Morningstar hikes fair value estimate for Australian energy firms

Beach Energy

15/09/2025 22:38

** 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 to 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

** Australian energy sub-index .AXEJ up 1.9% so far this year as of last close, lagging behind an 8.5% rise on the broader benchmark .AXJO

 (Reporting by Nikita Maria Jino in Bengaluru)

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