Karoon Energy (ASX:KAR) has projected a decline in production for 2026 after reporting December output of 2.4 million barrels of oil and gas, down from 2.6 million in the third quarter.
The Brazil-focused explorer and producer issued preliminary guidance of 8.1 million to 9.2 million barrels for the year, compared with total production of 10.3 million barrels in 2025, which had been near the top of its guidance range.
Under new chief executive Carri Lockhart, Karoon expects output to recover in the second half of 2026 following investments to restore full production at its flagship Bauna Oil Project in Brazil’s Santos Basin.
Lockhart described 2026 as likely "a year of two contrasting halves," with production set to improve materially from mid-year.
Production is also expected to benefit from the start-up of a new well at Karoon’s US venture, the Who Dat project in the Gulf of Mexico.
In the December quarter, the company recorded revenue of US$156.1 million, slightly lower than the previous quarter, bringing full-year revenue to US$628.5 million—a 19% drop from 2024.