Horizon Oil Reports Stable US$28.6M EBITDAX, Declares AUD 1.5c Dividend

Strong Half-Year Performance Amid Challenging Prices

Horizon Oil Limited has delivered a robust half-year financial performance for the six months ending 31 December 2025, navigating a 15% decline in realised oil prices with strategic asset growth and operational discipline. The company’s production surged by 26%, reaching over one million barrels of oil equivalent, largely due to the integration of its newly acquired Thailand assets.

Despite the headwinds from lower oil prices, Horizon maintained EBITDAX at US$28.6 million, effectively matching the prior period. More impressively, cash flow from operating activities jumped 37% to US$25.1 million, underscoring the company’s strong cash generation capabilities and operational efficiency.

Thailand Acquisition Drives Growth and Cash Flow

The acquisition of MH Energy Thailand LLC, completed in August 2025, has been a game changer for Horizon. The company now holds a 7.5% interest in the Sinphuhorm gas field and a 60% interest in the Nam Phong gas field. These assets contributed approximately 28% of group production during the half-year, with low operating costs enhancing overall profitability.

Operational improvements at Nam Phong, including a 7% production uplift from reservoir management optimisations and a final investment decision on a booster compressor project expected to increase output by at least 40% from mid-2026, highlight Horizon’s commitment to maximising asset value. The Sinphuhorm field also saw infrastructure upgrades aimed at boosting gas production by the end of 2026.

Sustained Dividends and Capital Discipline

Reflecting confidence in its financial position, Horizon declared an interim unfranked dividend of AUD 1.5 cents per share, payable in April 2026. This follows the payment of a final dividend of the same amount in October 2025, bringing cumulative shareholder returns to over AUD 274 million since inception.

The company’s balance sheet remains solid, with cash reserves of US$35.6 million and a modest net debt position of US$9.8 million, despite the predominantly debt-funded Thailand acquisition. Horizon continues to exercise capital discipline, balancing shareholder returns with reinvestment in production assets and debt management.

Operational Highlights Across Key Assets

Horizon’s existing assets also performed well. The Maari oil field in New Zealand achieved its highest daily production rates in over five years, supported by successful well workovers and a ten-year permit extension that secures the field’s long-term future amid growing energy security concerns.

In Australia, the Mereenie gas field maintained steady output with improved gas pricing and a binding letter of intent signed with the Northern Territory’s Power and Water Corporation to supply uncontracted gas through 2034. This agreement supports plans for two additional infill wells, signalling ongoing development activity.

Looking Ahead

Horizon’s near-term focus is on optimising production from its expanded asset base, particularly through further infill drilling and facility enhancements in Thailand and Australia. The company is also exploring organic and inorganic growth opportunities, with feasibility studies underway for potential new developments in China’s Block 22/12.

Environmental compliance and regulatory engagement remain priorities as Horizon operates across multiple jurisdictions. The company’s commitment to responsible operations is reflected in its ongoing management of restoration provisions and adherence to evolving climate-related regulations.