Karoone Energy still sees 2026 production 8.1 to 9.2 MMBOE
TL;DR
Karoon Energy maintains its 2026 production guidance of 8.1-9.2 MMBOE despite expected challenges in the first half due to maintenance and investments at the Baúna field. The company reported strong 2025 performance but faces temporary production dips and cost pressures, with long-term focus on efficiency and shareholder returns.
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Karoone Energy still sees 2026 production 8.1 to 9.2 MMBOE
Karoon Energy Maintains 2026 Production Guidance Amid Operational Challenges
Karoon Energy Ltd (ASX: KAR) has reaffirmed its 2026 production guidance of 8.1–9.2 million barrels of oil equivalent (MMBOE), despite anticipating a challenging first half of the year marked by maintenance and capital-intensive activities at its Baúna field in Brazil. The company reported full-year 2025 output of 10.3 MMBOE, nearing its guidance range and reflecting strong operational performance, including record FPSO efficiency at Baúna and a 10% production increase at its Who Dat field in the U.S. Gulf of Mexico according to the report.
The 2026 outlook, however, accounts for planned FPSO maintenance and an intensive investment program in the first half of the year. These activities are expected to temporarily reduce production but aim to restore 4,000–5,000 barrels of oil per day (bopd) and lower operating costs from mid-2026 onward. Unit production costs are projected to range between US$12–15/boe, with capital expenditures estimated at US$110–135 million.
Karoon’s 2025 results were impacted by natural decline and downtime at Baúna, which offset higher sales volumes of 2.65 MMBOE in the fourth quarter. Annual revenue fell to US$156.1 million due to weaker realized oil prices, though the company highlighted a strong safety record and progress on shareholder returns, including a 10% share buyback since 2024 as detailed in the analysis.
Long-term value drivers include infill drilling at Who Dat and a transition in operatorship to Harbour Energy at that asset. Analysts have assigned a "Hold" rating to KAR stock, with a A$2.00 price target, reflecting cautious optimism about operational improvements and cost discipline.
Karoon Energy, focused on offshore production in Brazil and the Gulf of Mexico, emphasizes cash flow generation and disciplined capital allocation to fund growth and returns to shareholders. The company’s 2026 guidance underscores its strategy to balance near-term challenges with long-term efficiency gains.
(https://www.theglobeandmail.com/investing/markets/markets-news/Tipranks/37262191/karoon-energy-delivers-near-record-2025-output-as-bauna-efficiency-peaks-and-sets-cautious-2026-outlook/): TheGlobeandMail.com, TipRanks analysis (February 2026).
