Australian energy firms rise, Morningstar hikes fair value estimates

Beach Energy

16/09/2025 04:22

Updates

** Shares of Australian energy stocks .AXEJ rise as much as 0.9%, hitting their biggest intraday pct gain since August 29

** Morningstar says it remains bullish on oil demand despite near-term price weakness from OPEC+ hiking production and a potential supply glut next year

** Sees oil demand decline by 15%, but also expects supply to decline by well over 20% from 2035 to 2050

** Adds that many Australian firms have domestic natural gas production not directly impacted by oil prices

** Morningstar raises fair value estimate for sector majors Woodside Energy WDS.AX to A$44.2 from A$42.6, Santos STO.AX to A$9.65 from A$9.5

** Also upgrades fair value estimates for Beach Energy BPT.AX to A$2.6 from A$2.55, and Karoon Energy KAR.AX to A$2.75 from A$2.65

** WDS up 0.2% and BPT rises 1.5% while STO down 0.2%

** Global oil prices also edged up slightly after rising in the previous session O/R

** Australian energy sub-index .AXEJ up 2.6% so far this year, including the day's moves

 (Reporting by Nikita Maria Jino and Rajasik Mukherjee in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))