PetroTal : 2025, 1st Quarter Report
TAL.TO
Published on 05/12/2025 at 12:05
May 12, 2025
Selected financial and operational information outlined above should be read in conjunction with the Company's unaudited consolidated financial statements and management's discussion and analysis ("MD&A") for the three months ended March 31, 2025, which are available on SEDAR+ at https://www.sedarplus.ca and on the Company's website at https://www.PetroTal‐Corp.com.
Average Q1 2025 sales and production of 23,286 and 23,281 barrels of oil per day ("bopd"), respectively, both record highs for PetroTal;
Generated Adjusted EBITDA(1)and Net Income of $71.9 million ($34.29/bbl) and $30.9 million ($14.72/bbl), respectively;
Free Funds Flow(1)of $48.2 million ($23.02/bbl), PetroTal's second best quarter since inception;
Capital expenditures of $23.6 million, a substantial QoQ decrease as the Bretana drilling campaign wound down in January;
Total cash of $113.6 million at end of the period, essentially flat to the prior quarter, and an increase of $28 million compared to the same period last year;
Arrangement of term loan facility with a syndicate of Peruvian banks, with commitments of up to $65 million;
Mark to market value of production hedges increased to $14.2 million as of May 7, 2025, and;
Declared a quarterly dividend of $0.015/sh, payable to shareholders on June 13, 2025.
(1) Non‐GAAP (defined below) measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See "Selected Financial Measures" section.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
"PetroTal's first quarter results reflect a strong contribution from our 2024 development drilling program. I am proud of our entire team for delivering another record quarter of production. We have successfully been running
near 100% of our transportation and facility capacity and are taking full advantage of high river levels during the ongoing rainy season.
Our financial results remain strong as well, with PetroTal showing healthy improvements in quarterly EBITDA and free cash flow. Notwithstanding the recent decline in oil pricing, we are continuing with preparations for some important development projects over the remainder of 2025, including erosion control. PetroTal has hedges on approximately 40% of its remaining 2025 production volumes and remains well-capitalized to execute its development program.
I would like to conclude by assuring investors that PetroTal is prepared to respond to declines in oil pricing by reducing capex and opex as necessary. Balance sheet flexibility and peer leading returns on investment have always been key pillars of the investment thesis for PetroTal. If oil prices remain low as we get closer to resuming our drilling program in the third quarter of 2025, we may consider deferring or cancelling planned activity to better align production growth with a supportive commodity price environment and maximize return on investment for our shareholders. We will update market guidance, as required, at the appropriate time should such a decision be taken. Thank you for your ongoing support."
Three Months Ended
Q1-2025
Q4-2024
Q1-2024
$/bbl
$(000's)
$/bbl
$(000's)
$/bbl
$(000's)
Average Production (bopd)
23,281
19,142
18,518
Average Sales (bopd)
23,286
19,087
18,347
Total Sales (bbls)
2,095,714
1,756,030
1,669,537
Average Brent Price
$73.96
$73.42
$81.01
Contracted Sales Price, Gross
$73.89
$73.16
$81.14
Tariffs, Fees and Differentials
‐$21.43
‐$21.10
‐$20.89
Realized Sales Price, Net
$52.46
$52.06
$60.25
Oil Revenue
$52.46
$109,951
$52.06
$91,421
$60.25
$100,583
Royalties
$5.84
$12,241
$7.42
$13,022
$5.69
$9,500
Operating Expenses
$6.31
$13,227
$7.88
$13,843
$5.56
$9,278
Direct Transportation
Diluent
$0.00
$0
$0.14
$248
$0.94
$1,567
Barging
$0.79
$1,664
$1.94
$3,398
$0.60
$1,005
Diesel
$0.00
$0
$0.00
$0
$0.05
$80
Storage
$0.30
$636
$1.97
$3,452
‐$0.27
‐$457
Total Transportation
$1.09
$2,300
$4.05
$7,098
$1.32
$2,195
Net Operating Income
$39.22
$82,183
$32.71
$57,458
$47.68
$79,610
Erosion Control
$0.87
$1,816
$5.45
$9,569
$0.00
$0
G&A
$4.57
$9,579
$4.86
$8,534
$4.83
$8,070
EBITDA
$33.78
$70,788
$22.41
$39,355
$42.85
$71,539
Adjusted EBITDA
$34.29
$71,860
$22.87
$40,167
$43.15
$72,048
Net Income
$14.72
$30,852
$12.10
$21,242
$28.52
$47,621
Basic Shares Outstanding ('000)
915,930
911,783
914,104
Market Capitalization
$435,754
$355,595
$511,898
Net Income/Share ($/sh)
$0.03
$0.02
$0.05
Capex
$23,624
$50,589
$30,352
Free Funds Flow
$23.02
$48,236
-$5.93
-$10,422
$24.97
$41,696
Total Cash
$113,565
$114,528
$85,151
Net Surplus
$6,312
-$1,532
$55,522
Approximately 88% of Q1 2025 sales were through the Brazilian route vs 89% in Q4 2024.
Royalties include the impact of the 2.5% community social trust.
Non‐GAAP (defined below) measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See "Selected Financial Measures" section.
Net operating income represents revenues less royalties, operating expenses, and direct transportation.
Adjusted EBITDA is net operating income less general and administrative ("G&A") and plus/minus realized derivative impacts.
Market capitalization for Q1 2025, Q4 2024 and Q1 2024 assume share prices of $0.475, $0.39, and $0.58 respectively on the last trading day of the quarter.
Free funds flow is defined as adjusted EBITDA less capital expenditures. See "Selected Financial Measures" section.
Includes restricted cash balances.
Net Surplus (Debt) = Total cash + all trade and net VAT receivables + short and long term net derivative balances - total current liabilities - long term debt - non current lease liabilities - net deferred tax - other long term obligations.
PetroTal produced an average of 22,660 bopd from the Bretana field in Q1 2025, including 23,080 bopd in the month of March, representing record quarterly and monthly highs for the field, respectively. Bretana production averaged 23,050 bopd in the month of April 2025, essentially flat to March, as relatively high river levels have allowed the Company to maximize export capacity during the ongoing rainy season. As previously announced, PetroTal released its third‐party drilling rig in March 2025, and does not intend to resume drilling at Bretana until the end of the year. It is expected that production additions from the 2024 development drilling program, supplemented by the H2 2025 development campaign at Block 131, will be sufficient to maintain output throughout the course of the year, and inline with guidance.
Between December 2024 and April 2025, PetroTal has experienced pump failures in four producing wells at Bretana, out of a total of 24 producing wells in the field. Pump failures occur within the normal course of business, and PetroTal has been happy with the performance of its pumps to date. However, these wells are currently offline as the Company cycles production from newer development wells in the field. PetroTal currently plans to replace the pumps with a workover rig in Q3 2025, which is a budgeted activity within operating expenses. Replacement of the pumps is expected to return approximately 4,000 bopd of production capacity that is currently offline; changes to production capacity are not expected to have any impact on annual production guidance, which currently calls for average oil sales of 21,000 - 23,000 bopd in 2025.
Los Angeles field production averaged 620 bopd in Q1 2025, flat to Q4 2024, and 561 bopd in April 2025 as the field continues to experience natural declines. PetroTal is currently planning to mobilize equipment for a workover program at Los Angeles, where field activity is expected to commence by the end of June. The program, which is expected to run into September 2025, will include acid stimulations and workovers on up to four wells, to open bypassed pay in the producing formation, with a view to increasing field production by a total of approximately 500‐1,000 bopd (on a peak monthly average basis). Pending the arrival of PetroTal's new drilling rig in Peru, which is expected to occur in Q3 2025, the Company is planning to conduct a two‐well infill drilling program at the Los Angeles field. Each well is expected to take 4‐6 weeks to drill and complete; including testing activities and demobilization, the drilling program will likely take until the end of 2025.
Disclaimer
Petrotal Corp. published this content on May 12, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2025 at 16:04 UTC.