Horizon Oil Limited

Horizon reported half-year underlying revenue of $54.2 million, including $9.6 million from Thailand, and EBITDAX of $28.6 million. Production and sales volumes increased 26% and 25% year over year, while realized oil price was 15% lower than the prior corresponding half year. Cash flow from operating activities rose 37% to $25.1 million; the company ended the period with $35.6 million of cash and net debt of $9.8 million. The group said low cash operating costs were around $20 per barrel of oil equivalent, while Thailand’s operating costs were around $7 per barrel of oil equivalent. Management said FY '25 final dividend of $15.9 million, $3 million of debt repayments, and $4.6 million of investments were funded by operating cash flow. For the calendar year, underlying revenue was $103.6 million, EBITDAX was $54 million, and profit was $8 million. Guidance/outlook: the interim dividend of AUD 0.015 per share is payable in April 2026; the Nam Phong Booster Compressor is expected to lift field production by at least 40% from mid-2026, and Thailand-related higher production and cash flow are expected from the second half of calendar year 2026.

Richard Beament framed the half year as a step change for the business, driven by the Thailand acquisition and the Maari permit extension to December 2037. He emphasized resilient performance despite lower oil prices, disciplined cost control, and a portfolio that now has more gas exposure, longer life, and stronger cash flow resilience. His tone was constructive and upbeat, repeatedly stressing that the business is delivering disciplined growth and long-term value creation.

Kyle Keen focused on the financial resilience of the portfolio and the contribution from Thailand. He said the company maintained underlying revenue and EBITDAX despite a 15% lower realized oil price, supported by 5 months of Thailand contribution, and that operating cash flow of $25.1 million fully funded the $15.9 million final dividend, $3 million of debt repayments, and $4.6 million of asset investments. He also highlighted that the Thailand acquisition was predominantly debt funded, cash closed at $35.6 million, and the loan to the joint venture partner earns interest at SOFR plus 9% and fully amortizes by December 31, 2027.

Analysts asked about Thailand as a jurisdiction and the working relationship with PTTEP; management said the experience has been very positive and pointed to reaching FID on the Nam Phong Booster Compressor within 5 or 6 months as evidence of a strong relationship. On Sinphuhorm, management explained the lower production in certain months was due to planned maintenance outages at the EGAT power station, and said output is 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 Stairway untapped gas remains under consideration for this campaign or a later one.