QPM Reports 23 TJ/day Gas Supply and $7.9m Cash in June Quarter

Administration and Receivership Appointments

QPM Energy Ltd (ASX:QPM) entered voluntary administration on 7 July 2026, with Mark Holland and Anthony Connelly of McGrathNicol appointed as joint administrators. Simultaneously, secured creditors installed receivers and managers over certain subsidiaries, placing FTI Consulting and KordaMentha in control of key gas-producing assets. This dual oversight aims to stabilise operations and explore strategic options including a potential sale or recapitalisation.

The administrators and receivers have maintained a 'business as usual' approach to gas operations, seeking to preserve value while urgently reviewing the company's affairs. The Supreme Court of New South Wales has extended the convening period for creditor meetings to 4 February 2027, allowing additional time for creditors to consider the company's future. QPM's shares remain suspended on the ASX during this period.

Operational Performance Amid Challenging Conditions

The June 2026 quarter saw QPM's Moranbah Gas Project portfolio supply an average of 23 terajoules per day, down from 24.1 TJ/day in the prior quarter. The decline primarily reflects heavy rainfall disruptions in the March quarter, which continued to impact production into April. Recovery efforts included mobilising a workover rig to restore failed wells and commissioning wellhead blowers to enhance productivity, lifting managed production to over 21 TJ/day by quarter end. Anglo Coal also resumed production from some gas drainage wells late in the quarter.

Electricity generation at the company's Moranbah Power Station (TPS) dropped to 9,898 megawatt-hours from 32,584 MWh in the previous quarter, reflecting reduced gas supply and softer Queensland wholesale prices driven by mild weather and abundant coal and renewable generation. The smaller Moranbah Power Station (MPS) also saw a sharp reduction in output and average realised prices.

Financial Position and Capital Structure

QPM ended the quarter with $7.9 million in cash and equivalents, down from nearly $20 million in March. The company has drawn $46.5 million under its Dyno Nobel Development Funding Facility and $23.2 million on an additional Dyno Nobel facility, alongside $101.3 million drawn on a Macquarie Master Lease Agreement secured for the Isaac Power Station construction. However, all financing facilities have been frozen following the administration appointment.

Capital expenditure remains significant, with $94.5 million spent on upstream gas production and the Isaac Power Station project year-to-date. The Isaac Power Station development was paused by the quarter's end, with contractors demobilised. The company's CEO, David Wrench, departed on 30 July 2026, shortly after the administration commenced.

Next Steps for Creditors and Stakeholders

The administrators are tasked with investigating QPM's affairs and reporting to creditors, who will decide on the company's future at meetings scheduled no later than 11 February 2027. Meanwhile, the receivers are preparing the business for sale or recapitalisation, seeking to maximise value from the gas-producing assets. The extended timeline provides breathing room but also underscores the uncertainty facing QPM amid operational challenges and financial distress.

Investors and market observers will be watching for updates on the sale process, restructuring proposals, and any operational improvements as QPM navigates this critical phase. The outcome will shape the prospects of Queensland's Moranbah Gas Project and the Isaac Energy Hub, both pivotal in the region's energy landscape.