Strike Energy (STX) H1 2025 earnings summary

Executive summary

• Sales revenue reached $35.8 million for 1H FY25, up 77% year-over-year, driven by 4.66 PJe of gas and condensate production and a realised gas price 4% higher year-on-year.

• Final investment decision made for South Erregulla 85 MW peaking gas power station, now in execution phase.

• Significant gas discoveries at Erregulla Deep-1 and Walyering East-1, supporting future resource bookings.

• WA's Domestic Gas Policy update allows export of up to 20% of Perth Basin production until 2030.

• CEO transition: Stuart Nicholls stepped down, Jill Hoffmann appointed Acting CEO.

Financial highlights

• Net Profit After Tax (NPAT) of minus $15.5 million, $26.4 million lower year-on-year, mainly due to higher non-cash depletion and depreciation and absence of prior year tax benefit.

• Gross profit of $2.7 million on $35.8 million revenue; cost of sales increased to $33.1 million from $3.6 million year-on-year.

• EBITDAX increased 93% to $15.6 million compared to 1H FY24.

• Cash flow from operations improved to $19.9 million from a negative $3.6 million in 1H FY24.

• Available liquidity stood at $33.1 million, with an additional $162 million committed financing facility approved post-period.

Outlook and guidance

• $162 million committed financing package from Macquarie Bank to refinance existing debt and support Perth Basin projects; additional $55 million subject to approval.

• Directors expect sufficient working capital through June 2026, assuming successful financing completion and prudent expenditure management.

• South Erregulla power project to deliver 85 MW of firming power into the SWIS, leveraging strong WA energy market conditions.

• Execution phase commenced for the South Erregulla power station, supported by Reserve Capacity Credits and network access.

• WA’s Domestic Gas Policy update allows export of up to 20% of Perth Basin gas production until end-2030.