PetroTal Announces Q4 and Full Year 2025 Results

Core Insights - PetroTal Corp. reported solid financial and operational results for 2025, with a 9% increase in production compared to 2024, despite weaker oil prices [5][7] - The company returned $44 million to shareholders through dividends and share buybacks, while generating $90 million in free funds flow and ending the year with nearly $140 million in cash [5][7] - Future plans include optimizing water handling capacity at Bretana and resuming development drilling by October 2026 [5][12] Financial Performance - Average Q4 2025 production was 15,258 barrels of oil per day (bopd) and average sales were 15,059 bopd [7] - For FY 2025, average production was 19,473 bopd, with sales at 19,212 bopd, both representing a 9% increase from FY 2024 [7] - Adjusted EBITDA for Q4 2025 was $18.5 million ($13.38/bbl) and for FY 2025 was $166.3 million ($23.71/bbl) [7] - Annual net income for FY 2025 was $44.2 million, down from $111.5 million in FY 2024 [7] - Total cash at year-end 2025 was $139.1 million, an increase from $114.5 million at year-end 2024 [7][15] Operational Updates - The company is focused on resuming development drilling at Bretana, with plans to award a contract to a third-party drilling contractor [6][12] - As of March 23, 2026, production averaged approximately 15,000 bopd YTD, with constraints due to water reinjection capacity [11] - The erosion control project has faced delays, prompting the company to terminate its contract with the current consortium and seek new contractors [6][13] Environmental and Regulatory Developments - On March 18, 2026, Peru's National Environmental Certification Service approved the modification of the Detailed Environmental Impact Study for the expansion of the Bretaña Norte oil field, allowing for the drilling of up to 23 additional production wells [14] Cash and Liquidity - The company ended Q4 2025 with a total cash position of $139.1 million, with $112.4 million being unrestricted [15] - PetroTal executed hedges on 1.5 million barrels of forward oil production through March 2027, covering approximately 24% of estimated 2026 production volumes [16]