Karoon Energy has posted a record profit - and says its oil production is set to increase thanks to more contributions from its whimsically labelled oil well in the Gulf of Mexico.
The ASX-listed $1.5 billion oil and gas explorer posted a $122.5 million net profit after tax for the period, up 43 per cent from the $85.4 million in the six months to June 30.
"It's been a tremendously strong six months for us," chief executive and managing director Julian Fowles told AAP.
"Tremendous strength in our revenues - our unit production costs also down significantly.
"The underlying performance has been really good and we have generated really strong cash flows on the back of a continued, sustained oil price above $US80."
Karoon produced 5.5 million barrels of oil and oil equivalent in the period, up from 3.7 million barrels in the six months prior.
The six months included just 11 days of contributions from the Who Dat oil and field off the coast of Louisiana.
Karoon bought a 30 per cent stake in the project in 2023.
The Melbourne-headquartered company projects Who Dat will contribute 4.0 to 4.5 million barrels in 2024, with its Brazilian oil fields to add 7.2 million to 9.0 million.
Dr Fowles said "Who Dat" was a chant popular among American football fans in the region.
"I guess the geologist who discovered the resource was a New Orleans Saints fan," he said.
Citi analysts James Byrne and Tom Wallington called it a strong result that highlighted Karoon's cash generation potential.
At $US60 a barrel oil price in 2025, they said Karoon had the potential to generate 40 per cent of its share price in free cash flow in the next 24 months.
Karoon's board is scheduled in March to decide whether to move forward with a development plan for its Neon gas field off the coast of Brazil.
More acquisitions are also possible.
Karoon had $US274.1 million in debt and $US170.4 million in cash as of December 31, giving it a gearing ratio of just 10 per cent.
"We will definitely be looking again at the M&A market and we'll see what that has to offer," Dr Fowles said.
aroon
