Alvopetro Energy (ALVOF) Q3 2025 earnings summary

Executive summary

• Achieved record production and sales in Q3 and October 2025, averaging up to 2,923 boepd, driven by strong performance in Brazil and new Canadian output.

• Strong operational results with successful new well completions, notably the Murucututu 183-D4 well exceeding pre-drill estimates.

• Strategic expansion in Western Canada, adding significant acreage and drilling initial wells, covering nearly all of the Saskatchewan Mannville Stack Heavy Oil play fairway.

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

• Disciplined capital allocation and balanced reinvestment and stakeholder return model underpin strong financial and operating results.

Financial highlights

• Q3 2025 production averaged between 2,343 and 2,923 boepd, with 89% natural gas.

• Funds flow from operations was $10.4 million, flat quarter-over-quarter and up 6% year-over-year.

• Net income for Q3 2025 was $4.6 million ($0.12/share), down 36% year-over-year due to impairment losses and higher depletion.

• Operating netback margin was 85%, with realized price per boe of $65.76 and netback of $55.90/boe.

• Dividend yield just under 9%, with $0.10/share paid for three consecutive quarters and $3.7 million declared in Q3 2025.

Outlook and guidance

• Q4 capital expenditures expected to be lower, with limited spending in Brazil and new drilling in Canada starting December.

• 2026 capital budget to be set in the next 30–60 days; Brazil drilling may resume by end of Q1 2026.

• Near-term goal to reach 18 MMcfepd and longer-term vision of 35 MMcfepd in Brazil, with multi-year development plan in Murucututu.

• Focus on expanding Bahiagás sales capacity and optimizing Murucututu infrastructure for future growth.

• Two earning wells in Canada expected to commence drilling in late 2025, expanding land position.