Alvopetro Energy (ALVOF) investor relations material

Executive summary

• Q2 2025 marked the first quarter of sales from newly acquired Western Canadian assets, with total sales volumes averaging 2,436 boepd, up 50% year-over-year and consistent with Q1 2025.

• Achieved strong operating and financial results, exceeding expectations, with a disciplined capital allocation model and balanced reinvestment and stakeholder return approach.

• Upgraded gas sales agreement increased firm gas sales volumes by 33%, driving strong operational and financial performance into 2025.

• First Brazilian integrated onshore natural gas producer, leveraging high-return opportunities in Brazil and Canada.

• Proven management team with a successful track record and focus on value, yield, and growth.

Financial highlights

• Q2 2025 revenue reached $14.0 million, a 31% increase from Q2 2024, driven by higher sales volumes.

• Q2 2025 funds flow from operations reached $10.4 million; working capital at $6.8 million.

• Net income was $6.8 million, up 191% year-over-year, with EPS of $0.18.

• Quarterly dividend of $0.10/share declared, with a current annualized yield of 9.4%.

• 2P reserves at 9.1 MMboe; 2P NPV10 before tax $327.8 million, after tax $273.0 million.

Outlook and guidance

• Near-term target in Brazil is 3,000 BOE/d (18 MMcf/d), aiming to fill current gas plant capacity and potentially double longer term.

• Updated gas sales agreement effective January 2025 increases firm sales volumes by 33%.

• The 183-D4 well and two new multi-lateral wells in Canada are expected to be on production in Q3 2025.

• Canadian operations expected to become self-funding quickly, with a multiyear plan to drill up to 52 wells.

• Multi-year development plan in Murucututu with potential for 6+ new wells and significant resource upside.