Karoon Energy (KAR) Q1 2026 earnings summary

Executive summary

• Achieved zero recordable injuries and maintained Baúna FPSO efficiency at 96% in Q1 2026, with strong operational safety and reliability.

• Produced 1.96 MMboe (NRI) and generated US$128.2 million in sales revenue, with higher realised prices offset by lower production and shipment timing.

• Baúna FPSO operatorship transition and maintenance progressing as planned, expected to enhance operational control and margins by mid-2026.

• Who Dat production remediation underway, with 55-75% of curtailed production expected to be restored by mid-2026.

• Strategic initiatives advancing, including Who Dat East development and Neon project optimisation for capital efficiency.

Financial highlights

• Q1 2026 revenue was US$128.2 million, down 18% year-over-year due to lower production volumes despite a 16% increase in realised oil prices.

• Baúna oil production was 1.56 MMbbl, down 9% sequentially; Who Dat production was 0.40 MMbbl oil and 0.48 Bcf gas, down 37% and 52% respectively.

• Total sales volumes were 1.85 MMboe, down 30% year-over-year.

• Net debt at 31 March 2026 was US$180.6 million, with cash of US$169.4 million and drawn debt of US$350 million.

• Total liquidity stood at US$452.7 million at quarter end.

Outlook and guidance

• 2026 production guidance unchanged; capex guidance increased by US$39-48 million to include a second Who Dat sidetrack well.

• Majority of 2026 capex and maintenance weighted to 1H26, with higher free cash flow expected in 2H26.

• Who Dat production forecast at low end of guidance range due to remediation timeline.

• Unit production costs guided at US$12-15/boe for 2026.