PetroTal Announces Q2 2025 Financial and Operating Results

Executive Summary

• PetroTal reported Q2 2025 financial results, posting Net Income of $17.5 million ($9.35/bbl) and Adjusted EBITDA of $44.3 million ($23.66/bbl), driven by average production of 20,578 bopd.
• The Company revised its 2025 guidance downward due to lower oil prices and drilling delays: production is now expected at 20,000–21,000 bopd (down from 21,000–23,000 bopd), and capital expenditures are reduced to $80 million (down from $140 million).
• A quarterly dividend of $0.015 per share was declared, payable on September 12, 2025, with a record date of August 29, 2025.

Key Details

• Financial Performance (Q2 2025):
  • Net Income: $17.5 million ($9.35/bbl).
  • Adjusted EBITDA: $44.3 million ($23.66/bbl).
  • Free Funds Flow: $27.2 million ($14.55/bbl).
  • Oil Revenue: $80.1 million.
  • Net Operating Income: $51.3 million.
• Operational Metrics (Q2 2025):
  • Average Sales: 20,578 bopd.
  • Average Production: 21,039 bopd.
  • Average Brent Price: $65.55/bbl.
  • Realized Sales Price (Net): $42.78/bbl.
  • Capital Expenditures: $17.1 million (H1 2025 Capex total: $40.7 million).
• 2025 Guidance Revisions:
  • Production: Revised to 20,000–21,000 bopd (previously 21,000–23,000 bopd).
  • Adjusted EBITDA: Revised to $170–185 million (previously $240–250 million), based on Brent prices of $65–70/bbl in H2.
  • Capital Expenditures: Revised to $80 million (previously $140 million), reflecting deferral/cancellation of non-essential projects and drilling delays.
• Dividend Declaration:
  • Amount: $0.015 per common share.
  • Record Date: August 29, 2025.
  • Ex-Dividend Date: August 29, 2025.
  • Payment Date: September 12, 2025.
• Block 95 (Bretana Field) Updates:
  • Q2 Average Production: 20,512 bopd.
  • Pump Failures: Four producing wells experienced pump failures in Q4 2024/Q1 2025; all pumps were replaced ahead of schedule by end of July 2025, restoring ~4,400 bopd.
  • July Production: Averaged ~20,000 bopd.
  • Infrastructure: CPF-4 processing facility installed, increasing nominal treatment capacity to 26,000 bopd.
  • Constraints: Production constrained by water treatment capacity (~170,000 bwpd).
  • Strategy: Investment paused on several projects to optimize long-term development plan; revised field development plan expected for year-end 2025 reserve report.
• Block 131 (Los Angeles Field) Updates:
  • Q2 Average Production: 526 bopd.
  • Workovers: Service rig mobilizing for workover program on at least three wells (scheduled into September 2025), expected to increase production by 500–1,500 bopd.
  • Drilling: Evaluating options to secure a drilling rig for development program pending workover results.
• Erosion Control Project:
  • Q2 Expense: $0.7 million.
  • Status: Project ~1 month behind schedule due to flooding; targeted completion Q3 2026.
  • Progress: Main piling barge and steel components arrived at Bretana; test piles to commence within two weeks.
• Cash and Liquidity:
  • Total Cash: $142.1 million (including $99.3 million unrestricted).
  • Restricted Cash: $42.8 million (primarily $31.9 million related to COFIDE loan escrow).
  • COFIDE Loan: First tranche drawn on May 20, 2025.
  • Hedging: Costless collars covering ~44% of remaining 2025 sales volumes; Brent floor $65.00/bbl, ceiling $82.50/bbl. Recorded $5.6 million gain on hedges as of June 30.

Notable Quotes

• Manuel Pablo Zuniga-Pflucker, President and CEO: "PetroTal has once again delivered strong results in the second quarter of 2025, reflecting our ongoing commitment to profitable long-term growth. Even under lower oil prices this quarter, PetroTal is reporting free cash flow of more than $27 million, while holding our available cash reserves broadly flat near $100 million."
• Manuel Pablo Zuniga-Pflucker, President and CEO: "As discussed in our July 14 operations update, we have encountered delays in the resumption of our development drilling program. As a result, we are revising our 2025 production guidance to a range of 20,000 to 21,000 bopd, from 21,000-23,000 bopd previously."
• Manuel Pablo Zuniga-Pflucker, President and CEO: "At the Bretana field, we are taking advantage of the gap in our drilling campaign to fully optimize our long-term plans for the asset, an exercise which takes on heightened importance given recent weakness in oil pricing."