Tenaz Energy (TNZ) investor relations material

Executive summary

• Q3-26 production averaged 22,122 boe/d, up 29% QoQ and 42% since Q4-25; FFO was $131.3 million despite $54.4 million of realized pre-tax hedging losses.

• Organic North Sea drilling and workovers supported growth; 2027 guidance targets 26,000–30,000 boe/d, while a preliminary plan targets up to 40,000 boe/d by end-2030.

Financial highlights

• Q3 petroleum and natural gas sales were $273.7 million; FFO was $131.3 million ($3.97/basic share), versus $74.2 million in Q2-26.

• Free cash flow was $32.3 million after $99.0 million of capital investment; cash flow from operating activities was $98.6 million.

• Q3 net loss was $74.3 million, including a $285.0 million pre-tax unrealized derivative loss; Q2 net income was $89.0 million.

• Nine-month FFO was $270.1 million versus $58.4 million in 2025.

Outlook and guidance

• 2026 production is expected within 19,500–22,500 boe/d, toward the lower end; estimated capital investment is $300–$325 million.

• 2027 guidance is 26,000–30,000 boe/d on $300–$350 million of CAPEX, representing ~40% annual growth at the midpoint; forecast FFO is expected to more than fund the program.

• The 2027 plan includes 13 wells (7.2 net), multiple Netherlands workovers, and quarterly production growth, with faster growth expected late in the year.

• Preliminary 2027–2030 plans target up to 40,000 boe/d by end-2030, with $325–$450 million annual capital spending, 12–18 gross wells and annual workovers.

• The 2027 budget allocates ~85% to drilling and workovers and ~15% to long-lead purchases and facilities; free cash flow is intended for debt reduction and share repurchases.