Tamboran Resources (TBN) Q2 2025 TU earnings summary

Executive summary

• Drilled, cased, and cemented SS-3H well with a 10,000-foot horizontal section in the Beetaloo Basin, marking a technical milestone and record 840 ft/day drilling speed.

• Completed SS-2H well with 35 frac stages and record proppant intensity; targeting IP30 flow test in April 2025, with SS-3H flow test planned by mid-2025.

• Entered binding agreements for a 12-inch pipeline to deliver 40 million cu ft/day to the Northern Territory gas market for 15–15.5 years, with first gas expected in H1 2026.

• Signed a non-binding MOU with Santos for technical studies on Darwin LNG expansion and midstream collaboration.

• Ended the quarter with a cash balance of US$59.4 million, including a US$6.2 million R&D tax credit and proceeds from a US rig sale.

Financial highlights

• Cash balance at December 31, 2024: US$59.4 million, including US$6.2 million R&D tax credit and US$8.1 million from US rig sale, with no outstanding debt.

• Secured a US$23 million line of credit from Macquarie Bank; US$4 million drawn for pipeline guarantees.

• Estimated cost for SS-3 drilling was approximately US$10 million; upcoming costs include US$2.5–$3 million per well test and US$10–$12 million in completion costs for SS-3.

• All-in drilling and completion cost per well currently about US$25 million, with a target to reduce to US$16 million.

• Fully funded to deliver near-term flow tests from SS-2H ST1 and SS-3H wells by mid-2025.

Outlook and guidance

• Targeting IP30 flow test results for SS-2H in April 2025 and SS-3H in mid-2025.

• First gas delivery from the pilot project remains on track for H1 2026, subject to weather and final approvals.

• Final investment decision for the Shenandoah South Pilot project expected by mid-2025.

• Flow test results will determine the number of wells needed for the 40 million cu ft/day contract.

• Evaluating farm-out, debt financing, and data center opportunities leveraging proximity to fiber optic networks.