Tamboran Resources (TBN) Q2 2025 earnings summary

Executive summary

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

• Achieved record proppant intensity and daily completions in SS-2H ST1, with flow tests for SS-2H planned for April 2025 and SS-3H 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 years, with all foundation capacity contracted until at least 2041.

• 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 drilling rig sale, with no debt.

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 rig sale, with no outstanding debt.

• Net loss for the quarter was $15.5 million, and $22.3 million for the six months, with no revenue recognized.

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

• Immediate upcoming costs include $2.5–$3 million per well test and $10–$12 million in completion costs for SS-3.

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

Outlook and guidance

• Targeting IP30 flow test results for SS-2H in April 2025 and SS-3H by mid-2025, with first gas delivery from the pilot project on track for 1H 2026.

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

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

• Evaluating farm-out and debt financing options for Phase 2 and 3 developments.

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