Horizon Oil Limited (ASX:HZN): How Did Production and Cash Flow Change in the September Quarter?

Aditi Sarkar

12 November 2026 03:27 PM AEDT

Horizon Oil Limited (ASX:HZN): How Did Production and Cash Flow Change in the September Quarter?

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Highlights

Horizon Oil (ASX:HZN) produced 631,892 barrels of oil equivalent in the quarter.
Quarterly sales rose to 683,533 barrels of oil equivalent.
Underlying Revenue was USD 47.6 million, with Operating Cash Flow at USD 34.8 million.
The quarter included Cue Energy’s first full-period contribution.

Horizon Oil Limited (ASX:HZN) produces oil and gas through interests spanning Australia, New Zealand, China, Thailand and Indonesia. Horizon shares changed hands at AUD 0.198 on 12 November 2026, a 1.28% rise for the session. Its September 2026 quarterly activities report described increased production and sales, a full-quarter contribution from Cue Energy Resources and a move to a modest net cash position. The reported figures reflect the enlarged portfolio and completed operational works rather than a single producing field.

Asia-Pacific Production Portfolio

Horizon operates through a mix of direct working interests and interests held through Cue Energy Resources. In June 2026, Horizon completed the Acquisition of a 57.03% controlling interest in Cue, adding exposure to petroleum Assets in Australia and Indonesia as well as existing New Zealand interests. Cue’s production and revenue contribution must therefore be considered when comparing group periods.

The portfolio includes oil production in China’s Beibu Gulf and New Zealand’s Maari field, along with gas projects in Thailand and the Northern Territory. Horizon (ASX:HZN) also holds effective interests through Cue in the Mahato and Sampang projects in Indonesia. The projects have different Commodity mixes, operating costs and contractual arrangements.

September Quarter Production and Revenue

For the September 2026 quarter, Horizon reported production of 631,892 barrels of oil equivalent, 17% above the preceding quarter. Sales reached 683,533 barrels of oil equivalent, an increase of 25%. Underlying revenue, net of hedging, rose 37% quarter on quarter to USD 47.6 million, while net operating cash flow increased 47% to USD 34.8 million.

Horizon (ASX:HZN) attributed the period’s output to contributions across multiple countries, including recently completed production-enhancement works. Revenue and operating cash flow are distinct measures; the latter does not equal net profit, and differences between production and sales volumes can arise from lifting schedules and inventory movements.

Field Operations and Balance Sheet

In Thailand, the Sinphuhorm Pad D tie-in and Nam Phong booster compressor came online. The WZ6-12 workover campaign in China also supported field performance. In New Zealand, operations at Maari recovered following a workover, while the Indonesian assets joined Horizon’s consolidated reporting through Cue.

At 30 September 2026, Horizon (ASX:HZN) held USD 50.4 million in cash, with another USD 11.9 million receivable from a late-September China oil lifting. It reported net cash of USD 1.3 million before paying its FY26 final Dividend of AUD 0.01 per share in October. The company disclosed September-quarter Capital Expenditure of USD 4.1 million. Cash timing, dividend payments and development expenditure can subsequently change these balances.

Risks and Developments Ahead

Petroleum output remains exposed to reservoir performance, shutdowns, workovers, commodity pricing and transportation conditions. The Cue acquisition extends geographical coverage but adds assets with separate operating partners, gas contracts and development needs. Changes in lifting schedules may also affect reported quarterly sales and cash receipts.

Horizon (ASX:HZN) identified a potential three-well Sinphuhorm drilling programme in 2027 and further optimisation at Nam Phong. It also plans continued work on the Maari field and the Palm Valley appraisal programme. These are upcoming activities rather than assured increments to production. Subsequent reports will clarify field results, cash conversion and the financial contribution from the broader asset base.

Key Insights

Horizon Oil (ASX:HZN) reported higher September-quarter production, sales and operating cash flow following operational work and the full-period inclusion of Cue. Its Balance Sheet moved to net cash before the October dividend payment. Development execution, field reliability, oil and gas prices and consolidated performance remain relevant monitoring factors.

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