Karoon Energy (KAR) Q2 2026 earnings summary

Executive summary

• Achieved 1.08 MMboe production in Q2 2026, with sales revenue of US$116.4 million, driven by higher realised oil prices.

• Completed Baúna FPSO operatorship transition and major revitalisation, restoring production and improving efficiency to 97%.

• Who Dat A1 sidetrack came online in July, supporting near-term production; E riser remediation ongoing.

• Maintained strong safety record with no recordable incidents in 2026; two minor process safety incidents resolved.

• Strategic growth initiatives progressing, including Who Dat East FID expected in Q3 and Neon development optimisation.

Financial highlights

• Q2 2026 revenue was US$116.4 million, down 9% year-over-year and 11% quarter-on-quarter for Baúna oil.

• Average realised prices: Baúna oil US$94.56/bbl (+33% QoQ), Who Dat liquids US$101.93/bbl (+55% QoQ).

• Net debt at 30 June 2026 was US$269.7 million, with US$80.3 million cash and US$350 million drawn debt.

• Total liquidity stood at US$363.6 million at quarter-end.

• 2.8 million shares repurchased in Q2 2026 for US$4 million; further buyback to commence in July.

Outlook and guidance

• Full-year 2026 production guidance: 7.2–8.2 MMboe (Brazil: 6.0–6.7 MMbbl, Who Dat: 1.2–1.5 MMboe NRI).

• Unit production costs guided at US$12–15/boe; total capex expected at US$178–202 million.

• Higher free cash flow anticipated in 2H26, assuming oil prices US$60–70/bbl and operational performance in line with guidance.

• Who Dat East FID expected in Q3 2026; Neon project milestone in Q4 2026.