Valeura Energy Inc.: Q4 2025 Update and 2026 Guidance

Core Insights - Valeura Energy Inc. reported a strong Q4 2025 performance, achieving a record cash position and successful drilling campaign, which is expected to enhance reserves replacement and long-term shareholder value [1][4][9] Q4 and Full Year 2025 Highlights - Average working interest share oil production before royalties was 24.7 mbbls/d in Q4 2025, marking a 7.6% increase from the previous quarter [9][10] - Full year average oil production reached 23,242 bbls/d, a 1.8% increase over 2024 [10] - The company achieved a record cash position of US$305.7 million with no debt as of December 31, 2025 [12] - Oil sales totaled 2.523 million bbls in Q4 2025, leading to revenue of US$161.4 million, while full year revenue was US$594.4 million [11][9] 2026 Guidance Highlights - The company aims for a working interest share oil production of 19,500 - 22,500 bbls/d in 2026, with a mid-point target of 21,000 bbls/d [22] - Planned capital expenditure and exploration spending for 2026 is estimated between US$175 million and US$195 million, including US$70 million for the Wassana field redevelopment [21] - Adjusted operating expenses for 2026 are forecasted to be between US$190 million and US$220 million, potentially the lowest since assuming operatorship in Thailand [23] Operations Update - Valeura completed nine production-oriented development wells in Q4 2025 with a 100% success rate, contributing to increased production rates [9][16] - The company is progressing with the Wassana field redevelopment, which is 45% complete and on track for first oil production in Q2 2027 [14] - GHG intensity has been reduced by 30% since acquiring the Thailand portfolio in 2023, with a 13% reduction in 2025 alone [5][13] Future Growth and Exploration - Valeura is actively pursuing growth opportunities, including a farm-in transaction with PTT Exploration and Production Plc for Blocks G1/65 and G3/65 in the Gulf of Thailand [25] - The company is also engaged in a deep gas play in Türkiye, with ongoing testing operations showing promising results [15] - The 2026 work program includes drilling 16 development and appraisal wells across multiple fields to mitigate natural production declines and add reserves [20]