While the S&P/ASX 200 Index (ASX: XJO) fell 2.7% in May, the Beach Energy Ltd (ASX: BPT) share price surged 7%.
This comes after the company announced a couple of announcements to the ASX throughout last month.
At Wednesday’s market close, the energy producer’s shares added to its strong gains by 1.16% to $1.745.
What happened with Beach Energy?
At the start of May, Beach Energy delivered its Macquarie Conference presentation which highlighted its growth strategy.
Management stated that its FY22 guidance is on track for production of 21 – 23 million barrels of oil equivalent (Mmboe). The majority of the supply will come from the company’s East Coast Gas market.
In addition, Beach Energy reaffirmed its plan to achieve production of 28 Mmboe by FY24. In contrast, it recorded production of 25.6 Mmboe in FY21 – down 4% on the previous year.
Looking at the near-term, management expects to have 8 gas plants producing from 5 basins by the end of 2023. The plants will deliver gas to 4 markets including the East Coast gas market and the global LNG market.
The news sent the company’s shares 1.54% higher on the release, followed by a 3.94% gain the following day.
During mid-month, Beach Energy announced the appointment of Morné Engelbrecht as its new CEO with immediate effect.
A day later, the company provided an update in relation to its Bass Basin acreage.
However, the two releases above weren’t enough to rally the share price due to market volatility in the sector. As such, Beach Energy shares fell around 7% from 18 May to 20 May.
Nonetheless, at the end of May, the company’s shares recovered lost ground with a 5.18% gain. This came off the back of strengthening oil prices and the EU agreeing to a partial ban on Russian oil imports.
Beach Energy share price summary
Over the last 12 months, the Beach Energy share price has lifted by 36%, with year-to-date up 38%.
Its shares hit a 52-week high of $1.77 in March before trading sideways for the following months.
Beach Energy presides a market capitalisation of roughly $3.94 billion.
The post The Beach Energy share price zipped higher in May. Here’s why appeared first on The Motley Fool Australia.
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More reading
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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 Scott Phillips.
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