Horizon Oil Limited

Thank you for standing by and welcome to the Horizon Oil FY26 Full Year Results Webcast. Presenting today are Horizon's Chief Executive Officer, Richard Vement, and Chief Financial Officer, Kyle King. If you have any questions during today's webcast, please type your question in the Ask a Question box located under the webcast frame on your screen and click Submit. The presenters will answer your questions at the conclusion of the presentation. I'd now like to hand you over to Richard.

Thanks very much and good morning everyone. FY26 resets Horizon's scale and cash flow base. The business now operates from a larger, more diversified platform than this time last year. We delivered record production and record sales. Thailand is contributing low cost cash flow and the Q acquisition expands Horizon into a broader five country Asia Pacific platform. We achieved that growth while continuing to deliver shareholder returns and maintain a strong balance sheet. This morning I'm going to start with a strategic overview and then Kyle will take you through the financial results before I'll return to cover the asset portfolio, the outlook and the near-term value runway before we open up for questions. So look, before we begin I'll draw you to the customary compliance statement which I encourage you all to read in full. It includes the usual cautionary statements as the presentation includes forward looking statements, financial measures which are not prescribed by Australian accounting standards and reserves and resources information. I also note that all references to dollars are US dollars unless otherwise stated. So at a glance, Horizon is now a diversified, cash-generative Asia-Pacific oil and gas producer with producing assets across Thailand, Indonesia, Australia, New Zealand and China. That five-country footprint supports a more resilient production and cash flow base. FY26 net production reached a record 2.15 million barrels of oil equivalent and following the Q acquisition, current Horizon Group production is approximately 7,300 barrels of oil equivalent per day. The portfolio is broader and longer dated with 13.6 million barrels of 2P reserves and 19.8 million barrels of 2C contingent resources at 30 June. The investment proposition is deliberately simple. Reliable production, low operating costs, strong cash generation disciplined reinvestment and shareholder returns. Now turning to a map of the new portfolio, which is important because it clearly shows that Horizon is no longer a narrow one or two asset story. Today we have a portfolio spanning five countries and nine producing assets, with each region playing a clear role. Thailand provides low cost, oil-linked domestic gas cash flow. China and Maori provide established offshore oil exposure. Australia provides strategically important domestic gas through Marini, Palm Valley and Dingo. Indonesia adds near-term oil growth at Mahato and disciplined gas exposure at Sampang. The benefit is practical diversification. Commodity exposure, market structure, asset maturity and opportunity type. That mix improves portfolio resilience and gives Horizon multiple ways to sustain production and cash flow over time. So this is the investment highlights of FY26. As I mentioned, record production of 2.15 million barrels of oil equivalent, record sales of 1.98 million barrels of oil equivalent, underlying revenue of 107.2 million US dollars, EBITDAX of $56.4 million and an ending cash position of $37.4 million. Those numbers show a business generating cash while funding investment activity and shareholder returns. Thailand contributed approximately $23 million of underlying revenue and has very quickly validated the strategic rationale for that acquisition. At the same time, QAD scale and a larger opportunity set from FY27 onwards, rather than being the driver of the FY26 result. We also declared two and a half Australian cents per share of dividends in FY26 and closed the year with only modest net debt. That is the capital allocation balance we are executing, returns to shareholders, selective reinvestment and balance sheet flexibility. So on ESG, the key message is that safety and responsible operations remain central to how we run the business. Safety performance remained better than industry benchmarks across the portfolio. We progressed our sustainability strategy and FY27 goals and we integrated the Thailand assets into Horizon's ESG governance and reporting framework. We also continued practical emissions and efficiency initiatives, including the Māori Vapour Recovery Unit and energy efficiency work at Nampong. As the portfolio grows, we are keeping the same disciplined approach to safety, governance and stakeholder engagement. Now this slide brings together what strategy delivery looks like for Horizon. maximise cash flow, reinvest for growth and return capital. On cash flow, FY26 operating cash flow was 32% higher at $47.2 million, supported by record production and cash operating costs being maintained below $25 per barrel of oil equivalent. On returns, we paid $33.1 million to shareholders during the year. and declared FY26 dividends of 2.5 Australian cents per share. On growth, we integrated Thailand and acquired a 57.03% controlling interest in Kew, expanding Horizon to nine producing assets across five countries. Importantly, dividends were balanced with debt repayment and disciplined investment in organic and inorganic growth. The point I would emphasise is that Horizon is growing through assets that generate cash and opportunities that compete for capital. We're not pursuing scale for its own sake, we're building a stronger regional energy business with a clear return discipline. So turning to reserves and resources, FY26 was a very strong year for portfolio depth and growth. Net 2p reserves increased 51% from 9 million barrels of oil equivalent to 13.6 million barrels. Net 2C contingent resources increased 61% to 19.8 million barrels of oil equivalent. The increases were driven primarily by Thailand and by the Kew and the group delivered around 200% reserve replacement after record production of 2.1 million barrels during the year. The importance is straightforward. Horizon increased production, scale and resource depth in the same year. That creates a stronger platform for future cash generation and a broader set of organic opportunities and options to pursue selectively. So with that I'd like to hand over to Kyle to take you through the financial results in more detail.

Thanks Richard. I'll now step through the 2026 financial year results and the cash flow performance of the group. As always, all references are to United States dollars unless otherwise stated. 2026 delivered a strong financial result, with record production and sales volumes, supported by the successful integration of the Thailand assets. Production increased to 2.15 million barrels of wood equivalents, and sales volumes increased to 1.98 million barrels of wood equivalents. Underlying revenue was $107.2 million, broadly in line with the comparative period. That result was supported by the 11-month contribution from Thailand, and it is also worth noting that due to the timing of liftings from both Maree and Block 2212, approximately 130,000 barrels of crude oil inventory were on hand at 30 June 2026. This inventory was sold through early in 2027, generating further revenues in excess of $10 million. EBITDAX increased to $56.4 million and cash flow from operating activities increased by 32% to $47.2 million. At year end, Horizon held $37.4 million in cash and net debt was a modest $11.3 million, after returning $33.1 million to shareholders during the year. The cash flow waterfall illustrates the strength of the underlying business and how the cash generated over the financial year has been deployed. Operating cash flow of $47.2 million funded the $33.1 million paid to shareholders during the year, $10.6 million of debt repayments, and the targeted investment in the producing asset base. At the same time, the group funded the Tana & Anki acquisitions in a capital efficient manner and closed the year with substantial liquidity. Cash generation is supporting all three priorities at once – dividends, debt reduction and organic growth across the portfolio. This is an important feature of the business model, particularly as the enlarged portfolio gives us more organic growth options to selectively fund. Looking at production, sales and revenue over the five year period, FY26 clearly shows the effect of the Thailand acquisition on the portfolio. production was up 33% and sales were up 22% in the comparative period, with Thailand's 11-month contribution more than offsetting the actual decline across the portfolio. Revenue was resilient despite the timing of crude oil liftings, which as discussed earlier, crude oil inventory on hand at the end of the year, generated further revenues of over $10 million in early 2027. It's also worth noting that the decline in the net realized sales price, as depicted by the line on the profit chart, is a direct result of the introduction of gas into the portfolio following the Marini and Thailand acquisitions. The next slide shows continued profitability and the importance of cost discipline. EBITDAX remains strong at $56.4 million, notwithstanding the deferred liftings. Cash operating costs were approximately $21 per barrel of oil equivalent, which remains a core part of the group's cash generation capability. Statutory profit after tax is $11.1 million. The movement from EBITDAX to statutory profit reflects expected non-cash charges, most notably the $32.2 million of amortization expense for the financial year. From a cash perspective, the operating margin remains resilient. Free cash flow increased approximately $15 million to $36.6 million for the year. Driven not only by the Thailand acquisition, but also disciplined investments in our low-cost producing assets. The chart on the right is just so important. Despite the Thailand Incure acquisitions, which were largely debt funded, and the substantial shareholder distributions made during the year, net debt at 30 June was a modest $11.3 million. Cumulative distributions paid to shareholders now exceed $180 million or approximately $270 million. That record demonstrates that shareholder returns have not been incidental to strategy, they have been a central part of it. This final slide reinforces the longer term consistency of the business. Across the period, Verizon has generated strong EBITDAX, maintained a low operating cost base, paid meaningful dividends and retained balance sheet flexibility. The 2026 financial year continues that pattern, but with a larger and more diversified production platform. In summary, the financial year results shows a business that is cash generative, disciplined and positioned to fund both returns and growth. With that, I will hand back to Richard to take you through the asset portfolio and outlook for the company.