Strike Energy (ASX:STX): FY26 Results and South Erregulla Update

Aditi Sarkar

29 September 2026 09:58 PM AEST

Strike Energy (ASX:STX): FY26 Results and South Erregulla Update

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Strike Energy Limited (ASX:STX), a Perth Basin gas producer in the energy sector, has released its FY26 full year results presentation. The update covers a lower-revenue year, a much smaller net loss than FY25, and progress on the South Erregulla power project and the West Erregulla gas development. Investors may be watching how the company moves from construction to cash generation in FY27.

What did Strike Energy announce?

- Revenue: $62.8 million, versus $72.7 million in FY25.

- Underlying EBITDA: $17.6 million, versus $41.6 million.

- Net loss: $27.2 million, versus $157.3 million.

- Capital expenditure: $151.3 million.

- Balance Sheet at 30 June 2026: cash of $46.3 million, total borrowings of $157.7 million and net Debt of $111.4 million.

Walyering gas. FY26 production was 5.7 PJ. Walyering 2P reserves were 16.4 PJ, up 21% year on year, and the current production rate is 20 TJ/day heading into FY27.

South Erregulla Power Project. The 85MW project has a forecast practical completion date of 31 October 2026. Capacity payments are indicated at about $19 million in CY27, rising to about $42 million by CY29, with electricity sales potential of $23 to $34 million a year depending on utilisation. Project cost was about $186 million.

West Erregulla. Net 2P reserves are 251 PJ, up 20%. Strike's target production is 43.5 TJ/day, or 50% of a proposed 87 TJ/day development. At $8/GJ, the summary cites indicative Revenue of about $127 million a year. Upstream Final Investment Decision (FID) is targeted for mid-FY28 and first gas for the first half of CY29.

Funding. Strike has an Implementation Agreement with Hancock Energy that includes a binding fixed processing capacity charge at the proposed Belisama Gas Plant. A Hancock pre-FID Loan of up to $30 million is agreed in principle, subject to documentation and Macquarie consent. Macquarie's Tranche B2 was increased to $30 million and drawn on 7 September 2026.

Management's FY27 priorities were listed as converting South Erregulla into cash flow, servicing debt from operating cash flow, funding West Erregulla to FID via the Hancock loan, and capital discipline.

Why could this announcement matter?

The narrower net loss is the headline change, but underlying EBITDA fell while capital spending was high, so investors may be focused on when the new Assets contribute.

South Erregulla is the nearer-term item. Capacity payments are indicated to rise over time, and completion is forecast within weeks. Those are third-party views, not company statements.

West Erregulla is the longer-dated item. First gas is targeted for 1H CY29, so the project remains subject to FID, documentation, approvals and funding conditions.

What should investors watch next?

- South Erregulla completion against the 31 October 2026 forecast, and early operating performance.

- Hancock loan documentation and Macquarie consent, which the summary notes are still required.

- Walyering output relative to the 20 TJ/day current rate.

- Debt servicing, given net debt of $111.4 million at 30 June 2026.

- West Erregulla milestones on the path to a mid-FY28 upstream FID.

FAQs

Q: What revenue did Strike Energy report for FY26?

A: The reported figures show FY26 revenue of $62.8 million, compared with $72.7 million in FY25.

Q: What was the FY26 net loss?

A: The reported net loss was $27.2 million, compared with $157.3 million in FY25.

Q: When is South Erregulla practical completion forecast?

A: The 85MW South Erregulla Power Project has a forecast practical completion date of 31 October 2026.

Q: When is first gas targeted at West Erregulla?

A: First gas is targeted for the first half of CY29, subject to FID, approvals, documentation and funding conditions.

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