Karoon Energy Ltd (ASX: KAR) shares are edging higher on Tuesday after the oil and gas producer released its first-quarter update.
At the time of writing, shares are up 1.15% to $2.155. The stock has now climbed around 40% in 2026, supported by stronger energy prices.
Here’s a closer look at what the company reported.
Production falls but stronger oil prices support revenue
For the 3 months ending 31 March, Karoon’s latest quarter was softer on the production side.
Total output fell across both the Bauna and Who Dat assets, with group production down about 19% compared to the previous quarter.
This was mainly due to planned maintenance at Bauna and disruption at Who Dat following a riser issue.
Sales volumes also dropped, reflecting both lower production and shipment timing. Still, revenue held up better than volumes might suggest.
Karoon reported oil and gas sales revenue of US$128.2 million, which was driven by higher realised prices across the portfolio.
Average realised oil prices lifted to around US$71 per barrel at Bauna and US$65.92 per barrel at Who Dat.
Maintenance work and outages hit output
A large part of the quarter came down to maintenance work and a few disruptions.
At Bauna, a scheduled shutdown and maintenance program reduced output, although work is progressing as planned.
At Who Dat, a riser issue led to a temporary loss of production, with around 15,000 barrels per day affected at the peak.
Repairs are underway, with the company expecting a staged return to production through mid-2026.
There is also a sidetrack well planned to help lift output again.
Cash position still holding up well
Karoon finished the quarter with US$169.4 million in cash and total liquidity of US$452.7 million.
Net debt came in at US$180.6 million.
The company also paid a final dividend of 3.1 US cents per share and kept its share buyback running during the quarter.
Full-year outlook stays the same
Despite the softer quarter, full-year guidance remains unchanged.
Karoon is still targeting production of 8.1 to 9.2 million barrels of oil equivalent for 2026.
Who Dat production is expected to sit toward the lower end of that range, reflecting the earlier disruption.
Capital expenditure guidance has been lifted slightly to cover extra work tied to the sidetrack well.
What investors are watching next
While production took a hit this quarter, pricing has helped keep Karoon’s revenue steady.
The next step is seeing if output can recover as maintenance wraps up and Who Dat comes back online.
If volumes improve while oil prices stay firm, momentum could build again.
The post Up 40% this year, this ASX energy stock is still climbing today appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.