Core Viewpoint - Orca Energy Group Inc. reported strong operational results in Q3 2025, with a 7% increase in gas deliveries over the quarter and a 4% increase year-to-date, driven by higher industrial consumption and demand for services and products [2][3]. Financial Performance - Revenue decreased by 12% to $21.7 million for Q3 2025 and by 4% to $71.4 million for the nine months ended September 30, 2025, primarily due to increased revenue share for the Tanzanian Petroleum Development Corporation (TPDC) [3][6]. - Net income attributable to shareholders surged by 834% to $19.5 million for Q3 2025 and by 889% to $42.0 million for the nine months ended September 30, 2025, mainly due to the reversal of loss allowance and recognition of interest income from TANESCO [3][6]. - Net cash flows from operating activities increased by 215% to $32.3 million for Q3 2025 and by 306% to $84.5 million for the nine months ended September 30, 2025, attributed to higher payments from TANESCO [3][6]. Operational Highlights - Daily average gas delivered and sold increased by 7% to 71.1 MMcfd for Q3 2025 and by 4% to 70.5 MMcfd year-to-date [6]. - Industrial gas deliveries rose by 18% to 20.9 MMcfd for Q3 2025 and by 32% to 19.5 MMcfd year-to-date, while power gas deliveries increased by 3% to 50.2 MMcfd for Q3 2025 but decreased by 4% year-to-date [6]. Legal and Regulatory Matters - The company is actively managing ongoing legal proceedings in Tanzania, including a dispute with Swala Oil & Gas (Tanzania) Plc, which claims damages of approximately $238 million [4][5]. - An anti-suit injunction was filed against Swala in the High Court of England and Wales to prevent them from pursuing claims in Tanzania [8]. - The company has submitted Requests for Arbitration to the International Centre for Settlement of Investment Disputes (ICSID) against the Government of Tanzania for breaches of investment protections [8]. Capital Expenditures and Financial Position - Capital expenditures decreased significantly by 98% to $0.2 million for Q3 2025 and by 94% to $0.8 million for the nine months ended September 30, 2025, primarily due to deferred projects [3][6]. - The company ended Q3 2025 with cash and cash equivalents of $127.9 million and working capital of $56.2 million, reflecting a strong liquidity position [3][6]. Outlook - The company anticipates a production guidance for 2026 between 60 – 65 MMcfd, a decrease from 2025 due to field decline and seasonal variations [10]. - There is ongoing uncertainty regarding the Songo Songo License extension application, which is critical for the company's long-term sustainability in Tanzania [11][12].