Unplanned maintenance at the Cooper Basin and Bass Gas projects have driven a marginal miss on revenue and production from Beach Energy in the second quarter according to Morgan Stanley.

In an effort to counter Western Flank's ongoing decline Beach Energy undertook well drilling, including commencement of a fifth well, all of which should come online in the third quarter. 

Morgan Stanley reduces expected decline to -8% from -15% through to the end of FY22, noting the company plans to drill up to fifteen wells but material discoveries would be required to reverse the decline trend.

The Equal-weight rating and target price of $1.70 are retained. Industry view: Attractive.

Sector: Energy.

Target price is $1.70.Current Price is $1.43. Difference: $0.27 - (brackets indicate current price is over target). If BPT meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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