Cue Energy Resources Limited Directors' report 30 June 2025 11 EBITDAX FY 2025 FY 2024 $'000 $'000 Profit before tax 19,658 25,322 Depreciation and amortisation 8,936 6,400 Finance costs 494 684 EBITDA* 29,088 32,406 Business development expenses 16 66 Share based payments 140 112 Exploration activities 1,066 228 EBITDAX** 30,310 32,812 * EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (‘AAS’) and represents the profit under AAS adjusted for depreciation, amortisation, finance costs and tax. **EBITDAX is EBITDA adjusted to exclude business development costs, exploration and evaluation expenses, share based payments and one-off expenses. EBITDAX is used as a measure of financial performance as it is a commonly used indicator of performance of the Consolidated Entity's peers and therefore facilitates relative comparison of performance. Financial position The net assets of the Consolidated Entity decreased to $58.05 million in FY2025 (FY 2024: $64.91 million). Working capital, being current assets less current liabilities, was $14.33 million (FY 2024: $20.51 million). The consolidated cash and cash equivalents decreased in FY 2025 by $5.43 million to $10.83 million (FY 2024: $16.26 million). FY 2025 FY 2024 $'000 $'000 Net cashflows from operating activities 23,834 26,943 Net cashflows used in investing activities (15,396) (7,735) Net cashflows used in financing activities (14,052) (18,051) Net cashflows for the year ended 30 June (5,614) 1,157 Net cash outflow increased due to lower receipts from operating activities, further driven downwards by higher investing cash outflow from increased costs and drilling of new wells. Business Risks The Consolidated Entity is subject to risks that are specific to the Consolidated Entity and its business activities, as well as general risks. Exposure to oil and gas prices The Consolidated Entity is exposed to global commodity price variability for oil products produced in Indonesia, New Zealand and Australia which are sold on a US dollar Brent crude benchmark price basis. The majority of the Consolidated Entity ’s gas production is sold on fixed price contracts and is exposed to changes in the gas price on renewal or signing of new contracts. Gas sold in Australia on the short-term market is exposed to daily variations in price. In addition to normal market operations, gas prices for Australian sales are subject to risk of government intervention, including under the Competition and Consumer Amendment (Gas Market) Bill 2022. Oil and Gas prices can be volatile. A decline in the price of oil and gas may have a material adverse effect on Consolidated Entity’s financial performance. 23 Cue Energy Resources Limited Annual Report 2025
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