Karoon Energy (KAR) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 production was 2.37 MMboe (NRI), down from 2.59 MMboe in Q3, due to Baúna well downtime and natural decline; full-year 2025 production reached 10.3 MMboe, near the top of guidance and just below 2024's record.

• Baúna FPSO efficiency hit a record 98.8% in Q4 and 95.1% for the year, up from 84.5% in 2024, reflecting maintenance improvements.

• Sales volumes in Q4 were 2.65 MMboe, 5% higher than Q3, but revenue fell to $156.1M due to lower oil prices.

• No recordable safety incidents or lost time injuries in the quarter; E6 sidetrack at Who Dat brought online below budget and met expectations.

• New CEO and MD, Carri Lockhart, appointed in November 2025.

Financial highlights

• Q4 sales revenue was $156.1M, down from $164.1M in Q3, reflecting lower realised oil prices despite higher sales volumes.

• Full-year Baúna production was 7.67 MMbbl (+3% YoY); Who Dat NRI production was 2.60 MMboe (-10% YoY).

• Average realised oil prices: Baúna $61.53/bbl (-10% QoQ), Who Dat $57.06/bbl (-8% QoQ).

• Q4 capital expenditure was $44M, mainly for E6 sidetrack and Santos Basin signature bonuses; full-year capex $136.4M (+49% YoY).

• Net debt at year-end was $143.9M, with $206.1M cash and $350M drawn debt; total liquidity $546.1M.

Outlook and guidance

• 2026 production guidance: 8.1–9.2 MMboe (NRI), with a stronger second half expected after Baúna investment program.

• Unit production cost guidance for 2026: $12–15/boe (NWI), with costs expected to decline post-FPSO operatorship transition.

• Capex guidance for 2026: $110–135M, including Baúna well interventions and Who Dat A1 sidetrack.

• 2025 capex (excluding FPSO acquisition) expected at $96–101M, lower than prior guidance.

• Guidance excludes one-off items: flotel costs, FPSO transition costs, and corporate office relocation.