Karoon Energy's third quarter results

Karoon Energy (ASX: KAR) released its third quarter results for the period ending 30 September 2024. The company achieved a 25% rise in quarterly production, reaching 2.68 MMboe on a Net Revenue Interest basis. This increase was primarily due to a 44% boost in production from the Baúna Project. However, sales volumes dropped by 24% to 2.06 MMboe, leading to a 32% decrease in sales revenue, which totalled US$144.9 million.

Karoon Energy's operational and financial outlook

Karoon Energy has demonstrated robust operational performance with a notable increase in production. Despite facing challenges with sales volumes and revenue due to shipment timings and a drop in oil prices, the company remains optimistic. Karoon is continuing its exploration efforts, particularly in the Who Dat East and South wells, and is on track with the Baúna Project. Financially, the company is in a strong position with improved net debt and liquidity. The guidance for full-year production has been adjusted to reflect hurricane impacts, with a focus on maintaining cost efficiency and strategic growth through dividends and buybacks.

Executive insights on company performance

No personal safety incidents were recorded, although the company reported a Tier 2 process safety event. Karoon continues to explore and evaluate its Who Dat East appraisal/exploration well, with promising initial results. A resource update is expected in the fourth quarter of 2024. Furthermore, the drilling of the Who Dat South exploration well is underway, albeit delayed by recent hurricanes.