Horizon Oil Limited (HZN) AI Stock Analysis

• Market Cap: $325.06M
• Dividend Yield: 103.08%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.51
• Revenue Growth: -28.47%
• EPS Growth: -67.00%
• Country: AU
• Employees: 10
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): <0.01
• Shares Outstanding: 1,625,302,000
• 10 Day Avg. Volume: 587,838
• 30 Day Avg. Volume: 1,353,976
• PEG Ratio: -0.14
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.25
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 0.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: AU$0.00 ▼(-100.00%Downside)

The stock's overall score is primarily driven by its strong technical analysis and attractive valuation, with a high dividend yield being a key highlight. However, financial performance concerns, particularly around declining revenue and increased debt, moderate the overall score. The absence of recent earnings call insights and notable corporate events further concentrates the analysis on financials and technicals.

Horizon Oil Limited Business Overview & Revenue Model

Company Description

Horizon Oil Limited (HZN) is an independent exploration and production company primarily engaged in the oil and gas sector. The company operates across the Asia-Pacific region, focusing on the discovery, development, and production of oil and gas resources. Horizon Oil Limited's core activities involve exploring and developing hydrocarbon reserves, and it holds interests in various oil and gas fields, particularly in China and Papua New Guinea.

How the Company Makes Money

Horizon Oil Limited generates revenue primarily through the sale of crude oil and natural gas, extracted from its exploration and production activities in its operating regions. The company focuses on maximizing output from its existing fields while pursuing strategic exploration initiatives to discover new reserves. Revenue streams are significantly impacted by the global oil and gas market prices, production volumes, and operational efficiencies. Furthermore, Horizon Oil Limited may engage in joint ventures or partnerships with other energy companies to share the risks and rewards associated with exploration and production operations, which can also influence its financial performance. The company's earnings are closely tied to its ability to manage costs and optimize production processes in its operating fields.

Horizon Oil Limited Financial Statement Overview

Summary

Horizon Oil Limited faces challenges with declining revenue and profitability. While the balance sheet remains relatively stable, increased debt levels suggest caution. Cash flow constraints highlight a need for improved operational efficiency. Overall, the company should focus on enhancing revenue and managing debt to improve financial health.

Income Statement

The company has shown a decline in revenue from 2023 to 2024, with the revenue growth rate being negative. Gross profit margin remains healthy at approximately 49.5%. However, the net profit margin decreased from 29.5% in 2023 to 23.2% in 2024, indicating reduced profitability. EBIT margin is absent for 2024, marking a potential operational challenge.

Balance Sheet

The debt-to-equity ratio has increased due to a rise in total debt, signaling a potential risk of increased leverage. Return on equity has decreased, reflecting a dip in profitability. The equity ratio remains stable, indicating a sound capital structure overall.

Cash Flow

Free cash flow has turned negative in 2024, indicating potential cash constraints. The absence of operating cash flow data for 2024 limits a full assessment, but the reduction in free cash flow suggests challenges in operational cash generation.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	111.60M	148.65M	106.76M	70.58M	77.46M
Gross Profit	55.19M	66.77M	50.73M	20.52M	19.36M
EBITDA	42.30M	147.95M	99.56M	39.57M	42.02M
Net Income	25.90M	43.85M	24.33M	4.51M	-56.99M
Balance Sheet
Total Assets	205.28M	184.64M	183.50M	186.92M	172.95M
Cash, Cash Equivalents and Short-Term Investments	52.57M	43.49M	44.08M	44.44M	26.09M
Total Debt	25.86M	8.21M	1.23M	12.42M	24.96M
Total Liabilities	122.03M	89.08M	84.29M	76.64M	89.57M
Stockholders Equity	83.24M	95.55M	99.21M	110.28M	83.38M
Cash Flow
Free Cash Flow	54.52M	40.50M	44.07M	16.15M	29.64M
Operating Cash Flow	64.22M	71.05M	53.97M	23.31M	37.97M
Investing Cash Flow	-36.01M	-31.88M	―	―	―
Financing Cash Flow	-19.22M	-39.81M	-44.40M	―	-25.05M

Horizon Oil Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HZN, the sentiment is Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.19, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HZN.

Horizon Oil Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HZN	74 Outperform	$325.06M	15.04	17.20%	103.08%	-28.47%	-67.00%
COI	47 Neutral	AU$167.50M	―	-3.68%	―	―	72.09%
CVN	47 Neutral	$205.74M	20.18	3.89%	―	―	―
Sector *	44 Neutral	AU$1.45B	-7.00	-23.02%	8.19%	5.33%	-26.92%
TBN	35 Underperform	AU$375.94M	―	-10.88%	―	―	56.73%

Horizon Oil Limited Corporate Events

Horizon Oil Secures Financial Close on Amended Debt Facility

Horizon Oil Limited has successfully reached financial close on an amended senior debt facility with Macquarie Bank, which includes Tranches A and B1 totaling approximately US$21.5 million. The funds are intended to support the completion of a Thailand acquisition and further development of secured assets. This strategic move is backed by recent well results and strategic gas sales agreements, positioning Horizon for enhanced operational capabilities and market presence.

Horizon Oil Secures Financing for Thai Gas Field Acquisition

Horizon Oil Limited has finalized an amendment to its senior debt facility agreement with Macquarie Bank to finance its acquisition of interests in the Sinphuhorm and Nam Phong gas fields in Thailand. This transaction, conducted through a consortium with Matahio Energy, is expected to add approximately 2,000 boe/d to Horizon’s production and significantly reduce the cash consideration required. The amended debt facility provides Horizon with increased financial flexibility and liquidity, supporting further development of its resources and enhancing its industry positioning.

Horizon Oil Begins Production from New Infill Well in Beibu Gulf

Horizon Oil Limited has successfully commenced production from the A9H infill well in the WZ12-8 Mid field, located in Block 22/12 in the Beibu Gulf, China. This development marks a significant achievement for the company as it not only targets unswept oil in the primary U4 reservoir but also unexpectedly tapped into the shallower U1 reservoir, potentially increasing oil recovery. The initial production from the U1 reservoir is promising, with a gross flow rate of 372 barrels of oil per day, and the company plans to book reserves consistent with pre-drill estimates. This advancement underscores Horizon’s strategic efforts to enhance production capabilities and optimize resource recovery within the joint venture framework.

Horizon Oil Limited Appoints New Director

Horizon Oil Limited has announced the appointment of Catherine Costello as a new director, effective from June 1, 2025. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, although currently, Catherine Costello does not hold any relevant interests in the company’s securities.

Horizon Oil Appoints Catherine Costello to Board Amidst Strategic Refresh

Horizon Oil Limited has appointed Catherine Costello as an independent non-executive director, effective June 1, 2025, as part of a planned board refresh. Costello, who brings over 25 years of experience in the resources industry, will replace Sandra Birkensleigh as Chair of the Audit Committee following Birkensleigh’s retirement later in 2025. This transition aims to ensure continuity and strengthen the board’s financial expertise.

Spheria Asset Management Reduces Stake in Horizon Oil

Horizon Oil Limited has announced a change in the interests of its substantial holder, Spheria Asset Management Pty Ltd. As of May 28, 2025, Spheria’s voting power in Horizon Oil has decreased from 6.70% to 5.66%, reflecting a reduction in their holding of ordinary fully paid shares. This change may impact Horizon Oil’s shareholder dynamics and could have implications for its corporate governance and decision-making processes.

Horizon Oil Reports Steady Q1 2025 Performance and Strategic Thai Acquisition

Horizon Oil Limited reported steady production and financial performance for the quarter ending 31 March 2025. The company paid an interim dividend and maintained robust cash reserves, supported by successful infill drilling at Mereenie and strategic acquisition of gas fields in Thailand. This acquisition marks a significant re-entry into the Thai market, expected to enhance production and provide stable cash flow. The company’s balance sheet remains strong, with continued investment in asset growth and shareholder returns.

Horizon Oil Begins Infill Drilling in Beibu Gulf, China

Horizon Oil Limited has commenced a 2025 infill drilling operation in Block 22/12, Beibu Gulf, China, with a COSL-owned rig mobilized for a one-well campaign. This operation aims to recover incremental oil from an existing field, with an estimated recovery of 0.4 million barrels gross, of which Horizon’s net share is 0.1 million barrels. The project, operated by CNOOC, is expected to enhance production growth and will be funded from Horizon’s existing cash reserves, reflecting the company’s commitment to expanding its production capabilities.