Questerre Energy (QEC) Q3 2025 earnings summary

Executive summary

• Closed acquisition of PX Energy, adding over 4,000 boe/d of oil shale production and downstream refining assets, resulting in vertical integration across the oil shale value chain.

• Formed a 50/50 joint venture with Nimofast's subsidiary in Brazil to manage PX Energy, leveraging local expertise and logistics for improved margins and profitability.

• Initiated a Quebec asset spinout, planning to distribute tracking shares to existing shareholders.

• Advanced legal and regulatory efforts in Quebec, including carbon storage pilot project, project approvals, and litigation regarding Bill 21.

Financial highlights

• Q3 2025 petroleum and natural gas sales were $11.8 million, up from $9.5 million in Q3 2024; YTD sales reached $34.6 million, up from $27.3 million.

• Q3 2025 average daily production was 2,926 boe/d (up from 1,913 boe/d in Q3 2024); YTD average was 2,587 boe/d (up from 1,712 boe/d).

• Net loss of $5.3 million in Q3 2025 compared to $0.3 million loss in Q3 2024; YTD net loss of $6.0 million versus net income of $0.8 million last year.

• Adjusted funds flow from operations was $2.8 million in Q3 2025 (down from $3.4 million in Q3 2024); YTD was $11.4 million (up from $10.9 million).

• Capital expenditures totaled $2.2 million for the quarter and $21.2 million YTD, primarily for Kakwa North wells.

Outlook and guidance

• Focused on integrating PX Energy and concluding the joint venture with Nimofast for the remainder of 2025, aiming to improve margins and profitability.

• Anticipates adding approximately 2,000 boe/d from PX Energy assets for the rest of the year, subject to JV execution.

• Expects Western Canada production to decline in Q4 2025, excluding new Saskatchewan well.

• Plans to finalize the Quebec asset spin-out structure and distribute tracking shares.

• Continues to pursue business and political solutions in Quebec, including carbon storage initiatives.