Tenaz Energy Corp. Announces Q1 2026 Results

• Tenaz Energy Corp. reported Q1 2026 production averaged 16,183 boe/d, a 4% increase from Q4 2025 and nearly five times higher than Q1 2025.
• Operating netback for Q1 2026 was $57.48/boe, representing a 19% increase from the previous quarter, driven by increased exposure to European gas.
• Funds flow from operations (FFO) reached $64.6 million for the quarter, compared to $62.1 million in Q4 2025.
• The company increased its 2026 capital investment target to $300 million (up from a previous range of $250–$275 million) to support organic growth and workover programs.
• Net Debt increased to $389.4 million, an increase of $44.3 million over Q4 2025.
• Liquidity was secured via a new two-year Reserve Based Loan (RBL) with an overall limit of $250 million; $35 million was drawn at the end of the quarter.
• Production guidance remains unchanged at 19,500 to 22,500 boe/d for 2026.

• The operational delivery confirms the growth trajectory established in Q4 2025 and the GEMS acquisition, validating management's execution strategy.
• Production guidance remains unchanged despite a capex increase, suggesting the additional $25 million budget is allocated to workovers or optimization rather than immediate volume expansion.
• Net debt increased by $44.3 million quarter-over-quarter; while FFO covers this comfortably (~6 quarters of coverage), the leverage ratio is rising and warrants monitoring if commodity prices soften.
• The market reaction (price drop from ~$67 to $61.30 post-release) indicates skepticism regarding the debt increase or capex intensity, tempering the positive operational news.
• No new strategic investors or M&A activity was announced in this release; the growth story is now execution-focused rather than acquisition-driven.

• Tenaz Energy Corp. is a Canadian oil and gas company focused on natural gas production in the Netherlands North Sea and Canada.
• Flagship Project: The GEMS asset (acquired from Hansa Hydrocarbons Ltd.) provides significant reserves and production ramp-up potential in the Dutch North Sea.
• TEN Offshore Assets: Operated assets in the Netherlands providing stable base production with workover programs to maintain output.
• Canadian Operations: Ellerslie and Sparky intervals producing oil and gas, contributing to overall boe/d mix.