Tenaz Energy (TNZ) Q1 2026 earnings summary

Executive summary

• Q1 2026 production averaged 16,183 boe/d, up 4% sequentially and nearly fivefold year-over-year, driven by 2025 acquisitions and strong Netherlands output.

• Operating netback rose 19% from Q4 2025 to $57.48/boe, reflecting increased European gas exposure now over 85% of production.

• Funds flow from operations (FFO) reached $64.6 million, up from $62.1 million in Q4 2025, with higher Netherlands production and pricing offset by increased taxes and hedging losses.

• Net loss of $111.1 million in Q1 2026, compared to net income of $107.6 million in Q4 2025, due to a non-cash unrealized mark-to-market loss on commodity hedges.

• Capital investment for Q1 was $92 million, about 30% of the 2026 program, with the annual target raised to $300 million to accelerate organic growth.

Financial highlights

• Petroleum and natural gas sales were $133.3 million in Q1 2026, up from $117.6 million in Q4 2025 and $17.7 million in Q1 2025.

• FFO per share (basic) was $2.02, diluted $1.89; net loss per share (basic) was $3.48.

• Net debt increased to $389.4 million, up $44.3 million from Q4 2025, mainly due to capital spending and increased earn-out estimates.

• Net debt is about 1.0x forecasted 2026 FFO at current commodity prices.

• Year-to-date share price appreciation of 131%; since Q3 2021 recapitalization, shares have returned 3,306%.

Outlook and guidance

• 2026 capital expenditure guidance increased to $300 million, up from $250–$275 million, to fund expanded drilling and workover activity.

• Production guidance for 2026 remains 19,500–22,500 boe/d; incremental capital is expected to impact production mainly in 2027.

• Company expects to be self-funded for the 2026 capital program at current commodity prices.

• Continued focus on organic growth, financial discipline, and share repurchases under the NCIB program.