Tamboran Resources Q4 Earnings Call Highlights

Key Points

• Tamboran has begun selling Beetaloo Basin gas into the Northern Territory market, with volumes initially limited to 25 terajoules per day. The company expects nominations to rise toward its contracted 40-terajoule-per-day take-or-pay volume as seasonal demand increases.
• The Sturt Plateau Compression Facility was completed on schedule and about $9 million under budget, while two wells are being prioritized to build longer-term production and decline-rate data. Tamboran cautioned that more than 90 days of production history is needed to assess well performance fully.
• Tamboran raised $186 million and plans to drill at least six step-out wells over the next 18 months to delineate eastern and western Beetaloo resources. Further pipeline expansion and potential east coast gas sales will depend on stronger production data and resource definition.

Tamboran Resources NYSE: TBN said it has begun selling gas from the Beetaloo Basin into the Northern Territory market, marking a milestone for the company as it works to establish longer-term production performance and advance broader development plans.

Chief Executive Officer Todd Abbott said gas had been flowing to the market for 20 days at the time of the company’s fiscal 2026 fourth-quarter earnings call. Current volumes are limited by demand nominations from the Northern Territory Government, which had nominated 25 terajoules per day as the territory emerged from its lower-demand season.

Abbott said demand and nominations are expected to rise during the Northern Territory’s peak-demand period. Once Tamboran completes commissioning and production-testing requirements, the company expects to enter the supply period of its agreement, which includes take-or-pay provisions on a contracted volume of 40 terajoules per day.

“Any gas the offtaker does not take will be banked for future potential delivery,” Abbott said, describing the arrangement as downside protection against lower nominations during the contract period.

Commissioning and Production Data

Tamboran completed construction of its Sturt Plateau Compression Facility on time and about $9 million below its forecast budget, Abbott said. The facility is still being commissioned as the company fine-tunes control systems and equipment settings. During commissioning, Tamboran will receive 75% of the gas price because supply is interruptible, according to Abbott.

The company is prioritizing production from two wells while nominations remain at about 25 terajoules per day. Abbott said the goal is to generate longer-term production and well-performance histories, including data on decline rates. Other wells may be brought online as necessary to manage flowback water or meet nominated volumes.

Abbott told RBC Capital Markets analyst Scott Hanold that the producing wells were performing in line with the company’s expectations and that pressure data “looks good,” though he cautioned that more time is needed to assess long-term decline rates. Tamboran has not yet produced a well in the basin for more than 90 days, he said.

The two priority wells include a 10,000-foot lateral and a well that used locally sourced Beetaloo Red Sand in completion stages. Abbott said the company expects Northern Territory nominations to increase toward the 40-terajoule-per-day contracted level by the end of the calendar year as seasonal power demand rises, potentially allowing Tamboran to collect production histories from additional wells.

Drilling and Completion Progress

Tamboran said it completed the largest stimulation campaign conducted in the Beetaloo Basin at its SS-2 pad, with 178 stages completed across 30,000 lateral feet. The operation used a zipper-fracturing approach and reached a basin record of 12 stages in a day, while operating for 20 hours.

The company also tested Beetaloo Red Sand in 10 completion stages across the SS-2 5H well. Abbott said the locally supplied sand did not affect pump pressures or fracture initiation, and early tracer data showed the stages were producing in line with stages using other sand. However, he said longer-term flow rates and recoveries will determine whether the material can be used more broadly.

Tamboran plans to conduct additional, partial tests of the local sand during its upcoming SS-1 pad stimulation program but does not intend to use it for an entire well until it has more production history. Abbott said the company could eventually use predominantly local sand if performance is comparable, with potential savings estimated at $4 million per 10,000-foot lateral compared with imported overseas sand.

On the drilling side, Tamboran has completed the first two wells in a three-well SS-1 campaign, with the third still being drilled. The company said changes including an updated drill-bit design, anti-vibration tools, revised directional plans and rig modifications that reduced mud temperatures contributed to record drilling speeds through the Moroak formation.

Abbott said the company is targeting drilling times of 25 days or less. He said Tamboran had achieved a 24-day well previously and sees opportunities for further improvement through repeatable operations, increased activity and greater service-sector scale in the basin.

Balance Sheet and Appraisal Plans

Tamboran raised $186 million net of fees in April through an underwritten public offering and institutional and retail entitlement offering. At quarter-end, the company had $225 million of cash and $31 million of undrawn debt available for the Sturt Plateau Compression Facility.

Including an expected $15 million payment from Daly Waters Energy, subject to conditions precedent, Tamboran’s pro forma cash position would be $240 million, Abbott said.

The company said some pilot-project revenue and costs may be capitalized on the balance sheet under U.S. GAAP during the next two quarters of commissioning rather than being reflected in the income statement. Tamboran expects to report its first quarterly gas sales and revenue in its first-quarter fiscal 2027 results in November.

Looking ahead, the company plans to focus its fiscal 2027 and 2028 activity on delineating gas resources in the Beetaloo Basin’s eastern and western depocenters. Tamboran and its partners aim to drill and stimulate at least six step-out wells over the next 18 months, including wells with Santos in EP 161 and with Daly Waters Energy and Impact in the west.

Abbott said Tamboran is also in discussions with multiple potential strategic partners. A future partner and associated work program would help determine the company’s broader capital plan, he said.

Pipeline Considerations

Abbott said any decision to expand the Sturt Plateau Compression Facility will depend in part on confidence that surrounding pipeline infrastructure can transport incremental gas volumes to additional markets.

He also said the industry’s ability to advance an east coast pipeline will depend on continued resource delineation and production data. While APA Group has progressed permitting and right-of-way work, Abbott said binding gas sales agreements are unlikely until producers can demonstrate a clearer resource base and longer-term well performance.

“The production data that we’re putting on the board from the pilot area is probably the biggest piece of information to de-risk the subsurface,” Abbott said.

About Tamboran Resources (NYSE:TBN)

Tamboran Resources Corporation NYSE: TBN is an Australia-focused natural gas exploration and development company. The company's primary asset base is located in the Beetaloo Basin in Australia's Northern Territory, where it is pursuing the development of large-scale shale gas resources.

Tamboran's activities include acquiring and evaluating exploration acreage, drilling and testing wells, and advancing infrastructure and commercial development plans for natural gas production. Its Beetaloo Basin portfolio includes the Shenandoah South and Amungee projects, which are intended to support future domestic gas supply and potential liquefied natural gas export opportunities.

The company was established to develop unconventional gas resources in Australia and has focused its operations on the Northern Territory rather than maintaining a broad international footprint.

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