Beach Energy (ASX:BPT) shareholders are now focused on total shareholder returns rather than dividends alone after the oil and gas company slashed its interim dividend by 67%, Euroz Hartleys said in a note on Thursday.
The investment firm said investors are watching the company's future capital allocation strategy ahead of its FY26 results and are looking for either a "meaningful" addition to reserves/resources or a return to stronger distributions.
The company had an operationally soft fiscal fourth quarter with production coming in at the lower end of guidance. However, it managed to strengthen itself financially, with lower net debt supporting the balance sheet and providing capacity for future growth. The company reported available liquidity of AU$983 million and net gearing of 10.6%.
Euroz Hartleys maintained its hold rating on Beach Energy but lowered the price target to AU$1.02 from AU$1.12, citing an updated sum-of-the-parts valuation.