Q4 and Full Year 2024 Results
FY 2024 production 17,785 bopd up 25% YoY, EBITDA $237m, paid $0.06/share dividend plus $65m buybacks.
vs expectations: slightly above guidance
- FY 2024 Average Production 17,785 bopd (prior 14,248 bopd)
- FY 2024 EBITDA $237 million (prior $210.8 million)
- FY 2024 Free Funds Flow $74.1 million (prior $107.2 million)
- Full Year 2024 Dividends $0.06/share
- Share Buybacks 2024 $65 million
- Cash at Year-End 2024 $114.5 million
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Calgary, AB and Houston, TX - March 20, 2025 - PetroTal Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to report its operating and financial results for the three months and year ended December 31, 2024. All amounts herein are in United States dollars unless stated otherwise.
Key Highlights
- Average Q4 2024 sales and production of 19,087 and 19,142 barrels of oil per day ("bopd"), respectively, including volumes from the acquisition of Block 131, which closed in late November;
- Average FY 2024 sales and production of 17,558 bopd and 17,785 bopd, respectively, slightly above the guidance range (16,500 to 17,500 bopd), and an increase of approximately 25% relative to 2023 average production;
- Group production has averaged approximately 23,200 bopd in 2025 YTD;
- Generated EBITDA(1) of $40.2 million ($22.86/bbl) and $237 million ($36.87/bbl) in Q4 2024 and FY 2024 respectively, near the high end of annual guidance ($200 to 240 million);
- Development capital expenditures ("capex") totaled $50.6 million in Q4 2024 and $163 million in FY 2024, near the midpoint of the annual guidance range ($150-175 million);
- Annual free funds flow(1) was $74.1 million, prior to returns of capital to shareholders, representing a yield of approximately 21% relative to our year-end 2024 market capitalization;
- Available cash increased to $103 million at year-end 2024 (from $91 million the prior year);
- On March 14, PetroTal paid a dividend of $0.015/share, associated with Q4 2024 results. This was PetroTal's eighth consecutive quarterly dividend, bringing total return of capital under the Company's dividend program to $116 million ($0.14/share);
- PetroTal paid total dividends of $0.06/share and repurchased 11.3 million common shares in 2024, representing approximately $65 million of total capital returned to shareholders (compared to $62 million in 2023).
- Successfully completed seven new oil wells in 2024. During 2024, six of these oil wells produced just over 2 million bbls of oil and generated approximately $85 million in net operating income(1), which amounts to a 100% return of investment as of year-end 2024.
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 and twelve months ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.PetroTal‐Corp.com.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
"PetroTal reported strong financial and operational results in 2024, increasing our production by an average of 25% over 2023, while returning more than $65 million to shareholders through dividends and share buybacks. The Company also successfully managed a period of record low river levels during the dry season, on our way to exceeding annual production guidance.
2025 is off to an excellent start, with the results of our development drilling campaign and facility investments supporting year-to-date average production of more than 23,000 bopd. We are also excited to commence development on our new asset at the Los Angeles field, along with the greater Block 131 region, with a new drilling rig expected to arrive around mid-year.
Over the past eight months, PetroTal has been actively hedging its 2025 production volumes and has no long-term debt or significant drilling commitments. We are committed to our ongoing capital program which prioritizes a material dividend in tandem with strategic initiatives that include Block 131 development and the erosion control project. I would like to thank shareholders for their continued support, as well as PetroTal's board of directors and the rest of the PetroTal team for their continued valuable contributions to our success"
Selected Financial Highlights
| Three Months Ended | Twelve Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| Q4-2024 | Q3-2024 | Q4-2024 | Q4-2023 | |||||
| $/bbl | $ 000 | $/bbl | $ 000 | $/bbl | $ 000 | $/bbl | $ 000 | |
| Average Production (bopd) | 19,142 | 15,203 | 17,785 | 14,248 | ||||
| Average sales (bopd) | 19,087 | 14,760 | 17,558 | 14,421 | ||||
| Total sales (bbls) (1) | 1,756,030 | 1,357,961 | 6,426,106 | 5,263,485 | ||||
| Average Brent price | $73.42 | $77.74 | $78.98 | $81.53 | ||||
| Contracted sales price, gross | $73.16 | $78.58 | $79.15 | $80.54 | ||||
| Tariffs, fees and differentials | ($21.10) | ($20.52) | ($20.96) | ($20.33) | ||||
| Realized sales price, net | $52.06 | $58.06 | $58.19 | $60.21 | ||||
| Oil revenue (1) | $52.06 | $91,421 | $58.06 | $78,850 | $58.19 | $373,940 | $60.21 | $316,911 |
| Royalties (2) | $7.42 | $13,022 | $5.47 | $7,433 | $6.22 | $39,947 | $5.82 | $30,648 |
| Operating expense | $7.88 | $13,843 | $8.23 | $11,176 | $6.90 | $44,320 | $6.16 | $32,446 |
| Direct Transportation: | ||||||||
| Diluent | $0.14 | $248 | $0.90 | $1,218 | $0.77 | $4,931 | $1.30 | $6,857 |
| Barging | $1.89 | $3,317 | $0.68 | $927 | $0.96 | $6,200 | $0.66 | $3,475 |
| Diesel | $0.05 | $81 | $0.13 | $173 | $0.08 | $520 | $0.10 | $516 |
| Storage | $1.97 | $3,452 | $0.51 | $690 | $0.58 | $3,697 | $0.78 | $4,115 |
| Total Transportation | $4.05 | $7,098 | $3.05 | $3,008 | $2.39 | $15,348 | $2.84 | $14,963 |
| Net Operating Income (3,4) | $32.71 | $57,458 | $42.14 | $57,233 | $42.68 | $274,325 | $45.39 | $238,854 |
| Erosion Control | $5.45 | $9,569 | $0.40 | $548 | $1.57 | $10,117 | $0.00 | $0.00 |
| G&A | $4.86 | $8,534 | $6.75 | $9,160 | $5.65 | $36,291 | $5.33 | $28,049 |
| EBITDA (3) | $22.41 | $39,355 | $34.20 | $46,406 | $35.47 | $227,917 | $40.05 | $210,805 |
| Adjusted EBITDA (3,5) | $22.87 | $40,167 | $35.69 | $48,436 | $36.88 | $236,972 | $40.97 | $215,646 |
| Net Income | $12.10 | $21,242 | $4.46 | $7,179 | $17.34 | $111,450 | $21.00 | $110,505 |
| Basic Shares Outstanding (000) | 911,783 | 913,259 | 911,783 | 912,314 | ||||
| Market Capitalization (6) | $355,595 | $429,231 | $355,595 | $556,511 | ||||
| Net Income/Share ($/share) | $0.02 | $0.01 | $0.11 | $0.12 | ||||
| Capex | $50,589 | $43,019 | $162,827 | $108,454 | ||||
| Free Funds Flow (3) (7) | ($11.02) | ($10,422) | $4.81 | $6,537 | $11.56 | $74,145 | $20.37 | $107,192 |
| % of Market Capitalization (6) | (2.9%) | 1.2% | 20.9% | 19.3% | ||||
| Total Cash (8) | $114,528 | $133,072 | $114,528 | $111,299 | ||||
| Net Surplus (Debt) (3) (9) | ($1,532) | $10,124 | ($1,532) | $52,307 | ||||
- Approximately 89% of Q4 2024 sales were through the Brazilian route vs 89% in Q3 2024.
- Royalties include the impact of the 2.5% community social trust.
- Market capitalization for Q4 2024, Q3 2024 and Q4 2023 assume share prices of $0.39, $0.47, and $0.61 respectively on the last trading day of the quarter.
- Includes restricted cash balances.
Q4 2024 Financial Variance Summary
| Three months ended | Twelve months ended | |||||
|---|---|---|---|---|---|---|
| US$/bbl Variance Summary | Q4 2024 | Q3 2024 | Variance | Q4 2024 | Q4 2023 | Variance |
| Oil Sales (bopd) | 19,087 | 14,760 | 4, 32 7 | 17,558 | 14,421 | 3,137 |
| Contracted Brent Price | $ 73.42 | $77.74 | ($ 4.32 ) | $ 78.98 | $ 81.53 | ( $ 2.55) |
| Realized Sales Price | $ 52 .06 | $58.06 | ($ 6 . 00 ) | $ 58.19 | $60. 21 | ( $ 2.02) |
| Royalties | $ 7.42 | $5.47 | $ 1.95 | $ 6.22 | $5. 82 | $0. 40 |
| Total OPEX and Transportation | $11. 93 | $ 10.45 | $ 1.48 | $ 9.29 | $ 9.00 | $0. 29 |
| Net Operating Income (1,2) | $ 32.71 | $ 42 . 14 | ($ 9 . 43 ) | $ 42.68 | $4 5.39 | ($ 2.71 ) |
| G&A | $ 4.86 | $6.75 | ( $ 1 . 89) | $5. 65 | $5. 33 | $0. 32 |
| EBITDA | $ 22.41 | $34.20 | ($ 11.79 ) | $ 35.47 | $ 40.05 | ($ 4.58 ) |
| Net Income | $ 12.10 | $4.46 | $ 7 . 64 | $ 17. 34 | $ 21.00 | ( $ 3. 66 ) |
| Free Funds Flow (1,3) | ( $ 11.02) | $ 4.81 | ($ 15.83 ) | $ 11.56 | $ 20.37 | ($ 8.81 ) |
- Sales volumes increased by 29% QoQ, due to the conclusion of dry season in the Amazon basin, which removed constraints on PetroTal's ability to export crude oil from the Bretana field. FY 2024 sales volumes increased by 22% relative to 2023, due to an active development drilling program and ongoing expansion of export capacity;
- Brent oil prices declined by $4.32/bbl in Q4, and $2.55/bbl in FY 2024, relative to the comparable periods in 2023. PetroTal's realized sale price declined by $6.00/bbl in Q4 2024, primarily due to the timing of export sales during the quarter. However, relative to FY 2023, the Company's realized sale price declined less than the Brent benchmark;
- Operating and transportation expenses increased by $1.48/bbl in Q4 2024, mainly due to demurrage charges on the Company's barge fleet. However, on a YTD basis, operating and transportation costs have risen by a marginal $0.29/bbl;
- Net income rose by $7.64/bbl in Q4 2024, mainly due to an unrealized derivative gain of $2.7 million, and a gain related to deferred income tax expense.
- See "Selected Financial Measures".
- Free funds flow is defined as adjusted EBITDA less capital expenditures.
Additional financial and operational updates during and subsequent to the quarter ending December 31, 2024:
Production & Drilling Update
PetroTal's 2025 year-to-date production has averaged approximately 23,200 bopd, including 22,600 bopd from the Bretana field and 600 bopd from the Los Angeles field. With river levels comfortably above the historical average during the ongoing rainy season, PetroTal is currently exporting from the Bretana field near the capacity of its barge fleet. Production also remains constrained by facility capacity, as the Company awaits the installation of CPF4, which will increase oil handling capacity to 32,000 bopd by mid-year.
The Company continues to observe strong production response from recently drilled wells; the 22H well was brought onstream in mid-January and averaged 4,500 bopd over its first 30 days onstream, including a maximum daily rate of 7,025 bopd. Well 23H was brought onstream for production testing in the last week of February 2025, flowing naturally at an average of 3,500 bopd over its first ten days onstream. Flush production from wells 22H and 23H is expected to be sufficient to support production levels throughout H1 2025, in advance of the annual dry season which typically sets in by August.
Erosion Control Project
PetroTal has demobilized its drilling rig at Bretana and is preparing to ramp up activity on the erosion control project in Q2 2025. Transportation of the preassembled steel segments from the project's staging point in Pucallpa is expected to take place in May, when the jackup is also expected to arrive on site. The Company should be in a position to provide additional updates on the project with Q1 2025 results in mid-May.
As previously disclosed, PetroTal recorded a $9.6 million expense for the erosion control project in Q4 2024, primarily associated with the purchase of steel components. The Company continues to budget $35-40 million for the erosion control project in 2025, approximately 75% of which will be expensed through the income statement.
Cash and Liquidity Update
PetroTal ended 2024 with a total cash position of $114.5 million, of which $102.8 million was unrestricted. This compares to total cash of $133 million at the end of Q3 2024, and $111 million at the same time last year. Net Surplus, a non-IFRS measure which PetroTal uses to describe its liquidity position net of working capital and various non-current liabilities, declined to a deficit of $1.5 million at the end of Q4 2024. This compares to a surplus of $10.1 million at the end of Q3 2024, and $52 million at the end of 2023. The main source of variance in net surplus relative to the prior quarter is the lease liability associated with PetroTal's acquisition of a drilling rig in Q4 2024. Relative to year-end 2023, PetroTal has also recorded a large increase in tax liabilities as the Company consumed net operating losses over the prior three years.
PetroTal entered into additional hedge agreements during Q4 2024, and subsequently in January 2025. The Company now has hedges on an average of 260,000 barrels per month over the next twelve months, which represents approximately 40% of forecast production volumes. The terms of the hedge agreements entered into during Q4 2024 and January 2025 are essentially the same as those reported with Q3 2024 results in November. PetroTal's hedges consist of costless collars with a Brent floor price of $65.00/bbl and a ceiling of $82.50/bbl, with a cap of $102.50/bbl.
Shareholder Returns Update
As previously announced on February 20, 2025, PetroTal declared a quarterly dividend of $0.015 per share, associated with Q4 2024 results. This dividend was paid on March 14 to shareholders of record as of February 28, bringing cumulative payout under the Company's ongoing dividend program to $116 million. PetroTal's 2025 liquidity strategy prioritizes dividend sustainability, balanced with Block 131 development and erosion control working capital requirements. As a result, the volume of share buybacks has decreased compared to previous quarters. The Company will continue to monitor buyback levels and will operate in the quarterly approved bandwidths announced in May 2024.
2025 Budget Guidance
As previously announced on January 16, 2025, PetroTal has guided to annual average production of 21,000 to 23,000 bopd in 2025, an increase of approximately 24% relatively to 2024. At an annual average Brent oil price of $75.00/bbl, this production is expected to drive annual EBITDA of $240 to 250 million, supported by capital investments of $140 million. As of March 20, 2025 PetroTal is pleased to report no material changes to its forecast.
Year-end 2024 Reserves
On February 19, 2025, PetroTal announced its updated reserves evaluation for the year ending December 31, 2024. The Company reported growth in all major reserves categories, with its 2P after tax reserves value per share increasing to $1.89/share. The after tax net present value of PetroTal's reserves, discounted at 10% ("NPV10"), increased to $1.7 billion, on associated 2P reserves of 114 million bbls. The Company successfully replaced 293% and 208% of 1P and 2P reserves, respectively, with an associated 2P reserve life index of 13 years. For the full text of this announcement, please refer to PetroTal's press release dated February 20, 2025, filed on SEDAR+ (www.sedarplus.ca) and posted on PetroTal's website (www.petrotalcorp.com). In addition to the summary information disclosed in this press release, more detailed information will be included in the annual information form for the year ended December 31, 2024, to be filed on SEDAR+ (www.sedarplus.ca) and posted on PetroTal's website (www.petrotalcorp.com) by March 28, 2025.
Corporate Presentation Update
Q4 2024 Webcast on March 20, 2025
PetroTal's management team will host a webcast to discuss Q4 2024 results on March 20, 2025 at 9am CT (Houston) and 2pm GMT (London). Please see the link below to register.
Camilo McAllister
Executive Vice President and Chief Financial Officer
Manolo Zuniga
President and Chief Executive Officer
PetroTal Investor Relations
Celicourt Communications
Mark Antelme / Jimmy Lea
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Peel Hunt LLP (Joint Broker)
Richard Crichton / David McKeown / Georgia Langoulant
READER ADVISORIES
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