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Tamboran Resources Corp (TBN)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 FY25 advanced Beetaloo development with SS-3H drilled to ~21,169 ft in 25 days (43% faster than SS-2H) and SS-2H ST1 completed across 35 stages with record proppant intensity; IP30 flow tests targeted in April 2025 (SS-2H ST1) and mid-2025 (SS-3H) .
  • Binding agreements executed with APA Group to build, own and operate the 12-inch Sturt Plateau Pipeline linking the SS Pilot Project to the Amadeus Gas Pipeline; first gas remains targeted for 1H 2026 .
  • Liquidity: Cash of US$59.4 million at December 31, 2024 and a committed ~US$23 million line of credit from Macquarie Bank to support environmental/decommissioning bonds and midstream guarantees .
  • New strategic vectors: non-binding MOU with Santos to study a DLNG Train 2 brownfield expansion and exploration of a Northern Territory data center opportunity leveraging local fiber proximity and gas supply .

What Went Well and What Went Wrong

What Went Well

  • Record completions intensity and US-style efficiency: SS-2H ST1 completed 35 stages over 5,483 ft with average proppant intensity of ~2,706 lb/ft and multiple days at five stages/day; “achieved Beetaloo Basin record average proppant intensity” .
  • Continuous drilling improvements: SS-3H drilled in 25 days at 843 ft/day, 43% faster than SS-2H, lowering total drilling cost to US$10.3 million and demonstrating geosteering precision within ~65 ft without faulting .
  • Midstream execution and schedule: binding agreements with APA for SPP; procurement commenced for ~40 MMcf/d Sturt Plateau Compression Facility; approvals on track and first gas planned 1H 2026 .

Quote (CEO): “We reached binding agreements with APA… Tamboran and Daly Waters Energy have contracted all foundation capacity on the SPP… Key Government approvals for the SPCF have also been secured.”

What Went Wrong

  • SS-3H completion paused: detected stress in casing connection requiring reinforcement; completion re-start deferred to 2Q 2025, pushing SS-3H IP30 target to mid-2025 .
  • Cash draw: cash declined to US$59.4 million from prior quarter as operations progressed; Macquarie facility partially drawn (~US$4.0 million) for APA guarantees .
  • FID timeline shift vs earlier expectations: while first gas remains 1H 2026, final approvals now expected in 2Q 2025 ahead of a mid-2025 FID, later than the H2 2024 target signaled in prior disclosures .

Financial Results

Tamboran’s quarterly releases focus on operational progress; management reiterates no material revenue expected until 2026. Accordingly, revenue/EPS/margins were not disclosed, and S&P Global consensus data was unavailable during this session.

MetricQ4 FY24 (ended 6/30/24)Q1 FY25 (ended 9/30/24)Q2 FY25 (ended 12/31/24)Vs Estimates
Revenue ($USD)No material revenue expected until 2026 No material revenue expected until 2026 No material revenue expected until 2026 Unavailable via S&P Global (SPGI limit)
Diluted EPS ($USD)Not disclosed Not disclosed Not disclosed Unavailable via S&P Global (SPGI limit)
EBITDA ($USD)Not disclosed Not disclosed Not disclosed Unavailable via S&P Global (SPGI limit)
Gross Margin (%)N/A pre-revenue N/A pre-revenue N/A pre-revenue Unavailable via S&P Global (SPGI limit)

Liquidity and operations (selected quantitative items)

MetricQ4 FY24Q1 FY25Q2 FY25
Cash and equivalentsUS$73.9m (A$111.6m) US$74.0m (reported) and US$81.6m adjusted incl. rig sale proceeds US$59.4m
Line of credit (committed)N/A N/A ~US$23m from Macquarie; ~US$4.0m drawn for APA guarantees
SS-2H ST1 stagesN/A Nearing completion 35 stages completed over 5,483 ft
Proppant intensity (SS-2H ST1)N/A N/A ~2,706 lb/ft (record in basin)
SS-3H drilling daysN/A N/A 25 days; avg. 843 ft/day; cost US$10.3m

Segment breakdown and traditional KPIs are not applicable; the company is pre-production and emphasizes well performance and midstream execution .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
SS-2H ST1 IP30 flow test1H 2025IP30 results in 1Q 2025 (subject to weather) IP30 results in April 2025 Slight delay vs early-1Q window; clarified timing
SS-3H IP30 flow test1H 2025IP30 results in 1Q 2025 (subject to weather) IP30 results in mid-2025 (post reinforcement and 2Q stim) Delayed due to casing stress remediation
SS Pilot FID2025Targeting FID H2 2024 Final approvals in 2Q 2025; FID mid-2025 Pushed to mid-2025
First gas (SS Pilot)1H 20261H 2026 1H 2026 Maintained
SPP/AGP tie-in capacityMulti-year~40 MMcf/d gross contracted under 15.5-yr GSA ~40 MMcf/d gross; binding APA agreements executed Executed transport agreements
SPCF procurement2025LLIs ordered; design in progress EPCM awarded to Enscope; procurement progressing Advanced execution

Earnings Call Themes & Trends

No Q2 FY25 earnings call transcript was available; themes synthesized from Q2 activities release and prior quarter documents.

TopicQ4 FY24 (Q-2)Q1 FY25 (Q-1)Q2 FY25 (Current)Trend
Drilling efficiencySS-1H IP90 normalized 5.8 MMcf/d; preparing for 10,000 ft laterals SS-2H ~10,000 ft lateral drilled; ST1 re-drill improved rates SS-3H 25 days, 43% faster than SS-2H; consistent geology Improving execution
Completions intensityPlanned 60-stage US-style design Liberty frac fleet mobilized; 5–7 stages/day targeted Record ~2,706 lb/ft; multiple days at 5 stages/day Scaling US-style design
Midstream (SPP/SPCF)Planning; GSA with NTG (40 TJ/day) LLIs ordered; SPCF pad prep APA binding agreements; SPCF EPCM awarded Execution progress
LNG pathwayPre-FEED awarded to Bechtel (NTLNG) Pre-FEED underway MOU with Santos to study DLNG Train 2 brownfield expansion Diversifying options
ESG / methane monitoringIPO; MPS granted; ESG disclosures FY24 GHG 22,960 tCO2e; offsets surrendered 10-month satellite campaign found no methane emissions Strengthening monitoring
Financing / liquidityUS$82m IPO; cash US$73.9m Cash US$74.0m; adjusted US$81.6m incl. rig sale Cash US$59.4m; ~US$23m LOC committed Added LOC; cash burn ongoing
Data center opportunityNot discussedNot discussedNT data center initiative; proximity to fiber; potential gas supply New strategic vector

Management Commentary

  • “During the December quarter, we maintained our momentum towards first gas… The SS-3H well was drilled in 25 days, 10 days and 43% faster than the SS-2H well.” — Joel Riddle, CEO .
  • “Tamboran and Daly Waters Energy have contracted all foundation capacity on the SPP from the commencement of operations until at least 2041.” .
  • “The SS-2H ST1 well completed 35 stages… achieving Beetaloo Basin record average proppant intensity of 2,706 lb/ft… IP30 flow rates anticipated in April 2025.” .
  • “Tamboran is currently engaging in early-stage commercial discussions with potential partners to develop multiple data centers in the Northern Territory.” .
  • “Entered non-binding MOU with Santos… to undertake technical studies relating to a potential Darwin LNG Train 2 expansion.” .

Q&A Highlights

  • No Q2 FY25 earnings call transcript was available; therefore, no Q&A items to report for this period [ListDocuments Feb 2025 earnings-call-transcript: none].

Estimates Context

  • Wall Street consensus estimates via S&P Global (Capital IQ) were unavailable during this session due to data access limits; as a result, no EPS or revenue comparison to consensus could be performed. TBN’s disclosures emphasize no material revenue expected until 2026, aligning with a development-stage profile .

Key Takeaways for Investors

  • Near-term catalysts: SS-2H ST1 IP30 in April 2025 and SS-3H IP30 mid-2025; successful flow rates are pivotal for Phase 1 Pilot design, well count, and mid-2025 FID .
  • Execution risk managed: SS-3H casing stress remediation adds time but provides a chance to integrate SS-2H ST1 lessons for higher proppant placement under “Tamboran v2” design .
  • Midstream de-risking: APA binding agreements on SPP and SPCF EPCM award provide clearer path to first gas in 1H 2026 under the 15.5-year GSA with NTG .
  • Liquidity runway: US$59.4m cash plus ~US$23m committed LOC supports completion and testing; monitor burn rate vs upcoming drilling, midstream procurement, and potential farm-out options for Phase 2/3 .
  • Optionality expands: DLNG Train 2 brownfield study with Santos and the NT data center opportunity could broaden offtake and demand vectors beyond domestic markets .
  • ESG positioning: first-of-its-kind 10-month methane satellite campaign recorded no methane emissions across 78 observations, supporting the net-zero Scope 1/2 aspirations at start of commercial production .
  • FID timing: Final approvals expected 2Q 2025 with FID mid-2025; watch regulatory milestones and IP30 outcomes as key stock-movers in the next 3–6 months .
Note: TBN’s quarterly materials emphasize operational and midstream progress; traditional financials (revenue/EPS/margins) were not disclosed, consistent with management’s statement of no material revenue expected until 2026. S&P Global consensus estimates were unavailable during this session.

Appendix: Source Documents

  • Q2 FY25 8-K Item 2.02 with Exhibits 99.1 (presentation) and 99.2 (press release) .
  • Q1 FY25 8-K (Nov 12, 2024) with Exhibits 99.1 and 99.2 .
  • Q4 FY24 8-K (Jul 31, 2024) quarterly report and Appendix 5B .