Tamboran Resources (TBN) Q2 2025 earnings summary

Executive summary

• Drilled, cased, and cemented two production wells (SS-2H ST1 and SS-3H) in EP 98, with SS-3H featuring a 10,000-foot horizontal section and record drilling speed of 840–843 ft/day, marking a technical milestone in the Beetaloo Basin.

• Achieved record proppant intensity and daily completions in SS-2H ST1, targeting IP30 flow tests in April (SS-2) and mid-2025 (SS-3), with first gas expected in 1H 2026.

• Entered binding agreements with APA Group for the Sturt Plateau Pipeline to deliver 40 million cu ft/day to the NT gas market for 15 years, with all foundation capacity contracted until at least 2041.

• Signed non-binding MOU with Santos for technical studies on Darwin LNG expansion and advanced data center strategy leveraging proximity to fiber optic infrastructure.

• Ended the quarter with US$59.4 million cash and no debt, aided by a US$6.2 million R&D tax credit and proceeds from the sale of a US drilling rig.

Financial highlights

• Cash balance at December 31, 2024: US$59.4 million, including a US$6.2 million R&D tax credit and US$8.1 million from the sale of a US drilling rig.

• Drilling cost for SS-3 was approximately $10 million; all-in drilling and completion cost per well currently about $25 million, with a target to reduce to $16 million through efficiencies and local sand sourcing.

• Net loss for the quarter was $15.5 million, and $22.3 million for the six months, with no revenue as operations remain in the exploration stage.

• Total assets increased to $362.9 million, driven by capitalized exploration and infrastructure spending.

• Working capital surplus of $29.3 million as of December 31, 2024.

Outlook and guidance

• Targeting IP30 flow test results for SS-2 in April and SS-3 in mid-2025; results will guide the number of follow-up wells needed to fulfill the 40 million cu ft/day contract.

• First gas delivery from the Beetaloo Basin remains on track for 1H 2026, with final investment decision for the pilot project expected mid-2025.

• No material revenue expected until at least 2026, contingent on successful drilling, capital funding, and infrastructure development.

• Approximately $50 million in additional investment is planned for the remainder of fiscal 2025 to progress development plans.

• Exploring debt facilities, farm-out opportunities, and data center partnerships to fund further development and infrastructure.