Q4 and Full Year 2025 Results
PetroTal Corp. reported its Q4 and full-year 2025 results, with average production of 15,258 barrels of oil per day (bopd) in Q4 and 19,473 bopd for the full year, a 9% increase from 2024. The company generated $18.5 million in Adjusted EBITDA for Q4 and $166.3 million for the full year, alongside $90.4 million in annual free funds flow, up from $74.1 million in 2024. PetroTal returned $44 million to shareholders through dividends and share repurchases in 2025, ending the year with $139.1 million in total cash. The company also announced the approval of a tender award to resume development drilling at Bretana by October 2026 and the termination of its erosion control project contract due to delays.
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Calgary, AB and Houston, TX - March 26, 2026 - 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, 2025. All amounts herein are in United States dollars unless stated otherwise.
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 and year ended December 31, 2025, which are available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.PetroTal‐Corp.com.
Key Highlights
| • | Average Q4 2025 sales and production of 15,059 and 15,258 barrels of oil per day ("bopd"), respectively; |
| • | Average FY 2025 sales and production of 19,212 bopd and 19,473 bopd, respectively, representing increases of approximately 9% relative to FY 2024; |
| • | Generated Adjusted EBITDA (1) of $18.5 million ($13.38/bbl) in Q4 2025 and $166.3 million ($23.71/bbl) in FY 2025; |
| • | Annual net income of $44.2 million in FY 2025, compared to $111.5 million in FY 2024; |
| • | Development capital expenditures ("capex") of $15.3 million in Q4 2025 and $75.6 million in FY 2025, compared to $50.1 million in Q4 2024 and $172.1 million in FY 2024; |
| • | Annual free funds flow (1) of $90.4 million ($12.90/bbl) in FY 2025, compared to $74.1 million ($11.54/bbl) in FY 2024; |
| • | PetroTal paid total dividends of $0.045/share and repurchased 4.9 million common shares in 2025, representing approximately $44 million of total capital returned to shareholders (compared to $65 million in 2024) prior to pausing distribution programmes in mid-November 2025; |
| • | Total cash increased to $139.1 million at year-end 2025, compared to $114.5 million at year-end 2024. |
- 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 reported solid financial and operational results in 2025, increasing our production by an average of 9% over 2024, while returning $44 million to shareholders through dividends and share buybacks. Despite substantially weaker oil pricing in 2025, we generated $90 million of free funds flow and ended the year with almost $140 million of cash on our balance sheet. We also invested $20 million to advance our erosion control project, after wrapping up our development drilling program in the first quarter of the year. Looking ahead, we are actively evaluating plans to optimize and expand water handling capacity at Bretana, which is key to restoring production output from wells we have already drilled, and to accommodate new production from our upcoming development drilling program.
To that end, I am pleased to report that our Board of Directors has made the important step of approving a tender award to a third-party drilling contractor, which keeps us on schedule to resume development drilling at Bretana by October 2026, as we have previously guided. This week, we have also made the decision to terminate our contract with the consortium that is managing the erosion control project. The project has fallen behind schedule, and we felt a change in management was required to complete the project in a safe, timely and cost-effective manner.
Recent strength in oil pricing is welcome, but cost reductions and capex optimization remain a key focus of our Board and management team in 2026. We are continuing to target significant reductions in operating costs and run-rate G&A expense over the course of 2026. 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 | |||||||
|---|---|---|---|---|---|---|---|---|
| Q4-2025 | Q4-2024 | FY 2025 | FY 2024 | |||||
| $/bbl | $(000's) | $/bbl | $(000's) | $/bbl | $(000's) | $/bbl | $(000's) | |
| Average Production (bopd) | 15,258 | 19,142 | 19,473 | 17,785 | ||||
| Average Sales (bopd) | 15,059 | 19,087 | 19,212 | 17,558 | ||||
| Total Sales (bbls) (1) | 1,385,460 | 1,756,030 | 7,012,397 | 6,426,106 | ||||
| Average Brent Price | $62.46 | $73.42 | $67.21 | $78.98 | ||||
| Contracted Sales Price, Gross | $62.49 | $73.16 | $67.75 | $79.15 | ||||
| Tariffs, Fees and Differentials | -$22.82 | -$21.10 | -$22.56 | -$20.96 | ||||
| Realized Sales Price, Net | $39.67 | $52.06 | $45.19 | $58.19 | ||||
| Oil Revenue | $39.67 | $54,959 | $52.06 | $91,421 | $45.19 | $316,891 | $58.19 | $373,940 |
| Royalties (2) | $6.32 | $8,759 | $7.42 | $13,022 | $5.45 | $38,237 | $6.22 | $39,947 |
| Operating Expenses | $14.35 | $19,883 | $7.88 | $13,843 | $9.19 | $64,432 | $6.90 | $44,320 |
| Direct Transportation | ||||||||
| Diluent | $0.00 | $0 | $0.14 | $248 | $0.00 | $0 | $0.77 | $4,931 |
| Barging | $0.48 | $670 | $1.94 | $3,398 | $0.39 | $2,757 | $0.96 | $6,200 |
| Diesel | $0.00 | $0 | $0.00 | $0 | $0.00 | $0 | $0.08 | $520 |
| Storage | $0.22 | $301 | $1.97 | $3,452 | $1.16 | $8,148 | $0.58 | $3,697 |
| Total Transportation | $0.70 | $971 | $4.05 | $7,098 | $1.55 | $10,905 | $2.39 | $15,348 |
| Net Operating Income (3,4) | $18.29 | $25,346 | $32.71 | $57,458 | $29.00 | $203,317 | $42.68 | $274,325 |
| Erosion Control | $2.95 | $4,083 | $5.45 | $9,569 | $1.87 | $13,085 | $1.57 | $10,117 |
| G&A | $3.52 | $4,877 | $4.86 | $8,534 | $4.21 | $29,502 | $5.65 | $36,291 |
| EBITDA (3) | $11.83 | $16,386 | $40.74 | $71,539 | $22.92 | $160,730 | $35.47 | $227,917 |
| Adjusted EBITDA (3,5) | $13.38 | $18,543 | $22.87 | $40,167 | $23.71 | $166,281 | $36.88 | $236,972 |
| Net Income | -$5.61 | -$7,777 | $12.10 | $21,242 | $6.30 | $44,187 | $17.34 | $111,450 |
| Basic Shares Outstanding ('000) | 915,930 | 914,104 | 915,930 | 914,104 | ||||
| Market Capitalization (6) | $256,460 | $347,473 | $255,633 | $347,473 | ||||
| Net Income/Share ($/sh) | -$0.01 | $0.02 | $0.05 | $0.12 | ||||
| Capex | $15,286 | $50,107 | $75,638 | $172,074 | ||||
| Free Funds Flow (3,7) | $2.35 | $3,257 | -$5.93 | -$10,422 | $12.90 | $90,431 | $11.54 | $74,145 |
| Total Cash (8) | $139,124 | $114,528 | $139,124 | $114,528 | ||||
| Available Cash | $112,400 | $102,783 | $112,400 | $102,783 | ||||
- Approximately 92% of 2025 sales were through the Brazilian route vs 88% in 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.
- Market capitalization for Q4 2025 and Q4 2024 assume share prices of $0.28 and $0.38 respectively on the last trading day of the period.
- Free funds flow is defined as adjusted EBITDA less capital expenditures. See "Selected Financial Measures" section.
- Includes restricted cash balances.
Additional financial and operational updates during and subsequent to the quarter ending December 31, 2025:
Operations Update
As of March 23, PetroTal's group production averaged approximately 15,000 bopd YTD in 2026, including 14,550 bopd from Block 95 (Bretana) and 450 bopd from Block 131 (Los Angeles). The Bretana field continues to produce in-line with the expectations laid out in PetroTal's 2026 annual guidance, published on January 20, 2026. Field production remains constrained by water reinjection capacity, which currently stands at approximately 170,000 bwpd. During the first week of March 2026, PetroTal was producing oil from a total of fifteen (15) horizontal wells, while five (5) horizontal wells remained shut-in due to water handling constraints. PetroTal's operations team is actively reviewing Bretana's facilities configuration with a view to raising both oil production and water reinjection capacity as soon as possible.
PetroTal's top operational priority is the resumption of development drilling at Bretana. To that end, PetroTal's Board of Directors has approved a tender award to a third-party drilling contractor. The Company is currently negotiating final contract terms and expects to begin the process of importing a drilling rig to Peru in Q2 2026. Current expectations are for the next Bretana development well to spud by October 2026, in-line with prior disclosure. PetroTal will continue to provide updates on the status of its development drilling program as necessary.
Erosion Control Project
PetroTal expensed $13.1 million and capitalized $7.7 million for erosion control in 2025, bringing total cumulative investment in the project to $31.1 million as of YE 2025. Given that execution of the project has fallen behind schedule, PetroTal has notified the erosion control construction consortium of its intent to terminate the project contract and has initiated a procurement process to secure new contractors to complete the project. The Company is currently soliciting bids and expects to award a new construction contract by the end of May 2026, at which time it will be in a better position to provide updated estimates on the total project cost and expected completion date.
Approval of Modified Environmental Impact Assessment for Block 95
On March 18, 2026, Peru's National Environmental Certification Service for Sustainable Investments (Senace) approved the Modification of the Detailed Environmental Impact Study (MEIA-d) for the expansion of the Bretaña Norte oil field at Block 95. MEIA approval is a critical milestone enabling the Company to proceed with its planned development drilling program at Bretana later this year. The field development plan approved within the MEIA covers the drilling of up to 23 additional production wells and 5 additional injection wells, supporting potential oil production of up to 50,000 bopd and approximately 800,000 barrels per day of water handling capacity.
Cash and Liquidity Update
PetroTal ended Q4 2025 with a total cash position of $139.1 million, of which $112.4 million was unrestricted. The Company's cash position was essentially flat relative to the prior quarter but has increased by approximately $25 million compared to the same period in 2024, largely due to proceeds from the BanBif/COFIDE loan which is being used to finance the erosion control project.
Since December 31, 2025, PetroTal executed hedges on 1.5 million barrels of forward oil production through March 2027, covering approximately 24% of estimated 2026 production volumes. These hedges consist of costless collars with a Brent floor price of $60.00/bbl and a ceiling of $73.00/bbl, and a cap of $93.00/bbl. As of March 24, 2026, the hedges have a mark to market value of negative $10.4 million.
Q4 2025 Webcast Link for March 26, 2026
PetroTal's management team will host a webcast to discuss Q4 2025 results on March 26, 2026 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 / Charles Denley - Myerson
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney
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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