Karoon Energy Ltd · ASX:KAR
Karoon Energy — H1 2025 Earnings Presentation
28 slides from Karoon Energy's earnings presentation, Aug 27, 2025
Slide 1: 2025 Half Year Results
For personal use only 2025 Half Year Results 27 August 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Karoon Energy Ltd (Karoon or the Company). The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. This presentation conta
Slide 3: 2025 Half Year Highlights
For personal use only Julian Fowles CEO and Managing Director 2025 Half Year Highlights
Slide 4: 2025 Half Year Highlights
2025 Half Year Highlights Higher production and reserves, ongoing share buyback, progressing organic developments For personal use only Production up, oil Balance Sheet deployed New Baúna FPSO Organic growth sales/prices down operating model opportunities Improving safety performance Liquidity used
Slide 5: Health, Safety, Security and Environment
Health, Safety, Security and Environment Improvement in Baúna safety performance Improvement in Baúna lost time injury rate and Total Recordable Injury Rate Lost Time Injuries and high 1 process safety events in 1H25 compared to 1H24, potential incidents 1 For personal use only 1.00 despite higher w
Slide 6: Financial Results
For personal use only Ray Church EVP and CFO Financial Results
Slide 7: 2025 First Half Financial Summary
2025 First Half Financial Summary1 Liquidity applied to Baúna FPSO, SPS-88, final major payment to Petrobras, and capital returns Underlying EBITDAX 2 (US$m) Production (MMboe) Sales revenue and realised price 300 286.3 6 5.5 600 81.5 90 2.9 266.8 For personal use only 5.1 5.3 5.3 75.1 0.1 73.0 70.6
Slide 8: 1H25 profit reflects market and timing effects
1H25 profit reflects market and timing effects Weaker realised pricing and lifting in progress US$ million 1H25 1H24 Movement in revenue (US$m) % Change 409.4 Six months to: 30 June 25 30 June 24 For personal use only 94.4 308.3 409.4 (42.8) 308.3 Revenue -25% (38.2) (10.1) (10.0) 74.3 Transportatio
Slide 9: Unit Production Costs Reconciliation
Unit Production Costs Reconciliation Normalising opex/boe for AASB16 capitalised operating leases and royalties Unit production costs reported on Net Production costs Back out Normalised Working Interest (NWI) basis to exclude 1H25 Reported AASB 16 related to operating costs impact of royalties For
Slide 10: 1H25 free cash flow from operations
1H25 free cash flow from operations1 Liquidity and net leverage applied in line with capital allocation framework Movement in net debt (US$m) Net leverage 2 For personal use only 100 62.0 2.0x 50 0 (38.2) (8.8) Cash flow Capex incl 1.5x Net Debt from SPS-88 Maximum leverage range 1 - 1.5x (50) (31 D
Slide 11: Delivering value to shareholders
Delivering value to shareholders Capital allocation framework balances capital returns and growth investments Priority remains safe and reliable operations while maintaining balance sheet strength and flexibility For personal use only Base Value Capital returns dividend & buybacks Capital Returns Po
Slide 12: CY25 guidance
CY25 guidance1 Notes 12 months to 31 Dec 25 Prior New 1. Guidance is subject to various risks (including “Key Risks” set out in 2024 Annual Report) Production 2 2. Production assumes drilling results and expected future development projects, Brazil MMboe 6.7 – 7.7 7.3 – 7.8 including well interventi
Slide 13: Operational Update
For personal use only Julian Fowles CEO and Managing Director Operational Update
Slide 14: Production: Baúna Project
Production: Baúna Project Improving FPSO reliability, partly offset by SPS-92 ESP issue FPSO efficiency1 in 1H25 94.5%, up from 85.3% in 1H24 and 83.8% in 2H24 2025 flotel-supported maintenance campaign and SPS-88 intervention completed on time and budget For personal use only Failure of one of thre
Slide 15: Baúna FPSO Operating Model
Baúna FPSO Operating Model Direct control of FPSO operations Reviewed several FPSO operating models: Full Service, where all operations and maintenance on FPSO are outsourced For personal use only Hybrid, operated by Karoon with various services provided by external providers Concluded optimal model
Slide 16: Baúna FPSO acquisition economics largely unchanged
Baúna FPSO acquisition economics largely unchanged IRR well above mid-teens post tax hurdle rate Acquisition completed (US$115m plus US$8.5m transaction For personal use only costs) Expected reduction in Baúna opex of ~US$30-40m pa post transition and with implementation of cost efficiency initiativ
Slide 17: Baúna Reserves and Resources
Baúna Reserves and Resources Upgraded following FPSO acquisition and strong reservoir performance Since acquiring Baúna in November 2020, recoverable volumes have more than doubled through Patola development, FPSO acquisition, asset life extension and stronger than expected reservoir performance For
Slide 18: Strong Neon 2C Resource growth
Strong Neon 2C Resource growth Underpins improved economics for potential development Neon 2C Contingent Resources growth since 2018 1 3 +57% For personal use only +26.42c 86.52c +5.12b 55.02a Completion of Incorporation of initial integrated review control well results, of all available drilled in
Slide 19: Neon Development Opportunity
Neon Development Opportunity ‘Define’ Phase to be completed in three sub-phases, duration extended Timeline to potential Final Investment Decision (FID) 1 For personal use only 3Q/ Apr 1Q Mid- 4Q 2025 2026 2026 2026 Stage 1 Stage 2 Stage 3 Total spend US$10 –12 million2 Route and seabed surveys Refi
Slide 20: Production: Who Dat
Production: Who Dat Performance consistent with KAR guidance 1H25 gross production of 5.60 MMboe consistent with expectations: Who Dat Project side track/infill opportunities For personal use only 1.36 MMboe NRI net to KAR Recent JV meeting highlighted opportunities to improve production efficiency
Slide 21: Maturing discoveries surrounding Who Dat FPS
Maturing discoveries surrounding Who Dat FPS Who Dat East and South discoveries offer attractive tieback potential Debottlenecking study confirmed only minor modification required to accommodate a For personal use only subsea tie-back development, subject to system availability Who Dat East has ente
Slide 22: Summary
Summary Strategy execution on track Priorities for 2025: Safe and reliable operations and preparations for smooth transfer of FPSO For personal use only operational control from A&O to Karoon in 2026, improving production reliability and uptime Mature organic growth opportunities at Who Dat and Neon
Slide 23: Appendix and Glossary
For personal use only Appendix and Glossary
Slide 24: Appendix 1: Reconciliation of underlying results to statutory results
Appendix 1: Reconciliation of underlying results to statutory results 1H25 1H24 For personal use only NPAT EBITDAX NPAT EBITDAX Statutory results 71.0 227.1 61.8 246.9 Flotel costs 13.9 21.1 - - Unsuccessful exploratory wells 13.2 - - - Corporate relocation costs 2.2 3.1 - - Change in fair value of
Slide 25: Appendix 2: Contingent Consideration on Baúna Acquisition
Appendix 2: Contingent Consideration on Baúna Acquisition For personal use only Total contingent consideration of up US$285m plus accrued Average Brent interest at 2% pa (from 1 January 2019 to after date of testing Price (in US$ units) CY2022 CY2023 CY2024 CY2025 CY2026 Maximum each January) payabl
Slide 26: Glossary
Glossary Term Definition 1H25 Half year ended 30 June 2025 For personal use only 1H24 Half year ended 30 June 2024 AASB Australian Accounting Standards Board. ANP Agência Nacional do Petróleo, Gás Natural e Biocombustíveis. Baúna or Baúna Project Concession BM-S-40 containing the producing Baúna, Pi
Slide 27: Glossary cont.
Glossary cont. Term Definition LTI Lost time injury For personal use only MMbbl Million barrels of oil MMboe Million barrels of oil equivalent. Gas converted to oil on basis of 6,000 scf gas = 1 barrel of oil equivalent NRI Net Revenue Interest relates to a share of production after deducting royalt
Slide 28: For personal
For personal KAROON ENERGY