Q1 2026 Financial and Operating Results
PetroTal Corp. reported strong first quarter 2026 results, with Adjusted EBITDA reaching $35.1 million, a 90% increase from the prior quarter, and Free Funds Flow of $25.7 million. The company's total cash position stood at $128.3 million as of March 31, 2026. Driven by improved oil prices and operational focus, PetroTal has raised its full-year 2026 Adjusted EBITDA guidance to $110-120 million. Development drilling is scheduled to resume in October 2026, with a contract already executed with a third-party drilling service provider.
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Calgary, AB and Houston, TX - May 7, 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 ended March 31, 2026. 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 ended March 31, 2026, which are available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.PetroTal‐Corp.com.
Key Highlights
| • | Average Q1 2026 sales and production of 14,350 and 14,907 barrels of oil per day ("bopd"), respectively; |
| • | Adjusted EBITDA (1) of $35.1 million ($27.22/bbl) represents a 90% increase relative to the prior quarter; |
| • | Free Funds Flow (1) of $25.7 million in Q1 2026, compared to $3.3 million in Q4 2025; |
| • | Total cash of $128.3 million as of March 31, 2026, compared to $113.6 million in March 2025; |
| • | 2026 Adjusted EBITDA guidance range increases to $110-120 million, from $30-40 million previously; |
| • | Executed contract with third-party drilling service provider, ahead of planned resumption of development drilling in October 2026. |
- 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:
"Our first quarter results reflect a continued focus on maintaining production at Bretana and positioning the Company for a return to growth, while also highlighting the positive impact of improving crude oil prices. Stronger realized pricing in March contributed to a 90% increase in Adjusted EBITDA compared to the prior quarter, despite lower production volumes in the period. This result demonstrates the Company's operating leverage and ability to generate meaningful cash flow even at lower production levels.
At Bretana, we remain focused on preparing the field for its next phase of growth. During the quarter and into April, we advanced key infrastructure initiatives, including stimulation work on water injection wells to increase injection capacity and help stabilize production ahead of our upcoming drilling campaign. We are already seeing the benefit of this work, with year-to-date sales volumes tracking slightly ahead of expectations as we approach the midpoint of the second quarter.
In parallel, we have made good progress towards resuming our development drilling program. We recently signed a contract with a third-party drilling company and are advancing plans to mobilize the rig to the field, with drilling expected to begin in October 2026. We also plan to carry out pulling jobs in three wells in the third quarter, which we have scheduled ahead of the resumption of our drilling campaign, to help optimize performance and reduce the potential for production disruptions later in the year.
Looking ahead, our priorities remain clear: sustain and build production at Bretana, execute our capital program, and position the Company to return to growth. We believe the steps we are taking today will improve operational reliability, support efficient capital deployment, and create long-term value for our shareholders."
Selected Financial Highlights
Three Months Ended
| Q1-2026 | Q4-2025 | Q1-2025 | ||||
|---|---|---|---|---|---|---|
| $/bbl | $(000's) | $/bbl | $(000's) | $/bbl | $(000's) | |
| Average Production (bopd) | 14,907 | 15,258 | 23,281 | |||
| Average Sales (bopd) | 14,350 | 15,059 | 23,286 | |||
| Total Sales (bbls) | 1,291,473 | 1,385,460 | 2,095,714 | |||
| Average Brent Price | $74.65 | $62.46 | $73.96 | |||
| Contracted Sales Price, Gross | $74.50 | $62.49 | $73.89 | |||
| Tariffs, Fees and Differentials | -$23.43 | -$22.82 | -$21.43 | |||
| Realized Sales Price, Net | $51.07 | $39.67 | $52.46 | |||
| Oil Revenue | $51.07 | $65,950 | $39.67 | $54,959 | $52.46 | $109,951 |
| Royalties | $4.92 | $6,351 | $6.32 | $8,759 | $5.84 | $12,241 |
| Operating Expenses | $8.46 | $10,928 | $14.35 | $19,883 | $6.31 | $13,227 |
| Direct Transportation | ||||||
| Diluent | $0.00 | $0 | $0.00 | $0 | $0.00 | $0 |
| Barging | $0.48 | $626 | $0.48 | $670 | $0.79 | $1,664 |
| Diesel | $0.00 | $0 | $0.00 | $0 | $0.00 | $0 |
| Storage | $0.00 | $0 | $0.22 | $301 | $0.30 | $636 |
| Total Transportation | $0.48 | $626 | $0.70 | $971 | $1.09 | $2,300 |
| Net Operating Income | $37.21 | $48,045 | $18.30 | $25,346 | $39.22 | $82,183 |
| Erosion Control | $3.15 | $4,070 | $2.95 | $4,083 | $0.87 | $1,816 |
| G&A | $6.75 | $8,712 | $3.52 | $4,877 | $4.57 | $9,579 |
| EBITDA | $27.34 | $35,313 | $11.83 | $16,386 | $33.78 | $70,788 |
| Adjusted EBITDA | $27.22 | $35,148 | $13.38 | $18,543 | $34.29 | $71,860 |
| Net Income | $11.84 | $15,297 | -$5.61 | -$7,777 | $14.72 | $30,852 |
| Basic Shares Outstanding ('000) | 920,328 | 915,930 | 915,930 | |||
| Market Capitalization | $362,885 | $256,460 | $435,754 | |||
| Net Income/Share ($/sh) | $0.01 | -$0.01 | $0.03 | |||
| Capex | $7,622 | $15,286 | $23,624 | |||
| Free Funds Flow | $25,728 | $3,257 | $48,236 | |||
| Total Cash | $128,327 | $139,124 | $113,565 | |||
| Available Cash | $104,347 | $112,400 | $102,650E | |||
- Approximately 98% of Q1 2026 sales were through the Brazilian route vs 88% in Q4 2025.
- 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 Q1 2026, Q4 2024 and Q1 2025 assume share prices of $0.3943, $0.2757 and $0.4758 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 March 31, 2026:
Operations Update
PetroTal continues to advance key operational initiatives at the Bretana field, positioning the Company to resume development drilling in October 2026. The Company has executed a contract with a third-party drilling service provider, whose rig is currently completing operations in Colombia. Following demobilization, the rig is expected to be transported to Peru by road and river, similar to prior equipment moves. Infrastructure work to position the drilling rig, along with the electromechanical activities required to tie in new wells to existing facilities, is progressing as planned. The operations team is also preparing to facilitate the rapid connection of the new wells, optimizing early production rates.
In April 2026, PetroTal conducted stimulation work on three of the four water injection wells at the Bretana field. The program was designed to increase formation water disposal capacity from the first quarter 2026 average of approximately 170,000 barrels of water per day ("bwpd"), to help support oil production ahead of the resumption of development drilling later this year. Bretana field production averaged approximately 12,850 bopd in April, reflecting brief, planned shut-ins of producing wells during the stimulation work. Since completing the program, production has increased, averaging approximately 13,050 bopd in the first week of May, while water injection capacity has risen to just over 180,000 bwpd.
In Q3 2026, PetroTal plans to carry out pulling jobs in three producing wells at Bretana, in keeping with expectations outlined in the Company's 2026 budget guidance. This work is being advanced ahead of the planned restart of development drilling later this year.
Erosion Control Project
PetroTal expensed $4.1 million for erosion control in Q1 2026, consistent with the prior quarter, bringing total cumulative investment in the project to $36.8 million as of March 31, 2026. As disclosed previously, PetroTal terminated the erosion control project contract with the prior construction consortium in March 2026 and has initiated a procurement process to secure new contractors to complete the project. The tender process is underway and PetroTal expects to award a new contract by the end of June 2026. The Company will provide additional updates on the erosion control project as necessary.
Cash and Liquidity Update
PetroTal ended Q1 2026 with a total cash position of $128.1 million, of which $104.2 million was unrestricted. This compares to total cash of $139.1 million at the end of Q4 2025 and $113.6 million at the end of Q1 2025. The decrease in cash relative to the prior quarter is primarily due to the settlement of annual cash taxes, which amounted to approximately $10 million in Q1 2026. PetroTal's trade receivables increased by $23.4 million relative to the prior quarter, as the Company benefited from stronger realized pricing in the month of March.
PetroTal has not initiated any new production hedges since the end of March 2026. In line with previous disclosure, the Company maintains hedges on approximately 0.9 million barrels over the remainder of 2026. The costless collars have an average Brent floor price of $60.00/bbl and a ceiling of $80.50/bbl, with a cap of $100.50/bbl. As of April 21, PetroTal's production hedges had a fair value of negative $11 million.
Guidance Update
PetroTal's original 2026 guidance, released on January 20, 2026, was based on an assumed annual Brent oil price of $60.00/bbl and contemplated Adjusted EBITDA of $30-40 million for the full year. Supported by an average dated Brent oil price of $74.65/bbl during the first quarter of 2026, the Company generated approximately that level of Adjusted EBITDA during Q1 alone.
Incorporating first quarter actual results and updating the forecast for recent Brent strip pricing, PetroTal now expects to generate Adjusted EBITDA of approximately $110-120 million for full-year 2026.
This updated guidance is driven solely by changes in the Company's oil price assumptions. PetroTal is not currently anticipating any material changes to its previously disclosed production outlook, major operating cost assumptions, or 2026 capital expenditure budget.
Corporate Presentation Update
The Company has updated its Corporate Presentation, available for download or viewing at https://petrotalcorp.com/investors/Q1 2026
Webcast Link for May 7, 2026
PetroTal's management team will host a webcast to discuss Q1 2026 results on May 7, 2026 at 9:00am CT (Houston) and 3:00pm BST (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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