Questerre reports first quarter 2026 results

Questerre reported first‑quarter 2026 earnings on May 14, 2026. The headline number was a sharp jump in adjusted funds flow from operations to $20.8 million (vs. $4.3 million in Q4 2025) propelled by full‑quarter consolidation of the PX Energy Brazil operations and significant cost‑cutting. Average daily production reached 6,180 boe/d, more than triple the year‑earlier level of 1,729 boe/d. Lifting costs in Brazil fell 30 % to $17.5 million. At the same time, the company posted a $17.8 million net loss and reported a working‑capital deficit of $49.6 million as of March 31, 2026. Earlier in the quarter, Questerre closed the $23.5 million sale of its non‑operated Kakwa Central assets, strengthening the balance sheet, and resolved the PX Energy joint‑venture term sheet, leaving it as 100 % owner of the Brazilian operations. The corporate reorganization that spun out Quebec assets into a new series of preferred shares was completed in January.

The Q1 2026 results are positive but largely anticipated. The production increase and cost reductions confirm that management’s operational turnaround at PX Energy is taking hold, and the $23.5 million asset sale provides temporary liquidity relief. However, the net loss of $17.8 million and the stubbornly high working‑capital deficit of $49.6 million underscore that the company is still burning cash and heavily reliant on short‑term financing. The market had already priced in the improvements: the stock moved only modestly from $0.30 before the quarter to $0.33 on the report, then retreated slightly. The news does not contain any unexpected, game‑changing elements; it is a routine confirmation that the Brazilian cost‑cutting is on track but that profitability remains elusive.

Questerre Energy Corporation is an oil‑shale‑focused producer. Its flagship is the PX Energy operation in southern Brazil, which uses Petrosix technology to produce and refine oil shale. Following the expiration of a joint‑venture term sheet in January 2026, Questerre holds 100 % of PX Energy. The company also owns Red Leaf Resources’ patented HCCO® oil‑shale processing technology and mineral leases in Utah, as well as a historical Quebec oil‑shale asset that has been spun out into publicly listed tracking preferred shares. The non‑core Western Canadian assets (Kakwa) were sold in May 2026.