InvestingPro’s Fair Value model captures 63% gain in Steelcase ahead of acquisition
Tamboran Resources Corp (NYSE:TBN, ASX:TBN) presented its Q1 FY26 results on November 13, 2025, highlighting significant progress in its Beetaloo Basin operations while investors responded with caution, sending shares down 2.96% to close at $24.68.
Introduction & Market Context
The Australian natural gas developer remains in pre-revenue phase as it advances toward first production targeted for mid-2026. Despite operational achievements, including the completion of a three-well drilling program and reaching Final Investment Decision (FID) for its SS Pilot Project, market sentiment appears tempered by the absence of near-term earnings guidance.
Tamboran's strategic focus on addressing Australia's domestic gas shortfall positions the company to potentially capitalize on favorable market dynamics once production begins. However, investors appear to be weighing the extended timeline to revenue generation against the company's ambitious expansion plans.
Strategic Initiatives
Tamboran announced a significant expansion of its Beetaloo Basin footprint through the expected acquisition of Falcon Oil & Gas Ltd., which will increase its net prospective acreage by 52% to 2.9 million acres.
"This acquisition represents a transformative step in consolidating our position across the core of the Beetaloo Basin," said Dick Stoneburner, Chairman and Interim CEO, during the presentation. "Upon closing, we'll hold interests across more than 90% of the Beetaloo depocenter with over 40,000 gross drilling locations."
As shown in the following acreage position map, Tamboran is establishing a dominant presence in the region:
The company has also expanded its farmout process, increasing the Phase 2 Development Area to 500,000 acres. Tamboran is working with investment bank RBC to secure partners for this development, with finalization targeted for Q1 2026.
Tamboran's strategic partnerships with major industry players remain a cornerstone of its development approach:
These partnerships provide technical expertise and operational support across drilling (H&P), completions (Liberty), oilfield services (Baker Hughes), pipeline infrastructure (APA), and LNG development (Bechtel).
Operational Progress
The company reported completing its first batch drilling program in the Beetaloo Basin, successfully drilling three wells (SS-4H, SS-5H, and SS-6H) each with 10,000-foot horizontal sections. The program was delivered nine days ahead of schedule and under budget.
The drilling achievements were highlighted in the presentation:
Tamboran has commenced stimulation operations on the SS-6H well, targeting up to 60 stages over the 10,000-foot horizontal section. The company expects to complete the stimulation program by the end of 2025, with initial production (IP30) flow testing planned for Q1 2026.
As shown in the following image of stimulation operations:
Construction of the Sturt Plateau Compression Facility (SPCF) is progressing according to plan, with 68% completion reported as of October 2025. The facility remains within budget and on schedule for first commercial gas sales by mid-2026.
Similarly, the Sturt Plateau Pipeline (SPP) construction is advancing well, with 60% of the 23-mile (37 km) pipeline already welded and 4 miles (6 km) trenched and buried. The APA-operated pipeline is expected to reach practical completion by the end of 2025.
Financial Position
Tamboran reported a cash balance of $39.6 million as of September 30, 2025, with a pro forma cash position of approximately $140 million when including expected near-term inflows. The company raised $56.1 million through a public offering in October 2025 at $21 per share, including a $10 million investment from Baker Hughes.
Additionally, Tamboran has entered into subscription agreements to raise up to $32 million via a PIPE transaction, subject to shareholder approval in January 2026.
The company's financial position was summarized as follows:
Tamboran has also secured financing for its infrastructure development, including a $118 million (gross JV) three-tranche facility for the SPCF with guarantees from the Northern Territory Government for Tamboran's 50% share.
Despite these capital raises, the stock's proximity to its 52-week low of $15.75 (currently trading at $24.68) suggests investor caution regarding the extended timeline to revenue generation.
Forward-Looking Statements
Tamboran outlined several key catalysts expected in the coming quarters, maintaining its target for first gas sales of 40 terajoules per day (approximately 39 MMcf/d) by mid-2026.
During the recent earnings call, CEO Dick Stoneburner expressed optimism about production potential, stating, "We think that it is possible that this system can deliver up to 50 million a day." However, CFO Eric Dyer acknowledged the complexities of the domestic market, noting, "It's a little crazy to think that you can export when your local market has kind of energy shortfalls."
The company's Final Investment Decision for the SS Pilot Project represents a significant milestone, with key commercial agreements now in place:
While Tamboran continues to make operational progress toward its production goals, investors appear to be taking a measured approach given the zero EPS forecasts for upcoming quarters and the extended timeline to revenue generation. The stock's performance will likely remain tied to the company's ability to execute its development plans on schedule and secure favorable terms in its ongoing farmout process.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.