Street Calls of the Week
SYDNEY - Tamboran Resources Corporation (NYSE:TBN, ASX:TBN) has reached a Final Investment Decision for its Shenandoah South Pilot Project in Australia’s Beetaloo Basin, with first gas sales expected by mid-2026, the company announced in a press release. The project involves collaboration with APA Group, which according to InvestingPro data, maintains a strong financial health score and has consistently paid dividends for 55 consecutive years.
The project secured key commercial agreements with APA Group and the SPCF Trust, along with approvals from Native Title Holders, the Northern Land Council, and the Northern Territory Government to commence sales of appraisal gas under Beneficial Use of Gas legislation.
Tamboran and Daly Waters Infrastructure have secured up to A$179.8 million (US$118 million) in financing for the construction of the Sturt Plateau Compression Facility through a three-tranche facility with a consortium of lenders. Partner APA Group brings significant financial strength to the project, with InvestingPro data showing a market capitalization of $8.71 billion and impressive six-month returns of 19.3%.
The Beetaloo Joint Venture (BJV) has signed an unconditional Gas Sales Agreement with the Northern Territory Government to supply 40 TJ per day of gas with pricing escalated annually at Australian Consumer Price Index.
"The decision to sanction the Pilot Project is a major milestone in the history of Tamboran Resources, the Beetaloo Basin and the Northern Territory," said Richard Stoneburner, Tamboran’s Chairman and Interim CEO, in the press release.
The company expects to complete its current three-well drilling program in early fourth quarter 2025, followed by stimulation of the Shenandoah South 4H well, which will undergo flow testing in early 2026. The remaining three wells are scheduled for stimulation in the first half of 2026 before gas sales begin.
The pilot project aims to provide long-term production testing of multiple wells while delivering energy security to the Northern Territory, reducing emissions by selling rather than flaring gas, and accelerating royalties to the government and Native Title Holders.
Tamboran holds approximately 1.9 million net prospective acres in the Beetaloo Sub-basin within the Greater McArthur Basin in Australia’s Northern Territory. For deeper insights into APA Group and other energy sector companies, InvestingPro subscribers can access comprehensive financial analysis, including detailed metrics, Fair Value calculations, and expert research reports covering 1,400+ top stocks.
In other recent news, APA Corporation announced a regular cash dividend of 25 cents per share, payable on November 21, 2025, to stockholders of record as of October 22, 2025. This move follows APA’s strong second-quarter results, which led UBS to raise its price target for the company from $19.00 to $21.00, citing improved cash flow per share driven by cost savings and efficiency gains. Additionally, Raymond James increased its price target for APA to $28.00 from $26.00, noting the company’s successful turnaround in the second quarter and slight overperformance in production and cash flow metrics.
Benchmark maintained its Buy rating and a $33.00 price target on APA, highlighting significant improvements in the company’s business operations. The firm adjusted its third-quarter earnings per share estimate to $0.88, which remains above the consensus EPS projection of $0.76. Benchmark also revised its EBITDA forecast to $1.22 billion, aligning closely with the consensus estimate of $1.21 billion. These developments indicate a positive trajectory for APA, as issues that previously hindered its performance have stabilized or reversed.
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