Slater and Gordon Lawyers has filed a class action against oil and gas company Beach Energy on behalf of investors who bought shares over an eight-month period during which there was a significant decline in the company’s projected earnings from its Western Flank oil and gas reserves in South Australia’s Cooper Basin.
The claim, filed in the Victorian Supreme Court, is being brought on behalf of shareholders who incurred losses after acquiring Beach Energy shares between 17 August 2020 and 29 April 2021.
The class action alleges the energy company engaged in misleading or deceptive conduct and breached its continuous disclosure obligations under the Corporations Act.
On August 17 last year, the company advised the ASX that it had updated its 5-Year Outlook which included expected annual production of between 37 and 43 million barrels of oil equivalent (MMboe) in FY25, and cumulative free cash flow of $2.1 billion for FY21 to FY25.
The company also provided guidance for FY21 which included expected production of between 26 and 28.5 MMboe and underlying EBITDA of between $900 million and $1 billion.
On February 15 this year, it announced expected FY21 production of between 26.5 and 27.5 MMboe and underlying EBITDA of between $900 million and $950 million. However, the company maintained its five-year outlook target.
But on April 30, the company completely withdrew its 5-Year Outlook and announced significant downgrades to its 2P oil and gas reserves at the Western Flank. It also downgraded its FY21 guidance, revising expected production to 25.2 and 25.7 MMboe and underlying EBITDA to between $850 million and $900 million. In the day of trading that followed, the company’s share price dropped by about 25 per cent.
The Slater and Gordon team is led by Class Actions Lawyer Eleanor Toohey (Picture).
Involved fees earner: Eleanor Toohey – Slater & Gordon;
Law Firms: Slater & Gordon;