Karoon Energy (KAR) Q2 2024 earnings summary

Executive summary

• Q2 2024 production was 2.14 MMboe (NRI), down 27% from Q1 due to a planned Baúna maintenance outage.

• Sales revenue rose 8% to US$212.8 million, driven by higher sales volumes and improved oil prices.

• Capital returns policy finalized: 20-40% of NPAT to be returned via dividends or buybacks; US$25 million buyback launched.

• Who Dat East well discovered hydrocarbons; Who Dat South exploration well to spud in Q3 2024.

• Inaugural US$350 million high yield bond issued, extending debt maturity and repaying RBL facility.

Financial highlights

• Production (NRI) fell to 2.14 MMboe from 2.94 MMboe in Q1; sales volumes steady at 2.73 MMboe.

• Sales revenue increased to US$212.8 million from US$196.6 million in Q1; Baúna oil realized price up 8% to US$82.55/bbl.

• Capital expenditure surged to US$57.5 million, mainly due to Who Dat East well and signature bonuses.

• Net debt improved to US$67.8 million from US$129.5 million in Q1, with cash at US$282.2 million.

Outlook and guidance

• CY24 production and cost guidance unchanged; unit DD&A guidance set at US$16-17/boe.

• If SPS-88 intervention is delayed to 2025, Baúna output may be at lower end of guidance and CY24 capex reduced by US$20-30 million.

• Total CY24 production guidance: 10.5-12.5 MMboe; capex guidance: US$137-164 million.