PetroTal (TAL) Guidance summary

Opening remarks and agenda

• Webcast introduced by operator, with CEO and CFO presenting and Q&A session planned.

• CEO notes this year's webcast differs from prior years, focusing on a discipline reset rather than growth.

• Management acknowledged operational challenges in 2025, including rig availability and production reliability, and outlined a 2026 budget focused on liquidity, cost discipline, and operational optimization.

Guidance on key objectives

• 2026 guidance targets average production of 11,750–12,250 barrels per day, down from 19,000 in 2025, due to deferred drilling.

• Net operating income projected at $90 million and adjusted EBITDA at $30–$40 million, supported by cost reductions and assuming $60 Brent.

• Capital expenditure budget set at $80–$90 million, including erosion control and potential Q4 drilling resumption.

• Minimum unrestricted cash balance of $60 million to be maintained as an operating floor throughout 2026.

• Budget aligned with internal cash flows, no material external financing assumed, but management is reviewing financing options for debt amortization.

Market trends and strategic opportunities

• Bretaña asset remains competitive at $60 Brent and can grow profitably without external capital.

• Production and sales guidance assumes all Bretaña output is sold via the Brazil route, fulfilling minimum volume requirements under marketing agreements.

• Los Angeles production to be sold under short-term contracts to the Iquitos refinery, with ongoing credit monitoring.

• Production growth deferred due to low oil prices, but company positioned to capitalize when market improves.