TENAZ ENERGY CORP. ANNOUNCES Q3 2025 RESULTS

Executive Summary

• Tenaz posted a material turnaround in Q3 2025 with net income of C$24.8 M ($0.87/share) versus a loss a year earlier, driven by the TEN acquisition and strong production growth to 11,832 boe/d.
• Completed the GEMS Acquisition (US$232 M cash + US$12 M equity) and raised $178.9 M from an additional tranche of senior unsecured notes plus a new $115 M revolving credit facility.
• Updated 2025 production guidance to 9,500‑10,000 boe/d and D&D CAPEX guidance to $100‑$110 M; net debt reduced to C$55 M.

Key Details

• Financial Highlights (Q3 2025)
• Production: 11,832 boe/d (↑48% QoQ).
• Funds flow from operations: C$40.2 M ($1.42/share).
• Operating netback: $49.08/boe (↑62% YoY).
• Net income: C$24.8 M ($0.87/share) vs. loss of C$2.5 M a year earlier.
• Capital expenditures: C$13.1 M; free cash flow: C$27.1 M.

• Net debt: C$55.0 M (down from C$100.2 M Q2).

• Acquisitions

• GEMS Acquisition – purchase of Hansa Hydrocarbons Ltd.: US$232 M cash + US$12 M in Tenaz shares; additional contingent consideration up to US$60 M based on exploration success.

• Hedged 13,785 MMBtu/d (Oct 2025‑Dec 2027) protecting €99.5 M of revenue.

• Financing

• Additional issuance under November 2024 Senior Unsecured Notes: gross proceeds $178.9 M at an 8.4% premium; coupon 12%; yield‑to‑maturity ≈9.5%; maturity May 2027, call Nov 2029.

• New revolving reserve‑based lending facility: $115 M commitment (replaces prior $20 M facility), undrawn, two‑year term.

• Resource Report (TEN assets)

• Contingent resources (unrisked): 11.8‑29.0 MMboe; risked best estimate 12.9 MMboe with NPV10 of US$248.4 M (€152.4 M).

• Prospective resources (unrisked): 81.9‑412.3 MMboe; risked mean 60.7 MMboe; two near‑term prospects totalling 4.4 MMboe unrisked best estimate, NPV10 US$90.0 M (€55.2 M).

• Operational Updates

• TEN offshore turnarounds completed on L02 (30‑day) and K08 (20‑day) platforms; workover barge Seafox‑4 deployed to K15‑FK and K15‑FA.
• Shelf Drilling “Winner” jack‑up rig scheduled to arrive at K07‑FB in Nov 2025; DWOP exercise completed.

• Canadian operations: record production, new compressor installed, three gross (2.4 net) wells delivering ~1,020 boe/d gross.

• Guidance Revision

• 2025 production guidance raised to 9,500‑10,000 boe/d.

• D&D CAPEX guidance revised to $100‑$110 M.

• Shareholder Returns

• NCIB program repurchased 0.2 M shares for C$3.8 M at $15.54/share (average).
• Year‑to‑date total shareholder return: 88%; cumulative since 2021 recapitalization: 1,380%.

Notable Quotes

• “We built on our earlier entry into the Netherlands to establish a material Dutch business… Tenaz is now the largest gas producer in the Netherlands.” – Anthony Marino, President & CEO.