Horizon Oil (HZN) Q1 2026 TU earnings summary

Executive summary

• Completion of the Thailand acquisition marked a pivotal quarter, significantly increasing production and reserves and positioning the group for sustained long-term cashflow generation.

• The company paid a final FY25 dividend, bringing cumulative distributions over five years to more than A$250 million.

• A ten-year permit extension was granted for the Maari field, supporting long-term production.

Financial highlights

• Production revenue rose 19.2% to US$26.7 million compared to the previous quarter, with US$3.5 million contributed by the new Thailand assets.

• Net operating cash flow increased 21.9% to US$17.0 million quarter-over-quarter.

• Cash reserves at quarter-end were US$46.0 million, with net debt of US$2.0 million after funding the Thailand acquisition.

• Group cash operating costs fell below US$20/boe, aided by low-cost Thailand production.

Outlook and guidance

• Forecasting payback from the Thailand investment within 24 months, subject to commodity prices.

• Robust commodity hedge in place: 140,000 bbls of oil hedged at US$67/bbl through March 2026; Mereenie gas production hedged via long-term contracts for two years.

• Growth initiatives underway in Thailand, with further infill drilling and capacity upgrades planned across the portfolio.