Horizon Oil Limited

For the half year ended 31 December 2025, production and sales volumes increased 26% and 25% year over year, respectively, and underlying revenue was $54.2 million, including $9.6 million from Thailand. EBITDAX was $28.6 million, operating cash flow rose 37% to $25.1 million, and the company said these results came despite a 15% lower realized oil price. Cash at period end was $35.6 million and net debt was $9.8 million. On a calendar-year basis, underlying revenue was $103.6 million, EBITDAX was $54 million, and profit was $8 million. Forward-lookingly, Horizon said the interim dividend of AUD 0.015 per share will be paid in April 2026, the Nam Phong Booster Compressor is expected to lift field production by at least 40% from mid-2026, and Sinphuhorm tie-in works are targeted for completion later in 2026.

Richard Beament framed the half year as a step-change period for Horizon, driven by the Thailand acquisition and the 10-year Maari permit extension. He emphasized portfolio resilience, longer asset life, and diversification into gas, saying Thailand is already contributing meaningfully and that integration has been seamless. His tone was constructive and confident, pointing to disciplined growth, strong operating execution, and a busy activity plan across the portfolio.

Kyle Keen stressed the resilience of the financials despite the oil price backdrop, noting the group maintained low cash operating costs of around $20 per boe and generated $28.6 million of EBITDAX. He said the $25.1 million of operating cash flow fully funded the $15.9 million FY25 final dividend, $3 million of debt repayments, and $4.6 million of investments in low-cost producing assets. He also highlighted that the Thailand deal was predominantly debt funded, ended the half with $35.6 million of cash, and left sufficient liquidity to pay the AUD 0.015 interim dividend and support ongoing development and working capital needs.

Analysts asked how Thailand has been as a jurisdiction and how the company is working with PTTEP; management described the relationship as very strong and pointed to the rapid FID on the Nam Phong Booster Compressor as evidence. They also explained that lower Sinphuhorm production in certain months was due to planned maintenance at the EGAT power station, with output back above 100 million standard cubic feet per day. On Mereenie, management said the immediate priority is infill drilling to meet Northern Territory gas demand, while the Stairway formation remains under consideration for a later campaign or possibly the current one.