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Horizon Oil Limited (HZN) AI Stock Analysis
Horizon Oil Limited
(ASX:HZN)
The score is driven primarily by solid financials supported by strong cash flow, but tempered by margin/revenue softening and a clear increase in leverage. The latest earnings call adds support via strong operational delivery (record production, reserves growth) and disciplined capital allocation. Technicals are modestly positive, while valuation is capped by a high P/E despite an unusually high dividend yield.
Horizon Oil Limited (HZN) vs. iShares MSCI Australia ETF (EWA)
- Market Cap
- AUD 267.44M
- Dividend Yield
- 12.21%
- Average Volume (3M)
- 1.27M
- Price to Earnings (P/E)
- 23.3
- Beta (1Y)
- -0.16
- Revenue Growth
- -23.44%
- EPS Growth
- -18.10%
- Country
- Australia
- Employees
- 17
- Sector
- Energy
- Sector Strength
- 65
- Industry
- Oil & Gas Exploration & Production
Horizon Oil Limited Business Overview & Revenue Model
Company Description
Horizon Oil Limited, together with its subsidiaries, engages in the exploration, development, and production of oil and gas properties in China, New Zealand, Australia, and Thailand. It also involved in the exploration and evaluation of hydrocarbons....
How the Company Makes Money
Horizon Oil makes money by monetizing its working interests in oil and gas assets through the sale of produced hydrocarbons. Its primary revenue stream is sales of crude oil and/or natural gas (including liquids/condensate, where applicable) from fie...
Horizon Oil Limited Earnings Call Summary
The call communicated a strong operational and financial year driven by record production, meaningful reserve and resource growth, successful integration of acquisitions (Thailand and Cue) and solid cash generation while maintaining low operating costs. Management emphasized diversification, capital discipline, and a pipeline of accretive, infrastructure-led projects across multiple jurisdictions. Near-term challenges include timing-related deferred liftings, a mix-driven reduction in realized unit price, significant non-cash amortization that weighed on statutory profit, and elevated near-term capital commitments (which influenced a moderated final dividend). On balance, the business shows strengthened scale, multiple growth options, sustained cash generation and manageable net debt, outweighing the near-term capital and accounting headwinds.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Horizon’s guidance is to maximize cash flow, selectively reinvest and continue shareholder returns: FY‑26 delivered record production of 2.15 million boe and sales of 1.98 million boe, underlying revenue USD 107.2m, EBITDAX USD 56.4m, operating cash flow USD 47.2m (+32% y/y), free cash flow USD 36.6m, ending cash USD 37.4m and modest net debt USD 11.3m after USD 33.1m returned to shareholders (dividends declared AUD 0.025/share; interim AUD 0.015, final AUD 0.01). Near‑term guidance targets sustaining and growing output from a 5‑country, 9‑asset platform with current group production ~7,300 boe/d (Thailand ~2,100 boe/d; China Block 22/12 ~2,000 boe/d net), net 2P reserves 13.6m bbl and 2C resources 19.8m boe, low cash operating costs ~USD 21/boe (<USD 25/boe), immediate actions including Pad D tie‑in lifting Thailand >10% to >107 MMscf/d, Nam Phong booster due next month, five wells committed over six months plus ~3 development wells likely early next year, and continued disciplined capital allocation and modest gearing unless an accretive opportunity arises.
Horizon Oil Limited Financial Statement Overview
Summary
Cash generation is the key strength (strong 2026 operating cash flow and a sharp rebound in free cash flow), supporting earnings quality. However, profitability has cooled versus prior peaks with revenue down and margin compression, and leverage has risen materially (debt-to-equity up to ~0.73), which increases risk in a commodity-sensitive business.
Income Statement
64PositiveBalance Sheet
55NeutralCash Flow
74Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 84.42M | 96.41M | 104.13M | 111.60M | 150.56M | 112.60M |
| Gross Profit | 15.42M | 23.16M | 27.37M | 55.19M | 66.77M | 50.73M |
| EBITDA | 58.66M | 53.54M | 57.06M | 75.88M | 104.77M | 68.05M |
| Net Income | 10.57M | 10.88M | 12.25M | 25.90M | 43.85M | 24.33M |
Balance Sheet | ||||||
| Total Assets | 294.81M | 294.81M | 180.16M | 205.28M | 184.64M | 183.50M |
| Cash, Cash Equivalents and Short-Term Investments | 37.38M | 37.38M | 39.78M | 52.57M | 43.49M | 44.08M |
| Total Debt | 47.95M | 47.95M | 25.66M | 25.86M | 8.21M | 1.23M |
| Total Liabilities | 201.57M | 201.57M | 114.86M | 122.03M | 89.08M | 84.29M |
| Stockholders Equity | 66.01M | 66.01M | 65.30M | 83.24M | 95.55M | 99.21M |
Cash Flow | ||||||
| Free Cash Flow | 45.76M | 48.26M | 20.86M | 54.52M | 40.50M | 44.07M |
| Operating Cash Flow | 45.59M | 48.27M | 35.89M | 64.22M | 71.05M | 53.97M |
| Investing Cash Flow | -34.45M | -36.98M | -16.52M | -36.01M | -32.29M | -10.44M |
| Financing Cash Flow | -13.50M | -13.91M | -32.06M | -19.22M | -40.33M | -46.83M |
Horizon Oil Limited Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HZN, the sentiment is Positive. The current price of 0.21 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.21, and below the 200-day MA of 0.21, indicating a bullish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 69.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HZN.
Horizon Oil Limited Peers Comparison
Overall Rating
AU:ECH67Neutral- AU:HZN67Neutral
AU:OMA55Neutral
AU:CVN47Neutral
AU:STX44Neutral
AU:COI39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AU:ECH | 67Neutral | AUD 72.78M | 5.29 | 13.95% | 2.97% | -45.07% | 297.79% |
| AU:HZN | 67Neutral | AUD 383.32M | 23.27 | 17.91% | 12.21% | -23.44% | -18.10% |
| Sector * | 65Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
| AU:OMA | 55Neutral | AUD 450.76M | -50.30 | -5.15% | ― | ― | -35.25% |
| AU:CVN | 47Neutral | AUD 187.64M | -43.75 | -1.58% | ― | ― | -220.00% |
| AU:STX | 44Neutral | AUD 357.02M | -12.86 | -7.49% | ― | -13.67% | 85.97% |
| AU:COI | 39Underperform | AUD 117.53M | -18.92 | -4.77% | ― | ― | -76.19% |
* Energy Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AU:HZN | Horizon Oil Limited | 0.21 | 0.03 | 16.85% | |
| AU:COI | Comet Ridge Ltd | 0.07 | -0.05 | -44.00% | |
| AU:CVN | Carnarvon Energy Limited | 0.10 | 0.01 | 10.53% | |
| AU:ECH | New Zealand Oil & Gas Limited | 0.33 | -0.04 | -9.97% | |
| AU:STX | Strike Energy Limited | 0.10 | -0.01 | -10.00% | |
| AU:OMA | Omega Oil & Gas Limited | 0.83 | 0.47 | 130.56% |
Horizon Oil Limited Corporate Events
Horizon Oil Publishes Audio Webcast for FY26 Results
Horizon Oil Limited has released a YouTube link to the audio webcast accompanying its FY26 results presentation, providing investors and stakeholders with an opportunity to access management’s commentary on the company’s performance. The...
Horizon Oil Sets FY26 Reporting Framework and Consolidates New Assets
Horizon Oil Limited has outlined its FY26 results framework, highlighting the use of non-IFRS financial measures such as Underlying Revenue, EBITDAX, Free Cash Flow and Net Debt to assess operational performance alongside statutory accounts. The comp...
Horizon Oil Details ESG Strategy in FY26 Sustainability Report
Horizon Oil has released its FY26 Sustainability Report outlining its approach to environmental, social and governance performance as it navigates the global energy transition. The report details sustainability governance structures, stakeholder enga...
Horizon Oil Tightens Governance Focus With ESG and Diversity Targets
Horizon Oil Limited has reaffirmed its commitment to a robust corporate governance framework, outlining the board’s central role in shaping strategy, overseeing performance and safeguarding shareholder interests. The company operates through a...
Horizon Oil Sets Webcast for FY26 Results, Confirms AGM Date
Horizon Oil has scheduled a shareholder briefing via live audio webcast on 27 August 2026 to discuss its FY26 full-year financial results, with Chief Executive Officer Richard Beament and Chief Financial Officer Kyle Keen leading the presentation. Th...
Horizon Oil Releases CEO Webcast on Corporate Overview
Horizon Oil Limited has released a corporate overview webcast featuring CEO Richard Beament, who provides commentary on the company’s latest presentation and strategic positioning. The webcast offers investors and stakeholders further insight i...
Horizon Oil Clarifies Reserves Reporting and Integrates Cue Acquisition
Horizon Oil Limited has issued a corporate overview detailing the basis for its reported reserves and resources and clarifying the technical definitions used for liquids, raw gas and sales gas across its portfolio of fields. The presentation confirms...
Horizon Oil boosts reserves and resources on Thai and Cue acquisitions
Horizon Oil Limited has sharply expanded its oil and gas reserve base following indirect acquisitions in Thailand through MH Energy Thailand and in Australia, New Zealand and Indonesia via Cue Energy Resources. These deals, focused largely on gas ass...
Horizon Oil Director Adjusts Holdings After Settlement of Deferred STI Rights
Horizon Oil Limited has reported a change in the interests of director Richard Beament, following the cash settlement of his vested 2025 Deferred Short-Term Incentive (STI) Rights. The transaction involved the disposal of 1,612,425 Deferred STI Right...
Horizon Oil Cancels Over 3.2 Million Share Rights in Capital Update
Horizon Oil Limited has notified the market of the cessation of 3,209,492 share rights identified under ASX code HZNAL, effective 2 July 2026. The announcement updates investors on changes to the company’s issued capital structure, signalling a...
Horizon Oil Secures Control of Cue Energy, Expanding Production and Reserves
Horizon Oil Limited has completed its off-market takeover of Cue Energy Resources, securing a 57.03% controlling interest after an initial pre-bid stake and subsequent share-based and cash consideration. The transaction raises Horizon’s daily p...
Horizon Oil Reveals Shareholder Distribution After Cue Energy Takeover Bid Closes
Horizon Oil Limited has completed its off‑market takeover offer for Cue Energy Resources, with the bid closing on 19 June 2026. Following the offer, the company has released an updated distribution schedule of shareholders and a list of its 20...
Horizon Oil Seeks ASX Quotation for 146.9 Million New Shares
Horizon Oil Limited has applied for quotation on the ASX of 146,890,089 new ordinary fully paid shares, to be issued on 2 July 2026 under its existing Appendix 3B framework. The enlarged quoted securities base may enhance trading liquidity and capita...
Echelon Strengthens Balance Sheet With Cue Share Sale to Horizon Oil
Echelon Resources Limited has completed settlement of the sale of 139,885,879 shares in Cue Energy Resources Limited to Horizon Oil, receiving approximately A$15.7 million in cash proceeds. The company plans to use most of the funds to repay existing...
Horizon Oil Secures Majority Stake in Cue Energy After Takeover Completion
Horizon Oil Limited has completed the acquisition of Echelon Offshore Limited’s 139,885,879 shares in Cue Energy Resources, lifting its holding in Cue to 57.06% following the close of its off-market takeover offer on 19 June 2026. The company s...
Horizon Oil Makes Cue Energy Takeover Offer Unconditional and Speeds Up Payout
Horizon Oil has declared its off‑market takeover offer for Cue Energy Resources unconditional, removing the final condition related to prescribed occurrences and confirming that the bid will now proceed regardless of further events. The offer c...
Cue Energy Board Urges Shareholders to Reject Horizon’s Best-and-Final Takeover Bid
Cue Energy has reaffirmed its stance against Horizon Oil Limited’s unsolicited off-market takeover bid, with its Independent Board Committee unanimously urging shareholders to reject the offer by taking no action. The board maintains its previo...
Horizon Oil Clears Regulatory Hurdles and Extends Cue Energy Takeover Offer
Horizon Oil has cleared all regulatory approval conditions tied to its off‑market takeover bid for Cue Energy Resources and has extended the offer period to 19 June 2026. With approvals under New Zealand Crown Minerals and the Northern Territor...
Horizon Oil clears key regulatory hurdle in Cue Energy takeover bid
Horizon Oil has confirmed that a key regulatory condition tied to its off-market takeover bid for Cue Energy Resources has been satisfied, removing an important hurdle to the transaction. The condition related to obtaining ministerial consent or appr...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 28, 2026