Strike Energy (STX) H1 2026 earnings summary

Executive summary

• Sales revenue for 1H FY26 was $36 million from 3.8 PJe of gas and condensate, with realized gas price at $7.37/GJ and net cash inflow from operating activities of $3.4 million.

• South Erregulla 85 MW Peaking Gas Power Project reached up to 77% completion, targeting commercial operation by 1 October 2026, with commissioning activities scheduled for Q2 CY2026.

• Underlying NPAT loss for 1H FY26 improved to $12.3 million, a 20% year-over-year improvement.

• Strategic investment of $86 million from Carnarvon Energy and $1.7 million from a Share Purchase Plan strengthened liquidity.

• The company is transitioning from exploration to disciplined commercialisation of Perth Basin gas resources.

Financial highlights

• Underlying EBITDA was $14 million, down from $15.6 million in the prior period, with EBITDA margin at approximately 39%.

• Net loss after tax improved to $12.3 million from $15.5 million year-over-year.

• Cash and cash equivalents at period end were $69.5 million, with available liquidity of $104.8 million.

• Total capital expenditure for the period was $99.5 million, with $63.1 million committed for South Erregulla in the next twelve months.

• Gross profit margin for the period was 9.5% ($3.4 million gross profit on $36 million revenue).

Outlook and guidance

• South Erregulla Power Plant is on track for completion and commercial operation by 1 October 2026.

• Walyering West-1 drilling scheduled for April 2026, with compressor installation to enhance production.

• Reserve Capacity Price for 2027/28 secured at $360,700/MW, with a proposed 36% increase for 2028/29.

• FID for West Erregulla targeted before year-end or in 2026, pending commercial and regulatory milestones.

• Ongoing planning for 3D seismic surveys and drilling activities across multiple assets.