Morningstar bets on Strike Energy's gas plant developments, expects net debt to shrink

Strike Energy

04/08/2026 22:49

** Morningstar expects Australian Strike Energy's STX.AX net debt to decline to less than A$70 million ($49.30 million) by FY28
** Investment research firm says construction of the gas and power plant developer's South Erregulla power station is complete, West Erregulla station development is underway, paving the way to a 20% increase in gas reserves for co
** Adds that co spent A$185 million during FY26 for South Erregulla plant and doesn't expect major hiccups during commissioning of the plant
** Morningstar says this supports the Australian government's energy transition from coal-fired plants
** "In its first and second years of operation in FY27 and FY28, South Erregulla will receive government payments of A$19 million and A$31 million before any sales," Morningstar says
** Maintains fair value estimate at A$0.20 apiece, flags shares remain materially undervalued
** YTD, stock down 8.6%, as of co's last close

($1 = 1.4198 Australian dollars)

 (Reporting by Aamir Sheik Khalid in Bengaluru)
 ((Aamir.SheikKhalid@thomsonreuters.com))