Tamboran Resources (TBN) H2 2024 earnings summary

Executive summary

• Achieved record normalized flow rates in the Beetaloo Basin, materially derisking the Mid-Velkerri gas play, and completed a successful IPO and NYSE listing, raising $75M with an additional $7.5M from the green shoe option.

• Secured $82M in funding for 2024 drilling, including a $20M strategic investment from Liberty Energy, and entered strategic partnerships with Liberty Energy, H&P, APA, and Bechtel for drilling, fracking, pipeline, and LNG development.

• Signed a 15.5-year gas sales agreement with the Northern Territory Government, LOIs with six East Coast buyers, and MOUs with BP and Shell for 2.2 MTPA of LNG each over 20 years.

• Awarded a 420-acre site at Middle Arm/Darwin for the NTLNG project, with pre-FEED studies awarded to Bechtel and region-wide environmental approval process underway.

• Completed a corporate reorganization, moving domicile to Delaware and listing CDIs on the ASX.

Financial highlights

• Raised $75M from the IPO, $7.5M from the green shoe option, and $20M from Liberty Energy, with $82M total for 2024 drilling; cash and cash equivalents at June 30, 2024, were $74.7M.

• No revenue from natural gas production in FY2023 and FY2024; net loss of $23.9M for FY2024, improved from $32.2M in FY2023.

• Operating expenses for FY2024 were $20.5M, down from $32.0M in FY2023.

• Accumulated deficit reached $130.4M as of June 30, 2024.

• Capital commitments over the next five years total $90.5M, including drilling, midstream, and joint venture obligations.

Outlook and guidance

• Targeting first gas sales of 40 MMcf/d from the pilot project by 1H 2026, with six horizontal wells planned and further expansion to 2 Bcf/d by 2030.

• Estimated remaining capital required for first development phase is $110M–$140M net; plans to fund through cash on hand and future debt/equity offerings.

• Four additional wells planned for 2025, with flexibility to adjust based on pilot well performance; IP30 flow test results for SS2H and SS3H expected in Q1 2025.

• Committed to operational net zero emissions and participation in carbon capture and renewable energy initiatives.

• Pre-FEED studies for NTLNG project with Bechtel targeted for completion in 1H 2025.