Maha Capital (MAHA) Q4 2024 earnings summary

Executive summary

• Achieved a 130% year-over-year increase in Illinois Basin production, with revenues up 100% and significant operational milestones including technical plan completion with PDVSA and strategic M&A, such as the Brava Energia roll-up.

• Ended the quarter debt-free after repaying $15M in bank debt, strengthening the capital structure and maintaining net cash plus liquid investments of $97.6M at year-end.

• Net result for Q4 2024 was $9.99M, mainly due to an unrealized gain of $12.6M in Brava shares, despite negative full-year results from discontinued operations.

• Expanded Brava Energia stake to 4.76% through roll-up transactions, making the company a top shareholder and increasing exposure to Brazilian E&P growth.

• Concluded technical discussions with PDVSA for PetroUrdaneta, with business and redevelopment plans set for Q1 2025 and operations potentially starting mid-2025.

Financial highlights

• Q4 2024 revenues increased 100% year-over-year and 29% sequentially, driven by new wells in Illinois Basin.

• Operating netback per barrel increased 122% year-over-year, with OPEX per barrel down 31% to $17/bbl.

• Adjusted EBITDA for Q4 2024 was negative $3.1M, impacted by higher G&A and non-recurring items.

• Net result for Q4 2024 was $9.99M, mainly from an unrealized gain in Brava shares.

• Full-year 2024 revenue from continuing operations was $8.49M, up from $5.23M in 2023.

Outlook and guidance

• Business plan for PetroUrdaneta to be finalized in Q1 2025, with contract negotiations and OFAC license application in progress; operations could start as early as June-August 2025.

• Expecting to receive $4.41M in earn-outs and $200,000 in dividends from investments in Q1 2025.

• Focus on high-return opportunities in Latin America, portfolio optimization, and further M&A.