Horizon Oil Limited (AU:HZN)
ASX:HZN
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Horizon Oil Limited
(Sydney:HZN)
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Rating:71Outperform
Price Target:
AU$0.24
▲(21.50% Upside)
Action:Upgraded
Date: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
Low cash operating costs (~$20/boe)
Sustained low operating costs around US$20/boe and ultra-low pockets (Thailand ~US$7/boe) provide a durable cost advantage across price cycles, protecting margins and enabling stronger cash conversion per barrel. This supports ongoing dividends, reinvestment and project funding over multiple years.
Negative Factors
Sharp revenue and free cash flow decline
A steep drop in revenue and nearly 50% fall in free cash flow materially weakens internal funding capacity. Over multiple quarters this reduces ability to self-fund development, maintain dividends or absorb cost overruns, increasing dependence on external financing or asset sales to support growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Low cash operating costs (~$20/boe)
Sustained low operating costs around US$20/boe and ultra-low pockets (Thailand ~US$7/boe) provide a durable cost advantage across price cycles, protecting margins and enabling stronger cash conversion per barrel. This supports ongoing dividends, reinvestment and project funding over multiple years.
Read all positive factors
Horizon Oil Limited (HZN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$366.21M
Dividend Yield14.63%
Average Volume (3M)794.89K
Price to Earnings (P/E)34.7
Beta (1Y)-0.04
Revenue Growth-4.78%
EPS Growth-42.11%
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, together with its subsidiaries, engages in the exploration, development, and production of oil and gas properties in China and New Zealand. It holds interest in the Block 22/12 oil field in Beibu Gulf, China; and the PMP 38160...
How the Company Makes Money
Horizon Oil primarily makes money from upstream oil and gas operations by monetizing its interests in producing fields and development assets. Key revenue streams typically include: (1) sales of crude oil, condensate, and/or natural gas from field...
Horizon Oil Limited Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 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 | 123.41M | 104.13M | 111.60M | 148.65M | 106.76M | 70.58M |
| Gross Profit | 25.38M | 27.37M | 55.19M | 66.77M | 50.73M | 20.52M |
| EBITDA | 60.63M | 22.83M | 42.30M | 147.95M | 99.56M | 39.57M |
| Net Income | 11.34M | 12.25M | 25.90M | 43.85M | 24.33M | 4.51M |
Balance Sheet | ||||||
| Total Assets | 187.82M | 180.16M | 205.28M | 184.64M | 183.50M | 186.92M |
| Cash, Cash Equivalents and Short-Term Investments | 35.63M | 39.78M | 52.57M | 43.49M | 44.08M | 44.44M |
| Total Debt | 44.80M | 25.66M | 25.86M | 8.21M | 1.23M | 12.42M |
| Total Liabilities | 135.74M | 114.86M | 122.03M | 89.08M | 84.29M | 76.64M |
| Stockholders Equity | 52.08M | 65.30M | 83.24M | 95.55M | 99.21M | 110.28M |
Cash Flow | ||||||
| Free Cash Flow | 36.53M | 20.86M | 54.52M | 40.50M | 44.07M | 16.15M |
| Operating Cash Flow | 54.43M | 35.89M | 64.22M | 71.05M | 53.97M | 23.31M |
| Investing Cash Flow | -47.82M | -16.52M | -36.01M | -31.88M | -9.90M | -3.38M |
| Financing Cash Flow | -22.97M | -32.06M | -19.22M | -39.81M | -44.40M | -1.30M |
Horizon Oil Limited Technical Analysis
Neutral
0.20
Price Trends
0.24
Negative
0.22
Positive
0.21
Positive
Market Momentum
>-0.01
Positive
44.07
Neutral
61.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HZN, the sentiment is Neutral. The current price of 0.2 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.24, and below the 200-day MA of 0.21, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$366.21M | 34.74 | 19.33% | 14.63% | -4.78% | -42.11% | |
67 Neutral | AU$80.62M | -40.18 | 2.32% | 6.72% | 30.05% | 614.71% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
53 Neutral | AU$214.69M | -21.28 | -0.67% | ― | ― | -149.12% | |
52 Neutral | AU$388.87M | -12.82 | -7.28% | ― | ― | -162.50% | |
51 Neutral | AU$431.93M | -7.29 | -46.22% | ― | -0.51% | -756.45% | |
47 Neutral | AU$125.63M | -19.23 | -4.27% | ― | ― | -16.67% |
* Energy Sector Average
AU:HZN
Horizon Oil Limited
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Horizon Oil Limited Corporate Events
Horizon Oil lifts cash position, advances growth projects and Cue bid amid tight oil market
Apr 30, 2026
Horizon Oil reported quarterly production of 542,983 barrels of oil equivalent, with output and revenue temporarily affected by planned maintenance at Maari and deferred liftings in New Zealand and China, which shifted around 220,000 barrels of sa...
Horizon Oil Adjusts Director Equity Incentives After Interim Dividend
Apr 22, 2026
Horizon Oil has reported a change in the interests of director Richard Beament following an adjustment to his equity-based incentives. Beament and his related party continue to hold a substantial stake in the company, including ordinary shares and...
Horizon Oil Issues 2.4 Million Unquoted Share Rights Under Incentive Plan
Apr 22, 2026
Horizon Oil Limited is an Australian-listed energy company focused on oil and gas exploration and production. The company is traded on the ASX under the code HZN and operates within the broader hydrocarbons sector, using equity-based incentive str...
Horizon Oil Issues New Unquoted Share Rights Under Employee Incentive Scheme
Apr 22, 2026
Horizon Oil Limited has notified the market of the issue of 343,717 unquoted share rights under its employee incentive scheme, with an issue date of 17 April 2026. The move reinforces the company’s use of equity-based remuneration to align s...
Horizon Oil Clears Key Hurdle in Cue Energy Takeover Bid
Apr 14, 2026
Horizon Oil Limited has moved a step closer to completing its off-market takeover of Cue Energy Resources, after confirming that the minimum acceptance condition attached to its offer has been satisfied. The company advised that its bid for all Cu...
Cue Secures Long‑Term NT Gas Deal as Board Rebuffs Horizon Oil Bid
Apr 14, 2026
Cue Energy Resources has issued a first supplementary target’s statement in response to Horizon Oil’s off‑market takeover bid, with its Independent Board Committee maintaining a unanimous recommendation that shareholders reject t...
Takeovers Panel clears path for Horizon Oil’s bid for Cue Energy
Apr 13, 2026
Australia’s Takeovers Panel has declined to conduct proceedings on an application by Cue Energy Resources challenging aspects of Horizon Oil Limited’s off‑market takeover bid. Cue had raised concerns over a pre‑bid agreemen...
Cue Energy Locks In Long-Term NT Gas Deal and Greenlights New Palm Valley Wells
Apr 13, 2026
Cue Energy has signed a long-term gas sales agreement with the Northern Territory Government that secures up to 3.2 petajoules of gas from the Palm Valley field for Cue’s share through to the end of 2034. The contract features fixed pricing ...
Central Petroleum seals NT gas deal to fast-track Palm Valley expansion
Apr 12, 2026
Central Petroleum has signed a binding multi-year gas sales agreement with the Northern Territory Government to supply up to 21 petajoules of gas from the Palm Valley field through to 2034, replacing earlier proposed arrangements with Power and Wa...
Horizon Oil cuts 2026 capex as Mereenie gas LOI with PWC lapses
Apr 12, 2026
Horizon Oil Limited has confirmed that its Letter of Intent with the Northern Territory’s Power and Water Corporation for a new Mereenie gas sales agreement has lapsed without the parties reaching replacement terms, although the existing gas...
Echelon JV Secures NT Gas Deal to Fund Palm Valley Expansion
Apr 12, 2026
Echelon Resources has announced that the Palm Valley joint venture in Australia’s Northern Territory has signed a long-term gas supply agreement with the Territory government, enabling the drilling of two new wells. The deal covers up to 10....
Echelon Pauses Acceptance of Horizon Oil Bid for Cue Energy Shares
Apr 9, 2026
The Takeovers Panel has accepted an undertaking from Echelon Resources Limited, which has agreed not to accept Horizon Oil Limited’s off‑market takeover bid for Cue Energy Resources Limited shares it holds or controls, except for those...
Cue board urges shareholders to reject Horizon Oil takeover bid
Apr 6, 2026
Cue Energy Resources has released a target’s statement responding to an off-market takeover bid from Horizon Oil Limited for all of Cue’s ordinary shares. An Independent Board Committee of Cue has unanimously recommended that sharehold...
Horizon Oil Extends Deadline for Mereenie Gas Sales Agreement
Apr 1, 2026
Horizon Oil Limited and its Mereenie Joint Venture partners have extended the deadline with Northern Territory utility Power and Water Corporation to finalise a binding gas sales agreement. The cut-off date, originally set for 1 April 2026, has be...
Central Petroleum Wins Extension on Key NT Gas Sales Deadline
Apr 1, 2026
Central Petroleum and its Mereenie and Palm Valley joint venture partners have secured an extension from the Northern Territory’s Power and Water Corporation to finalise binding gas sales agreements, moving the execution deadline from 1 Apri...
Cue challenges Horizon Oil’s takeover bid at Takeovers Panel
Mar 31, 2026
Cue Energy Resources has asked the Takeovers Panel to intervene in Horizon Oil’s off-market takeover bid, which offers a mix of Horizon shares and cash for all Cue shares. The move comes after Horizon struck a pre-bid deal to acquire nearly ...
Horizon Oil Clears Minimum Bid Price Hurdle in Cue Energy Takeover
Mar 27, 2026
Horizon Oil has confirmed that a key pricing condition in its off-market takeover bid for Cue Energy Resources has been fulfilled, freeing the offer from its minimum bid price requirement. The notice, lodged with Cue and the ASX, means the takeove...
Echelon JV Wins Extra Time to Finalise NT Gas Supply Deals
Mar 24, 2026
Echelon Resources Limited has secured a further extension to finalise key gas supply agreements in Australia’s Northern Territory, reflecting its role as a significant non-operator participant in the Mereenie and Palm Valley gas fields along...
Horizon Oil Extends Deadline for Mereenie Gas Sales Pact With NT Utility
Mar 24, 2026
Horizon Oil Limited and its Mereenie Joint Venture partners have agreed with Northern Territory-owned utility Power and Water Corporation to extend the deadline for executing a binding gas sales agreement from 24 March 2026 to 1 April 2026. The sh...
Central Petroleum Extends Deadline for NT Gas Sales Agreements
Mar 24, 2026
Central Petroleum Limited and its Mereenie and Palm Valley joint venture partners have agreed with the Northern Territory’s Power and Water Corporation to extend the deadline for executing binding gas sales agreements from 24 March 2026 to 1...
Horizon Oil Completes Dispatch of Updated Takeover Bid Documents for Cue Energy
Mar 19, 2026
Horizon Oil Limited has formally advanced its off-market takeover bid for Cue Energy Resources Limited by completing the dispatch of its replacement bidder’s statement to Cue shareholders. The offer, dated 19 March 2026, targets all fully pa...
Horizon Oil Issues Replacement Bidder’s Statement in Cue Energy Takeover Push
Mar 18, 2026
Horizon Oil has advanced its off-market takeover bid for Cue Energy Resources by issuing a replacement bidder’s statement, superseding the original document lodged earlier in March. The revised statement, dated 19 March 2026, has been filed ...
Horizon Oil Issues Updated Bid Documents for Cue Takeover
Mar 18, 2026
Horizon Oil Limited has issued its first supplementary bidder’s statement in relation to its off-market takeover bid for all Cue Energy Resources Limited shares it does not already own. The company has replaced its original bidder’s st...
Cue Energy Forms Independent Board to Assess Horizon Oil Takeover Bid
Mar 12, 2026
Cue Energy Resources has acknowledged Horizon Oil Limited’s intention to launch an off-market takeover offer for all Cue shares it does not already control, and has formed an Independent Board Committee to oversee its response. The committee...
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 ...
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.