Petrotal earns $44.18-million (U.S.) in 2025

Executive Summary

• Petrotal Corp. released its Q4 and full-year 2025 financial results, reporting a decline in annual net income to $44.2 million (down from $111.5 million in 2024) despite a 9% increase in production volume.
• The company generated $90.4 million in annual free funds flow and ended the year with $139.1 million in cash, while returning $44 million to shareholders via dividends and share buybacks before pausing distributions in November 2025.
• Key operational updates include the approval of a tender for a drilling contractor to resume development drilling at Bretana by October 2026, the termination of the erosion control project contract due to delays, and the approval of a modified environmental impact assessment allowing for up to 23 additional production wells.

Key Details

• Production:
  • Q4 2025 average sales: 15,059 bopd; average production: 15,258 bopd.
  • Full-year 2025 average sales: 19,212 bopd; average production: 19,473 bopd (approx. 9% increase vs. 2024).
  • YTD 2026 production (as of March 23): ~15,000 bopd (14,550 bopd from Block 95/Bretana, 450 bopd from Block 131).
• Financial Performance:
  • Q4 2025 Adjusted EBITDA: $18.5 million ($13.38/barrel).
  • Full-year 2025 Adjusted EBITDA: $166.3 million ($23.71/barrel).
  • Full-year 2025 Net Income: $44.2 million (vs. $111.5 million in 2024).
  • Full-year 2025 Free Funds Flow: $90.4 million ($12.90/barrel) (vs. $74.1 million in 2024).
  • Q4 2025 Development Capex: $15.3 million; Full-year 2025 Development Capex: $75.6 million (vs. $172.1 million in 2024).
  • Cash Position: $139.1 million at year-end 2025 (vs. $114.5 million at year-end 2024).
• Capital Return:
  • Total capital returned in 2025: ~$44 million (dividends of 4.5 cents/share and repurchase of 4.9 million shares).
  • Distribution programs paused in mid-November 2025.
• Operational Updates & Strategy:
  • Drilling: Board approved tender award to third-party drilling contractor; rig import expected Q2 2026; next Bretana development well spud expected October 2026.
  • Erosion Control: Contract with current consortium terminated due to schedule delays; $31.1 million cumulative investment to date; new contract expected by end of May 2026.
  • Environmental Approval: Modified Environmental Impact Assessment (MEIA-d) approved March 18, 2026, for Bretana Norte expansion, permitting up to 23 production wells and 5 injection wells (potential 50,000 bopd).
  • Hedging: Executed hedges on 1.5 million barrels through March 2027 (24% of 2026 production); costless collars with $60 floor, $73 ceiling, and $93 cap; mark-to-market value negative $10.4 million as of March 24, 2026.
  • Water Handling: Current reinjection capacity ~170,000 b/wpd; 5 horizontal wells shut-in due to constraints; evaluating facility optimization to raise capacity.

Notable Quotes

• "Petrotal reported solid financial and operational results in 2025, increasing our production by an average of 9 per cent over 2024, while returning $44-million to shareholders through dividends and share buybacks. Despite substantially weaker oil pricing in 2025, we generated $90-million of free funds flow and ended the year with almost $140-million of cash on our balance sheet." — Manuel Pablo Zuniga-Pflucker, President and CEO
• "To that end, I am pleased to report that our board of directors has made the important step of approving a tender award to a third party drilling contractor, which keeps us on schedule to resume development drilling at Bretana by October, 2026... This week, we have also made the decision to terminate our contract with the consortium that is managing the erosion control project. The project has fallen behind schedule, and we felt a change in management was required to complete the project in a safe, timely and cost-effective manner." — Manuel Pablo Zuniga-Pflucker, President and CEO