Alvopetro targets next phase of growth after record quarter

Core Insights - Alvopetro Energy Ltd is experiencing significant growth, highlighted by record production in Q3 and expansion in both Brazil and Canada [1][2][3] Production Performance - The company achieved an average production of 2,343 barrels of oil equivalent per day (BOE/d) in Q3, primarily due to the Murucututu natural gas project in Brazil, generating over US$10 million in funds flow from operations [2][3] - October production reached a new monthly record of 2,923 BOE/d following the addition of the 183-D4 well [2] Growth Strategy - The company is focused on three growth priorities: enhancing well deliverability, increasing gas sales capacity, and completing facility upgrades to support higher production [6] - Alvopetro aims to reach a near-term target of 18 million standard cubic feet per day (approximately 3,000 BOE/d) and plans to double this capacity in the long term [7] Expansion Beyond Brazil - Alvopetro is expanding its operations in Canada, particularly in the Mannville Stack heavy oil play, covering over 74 square miles of prospective land [8] - The Canadian assets provide diversification and flexibility, contributing to a stronger growth outlook [9] Financial Performance - The company maintains industry-leading margins, with operating netbacks nearing USD 60 per BOE and realized natural gas prices above USD 11 per MCF [9][10] - Alvopetro has paid out over US$60 million in dividends since 2021, with a current quarterly dividend of US$0.10 per share, yielding approximately 9% [10] Future Outlook - The company plans to strengthen its balance sheet and build working capital through year-end while converting productivity from the 183-D4 well into cash flow [11] - The strategy moving forward includes continued cash flow growth, capacity expansion, and balancing reinvestment with shareholder returns [12]