During steam stimulation of horizontal wells in heavy oil reservoir, it is necessary to estimate the reservoir temperature distribution, which has a huge impact on oil production and ultimate oil recovery. Most of previous models were derived based on infinite boundary condition and constant fluid velocity, which were not consistent with real situation of reservoir. In this paper, new energy balance equations combined with mobile boundary conditions were developed for increasing the accuracy of predicted results. Based on dimensionless conversion and numerical analysis, the optimum solution of equation system could be easily obtained, and its good performance in predicting temperature distribution was also validated. Moreover, thermodynamic mechanism of hot fluid, latent heat and sensible heat of steam, and their contributions to heating reservoir were also discussed to investigate the heat transfer pattern in reservoir. Finally, factors that could influence the reservoir temperature distribution were analyzed. It is found that: (a) both the heat conduction and the heat convection contribute to the heat transfer in hot liquid zone, and the heat convection predominates; (b) both the condensation front and heat front move outward with the injection of steam, but their expanding rates gradually drop with time; (c) as the radius increases, the radial fluid velocity will go down, leading the heat convection effect to be weakened and the heat conduction effect to become obvious; (d) there are some factors that can influence the reservoir temperature distribution including steam injection duration, fluid velocity, volumetric heat capacity of fluid, steam quality and thermal conductivity of reservoir.