Solid quarterly updates from the two remaining energy groups yesterday for the three months to March in the shape of the Kerry Stokes-dominated Beach Energy and LNG exporter and power operator, Origin.
Origin Energy shares staged a modest rise yesterday on the back of news that the company had achieved record production and revenue in the June quarter thanks to higher production from its joint-owned APLNG project and higher oil and gas prices.
APLNG continues to increase cash distributions and the company has now guided to around $850m in FY19, ahead of UBS estimates. APLNG achieved the highest realised LNG price this quarter relative to other Australian E&P's.
Macquarie believes the agreement between APLNG and Arrow provide some minor upside and an enhanced return. Of most significance is the potential for additional volumes from Arrow, as it lowers the medium-term risk of needing to ramp up fields to replace the Bellevue and Kenya production.