Horizon Oil Limited (AU:HZN)
ASX:HZN
Top Page
Horizon Oil Limited
(Sydney:HZN)
Select Model
Select Model
Rating:71Outperform
Price Target:
AU$0.30
▲(49.00% Upside)
Action:UpgradedDate:03/10/26
The score is held back mainly by weaker recent financial performance (revenue and free-cash-flow decline), partially offset by constructive technical momentum and a positive earnings-call backdrop featuring strong volume/cash-flow momentum and identifiable production growth catalysts. Valuation is supported by a very high dividend yield, though the P/E is only moderate and sustainability depends on continued cash generation.
Positive Factors
Production growth & near-term uplift
Sustained volume growth (+26% half) and a committed Nam Phong Booster Compressor (FID; ≥40% uplift mid‑2026) represent durable supply-side leverage. Higher volumes materially boost operating cash flow and lower per‑unit fixed costs, supporting capex, dividends and debt reduction over the next 2–3 years.
Negative Factors
Revenue & free cash flow decline
Steep year-on-year revenue drop and nearly 50% fall in free cash flow signal weakened ability to internally fund growth and distributions. Unless sustained production and cost gains offset this decline, the company faces persistent pressure on liquidity, investment capacity and dividend sustainability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Production growth & near-term uplift
Sustained volume growth (+26% half) and a committed Nam Phong Booster Compressor (FID; ≥40% uplift mid‑2026) represent durable supply-side leverage. Higher volumes materially boost operating cash flow and lower per‑unit fixed costs, supporting capex, dividends and debt reduction over the next 2–3 years.
Read all positive factors
Horizon Oil Limited (HZN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$431.31M
Dividend Yield14.63%
Average Volume (3M)794.89K
Price to Earnings (P/E)23.2
Beta (1Y)0.24
Revenue Growth-4.57%
EPS Growth-52.65%
CountryAU
Employees10
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)<0.01
Shares Outstanding1,627,588,500
10 Day Avg. Volume682,665
30 Day Avg. Volume794,892
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)4.86
Price to Sales (P/S)3.05
P/FCF Ratio15.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 upstre...
How the Company Makes Money
Horizon Oil primarily makes money by producing and selling hydrocarbons from the upstream assets in which it holds working interests. Revenue is generated from its share of crude oil and/or natural gas sales (typically priced off relevant market b...
Horizon Oil Limited Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial performance driven by the Thailand acquisition, strong volume growth (+26% production, +25% sales), resilient cash flow (+37% operating cash flow) and strategic milestones (Maari permit extension, Nam Phong Booster FID). Headwinds included a 15% decline in realized oil price that pressured reported profits, acquisition-related leverage and some projects still in execution or review. On balance the company demonstrated integration success, cost discipline, and clear upcoming production upside (Nam Phong compressor, infill wells), with manageable near-term financial impacts from acquisition funding.Positive Updates
Strong Volume Growth
Production and sales volumes increased by 26% and 25% respectively versus the prior corresponding half, exceeding 1 million barrels of oil equivalent for the half year.
Negative Updates
Lower Realized Oil Price Impact
Realized oil price was 15% lower versus the prior half, which notably weighed on profits and contributed to calendar year profit of only $8 million (also affected by higher non-cash amortization).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Volume Growth
Production and sales volumes increased by 26% and 25% respectively versus the prior corresponding half, exceeding 1 million barrels of oil equivalent for the half year.
Read all positive updates
Company Guidance
Management guided that Horizon will pay an FY‑26 interim dividend of AUD 0.015 per share in April 2026 and has sufficient liquidity (US$35.6m cash, modest net debt US$9.8m) to fund that distribution, ongoing development and working capital (including Maari decommissioning); near‑term operational guidance includes the Block 22/12 liquids‑handling upgrade ramping up over the coming months and a 12‑8 East multi‑well feasibility study, Maari optimization underpinned by a 10‑year permit to Dec‑2037, Mereenie infill wells planned later in CY2026 (existing infill wells supply ~25% of field gas and support gas sales to 2034), and in Thailand the Nam Phong Booster Compressor (FID reached; expected ≥40% production uplift from mid‑2026) plus Sinphuhorm PH‑14/PH1 tie‑ins targeted later in 2026 (Thailand contributed ~28% of group production over 5 months, US$9.6m revenue in H1, ~US$7/boe operating cost; early optimization drove ~7% uplift and Sinphuhorm is back >100 MMscf/d); reiterating financial context and resilience: H1 production/sales +26%/+25%, underlying revenue US$54.2m, EBITDAX US$28.6m, operating cash flow US$25.1m (+37%), calendar‑2025 revenue US$103.6m and EBITDAX US$54m, group cash opex ~US$20/boe, and a JV loan (SOFR+9%) amortizing by 31‑Dec‑2027 with >US$1m repaid.Horizon Oil Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 146.07M | 104.13M | 111.60M | 148.65M | 106.76M | 70.58M |
| Gross Profit | 29.05M | 27.37M | 55.19M | 66.77M | 50.73M | 20.52M |
| EBITDA | 79.96M | 22.83M | 42.30M | 147.95M | 99.56M | 39.57M |
| Net Income | 12.54M | 12.25M | 25.90M | 43.85M | 24.33M | 4.51M |
Balance Sheet | ||||||
| Total Assets | 281.46M | 180.16M | 205.28M | 184.64M | 183.50M | 186.92M |
| Cash, Cash Equivalents and Short-Term Investments | 53.39M | 39.78M | 52.57M | 43.49M | 44.08M | 44.44M |
| Total Debt | 67.14M | 25.66M | 25.86M | 8.21M | 1.23M | 12.42M |
| Total Liabilities | 203.42M | 114.86M | 122.03M | 89.08M | 84.29M | 76.64M |
| Stockholders Equity | 78.04M | 65.30M | 83.24M | 95.55M | 99.21M | 110.28M |
Cash Flow | ||||||
| Free Cash Flow | 46.97M | 20.86M | 54.52M | 40.50M | 44.07M | 16.15M |
| Operating Cash Flow | 67.20M | 35.89M | 64.22M | 71.05M | 53.97M | 23.31M |
| Investing Cash Flow | -63.88M | -16.52M | -36.01M | -31.88M | -9.90M | -3.38M |
| Financing Cash Flow | -21.81M | -32.06M | -19.22M | -39.81M | -44.40M | -1.30M |
Horizon Oil Limited Technical Analysis
Positive
0.20
Price Trends
0.24
Positive
0.22
Positive
0.21
Positive
Market Momentum
<0.01
Positive
56.93
Neutral
60.00
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 below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.24, and below the 200-day MA of 0.21, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$431.31M | 23.18 | 17.50% | 14.63% | -4.57% | -52.65% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | AU$276.19M | -12.82 | -8.03% | ― | ― | -24.49% | |
56 Neutral | AU$87.34M | -40.18 | 2.32% | 6.72% | ― | ― | |
50 Neutral | AU$167.50M | -19.23 | -4.74% | ― | ― | 70.00% | |
49 Neutral | AU$169.96M | -21.28 | -0.67% | ― | ― | ― | |
48 Neutral | AU$359.94M | -7.29 | -46.22% | ― | 59.48% | -1714.71% |
* Energy Sector Average
AU:HZN
Horizon Oil Limited
0.27
0.08
46.41%
AU:COI
Comet Ridge Ltd
0.14
<0.01
3.70%
AU:CVN
Carnarvon Energy Limited
0.10
-0.02
-20.83%
AU:ECH
New Zealand Oil & Gas Limited
0.39
0.02
4.84%
AU:STX
Strike Energy Limited
0.10
-0.08
-44.44%
AU:OMA
Omega Oil & Gas Limited
0.59
0.32
122.64%
Horizon Oil Limited Corporate Events
Horizon Oil Wins Extension on Mereenie Gas Sales Agreement Deadline
Mar 2, 2026
Horizon Oil Limited and its Mereenie Joint Venture partners have secured an extension from the Northern Territory’s Power and Water Corporation to finalise a binding gas sales agreement. The deadline, originally set for 2 March 2026, has bee...
Central Petroleum Wins Extension to Finalise Northern Territory Gas Sales Deals
Mar 2, 2026
Central Petroleum has secured more time to finalise key gas sales contracts in the Northern Territory, extending the deadline to execute binding agreements with the territory’s Power and Water Corporation from 2 March to 24 March 2026. The e...
Echelon to Sell 19.99% Cue Stake and Back Horizon Oil Takeover Bid
Mar 1, 2026
Echelon Resources Limited has agreed to sell a 19.99% stake in Cue Energy Resources Limited to Horizon Oil Limited via an off-market transaction priced at A$0.115 per share, subject to Northern Territory approvals and customary conditions. The sal...
Horizon Oil Plans Major Share Issue to Raise Fresh Capital
Mar 1, 2026
Horizon Oil Limited has lodged an Appendix 3B announcing a proposed placement or similar issue of up to 317,131,534 new fully paid ordinary shares. The issue is expected to occur on 8 May 2026, signalling a substantial equity raising that will exp...
Spheria Asset Management Drops Below Substantial Holding in Horizon Oil
Feb 27, 2026
Spheria Asset Management has notified Horizon Oil Limited that it has ceased to be a substantial shareholder in the company as of 25 February 2026. The change reflects a reduction in Spheria’s voting power below the substantial holding thres...
Horizon Oil Declares Interim Dividend for Half-Year to December 2025
Feb 25, 2026
Horizon Oil Limited has declared a fully paid ordinary dividend of AUD 0.015 per share for the six-month period ended 31 December 2025, with an ex-dividend date of 9 April 2026 and a record date of 10 April 2026. The cash payment is scheduled for ...
Horizon Oil lifts output and cash flow on Thailand deal despite weaker prices
Feb 25, 2026
Horizon Oil reported a solid half-year to 31 December 2025, with production and sales up about 26% and 25%, respectively, driven by a five‑month contribution from its newly acquired Thailand assets and strong performance from existing fields...
Horizon Oil Sets Webcast to Present FY26 Half-Year Results
Feb 24, 2026
Horizon Oil Limited will brief shareholders on its FY26 half-year financial results via a live audio webcast on 25 February 2026, led by chief executive Richard Beament and chief financial officer Kyle Keen. The session aims to walk investors thro...
Horizon Oil Wins Extension to Finalise Mereenie Gas Sales Deal
Feb 20, 2026
Horizon Oil Limited and its Mereenie Joint Venture partners have secured a short extension from the Northern Territory’s Power and Water Corporation to finalise a binding gas sales agreement. The deadline to execute the agreement, originally...
Central Petroleum Wins Brief Extension to Finalise NT Gas Sales Deals
Feb 20, 2026
Central Petroleum and its joint venture partners at the Mereenie and Palm Valley gas fields have secured an extension from Northern Territory’s Power and Water Corporation to finalise binding gas sales agreements. The deadline for executing ...
Horizon Oil Sanctions Low-Cost Nam Phong Compressor to Lift Thai Gas Output
Jan 12, 2026
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 i...
Horizon Oil to Accelerate Drilling and Secure Long-term Gas Supply in Northern Territory
Dec 15, 2025
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 ...
Central Petroleum to Boost Gas Supply with New Drilling Program
Dec 15, 2025
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....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.