Beach Energy has swung to a first-half net profit on the back of record sales volumes and higher oil prices.
The Cooper Basin-focused oil and gas producer posted a $103.4 million profit, compared to a writedown-driven $600 million loss in the same period a year earlier.
Revenue for the six months to December 31 jumped 26 per cent to $345.4 million, with production during the first half rising to a record 5.5 million barrels of oil equivalent.
That allowed the company to boost its full-year production guidance to between 10.3-10.7 mmboe, up from its previous forecast of 9.7 to 10.3 mmboe.
Beach, which counts Seven Group Holdings as its biggest shareholder, last year completed an all-stock takeover of smaller rival Drillsearch Energy, amid an extended downturn in oil prices.
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Oil prices have gradually climbed nearly 40 per cent from their lows last year, and the combined group has benefited from the turnaround in prices as well as its cost reductions.
Beach's operating costs fell nine per cent from a year ago, while average realised oil price climbed nine per cent to $67.5 per barrel.
The energy producer said it expects to increase drilling activity in the near future, with up to a total of 60 wells to be drilled during the financial year.
At the same time, the company is actively assessing new opportunities for high-impact exploration, it said.
RBC Capital Markets analyst Ben Wilson called the half year report a strong result, with the dividend highlighting Beach's balance sheet strength.
"The key is what the company does with its $150 million net cash position and nearly $650 million in available liquidity. Beach is trading on $US14/boe of reserves, which we believe is expensive without a clear growth trajectory," he said in a note.
The company declared a fully franked interim dividend of one cent.
Beach Energy shares closed up one cent at 70.5 cents.
