Karoon Energy (KAR) Q3 2024 earnings summary

Executive summary

• Third quarter 2024 NRI production rose 25% to 2.68 MMboe, driven by a 44% increase at Baúna, while Who Dat NRI production fell 10% due to hurricanes and maintenance.

• Sales revenue dropped 32% quarter-over-quarter to US$144.9 million, reflecting lower sales volumes and an 8% decline in realised oil prices.

• An inaugural dividend of 4.496 Australian cents per share was paid, and a US$25 million share buyback was completed, with another US$25 million buyback planned through June 2025.

• The Who Dat South exploration well began drilling in September, and a resource update for Who Dat East is expected in Q4 2024.

Financial highlights

• Net debt at 30 September 2024 was US$41.8 million, with US$308.2 million in cash and US$350 million drawn debt.

• Capital expenditure for the quarter was US$21.5 million, down 63% from the previous quarter, mainly for Who Dat East and South wells.

• Cash inflows included US$170.7 million from hydrocarbon sales; major outflows were US$24.9 million for the buyback and US$26.9 million for capex.

• Total liquidity at quarter-end was US$648.2 million, up 23% year-over-year.

Outlook and guidance

• 2024 production guidance narrowed to 10.5–10.8 MMboe, with Baúna and Who Dat both expected at the lower end of prior ranges due to weather impacts.

• Unit production cost guidance raised to US$13–15/boe, reflecting fixed costs over lower production.

• Net finance and interest cost guidance increased to US$42–48 million; total capex guidance reduced to US$144–156 million.

• Baúna full-year production forecast at 7.5–7.7 MMbbl; Who Dat at 3.0–3.1 MMboe (NRI).