Core Insights - Tenaz Energy Corp. reported significant financial and operational improvements for Q3 2025, including a 48% increase in production volumes and a substantial rise in funds flow from operations [5][10][15] Financial Performance - Production volumes averaged 11,832 boe/d in Q3 2025, up 48% from Q2 2025, attributed to contributions from Tenaz Energy Netherlands [5][10] - Funds flow from operations for Q3 was $40.2 million ($1.42/share), compared to $17.2 million ($0.61/share) in Q2 2025, driven by the TEN acquisition [5][10] - Operating netback improved to $49.08/boe in Q3 2025, a 62% increase from the previous year, due to higher margins from TEN assets [5][10] - Net income for Q3 2025 was $24.8 million ($0.87/share), a turnaround from a loss of $2.5 million in Q3 2024 [5][10] - Tenaz ended Q3 2025 with a net debt position of $55.0 million, down from $100.2 million at the end of Q2 2025 [5][10] Corporate Developments - On October 6, 2025, Tenaz announced the acquisition of Hansa Hydrocarbons Limited, enhancing its interests in the GEMS project in the North Sea [18][19] - The GEMS acquisition was valued at $232 million in cash and $12 million in Tenaz shares, with potential additional payments based on future exploration success [19][20] - Production guidance for 2025 was increased to 9,500 to 10,000 boe/d, reflecting contributions from TEN and GEMS [36] Operational Highlights - The company successfully completed two offshore turnarounds in Q3 2025, with net production for Netherlands assets averaging 9,506 boe/d [22] - Canadian production reached a record level, up 2% from Q2 2025 and 51% from Q3 2024, with strong performance from recent wells [26] - Significant capital expenditure guidance was revised to a range of $100 to $110 million for D&D CAPEX [36] Resource Evaluation - The Resource Report for TEN assets indicated contingent resources of 11.8 million boe (1C) to 29.0 million boe (3C), with a risked best estimate of 12.9 million boe [11][44] - Prospective resources were estimated at 81.9 million boe (low) to 412.3 million boe (high), with a risked mean of 60.7 million boe [11][45] Market Environment - TTF gas prices averaged €32.43/MWh ($15.30/Mcf) in Q3 2025, supported by increased LNG imports into Europe [27][28] - The company has hedged approximately 56% of its Q4 2025 TTF gas production at an average price of €34.21/MWh ($16.31/Mcf) [29]