Tamboran's Losses Widen Amid Increased Exploration Spend

Ticker: TBNRL · Form: 10-Q · Filed: Nov 13, 2025 · CIK: 1997652

Sentiment: mixed

Topics: Natural Gas, Exploration & Production, Australia Energy, Going Concern, Early Stage Company, Capital Raise, Unconventional Gas

Related Tickers: TBNRL, TBN

TL;DR

**Tamboran is burning cash on exploration, but recent funding and project FID offer a glimmer of hope for this high-risk energy play.**

AI Summary

Tamboran Resources Corp (TBNRL) reported a net loss of $9.061 million for the three months ended September 30, 2025, an increase from a net loss of $6.756 million in the same period of 2024. The company generated no revenue from operations during either period, remaining in the exploration and appraisal stage. Operating costs and expenses rose to $8.205 million in Q3 2025 from $6.978 million in Q3 2024, driven by increased drilling activity reflected in a $1.629 million camp expense and a $191,000 LNG feasibility study expense. Exploration expenses decreased to $682,000 from $1.010 million year-over-year. The company's accumulated deficit grew to $175.5 million as of September 30, 2025. Despite these losses, Tamboran's total assets increased to $484.164 million from $446.462 million at June 30, 2025, primarily due to a rise in unproved natural gas properties to $378.802 million and assets under construction to $34.868 million. Cash and cash equivalents remained stable at $39.557 million, while total liabilities increased to $68.796 million from $57.009 million. The company completed a public offering in October 2025, generating net proceeds of $53.0 million, and reached Final Investment Decision (FID) for the Shenandoah South Pilot Project, addressing going concern doubts.

Why It Matters

Tamboran's continued losses and reliance on external funding highlight the high-risk nature of early-stage natural gas exploration. For investors, the $53.0 million raised in October 2025 and the FID for the Shenandoah South Pilot Project are critical milestones, signaling progress towards commercialization and mitigating immediate going concern risks. However, the absence of revenue and a growing accumulated deficit mean future profitability remains uncertain. Employees and customers will be watching for successful project development, which could lead to job creation and a new energy supply in the Australia and Asia-Pacific region, potentially impacting regional energy markets and competitive dynamics with established players.

Risk Assessment

Risk Level: high — Tamboran Resources Corp is an early-stage natural gas company with no revenues since inception and an accumulated deficit of $175.5 million as of September 30, 2025. The company explicitly states 'substantial doubt regarding the Group's ability to continue as a going concern' for the next 12 months, despite recent financing activities.

Analyst Insight

Investors should approach TBNRL with extreme caution, recognizing its speculative nature. While recent funding and project milestones are positive, the lack of revenue and significant accumulated deficit mean it's a high-risk, high-reward play. Consider a small, speculative position only if you have a high-risk tolerance and believe in the long-term potential of its Beetaloo sub-basin assets.

Financial Highlights

debt To Equity
0.17
revenue
$0
operating Margin
N/A
total Assets
$484.164M
total Debt
$68.796M
net Income
-$9.061M
eps
-$0.467
gross Margin
N/A
cash Position
$39.557M
revenue Growth
N/A

Key Numbers

Key Players & Entities

FAQ

What were Tamboran Resources Corporation's revenues for the quarter ended September 30, 2025?

Tamboran Resources Corporation reported no revenues from its gas operations for the three months ended September 30, 2025, as the company remains in the exploration and appraisal stage.

How much was Tamboran Resources Corporation's net loss for Q3 2025?

Tamboran Resources Corporation's net loss for the three months ended September 30, 2025, was $9.061 million, an increase from a net loss of $6.756 million in the same period of 2024.

What is Tamboran Resources Corporation's accumulated deficit as of September 30, 2025?

As of September 30, 2025, Tamboran Resources Corporation had an accumulated deficit of $175.5 million since its inception, reflecting its ongoing exploration phase without revenue generation.

What significant events occurred after September 30, 2025, that impact Tamboran's financial outlook?

After September 30, 2025, Tamboran reached a Final Investment Decision (FID) for the Shenandoah South Pilot Project and completed a public offering in October 2025, which generated net proceeds of $53.0 million for the company.

What is the primary focus of Tamboran Resources Corporation's operations?

Tamboran Resources Corporation is focused on exploiting its primary assets, which are rights to working interests in exploration acreage in the Beetaloo sub-basin, Northern Territory, Australia, aiming to develop low CO2 unconventional gas resources.

Did Tamboran Resources Corporation's operating costs increase or decrease in Q3 2025 compared to Q3 2024?

Tamboran Resources Corporation's total operating costs and expenses increased to $8.205 million for the three months ended September 30, 2025, from $6.978 million in the prior year period, primarily due to increased drilling activity.

What is Tamboran Resources Corporation's current cash position?

As of September 30, 2025, Tamboran Resources Corporation had cash and cash equivalents of $39.557 million, which is comparable to $39.439 million at June 30, 2025.

What factors raise substantial doubt about Tamboran Resources Corporation's ability to continue as a going concern?

Factors raising substantial doubt include not generating revenues since inception, a working capital deficit of $3.9 million, an accumulated deficit of $175.5 million, and significant planned expenditures for natural gas properties in the next 12 months.

How is Tamboran Resources Corporation addressing its going concern uncertainty?

Management is actively pursuing several plans, including assessing farm-in partners, continuing SPCF construction, seeking additional funding through a Share Purchase Plan and PIPE, and leveraging Research & Development tax incentives from Australian government bodies.

What was the change in Tamboran Resources Corporation's unproved natural gas properties?

Tamboran Resources Corporation's unproved natural gas properties increased to $378.802 million as of September 30, 2025, from $342.314 million at June 30, 2025, reflecting continued investment in exploration.

Risk Factors

Industry Context

Tamboran Resources operates in the upstream natural gas sector, focusing on exploration and development. The industry is capital-intensive and subject to significant commodity price volatility. Companies in this space often require substantial funding for exploration, drilling, and infrastructure development, with success heavily dependent on resource discovery and efficient production.

Regulatory Implications

As an energy company, Tamboran faces stringent environmental regulations related to exploration, drilling, and production. Compliance with these regulations is critical to avoid penalties, operational disruptions, and reputational damage. The company's progress towards production will increase its exposure to these regulatory frameworks.

What Investors Should Do

  1. Monitor Project Development Milestones
  2. Assess Future Capital Needs and Funding Strategy
  3. Analyze Natural Gas Market Dynamics
  4. Review Operational Execution and Cost Management

Key Dates

Glossary

Accumulated Deficit
The cumulative net losses of a company since its inception that have not been offset by net income. (Indicates Tamboran has not been profitable since its founding, highlighting its early-stage development and reliance on external funding.)
Unproved Properties
Assets representing rights to explore for and extract natural gas in areas where the existence of commercially recoverable quantities of natural gas has not yet been confirmed. (Represents the largest asset category for Tamboran ($378.802 million), signifying the company's significant investment in future exploration and potential resource base.)
Final Investment Decision (FID)
A formal decision by a company's board of directors to proceed with a project, typically after all feasibility studies and necessary approvals are completed. (The FID for the Shenandoah South Pilot Project is a crucial step towards development and potential revenue generation, signaling management's confidence and commitment.)
Successful Efforts Method
An accounting method for oil and gas companies where exploration costs are capitalized only if they lead to the discovery of proved reserves. Costs related to unsuccessful exploration are expensed. (Tamboran uses this method for its natural gas properties, meaning only costs directly associated with successful discoveries are capitalized on the balance sheet.)
Assets Under Construction
Costs incurred for property, plant, and equipment that are in the process of being constructed or installed and are not yet ready for their intended use. (The increase in these assets ($34.868 million) indicates ongoing development and investment in infrastructure necessary for future natural gas production.)
Noncontrolling Interest
The portion of equity in a subsidiary that is not attributable to the parent company. (Represents ownership stakes in subsidiaries that Tamboran does not fully own, impacting consolidated financial statements.)

Year-Over-Year Comparison

Compared to the prior year's comparable period (likely Q3 2024, though specific filing not provided), Tamboran reported a larger net loss of $9.061 million versus $6.756 million, with no revenue generated in either period. Operating costs and expenses rose to $8.205 million from $6.978 million, driven by increased drilling activity. Exploration expenses decreased year-over-year. Total assets grew to $484.164 million from $446.462 million, primarily due to increases in unproved natural gas properties and assets under construction. Total liabilities also increased to $68.796 million from $57.009 million.

Filing Stats: 4,465 words · 18 min read · ~15 pages · Grade level 17.6 · Accepted 2025-11-13 16:10:35

Key Financial Figures

Filing Documents

- Financial Information

Part I - Financial Information 4

Financial Statements

Item 1. Financial Statements 4 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Operations and Comprehensive Loss 6 Condensed Consolidated Statements of Stockholders' Equity 7 Condensed Consolidated Statements of Cash Flows 8 Notes to the Condensed Consolidated Financial Statements 9 Cautionary Note Regarding Forward-looking statements 28

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 29

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 35

Controls and Procedures

Item 4. Controls and Procedures 35

- Other Information

Part II - Other Information 37

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Other Information

Item 5. Other Information 40

Exhibits

Item 6. Exhibits 41

Signatures

Signatures 42 4 Table of Contents

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements. The Condensed Consolidated Financial Statements of Tamboran Resources Corporation ("Tamboran" or the "Company," and together with its consolidated subsidiaries, the "Group") presented herein are unaudited but, in the opinion of management, reflect all adjustments necessary to present fairly such information for the periods and at the dates indicated. All adjustments are of a normal recurring nature. Because the following unaudited Condensed Consolidated

Financial Statements have been prepared in accordance with Article 10 of Regulation S-X, they do not contain all

Financial Statements have been prepared in accordance with Article 10 of Regulation S-X, they do not contain all information and footnotes normally contained in annual consolidated financial statements; accordingly, they should be read in conjunction with the Consolidated Financial Statements and notes thereto appearing in the Company's Annual Report on Form 10-K for the year ended June 30, 2025 . References to "dollars," "$," "U.S. dollars" and "US$" refer to United States dollars; and references to "Australian dollars" and "A$" refer to Australian dollars. 5 Table of Contents TAMBORAN RESOURCES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In tho usands, except share amounts) (Unaudited) Note September 30, 2025 June 30, 2025 ASSETS Current assets Cash and cash equivalents $ 39,557 $ 39,439 Restricted cash — 5,722 Trade and other receivables: Joint interest billings 1,763 8,191 ATO receivable 1,687 1,219 Other receivables 757 222 Prepaid expenses and other current assets 2,696 1,903 Total current assets 46,460 56,696 Natural gas properties, successful efforts method: Unproved properties 3 378,802 342,314 Assets under construction - natural gas equipment 3 34,868 24,441 Property, plant and equipment, net 3 348 308 Operating lease right-of-use assets 4 4,199 1,549 Finance lease right-of-use assets 4 14,144 16,544 Prepaid expenses and other non-current assets 5,344 4,610 Total non-current assets 437,705 389,766 TOTAL ASSETS $ 484,164 $ 446,462 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses 5 $ 31,121 $ 20,457 Advance against joint interest billings 2 1,943 450 Current portion of operating lease obligations 4 2,472 391 Current portion of finance lease obligations 4 14,782 15,307 Total current liabilities 50,318 36,605 Operating lease obligations

financial statements

financial statements. In the current year, the Group changed the presentation of unaudited condensed consolidated financial statements to thousands and, as a result, any necessary rounding adjustments have been made to prior year disclosed amounts. Certain amounts in the Company's consolidated financial statements may not add up or recalculate due to rounding. Significant Judgments and Accounting Estimates The preparation of these condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities, revenue and expenses and related disclosures of contingent assets and liabilities reported in the condensed consolidated financial those disclosed in the Group's Annual Financial Statements. Significant Accounting Policies The Group's significant accounting policies are described in the notes included in the Group's Annual Financial 2025 . Foreign Currency Translation These condensed consolidated financial statements are presented in US dollars ("$" or "dollars") and the functional currency of the Group is the Australian Dollar ("A$"). Adjustments resulting from the translation of functional currency

financial statements to reporting currency are accumulated and reported as a part of "Accumulated Other Comprehensive

financial statements to reporting currency are accumulated and reported as a part of "Accumulated Other Comprehensive Loss", a separate component of stockholders' equity. Foreign Currency Transactions Foreign currency transactions are translated into the Company's functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the condensed consolidated statements of operations and comprehensive loss. Leases As a Lessee The Group accounts for leases under ASC 842, Leases ("ASC 842"). The Group determines if an arrangement is a lease at inception of the arrangement and if such lease will be classified as an operating lease or a finance lease. The Group's leases represent its right to use an underlying asset for the lease term. Right-of-use ("ROU") assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Group's leases do not provide an implicit rate, the Group used a proxy for its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. 11 Table of Contents The Group has elected to account for lease and non-lease components in its contracts as a single lease component for all asset classes except for office premises. Operating leases are included in "Operating lease right-of-use assets" within the Group's condensed consolidated balance sheet. The Group's related obligation to make lease payments are included in "Current portion of operating lease obligations" and "Operating lease obligations" within the Group's condensed consolidated balance sheet. Operating lease expense for l

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