Tamboran Resources Corp Q3 FY2026 earnings call

Strategic Transactions & Partnerships

• Announced a farm-out transaction with partner Daily Waters Energy for ~10,000 acres across the pilot area and Beteloo Central Development area, for a stage carry of up to 28.5 million U.S. dollars. The transaction matches economic terms of the existing INPEX-Daily Waters agreement, which has re-rated the value of high-quality Beteloo Basin acreage.
• Upon transaction completion, Tamborin will hold a 44.375% interest in the pilot area and a 10% interest in Daily Waters Energy's acreage.
• Joint venture discussions for the Orion block with a strategic partner are ongoing, supported by recent basin re-rating and new capital flexibility.
• The Falcon acquisition has received all required regulatory and shareholder approvals, and is expected to close by the end of May 2026 following final share delivery mechanics.

Pilot Project Development Progress

• Construction of the Surf Plateau Compression Facility was 88% complete at the end of April 2026, and remains on schedule and within the P50 budget, with first gas targeted for Q3 2026 (calendar year).
• The APA-owned connecting pipeline to the Northern Territory Gas Network is in final commissioning ahead of tie-in to the facility.
• Three remaining wells needed for the contracted 40 million cubic feet per day gross initial gas supply to the Northern Territory government will be stimulated in the coming weeks, with a planned 180 stages across 30,000 feet of stimulated length.
• The company will test local Beetaloo Basin sand for stimulation operations; successful testing could cut future well stimulation costs by 4 million U.S. dollars per 10,000-foot, 60-stage horizontal well, supporting the firm's cost reduction strategy.
• A two-well program on the SS1 pad, 3 miles south of the compression facility, is planned to start mid-2026, with Daily Waters commitment wells tied into existing infrastructure in H2 2026.

Joint Activity with Santos

• Tamborin (holding a 25% non-operating interest) is participating in a two-well drilling program with Santos in the EP161 acreage at the Beetaloo East Depot Center.
• Santos is upgrading the Enson 971 rig ahead of drilling planned to start Q3 2026. Each well will be stimulated across 60 stages over 10,000 feet and flow tested for up to 30 days.

Balance Sheet Update

• The company strengthened its balance sheet via a 198 million U.S. dollar underwritten public and entitlement offer, added to the 32 million U.S. dollar received from a prior pipe transaction in January 2026.
• At the end of the quarter, Tamborin held 95 million U.S. dollars in cash and 39 million U.S. dollars in undrawn debt net to the company for project funding. Pro forma after the equity raise, total cash liquidity reaches 298 million U.S. dollars, including the expected 15 million U.S. dollars receipt from Daily Waters.

No segment-level financial performance data (absolute revenue figures or revenue contribution percentages) were disclosed in this earnings call transcript.

• First gas sales from the Beetaloo Basin pilot project remains on track for the third quarter of calendar 2026, within the original P50 budget and schedule forecast.
• The Falcon acquisition is guided to close by the end of May 2026, after all remaining regulatory approvals were received.
• In 2026, Tamborin plans to participate in the stimulation of five wells and the drilling of four wells across the Beetaloo Basin.
• No capital will be allocated to advance full FEED or construction work on the NT-LNG project until a joint venture partner for the project is finalized.
• The two-well Santos-operated program in EP161 is guided to commence drilling in the third quarter of calendar 2026, with stimulation and flow testing to follow.
• The stimulation program for the three wells required for initial contracted gas sales to the Northern Territory government is scheduled to begin in the coming weeks, with the two-well SS1 pad program starting mid-2026.

• The timing of concluding a new joint venture partnership for the Orion block cannot be predicted, as potential partners are at different stages of due diligence for the asset.
• Full cost efficiency gains for drilling and completion operations will not be realized until the company moves to a sustained full-time drilling program, which is not expected in the near term given the limited number of wells planned for 2027.
• Development of long-term large-format export pipelines and additional outlet capacity for Beetaloo Basin gas has not yet had its timing defined, and additional infrastructure development in the eastern basin is a longer-term effort.
• Weather conditions created challenges for pilot project development work during the quarter, though the project has stayed on schedule and budget to date.
• Pricing details for future medium and long-term gas sales contracts are currently under discussion and not finalized.

Q: How has the Middle East conflict and recent basin momentum changed Tamborin's short, medium, and long-term development strategy for the Beteloo Basin, and what does this mean for future contract pricing and gas outlets? / A: Middle East unrest has permanently increased market focus on energy security, which highlights the value of Beteloo's large low-carbon gas resource in the stable Asia-Pacific jurisdiction. Near-term focus remains on delivering contracted 40 million cubic feet per day gas to the Northern Territory starting Q3 2026. Medium-term, the existing pipeline can be expanded to 100 million cubic feet per day via a second compressor, with incremental gas going to Darwin, INPEX, or local industrial users, with all gas jointly marketed with Daily Waters aligned on market strategy. Long-term development will require large-scale new pipelines, which are commercially viable but have undefined timing, and multiple outlets will be needed for the basin's full resource. Management cannot disclose current or future contract pricing as discussions are active.

Q: Why does the additional farm-out process appear to be sliding to the second half of 2026, after the Falcon deal closing, and is there increased risk of the transaction failing? / A: The slower timeline is intentional, not a sign of elevated risk. The impending Falcon deal close has resolved a key question for potential new partners, and recent events including the INPEX-Daily Waters transaction and new focus on energy security have attracted new interested parties who need additional time for due diligence. With a strengthened balance sheet from the recent capital raise, Tamborin has the financial flexibility to be patient and prioritize securing the right partner at appropriate value over a quick close, which will deliver better long-term outcomes for shareholders.

Q: Once the pilot phase is operational, what does the next stage of Tamborin's strategy look like? / A: The immediate priority after pilot launch is generating long-term production data from the pilot, which will resolve remaining uncertainty for the basin and investors. The intermediate next phase focuses on de-risking the Orion block and defining the full resource base in the eastern basin with Santos, which is required to attract investment and reach final investment decision for the long-haul large-diameter pipelines the basin needs. After pipeline FID and in-service dates are confirmed, the final phase will be a large-scale ramped-up drilling program with multiple rigs to build gas volumes for the new pipelines.

Q: Is there increased competition to get Beteloo Basin gas to market, and what is the priority for Tamborin's 100% owned acreage? / A: Near-term, the existing pilot infrastructure has a 100 million cubic feet per day capacity limit, and multiple existing domestic and third-party outlet options are already available for this volume. All gas in the western basin is jointly marketed with Daily Waters, so all parties are fully aligned on getting gas to market. For the underdeveloped eastern basin, less infrastructure exists today, so development is longer-term. Australia's pipeline regulations require open common access to new large pipelines, so no single company can monopolize capacity, and all basin participants will work together to optimize capital and spread costs across volumes. Near-term focus for all acreage is prioritizing pilot development, resource de-risking in Orion and EP161, and participating in Daily Waters' operated wells south of the pilot, with other prospective acreage a longer-term priority.