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Karoon Energy Ltd
(Sydney:KAR)
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Rating:62Neutral
Price Target:
AU$2.00
▲(11.73% Upside)
Action:Downgraded
Date:07/25/26
The score is driven primarily by solid financial performance and cheap valuation, while weak price momentum and near-term execution risk from the earnings call limit upside. The business remains profitable with healthy operating cash flow, but technical weakness and a capital-intensive first half of 2026 keep the overall rating in the middle range.
Positive Factors
Low unit costs & high per‑BOE margins
Sustained low unit costs and very high per‑BOE pretax margins create durable cash generation capacity across commodity cycles. This structural cost advantage improves project economics, increases resilience to lower oil prices and supports funding of capex and discretionary returns when volumes normalize.
Negative Factors
Negative, volatile free cash flow
Persistently negative and volatile free cash flow, driven by heavy capital spending and working‑capital swings, constrains the company's ability to self‑fund growth, dividends or buybacks. Over 2–6 months this raises reliance on liquidity facilities, limits flexibility and increases sensitivity to commodity price swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Low unit costs & high per‑BOE margins
Sustained low unit costs and very high per‑BOE pretax margins create durable cash generation capacity across commodity cycles. This structural cost advantage improves project economics, increases resilience to lower oil prices and supports funding of capex and discretionary returns when volumes normalize.
Read all positive factors
Karoon Energy Ltd (KAR) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.24B
Dividend Yield3.11%
Average Volume (3M)4.27M
Price to Earnings (P/E)7.2
Beta (1Y)0.39
Revenue Growth-17.21%
EPS Growth8.09%
CountryAU
Employees167
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)N/A
Shares Outstanding710,703,700
10 Day Avg. Volume4,311,452
30 Day Avg. Volume4,272,279
Financial Highlights & Ratios
PEG Ratio1.45
Price to Book (P/B)1.12
Price to Sales (P/S)1.83
P/FCF Ratio-31.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.84Price Target Upside2.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Karoon Energy Ltd Business Overview & Revenue Model
Company Description
Engaged in the exploration and production of oil and natural gas, Karoon Energy Ltd maintains operations across Australia, Brazil, and Peru. Its key interests comprise a full 100% stake in five offshore blocks situated in Brazil's Santos Basin, of...
How the Company Makes Money
Karoon Energy primarily makes money by producing and selling crude oil from its operated and non-operated upstream (exploration and production) assets. Revenue is generated when produced volumes are lifted and sold to buyers (typically under spot ...
Karoon Energy Ltd Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
71
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2026 | Dec 2025 | Dec 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 633.09M | 628.65M | 776.50M | 847.00M | 842.19M | 531.00M |
| Gross Profit | 233.28M | 258.12M | 587.80M | 495.20M | 406.60M | 257.97M |
| EBITDA | 341.45M | 364.73M | 506.90M | 636.53M | 586.79M | -83.26M |
| Net Income | 126.18M | 125.51M | 127.50M | 251.29M | 242.33M | -88.87M |
Balance Sheet | ||||||
| Total Assets | 1.77B | 1.77B | 1.94B | 1.93B | 1.79B | 1.69B |
| Cash, Cash Equivalents and Short-Term Investments | 206.24M | 206.12M | 341.20M | 170.02M | 112.37M | 229.31M |
| Total Debt | 339.43M | 338.83M | 511.20M | 487.80M | 275.70M | 316.03M |
| Total Liabilities | 741.60M | 741.16M | 965.10M | 1.02B | 1.08B | 1.29B |
| Stockholders Equity | 1.03B | 1.03B | 976.40M | 911.94M | 711.49M | 401.66M |
Cash Flow | ||||||
| Free Cash Flow | -11.20M | -37.10M | 213.70M | -435.60M | -73.44M | 55.37M |
| Operating Cash Flow | 251.41M | 251.42M | 434.60M | 311.29M | 450.76M | 204.69M |
| Investing Cash Flow | -289.20M | -288.52M | -218.60M | -746.90M | -356.20M | -112.95M |
| Financing Cash Flow | -100.96M | -100.51M | -37.20M | 533.15M | -34.20M | -15.50M |
Karoon Energy Ltd Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | AU$390.39M | 30.31 | 14.04% | 13.64% | -4.78% | -42.11% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | AU$1.24B | 7.19 | 12.15% | 3.02% | -17.21% | 8.09% | |
52 Neutral | AU$171.75M | -34.29 | -0.67% | ― | ― | -149.12% | |
48 Neutral | AU$27.75M | -0.70 | -75.72% | ― | -25.04% | -192.86% | |
47 Neutral | AU$1.65B | -20.90 | -8.63% | ― | ― | ― | |
43 Neutral | AU$331.58M | -13.02 | -12.35% | ― | ― | 25.55% |
* Energy Sector Average
AU:KAR
Karoon Energy Ltd
1.70
-0.15
-7.98%
AU:ATS
Australis Oil & Gas
0.02
<0.01
63.64%
AU:CVN
Carnarvon Energy Limited
0.10
>-0.01
-8.57%
AU:BTL
Empire Energy Group Limited
0.24
-0.04
-14.55%
AU:HZN
Horizon Oil Limited
0.22
0.04
19.57%
AU:TBN
Tamboran Resources Limited
0.23
0.07
47.44%
Karoon Energy Ltd Corporate Events
Karoon Energy Ramps Up On-Market Share Buy-Back Activity
Jul 27, 2026
Karoon Energy has provided an updated notification of its on-market share buy-back, disclosing that a total of 378,713 ordinary fully paid shares had been repurchased before the previous day. The company reported that it bought back a further 2,55...
Karoon Energy Reports Daily Activity in On-Market Share Buy-Back
Jul 23, 2026
Karoon Energy Ltd has issued an updated notification to the ASX confirming the ongoing execution of its on-market share buy-back program. The latest daily update reports that 378,713 ordinary fully paid shares were repurchased on the previous trad...
Karoon Energy boosts Baúna output and eyes stronger cash flow amid disciplined growth
Jul 22, 2026
Karoon Energy has completed a major revitalisation of the Baúna FPSO and transitioned operatorship, lifting efficiency to 97% and restoring total Baúna output to about 22,000 barrels per day. Second-quarter production reached 1.08 millio...
Karoon Energy Responds to Extension of Brazilian Crude Export Tax
Jul 10, 2026
Karoon Energy has highlighted a regulatory shift in Brazil, where the government has extended for 60 days a temporary 12% tax on crude oil exports that had been due to expire on 9 July 2026. The extension adds cost pressure to Brazilian producers,...
Karoon Energy Seeks ASX Quotation for New Ordinary Shares
Jul 9, 2026
Karoon Energy Ltd has applied to the ASX for quotation of 135,626 new ordinary fully paid shares, to be listed under its existing KAR code. The new securities, issued on 1 July 2026 following the exercise or conversion of existing rights, represen...
Karoon Energy Launches On-Market Share Buy-Back Program
Jun 29, 2026
Karoon Energy Ltd has announced a new on-market share buy-back of its ordinary fully paid shares, indicating it will repurchase stock directly through the ASX under the code KAR. The buy-back, formally notified on June 29, 2026, suggests managemen...
Karoon Energy to Launch New Phase of On-Market Share Buyback in July 2026
Jun 29, 2026
Karoon Energy will launch a third phase of its on-market share buyback in July 2026, following the completion of the second phase of a US$75 million program. To date, the company has repurchased and cancelled 94.3 million shares at a cost of about...
Karoon Energy Seeks ASX Quotation for Newly Issued Shares
Jun 19, 2026
Karoon Energy has applied for quotation on the ASX of 95,607 new ordinary fully paid shares, following the issue of these securities on 17 June 2026. The additional shares, arising from the exercise or conversion of existing instruments, will slig...
Karoon cuts 2026 output guidance after extended Who Dat delay
Jun 16, 2026
Karoon Energy has reported new operational setbacks at the Who Dat joint venture in the U.S. Gulf of Mexico, where operator LLOG now expects that production through the E manifold will not be reinstated until the second half of 2027, following rem...
Karoon Energy Cancels Shares Following On-Market Buy-Back
Jun 10, 2026
Karoon Energy Ltd has cancelled 418,059 ordinary fully paid shares following an on-market buy-back completed on 8 June 2026. The reduction in issued capital through this share cancellation may improve capital management metrics and marginally enha...
Commonwealth Bank of Australia Exits Substantial Holding in Karoon Energy
Jun 9, 2026
Commonwealth Bank of Australia and its related bodies corporate have lodged a notice that they have ceased to be a substantial shareholder in Karoon Energy Ltd as of 8 June 2026. The change in substantial holding may alter Karoon’s instituti...
Karoon Energy Completes A$36.5 Million On-Market Share Buy-Back
Jun 4, 2026
Karoon Energy Ltd has completed its on-market share buy-back program of ordinary fully paid shares, as disclosed in a final notification to the ASX. The company repurchased a total of 21,229,362 shares for aggregate consideration of about A$36.55 ...
Karoon Energy Updates Market on Progress of On-Market Share Buy-Back
Jun 4, 2026
Karoon Energy has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for ordinary fully paid shares. The company reported that it had repurchased a cumulative total of 21,193,482 shares prior to the ...
Karoon Energy Continues On-Market Share Buy-Back Program
Jun 3, 2026
Karoon Energy has disclosed an update on its ongoing on-market share buy-back program, confirming that a total of 21,147,410 ordinary fully paid shares had been repurchased prior to the latest reporting day. The company reported that a further 46,...
Karoon Energy Updates Daily On-Market Share Buy-Back Activity
Jun 1, 2026
Karoon Energy Ltd has reported an update to its on-market share buy-back program, confirming that a total of 21,048,302 ordinary fully paid shares had been repurchased prior to the latest trading day. The company disclosed that an additional 40,50...
Karoon Energy Continues On-Market Share Buy-Back Program
May 31, 2026
Karoon Energy Ltd, the ASX-listed oil and gas producer, continues to execute its on-market share buy-back program involving its ordinary fully paid shares. The company is using this capital management initiative to repurchase its own stock on the ...
Karoon Energy Director Rachid Lifts Shareholding via On-Market Purchase
May 29, 2026
Karoon Energy director Ms Luciana Bastos de Freitas Rachid has increased her direct holding in the company by acquiring 2,000 ordinary fully paid shares in an on-market trade. The purchase, completed on 28 May 2026 for a total consideration of $4,...
Karoon assumes full operatorship of Baúna FPSO in Brazil
May 28, 2026
Karoon has completed the formal transition of operatorship for the Cidade de Itajaí floating production, storage and offloading vessel at the Baúna field in Brazil, taking over from former operator Altera Ocyan. The move follows the acq...
Karoon Energy Cancels Shares Following On-Market Buy-Back
May 28, 2026
Karoon Energy has reduced its issued capital through the cancellation of 131,336 ordinary fully paid shares following an on-market buy-back completed on 27 May 2026. The move reflects ongoing capital management, slightly shrinking the company̵...
Karoon Energy Updates Market on Ongoing On-Market Share Buy-Back
May 28, 2026
Karoon Energy Ltd is an Australian energy company focused on the oil and gas industry, with its ordinary fully paid shares listed on the ASX under the ticker KAR. The company actively manages its capital structure through listed equity and on-mark...
Karoon Energy Updates Progress of On-Market Share Buy-Back
May 27, 2026
Karoon Energy Ltd has issued an updated notification regarding its on-market share buy-back program for its ordinary fully paid shares listed on the ASX. The latest daily disclosure shows that 42,366 shares were repurchased on the previous trading...
Karoon Energy Updates ASX on Ongoing On-Market Share Buy-Back
May 26, 2026
Karoon Energy Ltd has provided an updated notification to the ASX on its ongoing on-market share buy-back program for its ordinary fully paid shares under code KAR. The company reported that a total of 20,811,303 shares had been repurchased prior ...
Karoon Energy Updates ASX on Progress of On-Market Share Buy-Back
May 25, 2026
Karoon Energy has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest daily report, dated 26 May 2026, confirms the structure of the buy-back and restate...
Karoon Energy Seeks ASX Quotation for 71,679 New Ordinary Shares
May 25, 2026
Karoon Energy Ltd has applied for quotation on the ASX of 71,679 new fully paid ordinary shares under its existing KAR ticker. The shares, issued on 22 May 2026 following the exercise or conversion of existing options or other convertible securiti...
Karoon Energy Targets Asian Investors with 2026 Roadshow Presentation
May 25, 2026
Karoon Energy has released notice of a presentation to be delivered by its CEO and Managing Director during a 2026 Asian roadshow. The company is using the event to engage investors in the region and provide an update on its business, reflecting o...
Karoon Energy Updates Market on Progress of On‑Market Share Buy‑Back
May 24, 2026
Karoon Energy Ltd has provided an updated notification to the ASX on the progress of its on-market share buy-back program, confirming that a total of 20,679,967 ordinary fully paid shares had been repurchased before the previous trading day. The c...
Karoon Energy touts shareholder returns, buyback gains and HQ shift at 2026 AGM
May 21, 2026
Karoon Energy’s leadership told shareholders at its 2026 annual general meeting that the company is close to restoring a safe, reliable and predictable production base, while advancing its organic growth portfolio and maintaining strict capi...
Karoon Energy Extends On-Market Share Buy-Back With Further Purchases
May 10, 2026
Karoon Energy has continued its on-market share buy-back program, as disclosed in an updated Appendix 3C notification to the Australian Securities Exchange dated 11 May 2026. The company reported that a total of 20,628,343 shares had been bought b...
Karoon Energy Cancels 91,525 Shares Under On-Market Buy-Back
May 7, 2026
Karoon Energy has cancelled 91,525 ordinary fully paid shares following the execution of an on-market share buy-back. The reduction in issued capital reflects the company’s ongoing capital management efforts, which can enhance earnings per s...
Karoon Energy CEO to Present at Macquarie Australia Conference
May 6, 2026
Karoon Energy has announced that its CEO and Managing Director will deliver a presentation at the Macquarie Australia Conference on 6 May 2026, underscoring the company’s engagement with the investment community. While specific operational d...
Commonwealth Bank Ceases to Be Substantial Holder in Karoon Energy
May 4, 2026
Commonwealth Bank of Australia and its related entities have notified Karoon Energy that they have ceased to be substantial shareholders in the company as of 1 May 2026. The change, disclosed via a statutory substantial holder notice, signals a re...
Karoon Energy Issues Daily Update on On-Market Share Buy-Back
May 3, 2026
Karoon Energy has provided an updated notification regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The update discloses that as of the latest reporting date, the company had repurchased a total of 20,528,...
Karoon Energy Updates Market on Progress of On-Market Share Buy-Back
Apr 30, 2026
Karoon Energy Ltd has issued an update on its ongoing on-market share buy-back program for its ordinary fully paid shares listed on the ASX under the code KAR. The latest notification, dated 1 May 2026, reports that a total of 20,490,550 shares ha...
Karoon Energy Updates Market on Progress of On-Market Share Buy-Back
Apr 29, 2026
Karoon Energy has provided an updated notification to the ASX on the progress of its on-market share buy-back program, confirming it is repurchasing ordinary fully paid shares under the code KAR. The latest daily report shows a total of 20,457,898...
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.