Karoon Energy (KAR) Investor Presentation summary

Strategic and operational highlights

• Strong cash flows generated from high-quality oil and gas assets in Brazil and the US Gulf, with ongoing organic growth opportunities in both regions.

• Baúna FPSO acquisition completed, enabling direct operational control, cost reduction, and field life extension to the late 2030s.

• Capital returns policy targets 20-40% of underlying NPAT, with $114 million returned to shareholders in the last 18 months.

• Targeting Net Zero by 2050 or sooner, maintaining carbon neutrality for Scope 1 and 2 emissions since FY21.

• Corporate structure being streamlined by relocating key roles to Houston and Rio de Janeiro to enhance efficiency.

Asset performance and development

• Baúna Project FPSO efficiency improved to 94.5% in 1H25, with upgraded 2025 production guidance to 7.3–7.8 MMbbl.

• Baúna FPSO acquisition expected to reduce opex by $30–40 million per year post-transition, with revitalisation and life extension capex planned.

• Baúna 2P Reserves increased by 13.7 MMbbl in 1H25, extending field life to 2039 and more than doubling recoverable volumes since 2020.

• Neon 2C Contingent Resources grew 44% to 86.5 MMbbl in 1H25, with FID targeted for 2H26 and farm-down discussions underway.

• Who Dat assets in the US Gulf delivered 1.36 MMboe NRI in 1H25, with sidetrack drilling and debottlenecking initiatives planned.

Growth projects and exploration

• Neon project in Brazil advancing through FEED, with total pre-FID spend of $22–30 million and phase 1 capex estimated at $0.9–1.2 billion for 60–70 MMbbl recovery.

• Who Dat East and South discoveries offer tieback potential, with 2C Contingent Resources of 15.7 MMboe and 7.4 MMboe respectively; FID for East targeted late 2025/early 2026.

• Recent deepwater block awards in Brazil have low capital obligations and are being evaluated for long-term growth.