NG Energy International (GASX) Q1 2025 earnings summary

Executive summary

• Sold 40% working interest in Sinu-9 to Maurel & Prom for $150M, strengthening the balance sheet and operational capacity.

• Transitioned from a single-asset producer to a fast-growth company with two producing gas fields and a long-term partner.

• Production at Sinu-9 recommenced in March 2025, with current volumes at 12 MMcf/d and plans to increase to over 40 MMcf/d in Q3 2025.

Financial highlights

• Q1 2025 sales revenue was $6.4M, down from $10.2M in Q1 2024.

• Operating netback was $2.43/Mcf in Q1 2025, compared to $5.81/Mcf in Q1 2024, impacted by lower production and one-time costs.

• Cash flow from operations was $2.6M in Q1 2025, down from $7.4M in Q1 2024.

Outlook and guidance

• Expects strong natural gas prices above $8.00/Mcf due to fixed offtake agreements and favorable market conditions.

• Aggressive drilling program planned for H2 2025, including Aruchara-4 and workover of Aruchara-3 at Maria Conchita.

• Compressor expansion at Maria Conchita to increase capacity to 28 MMcf/d, targeted for Q3 2025.