Australia's third-largest gas producer is receiving good government support on the west coast, but it has concerns about east coast gas policy.
Beach Energy chief executive Brett Woods says West Australian Premier Roger Cook has been supportive as negotiations continue on whether the group will be allowed to export gas from its Waitsia project in Dongara, 350km north of Perth, past 2028.
"(We are) very confident in terms of the government support for us to continue to do that, as far as being a good domestic player in Western Australia," he told analysts on Thursday.
"We've got a lot of engagement with them on that."
Negotiations are continuing with Woodside Energy, whose North West Shelf facility Beach needs to export the gas, over commercial terms for an extension of that arrangement, Mr Woods said.
But the CEO was less positive about the situation on the east coast, where the federal government has announced plans for a gas reservation policy similar to WA's.
It would require exporters to reserve 15 to 25 per cent of their gas for the domestic market beginning in 2027.
"I'll be transparent with you. I have some concerns about the east coast gas market review, so I'm engaging heavily on support of the domestic producers to get the right outcome for us," he said.
All of the gas Beach Energy produces on the east coast is sold domestically, to large energy retailers, power generators and industrial users.
Beach Energy is concerned that the gas reservation policy will incentivise exporters to play arbitrage between the North Asian and southern markets, mostly supplying gas domestically in the winter months when prices are high.
"We would like to see that domestic producers are protected, particularly in the winters in the southern market, that we don't get the high margin periods in our sector taken away," Mr Woods said.
Beach provided nearly 18 per cent of the east coast's domestic gas in the last half-year, and believes the government should offer strong support to domestic-only producers.
Beach has moved from having just two customers on the east coast to having 15, and has started to see solid interest from data centre operators.
"I'm not sure if there's been a lot of government support for that at this present time, but I can see a strong growing demand coming in that area," Mr Woods said.
For the six months to December 31, Beach Energy suffered a big fall in earnings after flooding in South Australia impacted production at its main field.
It posted a bottom-line net profit of $150 million, down 32 per cent on the previous corresponding period.
Its underlying result, which adjusts for one-off items, fell eight per cent to $219 million in the six months to December.
Gas production dropped seven per cent after flooding last July in the Cooper Basin affected its wells and also left multiple communities cut off.
The Adelaide-based Beach Energy, which is 30 per cent owned by the Stokes family-controlled company SGH, produces domestic gas for eastern and western Australia and New Zealand.
It also supplies LNG, crude oil to local refineries and other energy-related products.
Beach Energy declared an interim dividend of one cent per share, down from three cents in 2025.
Its shares were down 4.8 per cent at $1.19 on Thursday.
