Deutsche Rohstoff (DR0) CMD 2025 summary

Strategic direction and growth initiatives

• Focus on US oil and gas production with operations in Wyoming, Colorado, and new expansion into Ohio's Utica Shale, targeting both oil and gas with a balanced portfolio.

• Acquisition of acreage in Ohio for $11 million, aiming to build a significant land position in the Utica-Point Pleasant formation, leveraging technical expertise and recent M&A activity in the region.

• Continued partnerships and joint ventures, including a $40 million partnership in the Powder River Basin and ongoing co-investment with Oxy since 2022.

• Diversification through a significant stake in Almonty, a leading tungsten producer, with the Sangdong mine in South Korea starting production in 2025.

• Emphasis on operational efficiency, with declining CAPEX per well and improved well performance, driving higher returns and faster payback periods.

Financial performance and guidance

• 9M 2025 revenue at EUR 150m (down 12.5% YoY), EBITDA at EUR 102m (down 16.8%), and net profit at EUR 22m (down 39.3%), impacted by lower oil prices, FX losses, and upfront costs.

• Free cash flow improved to EUR 26m due to stable operations and lower CAPEX, with operating cash flow at EUR 119m.

• Net debt reduced to EUR 144m, leverage ratio at 1.0x, and equity ratio at 40.6% as of September 2025.

• 2025 guidance reaffirmed at the upper end: revenue EUR 170–190m, EBITDA EUR 115–135m, with strong start expected for 2026.

• EUR 50m bond issued in 2025, significantly oversubscribed, used to strengthen liquidity and reduce US credit lines.

Operational highlights and portfolio development

• Daily production averaged 13,680 BOEPD in 9M 2025, with strong Chinook wells offsetting fewer new wells drilled.

• Oil share of production continues to rise, supporting a positive revenue mix despite lower realized prices.

• Successful 2025 drilling program in the Powder River Basin, with Chinook and Tuffy pads exceeding type curves and demonstrating high returns.

• Over 100 potential wells identified in the PRB, ensuring long-term development and growth.

• Expansion in Ohio's Utica Shale positions the company in a high-return, Tier 1 area with significant reserve potential.