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.

• Murucututu 183-D4 well in Brazil delivered IP30 rates of 1,071 boepd (5.8 MMcfpd and 97 bopd condensate), exceeding pre-drill estimates and supporting long-term growth.

• Strategic expansion in Western Canada, adding significant acreage, drilling four initial wells, and expanding partnerships in Saskatchewan.

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

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

Financial highlights

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

• Q3 2025 funds flow from operations was $10.4 million ($0.28 per share), with working capital at $2.2 million.

• Net income for Q3 2025 was $4.6 million, down $2.2–$2.5 million due to impairments and higher depletion and depreciation.

• Quarterly dividend for Q3 2025 was $0.10/share, with an annualized yield of 8.9%.

• 2P reserves at 9.1 MMboe, with 2P NPV10 before tax of $327.8 million and after tax of $273.0 million as of December 31, 2024.

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.

• Multi-year development plan in Murucututu with additional wells and facility expansion.

• Two new earning wells in Saskatchewan expected to commence drilling in late 2025, expanding land interest.