KAR Analysis: Karoon Energy Extends Share Buyback Amid Operational Updates

Event: Karoon Energy Extends Share Buyback Amid Operational Updates | Date: 2025-10-10 | Source: Karoon Energy Investors

Buyback Program Expanded with Strong Progress Reported

Karoon Energy released its latest quarterly activities report and share buyback update on 10 October 2025, highlighting ongoing operational challenges and capital allocation progress. Key operational metrics included Q3 production of 2.35 MMboe, down 12% from Q2 due to SPS-92 ESP failure and PRA-2 umbilical disconnection, with full-year 2025 guidance narrowed to 9.8-10.4 MMboe. Sales revenue reached US$144.8 million at realised oil prices of US$68.70/bbl for Baúna and US$64.00/bbl for Who Dat oil, while EBITDAX held steady at approximately 65% margins despite volume pressures. On capital returns, the company announced a second phase of its on-market buyback, authorising up to A$25 million through May 2026, building on the first phase where 20.8 million shares were repurchased since March 2025 for A$22 million, reducing outstanding shares to around 731 million.

The update also noted net debt reduction to US$148.7 million (0.38x EBITDAX) and liquidity of US$541 million, with capex guidance revised to US$95-111 million for 2025 reflecting deferred Who Dat infill drilling. No major changes to Neon development timeline were disclosed, with farm-down process ongoing and FID targeted for 2026. Source: ASX Company Announcements.