Arrow Exploration (AXL) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with net sales revenue of $23.5 million, robust operational performance in Colombia, and average production of 4,715 boe/d, up 15% year-over-year and 19% sequentially, driven by the Mateguafa Attic field.

• Five major discoveries to date, with ongoing development and exploration drilling, including recent success at Icaco and Carrizales Norte, and a post-period oil discovery at Icaco-1.

• Maintains a healthy balance sheet with no debt, $24 million in cash as of May 1, and a market cap just under $90 million as of May 21, 2028.

• Fully financed for ongoing operations, with cash flow consistently outstripping CapEx and growth and drilling activities funded by cash on hand and operating cash flow.

• Aggressive growth targeted, aiming to reach 10,000 bpd within 24 months.

Financial highlights

• Net sales revenue of $23.5 million in Q1 2026, a 21% increase year-over-year.

• Netback per barrel at $42, with both revenue and netback increasing; realized corporate oil operating netbacks improved to $41.05/bbl.

• Cash balance of $24 million as of May 1, 2026, and no debt.

• Adjusted EBITDA increased 22% year-over-year to $14.1 million; net income reached $5.2 million for the quarter.

• Operating cash flow for Q1 2026 was $13.6 million, with capital expenditures totaling $7.8 million.

Outlook and guidance

• Confident in securing Tapir Block extension, which is expected to unlock further drilling and development, with ongoing engagement with authorities.

• Plans for aggressive drilling and exploration if extension is granted, prioritizing reinvestment over share buybacks.

• Ongoing evaluation of M&A opportunities, with several potential deals under review.

• Focus for the remainder of 2026 includes further drilling at Icaco, Alberta Llanos, and Carrizales Norte pads, plus recompletions to boost productivity.

• Targeting production growth to 10,000 bpd within 24 months.