Karoon Energy (KAR) Q2 2025 earnings summary

Executive summary

• Net Revenue Interest (NRI) production for Q2 2025 was 2.94 MMboe, up 25% from Q1 2025, driven by Baúna Project recovery post-maintenance and stable Who Dat output.

• Sales revenue reached US$159.7 million, a 7% increase over Q1 2025, despite a 12% drop in average realised liquids price.

• Baúna FPSO acquisition completed, with transition to direct operation underway and expected by 1H26.

• Neon project advanced to Define Phase, with 2C Contingent Resources rising 44% to 86.5 MMbbl.

• Six new exploration blocks awarded offshore Brazil, pending formal grant in 4Q25.

Financial highlights

• Sales volumes for Q2 2025 were 2.61 MMboe, up 21% from Q1 2025.

• Baúna oil revenue increased 15% to US$125.0 million; Who Dat oil, condensate & NGLs revenue fell 14% to US$30.3 million.

• Average realised Baúna oil price dropped 13% to US$64.15/bbl; Who Dat liquids price down 8% to US$64.39/bbl.

• Net debt rose to US$237.9 million at 30 June 2025, up from US$159.2 million at 31 March 2025, due to FPSO acquisition and share buybacks.

• Capital expenditure for Q2 2025 was US$102.9 million, including US$85 million for FPSO acquisition.

Outlook and guidance

• Full-year 2025 Baúna FPSO efficiency guidance remains at 88–92%, with production guidance of 6.7–7.7 MMbbl.

• Neon farm-down process (30–50% interest) to begin in Q3 2025, with a decision on next phase in Q4 2025.

• Who Dat E6 sidetrack drilling planned for late 2025; potential production uplift in 2026.

• Final Investment Decision for Who Dat East targeted for late 2025 or early 2026.