Morgans rates BPT as Add

Should a shareholder vote be successful next February, Beach Energy will acquire Warrego Energy ((WGO)) for -$240m in cash.

Beach Energy intends to sell-off Warrego's  Spanish assets and retain the Perth Basin gas assets to complement Beach's existing assets in the Perth Basin.

The broker lifts its long-term forecasts for production from the Perth Basin as well as realised prices, given the potential to export via underutilised LNG processing facilities.

After also incorporating the acquisition into forecasts's the broker's target rises to $1.97 from $1.69. Add.

Sector: Energy.

Target price is $1.97.Current Price is $1.70. Difference: $0.27 - (brackets indicate current price is over target). If BPT meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena