Brookside Energy (ASX: BRK) represents a liquids-rich Anadarko Basin development story with visible production growth potential, strong well-level economics, and a valuation that is materially discounted relative to small-cap E&P sector benchmarks. Brookside Energy is a U.S.-focused oil and gas producer operating in the Anadarko Basin, one of North America’s most prolific hydrocarbon systems.

The recent weakness in BRK's share price has further widened an already significant valuation disconnect. Importantly, there has been no change to the company's underlying fundamentals (2025 EBITDA, 2025 production and certified reserves remain unchanged). The only change is the market's valuation of the business, resulting in BRK trading at what we believe is an increasingly compelling discount to its true value and against other listed peers.

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Investor Highlights

• BRK trades at a significant valuation discount across both earnings and asset-based metrics despite unchanged fundamentals. It is valued at <1.2x EV/2025 EBITDA versus a peer median of 5.6x, and at approximately US$8,900 per flowing boepd versus a peer median of US$37,184, highlighting a material disconnect between market pricing and underlying operating performance and production profile.

   

• This disconnect is further reinforced on a reserves and fundamentals basis, where BRK’s EV/1P equivalent is ~US$1.20/boe versus a peer median of US$6.66/boe, despite low-risk probable reserves and strong adjacency to producing assets. Combined with one of the highest 2025 free cash flow yields in the peer group and zero leverage, BRK’s strong financial profile is not reflected in its valuation and would typically warrant a premium rather than a discount.