Tamboran Resources Q2 Earnings Call Highlights

Key Points

• Tamboran’s Sturt Plateau Compression Facility is ~78–80% complete and remains on its P50 budget and schedule for commissioning in the third quarter of 2026, aligning with the company’s target for first gas in Q3 2026; the Sturt Plateau Pipeline is built and “ready to take gas,” and a divestment process for the SPCF is underway with binding agreements targeted in H1.
• Operations saw the largest stimulation to date (58 stages across a 10,009‑ft lateral), but management identified an impediment at ~8,600 ft on SS-6H and extended the soak to 60 days; flowback is currently in line with expectations but longer‑term performance is still unknown as Tamboran pursues a 40 MMcf/d plateau ahead of initial sales.
• New CEO Todd Abbott (appointed January 2026) says strategy is unchanged and focused on executing in the Mid‑Velkerri B Shale, while the balance sheet includes $91M cash at end‑2025, $32M from a January PIPE, about $42M undrawn under the SPCF facility, and ongoing plans to access capital markets or farm‑out opportunities as needed.

Tamboran Resources NYSE: TBN executives used the company’s fiscal 2026 second-quarter earnings presentation to outline progress toward first gas sales from the Beetaloo Basin, provide updates on well operations and midstream infrastructure, and discuss a busy 2026 work program. The call also marked the first earnings presentation led by newly appointed Chief Executive Officer Todd Abbott, who said he was appointed in January 2026 following an external process.

Leadership transition and near-term focus

Abbott said he is “truly excited” to lead Tamboran and described the company’s management team and board as well positioned for the next phase of development. He also credited interim CEO Dick Stoneburner for guiding the company through key milestones, including the Falcon merger and what Abbott described as the largest drilling campaign in the Beetaloo Basin.

Throughout the prepared remarks and Q&A, Abbott repeatedly emphasized that there was “no change” to Tamboran’s forward strategy and that management is focused on executing in the Mid-Velkerri B Shale by “drilling great wells” and learning from each data point.

Operational update: stimulation work, SS-6H soak, and local sand testing

Tamboran said that after completing drilling of a two-well program in October 2025 using the H&P FlexRig 3, the company delivered what it called the largest stimulation program to date in the Beetaloo Basin. Management reported 58 stages were completed across a 10,009-foot horizontal section within the Mid-Velkerri B Shale using Liberty Energy’s frac fleet, which Tamboran mobilized to the basin in 2024.

During flowback on SS-6H, management said an impediment was identified at approximately 8,600 feet along the horizontal section. The company is evaluating whether this could block flow from the last 14% of the section. Abbott later said the well’s flowback data has been in line with expectations, but he characterized it as “too early to tell” on longer-term performance until the wells are on production for a period of time.

Tamboran also extended the SS-6H soaking period. Abbott said the plan originally contemplated a 30-day soak, but management opted for a 60-day period to stay consistent with the SS-2H ST-1 well and reduce variables when comparing results. He said the company pulled the well back for 23 days to clean up water before the soaking period.

On the company’s in-basin sand initiative, management said it was unable to effectively deploy local sand during prior campaigns because it could not wash and dry the quantities required. Abbott told analysts Tamboran plans to test local sand in a limited number of stages during the upcoming 2026 completions and said lab results “look really good,” though field confirmation is still needed.

Midstream progress: compression facility, pipeline readiness, and expansion discussions

Tamboran said construction continued on the Sturt Plateau Compression Facility (SPCF) during the quarter. Abbott said the project was approximately 80% complete at the end of January, while later remarks put the project at 78% complete. Management said the project remains on its P50 budget and schedule and is on track for commissioning during the third quarter of 2026, aligning with guidance for first gas in the third quarter of 2026.

The company noted that the remaining capital spend is being funded from a $118 million facility with a consortium of lenders. Management also said Tamboran and its partner Daly Waters Energy (DWE) commenced a divestment process for the SPCF during the quarter, with binding agreements for a sale targeted in the first half. Tamboran and DWE would sell volumes through the facility under a long-term gas processing agreement, and Tamboran expects to release its full $15 million in equity currently held in the facility upon sale.

On pipeline infrastructure, Tamboran said APA Group completed construction of the Sturt Plateau Pipeline (SPP), with strength and hydro testing completed in January. Abbott said the line is in the ground and “ready to take gas.” Management said the pipeline will shortly be tied into the AGP and is expected to be ready to receive gas from the SPCF once the facility is complete. Tamboran and APA have also begun discussions about expanding the pipeline to support a potential SPCF expansion.

2026 program: pilot ramp, DWE wells, and Santos commitment wells

Management described 2026 as Tamboran’s “most active year to date.” Key elements of the plan include completing stimulation on the remaining wells needed to deliver a 40 million cubic feet per day plateau rate ahead of initial gas sales later in the year, and drilling additional wells with partners.

• DWE-operated area: Tamboran said it plans to drill two wells with DWE on the SS-1 well pad south of the SPCF, with Tamboran acting as operator on DWE’s behalf. The wells are planned to be stimulated in the second half of 2026, subject to performance of initial wells. Abbott also referenced two “backfill” wells on the DWE-operated Southern Pilot Area during the first half of 2026, describing the timing as a risk-mitigation strategy to build “gas behind the pipe.” In Q&A, he added the wells are contractual commitments and provide resiliency in meeting obligations.
• Beetaloo East (EP-161) with Santos: Tamboran said it will participate as a 25% non-operating partner with Santos in two 10,000-foot permit commitment wells—Jabiru South 1H and Newcastle South 1H—planned for the third quarter. Management said the wells will target the Mid-Velkerri B Shale and follow up on Tanami wells drilled and flow tested in 2021 and 2022 to delineate additional resources in the Beetaloo East Depocenter. Santos has contracted the Ensign Rig 971 for the work.
• Phase One expansion concept work: Tamboran said it intends to begin concept select studies evaluating a potential expansion of the SPCF to approximately 100 million cubic feet per day to deliver additional volumes to the Northern Territory Government gas market and Mount Isa.
• Phase Two farm-out process: Management said it continues to progress a farm-out process on the Phase Two Development Area, targeting carried wells during the 2026–2027 drilling campaigns to delineate resources and underpin a new pipeline. Executives declined to provide details, citing commercial sensitivity, but said there are “interested, very credible parties” in the process.

Asked about demand for incremental volumes beyond the Northern Territory Government contract, Abbott said the company has clarity around 40 million cubic feet per day to the government, with some flexibility, and that discussions are underway with other customers. He described the outlook as “cautiously optimistic,” noting the pipeline is built to go up to 100 million cubic feet per day and that expansion economics appear “pretty compelling,” while emphasizing the company will firm up markets before making a decision.

Balance sheet, recent proceeds, and funding approach

Tamboran ended calendar 2025 with $91 million in cash and drawn debt of approximately $16 million associated with SPCF construction. Management said it received $32 million following completion of the PIPE transaction in January 2026 and expects an additional $15 million related to an acreage sale to DWE once certain conditions precedent are satisfied. The company also said $42 million net to Tamboran remains undrawn under the SPCF financing facility.

In response to questions about future fundraising, Abbott said Tamboran is a high-growth company in a capital-intensive industry and may access capital markets from time to time—more likely equity earlier and more debt later—while also pointing to other funding mechanisms, including the farm-out process. He said management intends to be thoughtful about any capital decisions with shareholders in mind.

Executives also highlighted stakeholder engagement in the Northern Territory, with Abbott and CFO Eric Dyer citing supportive interactions with the Northern Territory Government, native title holders, and pastoralists. Dyer added that the company is establishing a regional office near the Beetaloo in Elliott and has made local hires with plans to add more, while the team works through an Indigenous Land Use Agreement process.

About Tamboran Resources NYSE: TBN

Tamboran Resources is an independent energy company focused on the exploration and development of unconventional natural gas resources. Headquartered in Canada and listed on the New York Stock Exchange under the ticker TBN, the company concentrates its activities on onshore basins in Australia. Tamboran's primary objective is to advance its exploration acreage toward commercial viability by leveraging modern drilling and reservoir evaluation techniques.

The company holds exploration licenses in the Beetaloo Basin in the Northern Territory of Australia, where it is conducting appraisal drilling programs to define reservoir characteristics and recoverability.

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