Tamboran Resources Q3 Earnings Call Highlights

Key Points

• Tamboran remains on track for first gas in Q3 from its Beetaloo Basin pilot project, with the Sturt Plateau Compression Facility 88% complete and key pipeline commissioning nearing finish. The company is preparing stimulation work on three wells to support initial gas sales of about 40 million cubic feet per day to the Northern Territory government.
• The company strengthened its strategic position through a farm-out to Daly Waters Energy covering about 10,000 acres for a staged carry of up to $28.5 million, and its planned Falcon acquisition has cleared shareholder and regulatory approvals and is expected to close by month-end.
• Tamboran boosted liquidity with a recent $198 million capital raise, bringing pro forma cash liquidity to about $298 million, and said this gives it flexibility as it continues to seek the right JV partner and pursue larger development opportunities across the Beetaloo Basin.

Tamboran Resources NYSE: TBN said it remains on track to deliver first gas from its Beetaloo Basin pilot project in the third quarter of the calendar year, as the company highlighted farm-out activity, recent financing and upcoming drilling and stimulation work during its fiscal 2026 third-quarter earnings call.

Chief Executive Officer Todd Abbott said the March quarter was “eventful” for Tamboran, pointing to progress on the company’s Beetaloo Basin strategy and its effort to move toward initial production from the pilot area. Abbott said the company is continuing to pursue a joint venture with a strategic partner for its Orion Block north of the pilot area, while noting that recent transactions in the basin have changed the market backdrop.

“The INPEX transaction has rerated the basin,” Abbott said, referring to a deal between INPEX and Daly Waters Energy. “Our follow-on deal with Daly Waters Energy has provided a carry to our near-term capital program.”

Tamboran Advances Daly Waters Transaction and Falcon Acquisition

Tamboran announced during the quarter that it had agreed to farm out approximately 10,000 acres across the pilot area and the Beetaloo Central Development Area to Daly Waters Energy for a staged carry of up to $28.5 million. Abbott said the transaction was conducted on “very similar economic terms” to the farming agreement between Daly Waters Energy and INPEX, and that the INPEX-Daly Waters deal provided a significant data point for high-quality core Beetaloo Basin acreage.

Upon completion of the Daly Waters transaction, Tamboran expects to hold a 44.375% interest in the pilot area and a 10% interest in Daly Waters Energy acreage.

Abbott also provided an update on the company’s planned acquisition of Falcon subsidiaries. He said Tamboran and Falcon shareholders had approved the transaction, and that the Supreme Court of British Columbia had approved certain amendments to the Plan of Arrangement. Tamboran has also received remaining regulatory approvals, including those related to OFAC licensing. Abbott said the deal is expected to close by the end of the month, subject to finalizing mechanics for delivering Tamboran shares to eligible Falcon shareholders.

First Gas Remains Targeted for Third Quarter

Tamboran said construction of the Sturt Plateau Compression Facility was 88% complete at the end of April. Abbott said progress was made on electrical, instrumentation, controls and piping work, and that the project remains within the P50 budget and schedule forecast.

The APA-owned pipeline connecting the facility to the Northern Territory gas network is undergoing final commissioning before tie-in to the compression facility. Abbott credited Tamboran’s operations team and contractors for safe execution of the project.

The company is preparing three remaining wells needed to support initial gas sales of approximately 40 million cubic feet per day gross to the Northern Territory government under a long-term, CPI-escalated gas contract. Abbott said stimulation is expected to include 180 stages across 30,000 feet of stimulated length. Liberty Energy will conduct the work, and the SS-4H and SS-5H wells are expected to be zipper fracked.

Tamboran also plans to test local Beetaloo Basin sand during the campaign. Abbott said success in using local sand could reduce stimulation costs by $4 million on future wells, assuming 60-stage, 10,000-foot laterals.

Abbott said the company is also preparing for a two-well program on the SS-1 pad, about 3 miles south of the compression facility, planned to begin in mid-2026. Two commitment wells with Daly Waters are expected to be tied into the facility during the second half of the calendar year.

Company Strengthens Balance Sheet

Tamboran said it raised $198 million through an underwritten public offering and institutional and retail entitlement offer, in addition to $32 million received through a PIPE transaction in January.

At quarter-end, Tamboran had $95 million in cash and $39 million in undrawn debt net to Tamboran for funding of the compression facility. Abbott said the company’s pro forma cash liquidity increased to $298 million after the recent equity raise, including $188 million raised net of fees and $15 million expected from Daly Waters related to the acreage sale, subject to certain conditions precedent.

Abbott said the stronger balance sheet gives Tamboran flexibility as it continues strategic partnership discussions. “My focus is less about getting a quick timing,” Abbott said during the question-and-answer session. “My focus is on getting the right partner at the right value for us.”

Energy Security and Market Access Remain Key Themes

During the call, analysts asked about the effect of Middle East tensions and increased interest in Australian natural gas assets. Abbott said global events have amplified the focus on energy security, and that the Beetaloo’s scale, location in Australia and low in situ CO2 content have increased its strategic importance.

Abbott declined to comment on pricing discussions, citing active commercial negotiations. He said the near-term focus is delivery of approximately 40 million cubic feet per day to the Northern Territory. Medium term, he said the pipeline system could support up to 100 million cubic feet per day if Tamboran twins the compressor, with potential markets including Darwin, INPEX-related demand, and local manufacturing and mining operations.

Longer term, Abbott said the basin will require larger pipelines running north and east. “An asset of this scale needs multiple outlets,” he said.

Abbott also addressed the potential Northern Territory LNG, or NTLNG, project at Middle Arm. He said Tamboran has completed pre-FEED studies and that NTLNG comes up in partner discussions, but the company does not plan to allocate capital to full FEED or material work until it knows who its joint venture partner will be and how NTLNG fits into the broader strategy.

2026 Program Includes Multiple Wells Across the Basin

Tamboran expects 2026 to be a “key inflection point,” with plans to participate in the stimulation of five wells and drilling of four wells across the Beetaloo Basin.

In addition to its operated activity, Tamboran is participating with Santos in two wells in EP 161, where Tamboran holds a 25% non-operated interest. Abbott said Santos is upgrading the Ensign 971 rig ahead of drilling activities scheduled to begin in the third quarter of the calendar year. The two wells are each planned with 60-stage stimulations across 10,000 feet and flow tests of up to 30 days, though Abbott said the final duration of the flow test has not yet been set.

Abbott said Tamboran’s near-term operational focus is the pilot area, with Orion and the Eastern Depot Center acreage also important for de-risking resources and supporting future pipeline final investment decisions.

“The key piece of data in the near term, strategy-wise, that we’re all looking for is the long-term production data,” Abbott said. “Once we get that, it clarifies a lot of things for a lot of people.”

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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