Bonterra Energy Announces Year-End 2025 Results and Reserves Evaluation; Achieves Record Annual Production

Core Insights - Bonterra Energy Corp. achieved record annual production in 2025, reflecting disciplined growth and strategic asset optimization [2][3][7] Financial Performance - Production averaged 15,513 BOE per day in 2025, a 5% increase from 14,846 BOE per day in 2024, driven by the 2025 drilling program and well reactivation activities [3][7] - Revenue from realized oil and gas sales was $247.9 million in 2025, down from $279.9 million in 2024 [10] - Funds Flow totaled $94.2 million ($2.57 per fully diluted share), a decrease of 20% year-over-year, while Adjusted Free Funds Flow increased by 65% to $17.2 million [4][10] Operational Highlights - Field Netback averaged $22.05 per BOE and Cash Netback averaged $16.63 per BOE in 2025, with WTI crude oil prices averaging $64.81 per barrel [5][10] - Production costs increased slightly to $16.69 per BOE in 2025 from $16.54 per BOE in 2024, attributed to third-party infrastructure charges and higher activity levels [6][10] Capital Expenditures and Debt - Capital expenditures for 2025 were $69.9 million, consistent with guidance, and included the acquisition of Bonanza Assets for $15.3 million [8][10] - Net Debt at year-end was $179.0 million, with a net debt to EBITDA ratio of 1.6:1, up from 1.2:1 in 2024 [8][10] Reserves Evaluation - Total Proved reserves increased by 3% to 87.8 million BOE, while Total Proved Plus Probable reserves also rose by 3% to 109.7 million BOE [26][27] - The Reserve Life Index for Total Proved Plus Probable reserves is approximately 19.4 years, based on 2025 average production [26][27] 2026 Outlook - The company reaffirms its production guidance for 2026, expecting annual production between 16,200 to 16,400 BOE per day and capital expenditures of $75 million to $80 million [18][19] - The capital program aims to enhance production across all assets, focusing on optimizing cash flow from the Cardium and increasing exposure in the Charlie Lake and Montney plays [19][20]