Cue Energy Resources Limited (ASX:CUE): FY2026 Cash Flow and Palm Valley Drilling Progress

Aditi Sarkar

13 October 2026 04:31 PM AEDT

Cue Energy Resources Limited (ASX:CUE): FY2026 Cash Flow and Palm Valley Drilling Progress

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Highlights

FY2026 revenue reflected lower production and the timing of oil liftings.
Operating cash inflows supported a higher year-end cash balance.
Palm Valley appraisal progressed to well completion and further testing.
Mahato and other producing assets remain part of the FY2027 work programme.
The company declared an unfranked final dividend for FY2026.

Cue Energy Resources Limited (ASX:CUE) is a Melbourne-based oil and gas producer and explorer with interests in producing fields in Australia, Indonesia and New Zealand. Its latest full-year results show lower revenue and reported earnings alongside positive operating cash flow, while 2026 drilling work at Palm Valley and Mahato is directed towards additional production opportunities. The October Palm Valley update also identified well-performance questions that remain subject to completion and testing.

FY2026 Revenue and Operating Cash Flow

For the year ended 30 June 2026, Cue Energy Resources Limited (ASX:CUE) reported revenue of $50.3 million, down 8% from $54.8 million in FY2025. Net production declined 7% to 560 mboe, reflecting natural decline at mature Sampang assets. The timing of Maari oil liftings also affected annual revenue.

Cue Energy Resources Limited (ASX:CUE) generated approximately $20 million in net operating cash flow during FY2026. Closing cash stood at $15.7 million, and the company reported no debt. Underlying EBITDAX was $28.5 million, compared with $30.3 million in FY2025. Reported profit after tax was $4.4 million, compared with $6.3 million, reflecting the effect of impairment charges, asset write-offs and takeover-related costs as well as operating factors.

Production Mix Across Three Countries

Indonesia’s Mahato PB oilfield generated $23.8 million in FY2026 revenue, marginally above the preceding year. In Australia, the Mereenie, Palm Valley and Dingo operations contributed a combined $13.2 million, an increase of 5% supported by contracted gas prices. Maari revenue in New Zealand was $9.3 million, with lifting schedules affecting the recognised annual total.

Oil sales accounted for 67% of FY2026 revenue, while contracted gas sales provided a different pricing mechanism. Cue Energy Resources Limited (ASX:CUE) consequently remains exposed to oil production volumes and international crude-linked prices as well as operating performance and contracted gas deliveries.

Palm Valley Testing and Mahato Development

On 8 October 2026, Cue Energy Resources Limited (ASX:CUE) reported that the PV14 well at Palm Valley had reached 2,942 m measured depth, with completion operations underway. An initial 90-minute flow period ended at an estimated 3.2 TJ/d on a 100% joint-venture basis. A later flow period briefly reached approximately 3.6 TJ/d before declining towards 3.2 TJ/d. These were preliminary test rates, not established production guidance.

Although the flow periods recovered no water at surface, subsequent flow-back indicated water in the wellbore. Its source and possible effect on sustained gas production had not been established. Cue targeted commissioning by the end of October 2026, subject to successful completion and connection, and planned to commence PV15 after PV14 activities. At Mahato, the company has been progressing development drilling alongside preparations for further exploration and reservoir development.

Dividends and Execution Considerations

Cue Energy Resources Limited (ASX:CUE) declared a final FY2026 dividend of 0.25 cents per share, taking declared FY2026 distributions to 0.5 cents per share. The final dividend was designated unfranked and scheduled for payment on 15 October 2026. Future distributions depend on corporate decisions and financial circumstances, while planned drilling remains subject to technical outcomes, operational execution and relevant approvals.

Key Insights

Cue Energy Resources Limited (ASX:CUE) entered FY2027 with cash generated by a geographically diversified producing portfolio and a programme of appraisal and development activity. FY2026 revenue and statutory profit fell, while year-end cash increased. The next operating disclosures will help establish whether the Palm Valley well can sustain production and how drilling, field declines and sales timing influence subsequent reported results.

FAQs

Q: What does Cue Energy Resources Limited produce?

A:It has interests in oil and natural gas production in Australia, Indonesia and New Zealand.

Q: What was Cue Energy’s FY2026 revenue?

A:The company reported $50.3 million for the financial year ended 30 June 2026.

Q: What happened during the PV14 test?

A:Preliminary gas flow was recorded, although subsequent operations identified water whose production impact remained uncertain.

Q: Did Cue report debt at 30 June 2026?

A:The company reported closing cash of $15.7 million and no debt.

Q: What final dividend was declared for FY2026?

A:An unfranked dividend of 0.25 cents per share was declared, with payment scheduled for 15 October 2026.

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