Financial Data and Key Metrics Changes - Production increased by 10% quarter over quarter to 33,500 barrels of oil equivalent per day, within guidance [6] - Adjusted EBITDA grew by 9% to $35 million compared to 2024 [7] - Unrestricted cash increased to over $120 million while net debt decreased by about $15 million to under $230 million [7][11] - Total debt reduced from $393 million at year-end 2024 to $350 million at the end of 2025 [11] Business Line Data and Key Metrics Changes - Nine low-cost, low-risk workovers were performed, positively impacting production and revenue [6] - Five workovers in Mobile Bay contributed to increased production at this long-life asset [7] - Capital expenditures (CapEx) for 2025 totaled $19 million, with expectations for full-year CapEx between $34 million and $42 million [11][12] Market Data and Key Metrics Changes - SEC proved reserves reported at 123 million barrels of oil equivalent, slightly down from 127 million at year-end 2024 [15] - Approximately 44% of midyear 2025 proved reserves were liquids, with 34% crude oil and 10% NGLs, while 56% were natural gas [16] - The pre-tax PV-10 of proved reserves was flat at $1.2 billion compared to year-end 2024 [17] Company Strategy and Development Direction - The company focuses on operational excellence and maximizing production across its asset portfolio [6] - Emphasis on low-risk acquisitions of producing properties rather than high-risk drilling in the current commodity price environment [11][12] - Plans to continue enhancing shareholder value through dividends and strategic asset management [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate regulatory changes and market conditions [20] - Positive outlook for production increases in the second half of 2025, driven by workovers and new field ramp-ups [13][14] - Management highlighted the importance of maintaining liquidity and financial flexibility amid market volatility [10][11] Other Important Information - The company celebrated its 20th anniversary as a publicly listed entity on the NYSE [5] - Recent settlements with surety providers are expected to alleviate financial pressures and improve operational conditions [18][19] Q&A Session Summary Question: What actions may the administration take to incentivize production in the Gulf Of America? - Management mentioned potential lower royalties and the need to address the idle iron act, which they view as counterproductive [25][26] Question: What is driving the expected production ramp in Q3? - The COO indicated that low-cost workovers and ramping up acquired fields will contribute to increased production [30] Question: How do surety and bonding issues impact acquisition strategies and liquidity? - Management clarified that resolving these issues will positively affect M&A activity and liquidity, as previous demands were seen as collusive [34][40] Question: Can you provide details on the properties contributing to the positive reserve revisions? - Management noted that better performance from Cox assets and optimization projects in Mobile Bay contributed to the revisions [44][46]

Core Insights - Petrobras has awarded a contract to Exail for the installation of 30 Quadrans Attitude and Heading Reference Systems (AHRS) on its Floating Production, Storage and Offloading (FPSO) units, enhancing safety and operational efficiency in offshore production [1][9] - The Quadrans AHRS provides high accuracy with a heading accuracy of 0.23° seclat RMS, crucial for real-time decision-making and stability monitoring during complex offshore operations [3][9] - The collaboration with Exail and Mitang reflects Petrobras' commitment to leveraging advanced technology to maintain Brazil's leadership in offshore energy production [5] Technology and Operational Efficiency - The Quadrans units are designed to be robust and maintenance-free, ensuring consistent performance in demanding marine environments and minimizing downtime during power cycles or disruptions [2] - Local technical support from Exail in Brazil ensures seamless integration of the AHRS system, aligning with Petrobras' high operational standards [4][9] Strategic Importance - This initiative is part of Petrobras' broader strategy to enhance offshore capabilities and drive innovation while maintaining high safety and efficiency standards [5] - The deployment of precision navigation tools like Quadrans AHRS is expected to play a vital role in the success of Petrobras' expanding operations in challenging marine environments [5]