Valeura Energy Inc. Announces Second Quarter 2025 Results

Executive Summary

• Valeura Energy Inc. reported unaudited financial and operating results for the three and six months ended June 30, 2025, highlighting strong cash generation despite lower oil prices.
• The company achieved an average daily oil production of 21,412 bbls/d in Q2 2025, with a realized price of US$67.9/bbl, generating US$129.3 million in revenue.
• Key strategic developments include the Final Investment Decision (FID) on the Wassana field redevelopment and a new farm-in agreement with PTTEP to acquire a 40% working interest in Blocks G1/65 and G3/65.

Key Details

• Financial Performance (Q2 2025):
  • Oil Production: 1,949,000 bbls (Average Daily: 21,412 bbls/d).
  • Oil Sales: 1,902,000 bbls.
  • Average Realized Price: US$67.9/bbl (down 23% YoY).
  • Oil Revenue: US$129.3 million.
  • Adjusted EBITDAX: US$62.4 million.
  • Adjusted Pre-Tax Cashflow from Operations: US$51.6 million.
  • Adjusted After-Tax Cashflow from Operations: US$50.5 million.
  • Net Income: US$5.4 million.
  • Operating Expenses: US$43.8 million; Adjusted Opex: US$54.6 million (US$28.0/bbl).
  • Adjusted Capex: US$48.9 million.
• Balance Sheet & Liquidity:
  • Cash and Cash Equivalents: US$242.0 million (includes US$23.2 million restricted cash).
  • Net Cash Position: US$242.0 million (No debt).
  • Adjusted Net Working Capital: US$261.6 million.
  • Shareholder’s Equity: US$542.7 million.
• Operational Updates:
  • Jasmine/Ban Yen: Average production 7,880 bbls/d. Completed 8-well drilling campaign (6 development wells now producing). Commissioned low-BTU gas generator on Jasmine B platform.
  • Nong Yao: Average production 8,401 bbls/d. 10-well development drilling campaign underway, expected completion in Q4 2025.
  • Wassana: Average production 3,140 bbls/d. FID taken in May 2025 for new central processing platform; construction commenced. First production targeted for Q2 2027. No further drilling planned from existing MOPU.
  • Manora: Average production 1,991 bbls/d. Two well workovers performed. Agreed to purchase FSO system for US$15.5 million (delivery Jan 30, 2026).
  • Recent Production: August production (through Aug 5) averaged 23,150 bbls/d, an ~8% increase over Q2 average.
• Strategic Agreements:
  • PTTEP Farm-In: Entered agreement to earn 40% working interest in Blocks G1/65 and G3/65 (offshore Gulf of Thailand).
  • Consideration: Payment of US$14.7 million in back costs (as of June 30, 2025) and carrying PTTEP on US$3.7 million of seismic acquisition.
  • Status: Subject to Government of Thailand approval.
• Guidance (Re-iterated):
  • Average Daily Oil Production: 23.0 - 25.5 mbbls/d.
  • Adjusted Opex: US$215 - 245 million.
  • Adjusted Capex and Exploration Expense: US$175 - 195 million (increased from previous US$136-161M due to exploration focus).
  • Free Cash Flow: US$80 - 195 million (reduced from previous US$112-227M).

Notable Quotes

• Dr. Sean Guest, President and CEO: "We are taking bold steps to evolve our business and to assure value creation through growth in the long-term. During Q2 we took a positive final investment decision on the Wassana field redevelopment project and have now started the construction phase... More recently, our strategic farm-in with PTTEP will add a new level of depth and diversity to our portfolio... Our business remains fundamentally healthy and capable of supporting our investment plans."