Horizon Oil Reports 13% Production Growth, US$54.8M EBITDAX, and AUD 3c Dividend

Strong Production Growth and Portfolio Expansion

Horizon Oil Limited has delivered a solid set of financial results for the year ended 30 June 2025, highlighted by a 13% increase in production volumes to over 1.6 million barrels of oil equivalent (boe). This growth was primarily driven by the successful integration of the Mereenie oil and gas field acquisition in Australia, complemented by infill drilling programs at Mereenie and Block 22/12 in China. These operational successes helped offset natural declines in other fields and weather-related disruptions.

Thailand Acquisition Marks Strategic Expansion

Shortly after the financial year-end, Horizon completed a transformative acquisition of Exxon Mobil’s Thailand assets, acquiring a 7.5% interest in the Sinphuhorm gas field and a 60% interest in the Nam Phong gas field. This deal, effective from 1 January 2025, adds approximately 2,100 boe per day to Horizon’s production base, representing a near 50% increase in daily output. The acquisition also significantly boosts the company’s 2P reserves by around 40%, diversifying its geographic footprint and production mix.

Financial Performance Amid Lower Oil Prices

Despite a 5.5% decline in production revenue to US$105.3 million due to softer realised oil prices, Horizon maintained robust cash flow generation with operating cash flow of US$35.9 million. EBITDAX decreased to US$54.8 million from US$71.5 million in the prior year, and profit before tax fell to US$16.7 million from US$39.2 million. The company’s net cash position stood at US$13.7 million at year-end, after paying approximately US$31.9 million in dividends.

Shareholder Returns and Dividend Policy

Reflecting its strong cash flow and disciplined capital management, Horizon declared a final unfranked dividend of AUD 1.5 cents per share, matching the interim dividend paid earlier in the year for a total distribution of AUD 3.0 cents per share. This continues a five-year track record of substantial shareholder returns exceeding AUD 250 million. The company balances rewarding shareholders with reinvestment in production growth and strategic acquisitions.

Operational Highlights and Permit Extension

Operationally, the Maari Joint Venture in New Zealand achieved a significant milestone with cumulative production surpassing 50 million barrels since 2009. Post-year-end, the Maari permit was extended by 10 years to December 2037, providing regulatory certainty and enabling the maturation of enhancement projects. This extension contributed to a material increase in 2P reserves at Maari, underpinning the asset’s long-term value.

Governance and Strategic Outlook

The company also saw board changes with the appointment of Peter Goode and Catherine Costello, reinforcing governance as Horizon enters its next growth phase. CEO Richard Beament emphasized the company’s focus on maximising free cash flow, maintaining shareholder distributions, and pursuing organic and inorganic growth opportunities. Horizon’s diversified portfolio and disciplined approach position it well to navigate market volatility and deliver sustainable value.