Beach Energy's (ASX:BPT) third-quarter operational results were below market expectations, with a disappointing cut to production guidance, Euroz Hartleys said Tuesday in a note.
The results were impacted by a weaker-than-expected ramp-up at its Waitsia project, heavy rainfall in the Cooper Basin, and reduced customer nominations in the Otway Basin.
The company produced 4.8 million barrels of oil equivalent in the quarter ended March 31, missing consensus by 6% despite a 7% quarter-on-quarter jump. It also revised its 2026 production guidance to 19.4 million to 20.3 million barrels of oil equivalent, from 19.7 million to 22 million barrels of oil equivalent.
The investment firm said some organic growth has been achieved via newly acquired exploration areas in a few east coast basins, giving longer-term growth and diversification. However, significant growth from major resource addition or production increases has yet to be delivered.
"The market will be anticipating this, or be holding out for more fruitful shareholder returns," it added.
Euroz Hartleys maintained a hold rating and price target of AU$1.18, both under review with a downside bias due to the softer production outlook.