Maurel & Prom Sales Fall as Lower Oil Prices Weigh on 2025 Results

Core Insights - Maurel & Prom experienced a significant revenue decline in 2025 due to weaker crude prices, with sales dropping to $578 million from $808 million in 2024, as the average realized crude price fell to $69.4 per barrel from $80.3 per barrel [1] Financial Performance - The company generated $249 million in EBITDA and $236 million in free cash flow in 2025, supported by steady production from existing assets [2] - Average production was reported at 37,096 barrels of oil equivalent per day (boepd), marking a 2% increase compared to the previous year [2] Operational Highlights - The increase in output helped mitigate the impact of lower oil prices, maintaining strong cash generation from producing fields [3] - Venezuelan operations showed strong performance, with production from the M&P Iberoamerica working interest rising 34% to 8,194 barrels per day in 2025, alongside a significant increase in reserves [3][4] Reserves and Regulatory Changes - Proved and probable reserves associated with the Venezuelan project increased to 148 million barrels from 80 million barrels at the end of 2024, following regulatory changes under U.S. Treasury General License 50A [4] Capital Expenditure and Exploration - Development capital expenditure reached $169 million in 2025, with plans to increase to $240 million in 2026; exploration investment is also set to rise to $42 million in 2026 from $15 million in 2025 [5] - Key exploration activities include a six-well drilling campaign in Colombia's Sinu Basin, the MB-5 well in Tanzania indicating potential production of around 130 million cubic feet per day, and the Mouletsi-2 well in Gabon demonstrating production potential of 25 million cubic feet per day [6]