This report does not constitute a rating action. Overview Key strengths Key risks Favorable operating cost enables stable operating margins. Smaller reserve base and lower production volumes compared with higher-rated peers. Solid cash flows and low leverage with no meaningful debt maturities until 2028. Risk of reserve depletion, absent successful replenishment initiatives or material asset acquisitions. Liquidity cushion to manage price cyclicality. Exposure to oil and gas commodity price volatility. Key asset and geographic concentration in Bauna project in Brazil. Karoon Energy Ltd.'s declining production and limited reserve life constrain the ratings. The company?s strategy to enhance its reserves or acquire new assets will be key to maintaining creditworthiness. As of Dec. 31, 2025, Karoon's proved reserves were about 47.8
