Part of a Foolish investor's role is to keep up with news about the stocks within their portfolio. We encourage buy and hold investing, but that doesn't mean buy and forget. Developing a sense of what makes a company move and what threats or opportunities may be before it helps you.
One stock in the S&P ASX 100 Index (ASX: ^XTO) stuck out on Tuesday, shooting up when the index itself was pretty flat. Beach Energy Limited (ASX: BPT) climbed 2.71% on some very promising news. So what is getting investors interested?
The share price jump was due to an announcement that energy giant Woodside Petroleum Limited (ASX: WPL) will be buying into Beach Energy's oil exploration site in Tanzania, Africa. The company will transfer 75% of its 100% interest to Woodside. This will be a great boost there since Woodside will provide technical and financial assistance to develop the site with Beach Energy. This will also open up the company's geographical diversification for production outside of Australia.
Beach Energy has been making great strides in oil production in the Cooper Basin region. The LNG export industry in eastern Australia is to start shipping LNG as soon as next year and will need a lot of resources over the coming decades. Beach Energy, working together with big producers such as Santos Ltd (ASX: STO) and Origin Energy Limited (ASX: ORG), will be able to develop more oil fields quicker and supply the Australia Pacific LNG (APLNG) project. Increased oil production will drive the company's earnings over the coming years.
This is why the mid-tier energy producer can expand and speed up its own growth through cooperative work with large-scale companies. I think it has excellent opportunities to move up in size itself, so having it as a growth oil stock in your portfolio could pay pleasing returns.
