Horizon Oil Limited (HZN) AI Stock Analysis

• Market Cap: AU$366.21M
• Dividend Yield: 14.63%
• Average Volume (3M): 794.89K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.34
• 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: 682,665
• 30 Day Avg. Volume: 794,892
• PEG Ratio: -0.87
• Price to Book (P/B): 4.86
• Price to Sales (P/S): 3.05
• P/FCF Ratio: 15.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: AU$0.24 ▲(20.00% Upside)

The overall stock score reflects significant challenges in financial performance, particularly in revenue and cash flow declines. While the technical indicators show limited momentum, the stock's high dividend yield provides some valuation support. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Operational Efficiency

Horizon Oil's strong EBIT margin suggests effective cost management and operational efficiency, which can support profitability even in challenging market conditions.

Strategic Partnerships

Strategic partnerships allow Horizon Oil to share resources and expertise, reducing financial risks and enhancing operational capabilities, which is vital for long-term growth.

Balance Sheet Stability

A moderate debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility to navigate market fluctuations and invest in growth opportunities.

Negative Factors

Revenue Decline

The sharp decline in revenue and profitability suggests challenges in market conditions or operational execution, potentially impacting long-term growth prospects.

Free Cash Flow Decline

The decline in free cash flow growth raises concerns about Horizon Oil's future liquidity and ability to fund investments, which could hinder strategic initiatives.

Profit Margin Decline

The decline in profit margins indicates pressure on profitability, which could affect Horizon Oil's ability to sustain earnings and invest in future growth.

Horizon Oil Limited Business Overview & Revenue Model

Company Description

Horizon Oil Limited (HZN) is an oil and gas exploration and production company based in Australia, primarily focused on the development and production of oil and gas resources in New Zealand and Papua New Guinea. The company operates in the upstream sector of the energy industry, engaging in the acquisition, exploration, and production of hydrocarbon resources. Horizon Oil is dedicated to delivering sustainable and profitable growth through efficient operations and strategic partnerships, utilizing advanced technology to maximize resource recovery and minimize environmental impact.

How the Company Makes Money

Horizon Oil generates revenue primarily through the sale of crude oil and natural gas produced from its exploration and production activities. The company has established key revenue streams from its oil fields in New Zealand and Papua New Guinea, where it engages in the extraction and sale of hydrocarbons to various markets. Additionally, Horizon Oil may enter into joint venture agreements and production sharing contracts with local and international partners, allowing it to share resources, technology, and expertise while reducing financial risks. The company also benefits from strategic alliances that enhance its operational efficiency and market reach, contributing to its overall earnings.

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.

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	168.20M	104.13M	111.60M	148.65M	106.76M	70.58M
Gross Profit	45.68M	27.37M	55.19M	66.77M	50.73M	20.52M
EBITDA	70.75M	22.83M	42.30M	147.95M	99.56M	39.57M
Net Income	19.56M	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	34.06M	20.86M	54.52M	40.50M	44.07M	16.15M
Operating Cash Flow	58.46M	35.89M	64.22M	71.05M	53.97M	23.31M
Investing Cash Flow	-26.05M	-16.52M	-36.01M	-31.88M	-9.90M	-3.38M
Financing Cash Flow	-50.54M	-32.06M	-19.22M	-39.81M	-44.40M	-1.30M

Horizon Oil Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 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 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.20, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 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
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HZN	64 Neutral	AU$366.21M	19.40	16.49%	14.63%	-4.57%	-52.65%
ECH	56 Neutral	AU$79.50M	25.00	―	6.72%	―	―
TBN	52 Neutral	AU$969.07M	-11.56	-14.41%	―	―	―
COI	50 Neutral	AU$161.52M	-64.29	-4.74%	―	―	70.00%
CVN	49 Neutral	AU$175.33M	49.00	1.40%	―	―	―
BTL	49 Neutral	AU$317.24M	-12.50	-13.47%	―	―	―

Horizon Oil Limited Corporate Events

Horizon Oil Sanctions Low-Cost Nam Phong Compressor to Lift Thai Gas Output

Horizon Oil Limited has approved the final investment decision for the Nam Phong Booster Compressor Project in onshore Thailand, a low-cost, strategic upgrade aimed at boosting gas recovery from the recently acquired Nam Phong field. The project involves installing a refurbished gas engine-driven compressor powered by treated field gas, with all key environmental and regulatory approvals already secured and Production Solutions appointed as the preferred vendor. Once operational in mid-2026, the compressor is expected to lift field output by at least 40%, delivering a material increase in gas production rates and volumes and generating strong returns with rapid payback, while Horizon’s share of development costs will be under US$1.5 million, funded from existing cash and field revenues. Management positions the move as a swift value-maximisation step that strengthens the company’s role in meeting Thailand’s energy needs and underscores the effectiveness of its partnership structure, with Matahio leading project execution and PTTEP as joint venture partner.

The most recent analyst rating on (AU:HZN) stock is a Hold with a A$0.21 price target. To see the full list of analyst forecasts on Horizon Oil Limited stock, see the AU:HZN Stock Forecast page.

Horizon Oil to Accelerate Drilling and Secure Long-term Gas Supply in Northern Territory

Horizon Oil Limited and its Mereenie Joint Venture partners have signed a Letter of Intent with the Northern Territory’s Power and Water Corporation to accelerate drilling of two new wells and establish long-term gas supply agreements. This initiative aims to enhance gas supply security in the region by targeting mid-2026 for drilling commencement and potentially supplying additional gas volumes to the market using existing field capacity. The agreements are expected to support the Northern Territory’s gas demand until 2034, with formal Gas Sale Agreements anticipated by February 2026.

The most recent analyst rating on (AU:HZN) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Horizon Oil Limited stock, see the AU:HZN Stock Forecast page.

Central Petroleum to Boost Gas Supply with New Drilling Program

Central Petroleum Limited and its joint venture partners have signed a binding Letter of Intent with the Northern Territory’s Power and Water Corporation to initiate an accelerated drilling program and secure long-term gas supply agreements. The program involves drilling four new wells at Mereenie and Palm Valley, with the aim to commence drilling by mid-2026 and supply up to 25.5 PJ of gas through the end of 2034. This initiative is expected to significantly enhance gas supply security in the Northern Territory and provide a reliable income stream for Central Petroleum, backed by government support.

The most recent analyst rating on (AU:HZN) stock is a Hold with a A$0.22 price target. To see the full list of analyst forecasts on Horizon Oil Limited stock, see the AU:HZN Stock Forecast page.

Horizon Oil Limited Announces Director’s Interest Change

Horizon Oil Limited announced a change in the director’s interest, specifically regarding Richard Beament, who acquired 1,503,478 Deferred STI Rights. This acquisition was approved by shareholders at the 2025 Annual General Meeting. The issuance of these securities is part of the company’s strategic initiatives to align management interests with shareholder value, potentially impacting the company’s operational focus and stakeholder engagement.

Horizon Oil Limited Issues Unquoted Share Rights to Employees

Horizon Oil Limited announced the issuance of 1,503,478 unquoted share rights under an employee incentive scheme. This strategic move is part of the company’s efforts to incentivize employees and align their interests with the company’s long-term growth objectives, potentially impacting its operational efficiency and market positioning.

Horizon Oil Limited Announces Successful AGM Results

Horizon Oil Limited announced the results of its 2025 Annual General Meeting, where all proposed resolutions were carried. The resolutions included the election and re-election of directors, adoption of the remuneration report, and approval of various grants and fee pool increases. The overwhelming support for these resolutions reflects strong shareholder confidence in the company’s strategic direction and governance.

Horizon Oil Limited Announces 2025 AGM with Webcast Option

Horizon Oil Limited has announced that its 2025 Annual General Meeting (AGM) will take place on 19 November 2025 at 10:00 am in Sydney, with an option for stakeholders to attend via live webcast. This announcement reflects the company’s commitment to transparency and accessibility for its stakeholders, potentially enhancing shareholder engagement and participation in company affairs.