Beach Energy's (ASX:BPT) sales revenue for the fiscal third quarter beat expectations, but the construction delays at the company's Waitsia plant in Perth, Australia, narrowed production guidance, and a higher capital expenditure forecast signal a diminishing free cash flow outlook, according to a Wednesday note by Jarden Research.

On Monday, the company said its sales revenue for the fiscal third quarter rose to AU$552 million from AU$392 million a year earlier.

However, BPT also reported that delays at Waitsia have pushed the first gas sales to mid-2025, later than the previously expected fourth quarter.

BPT also revised its full-year production forecast to 19.5 million to 20.2 million barrels of oil equivalent (mmboe), with a midpoint of 19.5 mmboe, citing flooding in the Cooper Basin that affected output.

In addition, the company raised its capital expenditure outlook for the Otway Basin in fiscal 2026 between AU$400 million to AU$500 million, up from the previous consensus of AU$350 million.

Jarden noted that first gas sales at Waitsia are now more likely in July or even August, but given the project's history of construction challenges, additional issues could arise.

The investment firm maintained Beach Energy's underweight rating but lowered its price target to AU$1.17 from AU$1.19.