with a robust outlook for LNG prices.

Bell Potter has a buy rating and $2.00 price target on Beach’s shares.

Strike Energy Ltd (ASX: STX)

Another ASX energy share that Bell Potter rates highly is Strike Energy. It believes the company is well-positioned to benefit from the tightening domestic gas market in Western Australia. It also sees a lot of potential in management’s fertiliser plans.

It commented:

STX will benefit from Western Australia’s tightening domestic gas market while pursuing downstream value adding manufacturing. There are multiple upcoming catalysts as its upstream projects progress to production in 2023-24, and as its flagship Project Haber urea fertiliser project is de-risked through FEED and financing.

STX has a strong eye to ESG commitments, with a net zero Scope 1 and 2 target by 2030 and an aspiration to also offset Scope 3; Project Haber and the company’s geothermal project are key carbon offsets.

Bell Potter has a speculative buy rating and 39 cents price target on Strike Energy’s shares.

The post Broker names 2 of the best ASX energy share to buy in FY23 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Scott Phillips.

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