How Is Brookside Energy Navigating Production Declines While Boosting Cash Flow?

Steady Production Amid Market Challenges

Brookside Energy Ltd reported a 7% decline in net production for the December 2025 quarter, producing 154,228 barrels of oil equivalent (BOE). This decrease aligns with the company’s expectations of natural base decline across its operated and non-operated wells in the prolific Anadarko Basin, Oklahoma. Despite softer commodity prices, Brookside maintained a liquids-rich production mix, which continues to underpin its high-margin revenue stream.

The company’s nine operated wells, including the recently stabilised Bruins well, upheld a flawless drilling success record, delivering consistent output and operational reliability. Optimization efforts focused on flow parameters and pressure management across the SWISH Play, ensuring production remained in line with forecasts.

Financial Strength and Capital Discipline

Brookside generated robust cash receipts of A$12 million during the quarter, translating into a net operating cash flow of A$4.1 million. The company closed the period with a strong cash balance of A$11.8 million, marking a 44% increase from the previous quarter. This financial resilience was achieved despite an 8 to 10% decline in average West Texas Intermediate (WTI) oil prices and only modest improvements in natural gas pricing.

Capital discipline remains a cornerstone of Brookside’s strategy. The company continued its on-market share buy-back program, purchasing over 885,000 shares, nearly 1% of its fully diluted issued capital, funded entirely from operational cash flows. This initiative reflects the Board’s confidence in the intrinsic value of its Anadarko Basin assets and commitment to returning capital to shareholders.

Advancing Growth with Riverbend Area of Interest

Brookside progressed its Riverbend Area of Interest (AOI) during the quarter, focusing on technical evaluations, land consolidation, and leasing activities. Internal modelling indicates the potential for several million barrels of recoverable oil within this approximately 24 square mile area, supported by stacked reservoirs across multiple geological formations.

The company’s staged approach prioritises securing operated acreage and regulatory approvals before reserve definition drilling and potential broader development. Riverbend is positioned as a complementary growth engine alongside the established SWISH Play, offering promising capital efficiency and attractive well-level returns under current economic assumptions.

Strategic Moves and Market Positioning

Brookside is advancing its proposed dual listing on the NYSE American, aiming to broaden its investor base and access to US capital markets. While timing remains subject to audit and regulatory approvals, the company is progressing efficiently through necessary filings and disclosures.

Operationally, Brookside maintains a conservative hedging program to mitigate near-term commodity price volatility, with hedges covering oil and natural gas production into mid-2026. The Board’s recent appointment of Chris Weatherl, with deep Anadarko Basin experience, adds operational insight to the company’s strategic direction.

Overall, Brookside Energy’s December quarter reflects steady operational execution, prudent capital management, and measured growth initiatives designed to compound long-term shareholder value in a challenging market environment.