Beach Energy's (ASX:BPT) fiscal first-half results met expectations but were overall "negative," marked by a surprisingly low dividend, a production guidance update suggesting potential downgrades, and a lack of progress details at its Waitsia plant, according to a Thursday note by Jarden Research.

On Thursday, the oil and gas firm reported fiscal first-half earnings of AU$0.0974 per diluted share, compared with a loss of AU$0.1514 per diluted share a year earlier.

Revenue for the six months ended Dec. 31, 2024, was AU$1.04 billion, up 6% from AU$982 million in the same period a year earlier.

The board declared an interim dividend of AU$0.03 per share, up 50% from the AU$0.02 in the previous reported period.

Jarden notes that the dividend declared is equal to a 16% free cash flow payout, which is below the company's 40% to 50% policy, hinting at a larger fiscal 2025 final dividend.

BPT narrowed its production guidance to 18.5 million barrels of oil equivalent (MMboe) to 20.5 MMboe, while Jarden and the market expected production guidance closer to the upper end of the previous 17.5 MMboe to 21.5 MMboe target.

BPT has maintained its target for first gas sales at its Waitsia plant, but has yet to confirm the presence of fuel gas in the plant, Jarden added.

Jarden Research reaffirmed its neutral rating and AU$1.42 price target on Beach Energy.