Karoon Energy (ASX: KAR) released its 1Q26 report today, outlining a quarter marked by maintenance and remediation activities in the U.S. and Brazil alongside a 16% increase in realised oil prices.
The company reported US$128.2 million in sales revenue, with total production down to 2.04 MMboe, primarily reflecting scheduled work at the Baúna project and a riser issue at the Who Dat asset in the Gulf of Mexico.
Higher March oil prices, influenced by geopolitical developments in the Middle East, partly offset the impact of reduced volumes during a period of extensive infrastructure work.
“In 2025, Karoon delivered a 16% total shareholder return, based on share price appreciation and dividends paid,” said CEO Carri Lockhart, citing solid operational performance, the Baúna FPSO acquisition and disciplined capital allocation as key drivers.
At Who Dat, a riser leak led to roughly 15,000 boepd (gross) being shut in from February, with remediation activities under way and 55–75% of curtailed production targeted for restoration by mid‑2026. In Brazil, preparations for Karoon to assume operatorship of the Baúna FPSO are continuing, with completion expected around mid‑year.
On capital management, Karoon paid a 3.1 AUD cent fully franked final 2025 dividend and repurchased 9.0 million shares during the quarter.
The company increased its 2026 capital expenditure guidance to US$150–183 million to incorporate accelerated sidetrack activity, while reporting total liquidity of US$452.7 million at quarter end.
Management has indicated it expects stronger free cash flow in the second half of 2026 as major maintenance programs wind down and production from remediation and development work is reflected in volumes.