Tamboran Resources Corp SEC 10-K Report

Tamboran Resources Corporation, an early-stage, growth-driven independent natural gas exploration and production company, has released its Form 10-K report for the fiscal year 2025. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces as it progresses towards commercial natural gas production in the Beetaloo Basin, Northern Territory, Australia.

Financial Highlights

• Revenue and other operating income: $0 million. The company has not yet commenced natural gas production, resulting in no revenue for fiscal years 2025 and 2024.
• Net loss: $39.6 million. The net loss increased from $23.9 million in fiscal year 2024 to $39.6 million in fiscal year 2025, primarily due to increased operating costs and expenses.
• Net loss attributable to Tamboran Resources Corporation stockholders: $36.9 million. This reflects the portion of the net loss attributable to the company's stockholders.
• Net loss per common stock: $2.517. The net loss per share increased from $2.319 in fiscal year 2024, reflecting the higher net loss.
• Total operating costs and expenses: $39.3 million. Operating costs and expenses increased significantly from $20.5 million in fiscal year 2024, driven by higher compensation, exploration, and LNG feasibility study expenses.

Business Highlights

• Company Overview: Tamboran Resources Corporation is focused on the Beetaloo Basin in the Northern Territory of Australia, holding approximately 1.9 million net prospective acres, making it the largest acreage holder in the Beetaloo Basin.
• Operational Focus: The company is developing early-stage, unconventional gas resources within its portfolio. Key assets include a 25% non-operated working interest in EP 161, a 38.75% working interest in EPs 76, 98, and 117, and a 100% working interest in EPs 136, 143, and EP(A) 197.
• Recent Developments: The company closed a private investment in public equity, raising approximately $55.4 million, and issued shares to Macquarie Bank Limited as prepayment for fees under a Performance Bond Facility Agreement.
• Leadership Changes: Following a Cooperation Agreement with the Sheffield Group, Scott D. Sheffield and Phillip Z. Pace were appointed to the board of directors. Joel Riddle, the former CEO, was terminated, and Dick Stoneburner was appointed as interim CEO.
• Infrastructure and Operations: The company commenced the lease of modular buildings and related equipment to support on-site operations, with a minimum hire period of 18 months.
• Regulatory Approvals: The Beetaloo Joint Venture received approval from the NT Government to sell appraisal gas under the Beneficial Use of Gas legislation, with plans to begin gas sales of up to 40 TJ per day in mid-2026.
• Market Outlook: The company believes natural gas can support emissions reduction targets through the transition from coal-to-gas-fired power plants. The global demand for LNG is expected to lead to supply shortages, presenting an opportunity for the company.
• Supply Chain and Inflation: The company faces supply chain disruptions and inflationary pressures, impacting costs for labor, materials, and services. Mitigation efforts include pre-purchasing materials and diversifying suppliers.
• Future Outlook: The company plans to invest approximately $57 million in fiscal year 2026 to progress upstream development plans, with expectations to generate revenue from natural gas production starting in 2026.

Strategic Initiatives

• Strategic Focus: Tamboran Resources Corporation is focused on developing its natural gas resources in the Beetaloo Basin. The company is in the exploration and appraisal stage, with plans to progress its upstream development by investing approximately $57 million in fiscal year 2026.
• Cooperation Agreement: Recent strategic initiatives include entering into a Cooperation Agreement with the Sheffield Group, which involved board appointments and standstill restrictions.
• Capital Management: The company has engaged in several capital management activities, including the issuance of common stock, which raised approximately $55.4 million in a private investment in public equity. The company also issued shares to Macquarie Bank Limited as prepayment for fees under a Performance Bond Facility Agreement. As of June 30, 2025, Tamboran had $39.4 million in cash and cash equivalents, a decrease from the previous year due to operational expenditures.
• Future Outlook: Looking ahead, Tamboran plans to continue its exploration and development activities in the Beetaloo Basin, with the aim of commencing natural gas production by 2026. The company anticipates the need for additional funding to support its strategic initiatives and may seek further equity or debt financing. Tamboran is also monitoring market conditions and supply chain challenges, which could impact its operations and capital requirements.

Challenges and Risks

• Operational Risks: The company faces significant operational risks as an early-stage development company with no material revenue expected until 2026. The limited operating history and uncertainties in financial planning due to the lack of historical data pose substantial business risks.
• Capital Requirements: The business plan requires substantial additional capital, with no current commitments for future external funding. The inability to secure necessary capital could limit the company's ability to execute its plans, and any additional financing could dilute existing stockholders' ownership.
• Infrastructure Challenges: The anticipated production exceeds the capacity of existing pipeline infrastructure, and failure to secure agreements for additional take-away capacity could adversely affect the business plan.
• Exploration Risks: The company has no proved reserves, and areas drilled may not yield commercial quantities of natural gas, posing a risk to financial condition and results of operations.
• Drilling Operations: Drilling operations are speculative and involve significant costs, with potential for cost overruns and unsuccessful drilling due to geological conditions or equipment shortages.
• Market Risks: The volatility of natural gas prices heavily influences potential revenue and profitability. A reduction or sustained decline in prices may adversely affect the company's financial condition and ability to raise capital.
• Regulatory Risks: The company is subject to complex federal and local laws that could increase costs or expose it to liabilities. Changes in government policy, particularly regarding environmental regulations and native title rights, could impact operations and profitability.
• Climate Change Risks: The company is exposed to risks related to climate change, including potential regulatory changes and increased costs associated with achieving net zero emissions goals. Increased attention to ESG matters may result in higher compliance costs and impact access to capital markets.

SEC Filing: Tamboran Resources Corp [ TBN ] - 10-K - Sep. 25, 2025