Horizon Oil Delivers Record FY26 Production as Expanded Portfolio Sets Up Growth

Horizon Oil (ASX: HZN) delivered record production and sales in FY26, producing 2.15 million barrels of oil equivalent (MMboe) and selling 1.98MMboe as its newly acquired Thailand assets lifted group output.

Underlying revenue rose 2% to US$107.2 million, while earnings before interest, tax, depreciation, amortisation, and exploration expenditure increased 3% to US$56.4m despite deferred oil liftings that left substantial crude inventory unsold at year-end.

Operating cash flow climbed 32% to US$47.2m and statutory profit after tax was US$11.1m, with cash operating costs maintained at about US$21 per barrel of oil equivalent across the portfolio.

Horizon finished FY26 with US$37.4m of cash and US$11.3m of net debt after paying US$33.1m in dividends, repaying US$10.6m of debt and investing in both existing assets and the Thailand and Cue transactions.

The board declared a final unfranked dividend of AUD 1.0 cent per share, taking FY26 dividends to AUD 2.5 cents per share as Horizon continued to balance shareholder returns with debt reduction and investment in organic and acquired growth.

Thailand Drives Record Production

The Sinphuhorm and Nam Phong gas fields contributed 654,328 barrels of oil equivalent during their 11 months in Horizon’s portfolio and generated US$23.0m of production revenue at cash operating costs of about US$7 per barrel of oil equivalent.

Thailand’s contribution more than offset natural decline elsewhere, while workovers and optimisation supported performance at the Maari oil project in New Zealand, Block 22/12 in China, and the Mereenie oil and gas field in the Northern Territory.

At Sinphuhorm, the PH-14 well achieved first gas on 11 August 2026 about 50 days ahead of schedule and was producing at a gross rate of 25 million to 30 million cubic feet of gas per day, while a booster compression project at Nam Phong is intended to increase production and reserve recovery.

The timing of Maari and Block 22/12 liftings left more than 130,000 barrels of crude inventory on hand at 30 June, with those volumes subsequently sold in July and August for about US$11.0m in revenue.

Growth Pipeline Expanding

Horizon’s acquisition of a 57.03% controlling interest in Cue Energy Resources (ASX: CUE) expanded the group to nine producing assets across Thailand, Indonesia, Australia, New Zealand, and China, with current production of about 7,300 barrels of oil equivalent per day.

Proved and probable (2P) reserves increased 51% to 13.6MMboe at 30 June, with acquisitions, revisions, and transfers adding 6.7MMboe and delivering approximately 200% reserve replacement after FY26 production.

“FY26 was a transformational year for Horizon as the group transitioned from an entity with a collection of producing interests into a scaled, diversified, cash-generative regional upstream platform with near-term growth options,” chief executive officer Richard Beament said.

“The Board remains committed to balancing shareholder returns, investment in attractive growth opportunities, and the preservation of financial strength, ensuring Horizon remains well positioned to deliver sustainable long-term value.”

The company’s near-term activity includes further Thailand production enhancements, appraisal drilling at Palm Valley, infill drilling and development work at Mahato, production optimisation at Block 22/12, and development studies aimed at future drilling opportunities at Maari and Mereenie.