Horizon Oil (HZN) H2 2024 earnings summary

Executive summary

• Transformative year with the acquisition of a 25% interest in the Mereenie asset, diversifying production and materially increasing reserves.

• FY24 revenue reached US $111.5 million, with EBITDA/EBITDAX at US $71.5 million and profit before tax of US $39.2 million.

• Net cash at year-end was US $26.2 million after paying US $37 million in dividends.

• Total shareholder return for FY24 was approximately 50%, adding about AUD 120 million in value.

• Maintained strong ESG performance, with safety metrics better than industry benchmarks and ongoing emission reduction initiatives.

Financial highlights

• Sales volume was 1.3 million barrels of oil equivalent, with a net realized sales price of US $85.7 per barrel.

• Free cash flow generation was strong at over US $54 million, supporting investment and distributions.

• Cash reserves increased by over 20% to US $52.6 million despite US $37 million in dividends paid.

• Cash operating costs remained below US $25 per barrel of oil equivalent.

• FY24 profit after tax was US $25.9 million, above the 5-year historical average.

Outlook and guidance

• Production base expected to remain at 4,000–5,000 barrels of oil equivalent per day for the next four years, with stability through 2030.

• Mereenie and Maari assets provide a foundation for production into the next decade, with Maari life extension application underway.

• Continued focus on infill drilling, water handling upgrades, and asset optimization across all fields.

• Block 22/12 JV plans additional infill drilling in 2025 and a liquid handling upgrade by January 2026.

• Mereenie JV approved two gas infill wells for FY25, with long-term gas sales agreements underpinning cash flows.