Karoon Energy Community

Overview Our analysis indicates that Karoon Energy (ASX: KAR) is generating exceptionally strong free cash flow (FCF), with an FCF margin of ~45%—well above industry averages. Supported by a $65 per BOE base case, stable production growth (+3.8% annually), and a well-structured CAPEX program ($120M p.a.), Karoon is positioned to generate ~$293M USD in annual free cash flow.

Key Takeaways Acquisition of Bauna FPSO and debottlenecking at Who Dat are expected to boost operational efficiency and revenue growth. Strong capital returns and a robust balance sheet enhance shareholder value and support future profitability.