Overview of Horizon Oil's half-year results and key highlights

Horizon Oil Limited (ASX: $HZN) has released its Half-Year Report for the period to 31 December 2023, reporting an interim unfranked dividend distribution of AUD 1.5 cents per share, totaling approximately A$24 million to be paid in April 2024. The company's strong cashflow replenished its cash balance, with production and sales volumes for the half-year at 763,145 bbls and 757,784 bbls, respectively. Revenue for the half-year was US$66.1 million, and EBITDAX was US$44.0 million. Additionally, Horizon announced the acquisition of a 25% non-operated interest in the Mereenie oil and gas field in Northern Territory, Australia, for an upfront cash consideration of ~US$27.6 million, to be fully debt funded from a new 5-year debt facility from Macquarie Bank.

Executive commentary on half-year results and future outlook

'This has been another solid half-year for the Company with the continued strong free cashflow generation completely replenishing cash reserves following the ~US$21 million [AUD 2 cents per share] distribution paid to shareholders in October 2023. Impressively, over the 12 months to 31 December 2023 cash generation was over US$57 million, with net cash increasing by over US$20 million, despite having paid out ~US$37 million in distributions. Accordingly, we are delighted to again announce an interim unfranked dividend distribution of AUD 1.5 cents per share following the rapid cash rebuild. With the funding structure for the recently announced acquisition, together with the expected additional cashflows to be derived from Mereenie, we expect to be able to continue and potentially enhance future distributions.' - Richard Beament, Chief Executive Officer, Horizon Oil Limited

Summary of half-year results and future outlook

Horizon Oil's half-year results reflect a strong performance with robust operating cashflows and a 9% increase in statutory profit before tax compared to the prior comparative period. The company's acquisition of a 25% interest in the Mereenie oil and gas field is expected to add 6.4 mmboe of 2P reserves and contribute to future cashflows. Horizon Oil remains in a strong financial position with a net cash balance of US$45.1 million as of 31 December 2023, and the company anticipates continued returns to shareholders and funding for further production growth opportunities. The Group's short-term focus includes the optimisation of production performance, finalisation of the Mereenie transaction, and the evaluation of organic and inorganic growth opportunities.