Horizon Oil Limited (HZN) AI Stock Analysis

• Market Cap: $358.07M
• Dividend Yield: 17.34%
• Average Volume (3M): 995.39K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.39
• Revenue Growth: -4.57%
• EPS Growth: -52.65%
• Country: AU
• Employees: 10
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): <0.01
• Shares Outstanding: 1,627,588,500
• 10 Day Avg. Volume: 949,872
• 30 Day Avg. Volume: 995,389
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 3.80
• Enterprise Value/Gross Profit: 16.43
• Enterprise Value/Ebitda: 13.55
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: AU$0.00 ▼(-100.00% Downside)

Horizon Oil Limited's stock score is primarily influenced by its strong valuation, with a high dividend yield and reasonable P/E ratio. Technical analysis supports a positive trend, although caution is advised due to potential overbought conditions. Financial performance is a concern due to declining revenue and cash flow, which could impact future growth.

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 in revenue and profit growth, as evidenced by declining margins and cash flow. While the balance sheet remains stable with moderate leverage, the significant drop in free cash flow growth raises concerns about future financial flexibility. The company needs to address these challenges to improve its financial health and sustain long-term growth.

Income Statement

Horizon Oil Limited has experienced a significant decline in revenue and profitability in the latest year, with a revenue growth rate of -36.89% and a net profit margin of 11.76%. Despite this, the company maintains a reasonable EBIT margin of 21.76%, indicating operational efficiency. However, the sharp decline in revenue and profit margins compared to previous years suggests potential challenges in market conditions or operational execution.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.39, indicating a conservative use of leverage. The return on equity is 18.76%, reflecting a decent return for shareholders. However, the equity ratio is not explicitly provided, which limits a comprehensive assessment of the company's financial stability. Overall, the balance sheet appears stable with manageable debt levels.

Cash Flow

Horizon Oil's cash flow statement reveals a significant decline in free cash flow growth of -49.50%, which could indicate cash management challenges. The operating cash flow to net income ratio is 1.35, suggesting that the company generates sufficient cash from operations relative to its net income. However, the declining free cash flow is a concern for future liquidity and investment capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	77.95M	104.13M	111.60M	148.65M	106.76M	70.58M
Gross Profit	18.03M	27.37M	55.19M	66.77M	50.73M	20.52M
EBITDA	21.87M	22.83M	42.30M	147.95M	99.56M	39.57M
Net Income	8.94M	12.25M	25.90M	43.85M	24.33M	4.51M
Balance Sheet
Total Assets	180.16M	180.16M	205.28M	184.64M	183.50M	186.92M
Cash, Cash Equivalents and Short-Term Investments	39.78M	39.78M	52.57M	43.49M	44.08M	44.44M
Total Debt	25.66M	25.66M	25.86M	8.21M	1.23M	12.42M
Total Liabilities	114.86M	114.86M	122.03M	89.08M	84.29M	76.64M
Stockholders Equity	65.30M	65.30M	83.24M	95.55M	99.21M	110.28M
Cash Flow
Free Cash Flow	15.59M	20.86M	54.52M	40.50M	44.07M	16.15M
Operating Cash Flow	28.83M	35.89M	64.22M	71.05M	53.97M	23.31M
Investing Cash Flow	-15.61M	-16.52M	-36.01M	-31.88M	―	―
Financing Cash Flow	-25.30M	-32.06M	-19.22M	-39.81M	-44.40M	―

Horizon Oil Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.22 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.21, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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	72 Outperform	$358.07M	18.97	16.49%	17.34%	-4.57%	-52.65%
COI	47 Neutral	137.59M	-54.76	0.00%	―	0.00%	70.00%
CVN	47 Neutral	173.54M	50.00	0.00%	―	0.00%	0.00%
TBN	35 Underperform	373.13M	-10.93	0.00%	―	0.00%	0.00%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Horizon Oil Limited Corporate Events

Horizon Oil Expands Presence in Thailand with Strategic Gas Field Acquisitions

Horizon Oil Limited has completed the acquisition of a 7.5% interest in the Sinphuhorm gas field and a 60% interest in the Nam Phong gas field, both located onshore in Thailand. This strategic acquisition is expected to significantly enhance Horizon Oil’s operational capabilities and strengthen its position in the Southeast Asian energy market, potentially offering increased value to its stakeholders.

Horizon Oil Expands Southeast Asia Presence with Key Thai Gas Field Acquisition

Horizon Oil Limited has completed the acquisition of a 7.5% interest in the Sinphuhorm gas field and a 60% interest in the Nam Phong gas field in Thailand, adding approximately 2,100 barrels of oil equivalent per day to its production. This acquisition, executed through a consortium with Matahio Energy, positions Horizon for growth in Thailand and Southeast Asia, offering stable cash flow and potential for further development, while maintaining a low-cost platform and limited abandonment obligations.

Horizon Oil Reports 2025 Reserves and Resources with Strategic Acquisition in Thailand

Horizon Oil Limited’s 2025 Reserves and Resources Statement reports a 9% decrease in net Proved + Probable (2P) Reserves, primarily due to production activities, offset by a life extension project at the Maari field. The company experienced a strong production year with 1.6 MMboe, despite a natural decline in China oil production. The statement also highlights a significant acquisition in Thailand, expected to add materially to Horizon’s reserves, although these will be formally booked in the next report. This acquisition and the ongoing projects underscore Horizon’s strategic efforts to stabilize and potentially grow its resource base, impacting its industry positioning and stakeholder interests.

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.