PetroTal (TAL) Q4 2025 earnings summary

Executive summary

• Achieved average 2025 production of 19,473 barrels/day, up 9% year-over-year, but Q4 production fell to 15,258 barrels/day due to operational constraints at Bretaña.

• Adjusted EBITDA for 2025 was $166.3 million, with net income of $44.2 million and free funds flow of $90.4 million, despite lower oil prices and reduced Q4 production.

• Ended 2025 with $139.1 million in cash, up from $114.5 million at year-end 2024, providing strong liquidity for 2026 priorities.

• Maintained 60 million barrels of proven reserves and 110 million barrels of 2P reserves after producing over 30 million barrels to date.

• Returned $44 million to shareholders via dividends and buybacks before pausing distributions in November 2025.

Financial highlights

• FY 2025 oil revenue was $316.9 million, down from $373.9 million in FY 2024 due to lower realized prices ($45.19/bbl vs $58.19/bbl).

• Adjusted EBITDA declined from $237 million in 2024 to $166.3 million in 2025, reflecting lower realized oil prices and reduced production.

• Net income dropped from $111.5 million in 2024 to $44.2 million in 2025.

• Free funds flow improved to $90.4 million, supported by a reduction in capital expenditures to $75.6 million from $172.1 million in 2024.

• Q4 2025 net income was negative $7.8 million, compared to $21.2 million in Q4 2024.

Outlook and guidance

• 2026 production guidance is approximately 12,000 barrels/day, with monthly cash flow expected to average $12 million at $100 Brent pricing.

• Capital program for 2026 set at $80–$90 million, focused on water handling expansion, erosion control, and resuming development drilling by October.

• Board approved resumption of development drilling at Bretaña by October 2026, with a third-party contractor selected.

• Plateau production of 20,000–25,000 barrels/day targeted within a year, contingent on water handling upgrades.

• Hedges executed on 1.5 million barrels through March 2027, covering 24% of estimated 2026 production.