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Karoon Energy
Karoon Energy reported 2025 production at the top of guidance but flagged lower output for 2026, with cost reductions and oil market conditions now in focus.
(AI video summary)
This video was created on 27 January 2026 for IG audiences by ausbiz.
ASX code: KAR
Karoon's 2025 production update
Karoon Energy released its latest production update, prompting mixed analyst views on the company’s near‑term outlook. The oil and gas producer reported 2025 production at the upper end of guidance, delivering 10.3 million barrels of oil equivalent, just below the record 10.4 million barrels achieved in 2024. The result was broadly in line with expectations.
Production weakened in the fourth quarter (Q4) of 2025, reflecting underperformance at the Baúna oil field due to weaker well performance and natural reservoir decline.
Lower output expected in 2026
Looking ahead, Karoon expects production to fall in 2026, guiding to 8.1 million – 9.2 million barrels of oil equivalent, with output weighted towards the second half of the year. The company said operating costs should decline once planned well upgrades are completed, which may help offset lower production volumes.
Investment outlook
Market views on Karoon remain divided, with analysts agreeing that movements in the oil price will be the key driver of the company’s share price. With the company’s next set of results due in late February, investors will be watching closely to see whether production performance and cost control can help shift sentiment more decisively.
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