Core Insights - Valeura Energy Inc. reported a record cash position of US$305.7 million as of December 31, 2025, with no debt, aligning with its guidance outlook for 2025 [1] - The company successfully completed a drilling campaign at Block B5/27, which is expected to enhance oil production and contribute to reserves replacement [1] - The guidance outlook for 2026 aims to continue generating long-term value for shareholders [1] Q4 and Full Year 2025 Highlights - Average oil production in Q4 2025 was 24,721 barrels per day (bbls/d), leading to a full year average of 23,242 bbls/d for 2025 [1] - A total of 2.523 million barrels of oil were sold in Q4 2025, with an annual total of 8.466 million barrels sold for the full year [1] - Price realizations in Q4 2025 averaged US$64.0 per barrel, resulting in Q4 revenue of US$161.4 million and total revenue of US$594.4 million for the full year [1] - Greenhouse gas (GHG) intensity was reduced by 13% for the full year 2025, achieving a total reduction of 30% since the acquisition of the Thailand portfolio in 2023 [1] - Nine production-oriented development wells were completed at the Jasmine and Ban Yen fields in Q4 2025, achieving a 100% success rate, including a record length for a horizontal well in the Gulf of Thailand [1]

Financial Data and Key Metrics Changes - Consolidated average production for Q2 2025 reached 27,380 barrels of oil equivalent per day, with a year-to-date average of 28,223 barrels per day, reflecting a 6% decline compared to the previous quarter due to divestments and local blockades [6][10] - Adjusted EBITDA was $71.5 million with a 60% margin, driven by cost discipline and a $4.9 million gain from the commodity hedging program [9][10] - The company reported a net loss of $10.3 million for the quarter, but excluding a nonrecurring impairment charge, the net profit amounted to $20.7 million, significantly higher than previous quarters [12] Business Line Data and Key Metrics Changes - Janus 34 delivered 17,605 barrels of oil equivalent per day, exceeding expectations due to effective management and operational efficiencies [7] - Average well costs were reduced by more than 30%, and pad-to-pad mobilization time dropped from seven days to just eighteen hours [7][9] - CPO-five's performance remained stable despite some production impact from downtime, and the field is currently operating normally [8] Market Data and Key Metrics Changes - The company expects a full-year organic production range of 26,000 to 28,000 barrels of oil equivalent per day, excluding volumes from inorganic acquisitions [10] - Adjusted EBITDA for the full year is projected to be between $260 million and $290 million at Brent prices of $65 to $70 per barrel [11] Company Strategy and Development Direction - The company is focused on enhancing field productivity, stabilizing production, and improving returns over time, with a rigorous portfolio reassessment ongoing [5] - There is a commitment to responsibly increase investment and accelerate development in Colombia's oil and gas sector [5] - The company plans to divest its interest in the Perico and Espejo blocks in Ecuador to prioritize high-return assets [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged strong operational and financial results despite market volatility and lower Brent prices [6] - The CEO emphasized the importance of protecting the existing business while creating additional value and returning to a pathway of growth [17] - The company is actively assessing opportunities in Argentina, particularly in the Vaca Muerta region, and is open to both operating and non-operating partnerships [22][41] Other Important Information - The Board approved a dividend payment of $7.5 million for 2025, reflecting the company's performance during the period [12] - The company completed an open market repurchase of $54.5 million of its 2030 notes, enhancing long-term financial flexibility [10] Q&A Session Summary Question: Can you provide examples of areas for improvement in the company? - The CEO noted that the company is focused on protecting the existing business and creating additional value, with ongoing efforts to enhance operational efficiencies and address natural production declines [19] Question: What is the status of inorganic growth opportunities, particularly in Argentina? - The CEO confirmed that the company is actively looking at opportunities in Argentina, particularly in the Vaca Muerta region, and is open to both operating and non-operating roles [22][41] Question: How are you approaching reserves replacement and capital allocation? - The CEO highlighted a focus on both organic and inorganic efforts for reserves replacement, with an increased capital expenditure guidance reflecting good opportunities [28][29] Question: What are the company's cash allocation priorities moving forward? - The company aims to balance capital allocation between organic CapEx, M&A opportunities, and dividends, with a disciplined approach to managing cash [104]