0027 GMT - Uncertainty over the cost of Cooper Energy's future projects is helping to keep Bell Potter at hold on its stock. Cooper will start generating free cash flow in FY 2025 after completing the decommissioning of the BMG oil field. However, Cooper's next major capital program--the East Coast Supply Project--looms. The project, designed to lift output in the Otway Basin, is set to begin in FY 2026 and will put pressure on Cooper's balance sheet again, analyst Stuart Howe says in a note. "Cooper is yet to clearly guide on the capital costs of this expansion, adding uncertainty to the company's medium-term free cash flow and therefore value," Bell Potter says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
July 16, 2024 20:27 ET (00:27 GMT)
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