Barclay Pearce Capital
- Jul 7, 2026
- 2 min read
ABSI - Brookside Energy (ASX:BRK): Deep Value Opportunity - U.S Oil & Gas Exposure
Brookside Energy (ASX:BRK) is a producing Oil & Gas player in the world class Anadarko Basin, Oklahoma. Brookside have delivered strong production, cash generation and reserve growth, while investing in operated inventory and returning capital. Brookside is well funded with strong well-level economics, an expansion program and a materially discounted current valuation relative to small-cap E&P sector benchmarks.
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Investor Highlights
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Deep Value Opportunity: trading at a Discount to U.S. Listed Peers - BRK is currently trading at a discount to comparable U.S.-listed E&Ps across numerous key metrics (including EBITDA and Reserves basis).
- Cash Flow Positive Producer, Debt-Free Balance Sheet
- Brookside delivered strong FY2025 cash generation, with A$53.8m sales revenue, A$19.0m EBITDA, A$14.54m cash and no debt at 1Q2026.
- A$14.54m cash on hand at 1Q2026, debt-free balance sheet and on-market buy-back underway.
- Visible Production Growth Pathway
The modelled development scenario supports production growth from approximately 1,800 BOE/day toward a plateau of approximately 4,600 BOE/day. - Catalysts (ongoing & near-term)
- Drill program underway at the SWISH AOI – addition of 2 wells, ready to go.
- Riverbend expansion program - fully funded pathway to expand Brookside’s operated inventory and reserve growth.
- Completion of on-market buy-back, returning capital to shareholders.
- ADR listing via the NYSE to increase U.S. investor exposure.
- Macroeconomic Tailwinds
- Increasing US emphasis on energy security and reduced reliance on foreign production support sustained domestic oil investment.
- Recovering oil prices from global events and underinvestment are supporting a renewed interest in high-margin oil exposure.
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