2218 GMT - Investors in Beach Energy can afford to sit on their hands while it navigates a tricky period of execution and likely volatility in the oil price, Citi says. Beach needs to reshape its portfolio of energy assets with acquisitions, but that's no easy task. "If oil falls in 2025 in the way we expect, then Beach Energy, which is unhedged, will have a smaller balance sheet to transact on their acquisitions," analyst James Byrne says. Citi thinks Beach will pursue a large deal to rely less on assets that the bank considers low quality. "Investors can therefore wait for execution first while getting a free look on the commodity price," the bank adds. It has a sell call on the stock.(david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
October 20, 2024 18:18 ET (22:18 GMT)
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