Strike Energy (STX) Q4 2025 TU earnings summary

Executive summary

• Strategic investment of $88 million from Carnarvon Energy and a $10 million share purchase plan support key project funding and growth initiatives, following a strategic review refocusing on integrated gas and power strategy and cash-generating assets.

• Leadership transition completed with Peter Stokes as CEO and a new CFO appointed, signaling renewal.

• Focus remains on delivering the South Erregulla integrated power solution by October 2026 and advancing West Erregulla to FID.

• Walyering field delivers stable production at 25 TJ/day, with ongoing projects to sustain output.

• Ocean Hill 3D seismic work identified attractive targets, with appraisal campaign planned post-funding confirmation.

Financial highlights

• FY25 sales revenue (net) rose 59% year-over-year to $72.7 million; Q4 sales revenue reached $18.3 million, with production maintained at 25 TJ/day, totaling 2.3 PJ.

• Available liquidity at quarter-end was $76.2 million, including $51.6 million received from Carnarvon.

• Cash and cash equivalents at quarter-end were $41.1 million, up 84% sequentially.

• Development expenditure included $21 million for South Erregulla and $1.7 million for Walyering compression; Q4 capital expenditure totaled $26.3 million.

• Walyering generated approximately $70 million in revenue over the past year.

Outlook and guidance

• South Erregulla Peaking Gas Power Station remains on track for October 2026 completion, with potential for a 15 MW expansion a year later; capital expenditure forecast revised to $184 million.

• Ocean Hill exploration well planned for late next year, contingent on revenue from South Erregulla and Walyering.

• West Erregulla FID targeted for the second half of next year, aligning with 2028-29 capacity year, with additional drilling and workovers planned.

• Ongoing funding initiatives, including Carnarvon investment and share purchase plan, to support project delivery.

• WA energy market expected to face a supply-demand gap post-2027 as coal-fired generation retires, supporting demand for new gas and power projects.