Carnarvon Energy (CVN) Q1 2026 TU earnings summary

Executive summary

• Completed a strategic A$86 million investment in Strike Energy, acquiring a 19.9% stake and becoming its largest shareholder, providing exposure to Western Australia's gas and electricity markets.

• Maintained a strong capital position with A$99 million in cash, no debt, and a US$90 million free carry for Dorado development.

• Bedout Sub-basin portfolio holds a net 2C Contingent Resource of 54 million barrels of oil equivalent and over 130 identified prospects.

• Exploration drilling in the Bedout area delayed to early 2027 due to offshore rig scarcity, but environmental planning is well advanced.

Financial highlights

• Ended the quarter with A$98.9 million in cash and cash equivalents, down from A$186.1 million in the previous quarter, mainly due to the Strike investment.

• Net cash outflow from operating activities was A$61,000; net cash outflow from investing activities was A$86.9 million.

• Interest income for the quarter was A$1.26 million, reflecting term deposit holdings.

• Staff costs for the quarter were A$428,000; administration and corporate costs were A$930,000.

• Exploration and evaluation costs capitalised were A$410,000, mainly for environmental plan preparation.

Outlook and guidance

• Bedout exploration drilling rescheduled to early 2027 due to industry-wide rig constraints, but long-term resource potential and strategy remain unchanged.

• Forecasted expenditures for the next quarter: A$300k–$600k for Bedout Sub-basin and A$800k–$1 million for corporate and other costs.