Tamboran Resources (TBN) Q1 2025 TU earnings summary

Executive summary

• Completed drilling of SS-2H, the first ~10,000 ft horizontal well in Beetaloo Basin; SS-2H sidetrack (ST1) nearing completion, with consistent geologic properties and strong gas shows observed in both wells.

• Drilling of SS-3H well to commence soon, with both SS-2H sidetrack and SS-3H expected to be drilled and cased by year-end.

• Liberty Energy's US-style frac equipment and the largest frac spread in Australia mobilized, targeting significant efficiency gains for pilot wells in 1Q 2025.

• Development of a local sand mine underway to reduce well costs and improve operational efficiency.

• Tamboran Resources remains in the exploration stage with no revenue from gas operations as of September 30, 2024, and does not expect material revenue until 2026 at the earliest.

Financial highlights

• Cash balance at September 30, 2024, was $74.0 million, adjusted to $81.6 million after rig sale proceeds in October.

• Net proceeds of $7.6 million from the sale of a U.S. rig offset the $5 million cost of the SS-2H sidetrack.

• Net loss attributable to stockholders was $5.9 million for the quarter, compared to $3.2 million in the same quarter last year, driven by higher compensation, professional fees, and exploration expenses.

• Approximately $19 million invested in drilling two wells during the quarter.

• Expecting $6.8 million R&D rebate in 4Q 2024.

Outlook and guidance

• On track to announce IP30 flow rates for SS-2H sidetrack and SS-3H wells in late Q1 2025, subject to weather.

• Construction of compression facility and pipeline infrastructure for pilot project expected to commence after regulatory approvals in 2H 2025, with first gas targeted for 1H 2026.

• Approximately $70 million in investment is planned for the remainder of fiscal 2025 to progress development plans.

• Existing cash and proceeds from asset sales are expected to fund planned drilling and flow testing, but significant additional funding may be required to execute the full strategy.