Karoon Energy's 4Q production and sales volumes were in line with Morgans expectations while revenue was a -4% miss against the consensus forecast. A small miss on realised price is considered more timing driven on cargoes.

Note: Management's guidance for production of 9-11mmbb was for the next 12 months as apposed to FY24, given the company's reporting period is transitioning to December year end.

The analysts note a wide guidance range, which is understandable given production at Bauna is not yet steady following its recent restart. Cost guidance for FY24 was marginally higher than expected.

The target falls to $3.25 from $3.55. Add.

Sector: Energy.

Target price is $3.25.Current Price is $2.21. Difference: $1.04 - (brackets indicate current price is over target). If KAR meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2023 Acquisdata Pty Ltd., source FN Arena