Tamboran Resources Corp. 10-Q Summary: Q1 2026 (Ended Sept 30, 2025)
Business Context and Reporting Period
Tamboran Resources Corp. (TBN) is an early-stage natural gas exploration company focused on the Beetaloo sub-basin in Australia's Northern Territory. The company is in the exploration and appraisal stage with no commercial production or revenue to date. This report covers the three months ended September 30, 2025. The company operates through joint ventures, including TB1 (50/50 with Daly Waters Energy) and the SPCF Sub Trust (50/50 with Daly Waters Infrastructure), both of which are consolidated as Variable Interest Entities (VIEs).
Key Financial Metrics
| Metric | Q1 2026 (Sept 30, 2025) | Q1 2025 (Sept 30, 2024) |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss (Consolidated) | $(9.1) million | $(6.8) million |
| Net Loss (Attributable to Tamboran) | $(8.2) million | $(5.9) million |
| Net Loss Per Share (Basic/Diluted) | $(0.47) | $(0.42) |
| Cash and Cash Equivalents | $39.6 million | $74.0 million (end of period) |
| Working Capital | Deficit of $3.9 million | Not explicitly stated |
| Total Assets | $484.2 million | $327.0 million (end of period equity) |
| Total Liabilities | $68.8 million | Not explicitly stated |
| Accumulated Deficit | $(175.5) million | $(136.3) million |
Material Changes vs. Prior Period
- Increased Operating Loss: Net loss increased by approximately $2.3 million compared to the prior year quarter, driven by higher exploration capitalization costs, camp expense recoveries, and foreign exchange losses.
- Cash Flow Dynamics: Net cash used in operating activities increased to $13.8 million (from $4.2 million), while investing cash outflows rose to $28.4 million (from $14.5 million) due to drilling activities (SS-4H, SS-5H, SS-6H) and SPCF construction. Financing activities provided $37.9 million, primarily from equity issuances and noncontrolling interest contributions.
- Asset Base Growth: Unproved natural gas properties increased to $378.8 million from $342.3 million, reflecting significant capital expenditures.
- Foreign Exchange: The company recognized a foreign exchange loss of $0.6 million in the current period, contrasting with a gain in the prior year, though a translation gain of $1.7 million was recorded in Other Comprehensive Income.
Outlook, Risks, and Management Commentary
- Going Concern: Management has raised substantial doubt about the company's ability to continue as a going concern for the next 12 months due to a working capital deficit and lack of revenue. However, this is mitigated by a recent public offering (October 2025) raising $53.0 million net and a Final Investment Decision (FID) for the Shenandoah South Pilot Project.
- Capital Requirements: The company estimates a need for approximately $43.4 million to progress development plans for the remainder of the fiscal year ending June 30, 2026.
- Debt Facilities: A syndicated facility of up to A$179.8 million was secured in September 2025, though no borrowings had been drawn as of the reporting date. A performance bond facility of A$35.0 million is available.
- Falcon Acquisition: On September 30, 2025, the company announced an agreement to acquire Falcon Oil & Gas Australia Limited for approximately $22.7 million in cash and 6.5 million shares. This transaction is subject to shareholder and regulatory approval.
- Internal Controls: The company disclosed a material weakness in internal controls over financial reporting, citing insufficient evidence of control performance, inadequate segregation of duties, and IT general control deficiencies. Remediation efforts are underway.
- Legal Proceedings: Environmental challenges regarding the Shenandoah South Pilot Project were withdrawn by the Environment Centre Northern Territory in August 2025. A Federal Court application by Lock the Gate Alliance is pending judgment.
Investor Verification Checklist
- Capital Sufficiency: Verify the closing of the October 2025 public offering and the subsequent Share Purchase Plan (SSP) to ensure the $43.4 million funding gap is covered.
- Falcon Acquisition Status: Monitor shareholder approval and regulatory clearance for the Falcon acquisition, noting the potential dilution (existing shareholders would own ~73% post-transaction) and integration risks.
- Going Concern Resolution: Confirm that the drawdown of the SPCF Debt Facility (scheduled for October 2025) and other financing milestones are met to eliminate the going concern doubt.
- Internal Control Remediation: Review future filings for progress on remediation of the material weakness in internal controls to assess financial reporting reliability.
- Drilling Results: Track the results of the SS-4H, SS-5H, and SS-6H pilot wells, as commercial viability depends on these outcomes.