Key Highlights

  • Strike Energy Limited (ASX:STX) has released its Annual Report for the year ended 30 June 2026, under the banner "Strike Enters a New Phase of Growth".
  • Sales Revenue fell to $62.8 million from $72.7 million, and underlying EBITDA dropped to $17.6 million from $41.6 million.
  • Strike's loss for the year narrowed to $27.2 million from $157.3 million in FY25, when it booked a large impairment.
  • Cash and cash equivalents rose to $46.3 million at 30 June 2026.

Strike Energy Limited (ASX:STX) has released its annual report for the year ended 30 June 2026, under the banner "Strike Enters a New Phase of Growth". Sales revenue fell to $62.8 million from $72.7 million, and underlying EBITDA dropped to $17.6 million from $41.6 million.

The Bottom Line improved markedly, however. Strike's loss for the year narrowed to $27.2 million from $157.3 million in FY25, when it booked a large impairment. Cash and cash equivalents rose to $46.3 million at 30 June 2026. Operationally, the 85 MW South Erregulla Peaking Power Project moved into commissioning, with commercial operations targeted for the fourth quarter of calendar 2026.

FY26 financial results

According to the ASX announcement, the key figures for FY26 compared with FY25 were:

Revenue from gas and oil sales: $62.8 million (FY25: $72.7 million)

Underlying EBITDA: $17.6 million (FY25: $41.6 million)

Net cash inflows from operating activities: $6.4 million (FY25: $42.6 million)

Loss for the year: $27.2 million (FY25: $157.3 million)

Cash and cash equivalents: $46.3 million (30 June 2025: $41.1 million)

The reconciliation in the announcement shows cost of sales excluding Depreciation and Amortisation rose to $30.0 million from $17.7 million, which, together with lower revenue, drove the decline in underlying EBITDA. Depreciation and amortisation fell to $30.5 million from $52.0 million. The main reason for the narrower statutory loss was a much smaller Impairment expense of $2.7 million, compared with $117.7 million in FY25, while FY25 also included an income tax expense of $19.2 million. FY26 included an abandonment expense of $4.5 million.

The portfolio and South Erregulla

Strike describes itself as a Western Australian independent energy explorer and producer developing gas from the Perth Basin and Mid-West region, with a primary objective of providing reliable energy to support the state's transition away from coal. The company holds acreage spanning both the Permian gas play in the northern Perth Basin and the Jurassic wet-gas play in the south, which underpins its portfolio of gas and gas-to-power developments.

The nearest-term project milestone is at the South Erregulla Peaking Power Project. The company said construction and commissioning of the 85 MW Facility advanced substantially during FY26, and it is targeting commercial operations in the fourth quarter of calendar 2026. Once operating, management expects it to add a new source of revenue alongside the existing Walyering gas field.

West Erregulla reserves and pathway to FID

At West Erregulla, Strike reported that an independently audited Reserves and Resources review increased its net 2P (proved plus probable) Reserves by approximately 20 per cent to 251 PJ. The estimate, set out in the company's 18 March 2026 statement, relates to Strike's 50 per cent interest. It was evaluated by Strike and independently audited by Miller & Lents, and has not been evaluated or audited for or on behalf of the joint venture. Strike said it is not aware of new information that materially affects that estimate.

After year-end, Strike selected Hancock Energy's Belisama Gas Processing Facility as its preferred processing solution for West Erregulla, targeting 43.5 TJ/d of processing capacity net to Strike and establishing what it describes as a pathway towards a final investment decision (FID). Strike and Hancock Energy have also agreed in principle to up to $30 million of pre-FID funding support by way of a loan, to support Strike's share of West Erregulla development activities. Strike referred investors to its 31 August 2026 "Company Update" announcement for the Loan terms.

According to Hancock Energy, the Belisama facility is planned for Western Australia's Mid West, about 350 kilometres north of Perth, with FID targeted for the 2027-28 financial year and first gas anticipated in mid-2029. These are forward-looking targets set by a third party and remain subject to approvals, funding and execution.

Walyering, funding and leadership

Walyering continued to generate gas and condensate sales during FY26. Strike said the Walyering West-1 drilling and testing program provided additional information on the field and supported an increase in Walyering 2P Reserves after accounting for FY26 production.

On funding, $30 million of committed financing capacity from Macquarie Bank Limited became available after year-end, which Strike said provides additional flexibility as it advances its development portfolio.

The board and management have also changed. Shelley Robertson was appointed Managing Director and CEO from 1 June 2026, and Nev Power became Chair from 1 July 2026.

What management said

Ms Robertson said: "FY26 was a year of substantial activity across Strike's portfolio, positioning the Company for growth as we move towards a broader and more diversified Earnings base."

She added: "Strike is now approaching a period where Walyering, South Erregulla and, in time, West Erregulla can provide multiple sources of revenue and cashflow."

Setting out priorities for the year ahead, she said: "As we enter FY27, our priorities are clear: deliver South Erregulla into commercial operations, progress West Erregulla towards FID and maintain the operational performance of Walyering, while positioning Strike to capture the next generation of growth from our exploration portfolio."

Risks and what comes next

Strike's announcement includes extensive forward-looking statement disclaimers and refers investors to the risk factors in its 2026 Annual Report. Key risks for ASX energy shares of this kind include delays or cost overruns in commissioning South Erregulla, the timing and terms of a West Erregulla FID, reliance on a third-party processing facility that is yet to be built, reserve estimation uncertainty, and funding requirements. The West Erregulla loan support is an in-principle agreement.

Strike will host an investor webinar on Tuesday 29 September 2026 at 8.30am AWST to discuss the results. Near-term milestones to watch include South Erregulla reaching commercial operations and progress on binding West Erregulla processing and funding arrangements.

Conclusion

Strike Energy's FY26 results show lower revenue and underlying EBITDA but a much smaller statutory loss and higher cash. The company's focus is now on bringing South Erregulla into commercial operations and advancing West Erregulla towards FID, both of which remain subject to execution and funding risks.