Horizon Oil Ltd. reported record annual output and cash generation for the year ended June 30, 2026, driven by production growth and asset expansion, though its shares slipped 2.1% on the day.
The Australian upstream producer posted net production of 2.15 million barrels of oil equivalent, a 33% increase from FY25, while sales volumes reached a record 1.98 million boe, up 22%. Underlying revenue totaled $107.2 million, with Thailand contributing approximately $23 million. EBITDAX rose to $56.4 million, and operating cash flow climbed 32% year-over-year to $47.2 million, supporting a 13% return on equity over the last twelve months.
Free cash flow increased by about $15 million to $36.6 million, while statutory profit after tax was $11.1 million. The company maintained cash operating costs below $25 per barrel of oil equivalent, averaging approximately $21 per boe. Total shareholder returns for FY26 amounted to $33.1 million, including dividends of 2.5 Australian cents per share split between an interim payment of AUD 0.015 and a final dividend of AUD 0.01.
Horizon’s cash position stood at $37.4 million at year-end, with net debt at $11.3 million. Cumulative shareholder distributions have exceeded $180 million, or roughly AUD 270 million, since the company’s inception. The company’s market capitalization was $269 million, with a P/E ratio of 33 and a dividend yield of nearly 13%.
Production gains were supported by the acquisition of Cue Energy Resources, which expanded Horizon’s asset base to nine producing fields across five countries. The transaction, completed in August of the prior year, added net production of around 2,100 boepd. Current group production stands at approximately 7,300 boepd following the deal.
Reserves and resources also expanded, with net 2P reserves up 51% to 13.6 million boe and net 2C contingent resources rising 61% to 19.8 million boe. Reserve replacement reached about 200%. The company secured a 10-year permit extension for its Maari field in New Zealand, extending operations through 2037.
Horizon’s shares traded at AUD 0.23, down $0.005 from the prior close, near the lower end of its 52-week range. The stock is 23.8% above its 52-week low of AUD 0.19 and 22% below its 52-week high of AUD 0.295.
Chief Executive Officer Richard Beament said FY26 marked a reset in the company’s scale and cash flow base, highlighting Thailand’s role as a low-cost, infrastructure-backed gas platform. Chief Financial Officer Kyle Keen noted that cash generation is supporting dividends, debt reduction, and organic growth across the portfolio.
