The Beach Energy Ltd (ASX: BPT) share price has been a top performer within the S&P/ASX 200 Index (INDEXASX: XJO) so far in 2019.
The Aussie oil and gas stock has been surging higher throughout 2019 and has rocketed 47.51% higher since 16 August – a handy return for any shareholder.
So, what's driving the Beach Energy share price higher this year and can the bullish share price run continue into 2020?
Strong results season kickstarts Beach share price
While Beach's share price performance had been solid through to August, what really made the share price surge higher was the company's full-year results release on 19 August.
Beach Energy reported a record result headlined by an 86% year-on-year surge in underlying earnings to $560 million for FY19.
Strong production levels up 55% on the previous year to 29.4 million barrels helped Beach post the bumper result, while a solid growth outlook also buoyed investors' spirits.
Oil supply factors are helping Beach Energy
ASX oil stocks have been surging higher in the early part of this week after a coordinated attack claimed by Yemeni rebels hit the world's largest oil stabilisation plant over the weekend.
With global oil supply set to fall following the attacks, crude oil prices surged up to 20% higher to 6-year highs and dragged the ASX oil stocks higher, including Beach Energy.
No timelines have been given for a return to normal production, but even a few months out of action could mean higher profits for Beach Energy in the final quarter of 2019.
Will the Beach share price growth last?
While the Beach Energy share price is up 106.98% so far this year, what we really want to know as 'buy and hold' investors is whether this strong share price growth will last in 2020.
I'd expect to see oil production return to normality in the early part of 2020, but ongoing tensions between the Western Bloc and Iran could mean that oil supply remains volatile into next year.
I think the strong underlying profit posted by Beach shows a sign of a maturing business and one that can start to generate consistent free cash flow in coming periods.
Overall, I'd expect the Beach Energy share price to see some mild growth in 2020 but wouldn't be banking on the same levels that we've seen so far this year, or even in the last month or so.
